CIBC Announces Third Quarter 2008 Results



    TORONTO, Aug. 27 /CNW/ - CIBC (CM: TSX; NYSE) announced net income of
$71 million for the third quarter ended July 31, 2008, compared with net
income of $835 million for the same period last year. Diluted earnings per
share (EPS) were $0.11, compared with diluted EPS of $2.31 a year ago. Cash
diluted EPS were $0.13(1), compared with cash diluted EPS of $2.34(1) a year
ago.
    CIBC's Tier 1 capital ratio at July 31, 2008 was 9.8%.

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

    -   $30 million ($20 million after tax, or $0.05 per share) positive
        impact of changes in credit spreads on the mark-to-market of credit
        derivatives in CIBC's corporate loan hedging program;
    -   $28 million ($20 million after tax and minority interest, or $0.05
        per share) gain on the sale of shares in Visa Inc.;
    -   $27 million ($18 million after tax, or $0.05 per share) of interest
        income on income tax reassessments.

    Results for the third quarter of 2008 were negatively affected by the
following items:

    -   $885 million ($596 million after tax, or $1.56 per share) loss on
        structured credit run-off activities;
    -   $55 million ($33 million after tax, or $0.09 per share) of losses and
        interest expense related to the pending tax settlement of leveraged
        leases;
    -   $16 million ($11 million after tax, or $0.02 per share) of higher
        than normal severance expense.
    

    Net income for the third quarter of 2008 compared to a net loss of
$1,111 million for the prior quarter. Diluted EPS and cash diluted EPS for the
third quarter of 2008 compared to diluted loss per share of $3.00 and cash
diluted loss per share of $2.98(1), respectively, for the prior quarter, which
included items of note that aggregated to a negative impact on results of
$4.59 per share.
    "While the current environment continues to be challenging, CIBC's
franchise is solid. CIBC's capital position is strong and our core businesses
are well positioned for better performance and growth as market conditions
improve," says Gerald T. McCaughey, President and Chief Executive Officer. 
"Our results this quarter were affected by the volatile, and generally
difficult, environment that persisted over much of the third quarter, as well
as by the impact of our ongoing run-off activities and the refocusing of our
core businesses, particularly in CIBC World Markets."
    The continued deterioration in securities with exposure to the U.S.
residential mortgage market and financial guarantor credit spreads required
CIBC to record further asset write-downs and counterparty credit valuation
adjustments in its structured credit run-off business.
    In addition, these market conditions had a negative impact on performance
in other areas, particularly within CIBC's wholesale and retail brokerage
operations.

    Update on business priorities

    CIBC's strategy is to deliver consistent and sustainable performance over
the long term. In support of that strategy, CIBC made progress during the
third quarter against its priorities of business strength, productivity and
balance sheet strength.

    Business strength

    CIBC Retail Markets reported net income of $572 million, down 4% from the
same quarter last year, primarily due to lower treasury revenue allocations
and higher loan losses, which more than offset better expense performance.
    Retail Markets revenue was $2,355 million, down 1% from the third quarter
of 2007. Strong volume growth in CIBC's product groups and higher revenue from
FirstCaribbean International Bank were offset by lower treasury revenue
allocations and lower retail brokerage trading volumes.
    Overall, CIBC's retail business remains well positioned. CIBC achieved
strong volume growth and has maintained market share in a highly competitive
environment. For the second consecutive quarter, CIBC had growth in unsecured
personal lending volumes, though CIBC is taking a measured approach to credit
given the current environment.
    Retail loan losses were $196 million for the third quarter, up
$29 million from the same quarter last year. Continued strong growth in Cards
balances, an increase in the provision relating to the expiry of previous
credit card securitizations, and higher cards loss rates partially offset by
lower personal lending loss rates were the primary drivers of higher loan
losses.

    
    During the quarter, CIBC Retail Markets continued to deliver on its
strategy to provide greater access for clients:

    -   Opened three new branches in Milton, Ontario, Calgary, Alberta and
        Smithers, B.C.;
    -   Expanded hours of operation with additional branches opening on
        Saturdays;
    -   Introduced Sunday banking hours at six more branches in the Greater
        Toronto Area and Vancouver;
    -   Added nearly 100 jobs at the Telephone Banking contact centre in
        Montreal and now have the capacity to make one million additional
        calls in French and English to clients each year.

    During the quarter, CIBC also announced several enhancements to its retail
product capabilities:

    -   To reward client loyalty, CIBC now offers Aeroplan miles for everyday
        banking on the CIBC Unlimited Chequing Account;
    -   Introduced free everyday banking for students with the new
        CIBC Advantage(R) for Students bank account;
    -   Clients also began receiving their new CIBC Aerogold Visa Infinite
        card, CIBC's newest premium credit card, which provides increased
        benefits at no additional fee.
    

    CIBC World Markets reported a net loss of $538 million for the third
quarter, which included the loss of $596 million related to CIBC's structured
credit run-off activities and other items of note aggregating to a net loss of
$20 million. This result compares to a loss of $1,637 million last quarter,
which included a loss of $1,672 million related to structured credit run-off
activities and other items of note aggregating to a net loss of $43 million.
    Revenue in the third quarter for CIBC's continuing World Markets'
businesses was up from last quarter, primarily due to higher revenue from
fixed income and currencies, loan hedging and merchant banking, partly offset
by lower revenue from global equities and equity new issues as a result of the
continued low levels of market activity in these areas.
    CIBC's corporate loan portfolio continues to perform well, with loan
losses of $7 million in the third quarter.
    Activities continued during the third quarter on many fronts to
reposition CIBC's wholesale business for more consistent and sustainable
performance.
    In its structured credit run-off business, CIBC further reduced notional
exposures through a combination of the termination and amortization of credit
derivative contracts.
    Market and economic conditions relating to the financial guarantors may
change in the future, which could result in significant future losses.
    During the quarter, the strength of CIBC's World Markets franchise was
evident in several notable achievements:

    
    -   No. 1 in M&A Activity - CIBC World Markets continues its M&A
        leadership in Canada as measured by volume and deal value, as
        evidenced by its financial advisor role to the Board of Directors of
        EnCana on its approximately $70 billion reorganization of its natural
        gas resource assets and its integrated oil businesses into two
        separate entities, and to Teck Cominco with respect to its pending
        acquisition of Fording Canadian Coal Trust's assets in a transaction
        valued at US$14 billion, which includes CIBC's role as co-lead
        arranger and underwriter for US$9.8 billion of fully underwritten
        bridge and term loans to support the transaction.
    -   A leader in connecting global players with Canadian markets -
        CIBC World Markets continues to deliver on its mission to bring
        Canada to the world and the world to Canada, as evidenced by its role
        as financial advisor to Saskferco in its $1.6 billion sale of a
        nitrogen fertilizer plant to Yara International, a Norwegian chemical
        company. Since the opening of its Winnipeg office in early 2007,
        CIBC World Markets has strengthened its growing presence in the
        agricultural and prairie markets.
    -   No. 1 in Equity Underwriting - CIBC World Markets retained its
        position as the leader in volume of new issues underwritten for the
        fiscal year to date, acting as lead manager on a $288 million
        financing by H&R REIT and as sole underwriter of a US$150 million
        offering by Central Fund of Canada Limited.
    

    Productivity

    In addition to continuing to invest and position its core businesses for
long term performance, CIBC remains committed to its strategic objective of
achieving a median efficiency ratio among the major Canadian banks.
    CIBC's target for 2008 is to hold expenses flat relative to annualized
2006 fourth quarter expenses, excluding expenses related to FirstCaribbean and
its restructuring activities.
    Expenses for the third quarter were $1,725 million, down from
$1,819 million a year ago.
    "Through a combination of better revenue performance as market conditions
improve, as well as continued focus to adjust our infrastructure support
activities in light of recent business divestitures, we expect to achieve
continued progress in the area of productivity," says McCaughey.

    Balance sheet strength

    CIBC's third priority is to build balance sheet strength.
    In 2008, CIBC is placing additional emphasis on this priority, given the
uncertain market conditions.
    Earlier this year, CIBC strengthened its capital position by raising
$2.9 billion of common equity.
    The capital raise has enabled CIBC to maintain a strong capital position
despite the impact of deteriorating market conditions on performance.
    The primary measure of CIBC's balance sheet strength is its Tier 1
capital ratio. CIBC's Tier 1 ratio of 9.8% at the end of July remains well
above its target of 8.5% and one of the highest among North American banks.

    Update on risk management enhancements

    In addition to furthering its business priorities, CIBC continues to
enhance its risk management capabilities.
    During the quarter, CIBC completed a restructuring of its risk management
department. The new structure is based on the results of a comprehensive
review that began earlier this year and comprises five groups as follows:

    
    -   Balance Sheet Measurement, Monitoring and Control
    -   Capital Markets
    -   Credit Portfolio Management
    -   Product Risk Management, Card Products, Mortgages & Retail Lending
    -   Wholesale Credit & Investment Risk Management
    

    This new structure consolidates and simplifies CIBC's risk management
structure, while supporting CIBC's objectives to strengthen decision-making,
accountability and communication on risk matters across the department and
within CIBC.

    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. During
the quarter, CIBC continued to demonstrate leadership in this area.

    
    -   CIBC and the YMCA of Greater Toronto launched CIBC YMCA Access to
        Opportunity(TM) to help newcomers overcome barriers to settling in
        Canada. The new program includes financial literacy learning seminars
        that provide newcomers with information and advice needed to get
        started with banking in Canada as well as a job readiness training
        program that helps connect qualified newcomers to employment at CIBC
        and in the financial services sector.
    -   CIBC was the principal sponsor, for the third year, of the Tour CIBC
        Charles-Bruneau, a four-day bicycle trip across Quebec that raises
        funds for children with cancer. This year, CIBC employees and
        clients raised $150,000 and the Tour exceeded its goal by raising
        $700,000. The funds raised will be donated to the Centre de
        cancérologie Charles-Bruneau at the Sainte-Justine Hospital for
        research and treatment of children with cancer.
    -   CIBC employees throughout B.C. and parts of the Northern Territories
        raised more than $415,000 for the 2008 B.C. Children's Hospital
        campaign. Since 1995, CIBC employees and clients have raised more
        than $3.7 million dollars for B.C. Children's Hospital Foundation.

    ------------------------------
    (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 third 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 third quarter financial
information, including the attached unaudited interim consolidated financial
statements, and will provide the same certification to the Canadian Securities
Administrators.)

    Management's Discussion And Analysis
    -------------------------------------------------------------------------
    Management's discussion and analysis (MD&A) should be read in conjunction
with the unaudited interim consolidated financial statements included in this
report and with the MD&A contained in our 2007 Annual Accountability Report.
The unaudited interim consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles (GAAP) and
are expressed in Canadian dollars. This MD&A is current as of August 27, 2008.
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
149 and 150 of our 2007 Annual Accountability Report.

    
    External reporting changes

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

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

    A NOTE ABOUT FORWARD-LOOKING STATEMENTS

    From time to time, we make written or oral forward-looking statements
within the meaning of certain securities laws, including in this report, in
other filings with Canadian securities regulators or the U.S. Securities and
Exchange Commission and in other communications. These statements include, but
are not limited to, statements made in the "Summary of third quarter results",
"Update on business priorities", "Overview - Significant events", "Overview -
Outlook", "Run-off businesses", "Other selected activities" and "Financial
performance review - Income taxes" sections, of this report and other
statements about our operations, business lines, financial condition, risk
management, priorities, targets, ongoing objectives, strategies and outlook
for 2008 and subsequent periods. Forward-looking statements are typically
identified by the words "believe", "expect", "anticipate", "intend",
"estimate" and other similar expressions or future or conditional verbs such
as "will", "should", "would" and "could". By their nature, these statements
require us to make assumptions, including the economic assumptions set out in
the "Overview - Outlook" section of this report, and are subject to inherent
risks and uncertainties that may be general or specific. A variety of factors,
many of which are beyond our control, affect our operations, performance and
results, and could cause actual results to differ materially from the
expectations expressed in any of our forward-looking statements. These factors
include: legislative or regulatory developments in the jurisdictions where we
operate; amendments to, and interpretations of, risk-based capital guidelines
and reporting instructions; the resolution of legal proceedings and related
matters; the effect of changes to accounting standards, rules and
interpretations; changes in our estimates of reserves and allowances; changes
in tax laws; that our estimate of sustainable effective tax rate will not be
achieved; political conditions and developments; the possible effect on our
business of international conflicts and the war on terror; natural disasters,
public health emergencies, disruptions to public infrastructure and other
catastrophic events; reliance on third parties to provide components of our
business infrastructure; the accuracy and completeness of information provided
to us by clients and counterparties; the failure of third parties to comply
with their obligations to us and our affiliates; intensifying competition from
established competitors and new entrants in the financial services industry;
technological change; global capital market activity; interest rate and
currency value fluctuations; general economic conditions worldwide, as well as
in Canada, the U.S. and other countries where we have operations; changes in
market rates and prices which may adversely affect the value of financial
products; our success in developing and introducing new products and services,
expanding existing distribution channels, developing new distribution channels
and realizing increased revenue from these channels; changes in client
spending and saving habits; and our ability to anticipate and manage the risks
associated with these factors. This list is not exhaustive of the factors that
may affect any of our forward-looking statements. These and other factors
should be considered carefully and readers should not place undue reliance on
our forward-looking statements. We do not undertake to update any
forward-looking statement that is contained in this report or in other
communications except as required by law.


    
    THIRD QUARTER FINANCIAL HIGHLIGHTS
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                      As at or for the      As at or for the
                                    three months ended     nine months ended
                       -------------------------------- ---------------------
                            2008       2008       2007       2008       2007
    Unaudited            Jul. 31    Apr. 30    Jul. 31    Jul. 31    Jul. 31
    --------------------------------------------------- ---------------------
    Common share information
    Per share
      - basic earnings
        (loss)         $    0.11  $   (3.00) $    2.33  $   (7.05) $    6.75
      - cash basic
        earnings
        (loss)(1)           0.13      (2.98)      2.36      (6.99)      6.81
      - diluted earnings
        (loss)              0.11      (3.00)      2.31      (7.05)      6.69
      - cash diluted
        earnings
        (loss)(1)           0.13      (2.98)      2.34      (6.99)      6.75
      - dividends           0.87       0.87       0.77       2.61       2.24
      - book value         28.40      29.01      33.05      28.40      33.05
    Share price
      - high               76.75      74.17     106.75      99.81     106.75
      - low                49.56      56.94      92.37      49.56      92.37
      - closing            61.98      74.17      92.50      61.98      92.50
    Shares outstanding
     (thousands)
      - average basic    380,877    380,754    335,755    366,686    336,511
      - average diluted  382,172    382,377    338,691    368,352    339,739
      - end of period    380,732    380,770    334,595    380,732    334,595
    Market
     capitalization
     ($ millions)      $  23,598  $  28,242  $  30,950  $  23,598  $  30,950
    --------------------------------------------------- ---------------------
    Value measures
    Price to earnings
     multiple (12 month
     trailing)               n/m        n/m       10.3        n/m       10.3
    Dividend yield
     (based on closing
     share price)            5.6%       4.8%       3.3%       5.6%       3.2%
    Dividend payout ratio    n/m        n/m       33.0%       n/m       33.2%
    Market value to
     book value ratio       2.18       2.56       2.80       2.18       2.80
    --------------------------------------------------- ---------------------
    Financial results
     ($ millions)
    Total revenue      $   1,905  $     126  $   2,979  $   1,510  $   9,120
    Provision for
     credit losses           203        176        162        551        471
    Non-interest
     expenses              1,725      1,788      1,819      5,274      5,738
    Net income (loss)         71     (1,111)       835     (2,496)     2,412
    --------------------------------------------------- ---------------------
    Financial measures
    Efficiency ratio        90.5%       n/m       61.1%       n/m       62.9%
    Cash efficiency
     ratio, taxable
     equivalent basis
     (TEB)(1)               88.0%       n/m       59.4%       n/m       61.4%
    Return on equity         1.6%    (37.6)%      28.3%    (30.3)%      28.1%
    Net interest margin     1.54%      1.57%      1.41%      1.48%      1.37%
    Net interest margin
     on average
     interest-earning
     assets                 1.82%      1.85%      1.61%      1.74%      1.56%
    Return on average
     assets                 0.08%    (1.29)%      1.00%    (0.96)%      0.99%
    Return on average
     interest-earning
     assets                 0.10%    (1.52)%      1.14%    (1.14)%      1.14%
    Total shareholder
     return              (15.25)%      2.59%     (4.6)%   (36.79)%       8.0%
    --------------------------------------------------- ---------------------
    On- and off-balance
     sheet information
     ($ millions)
    Cash, deposits with
     banks and
     securities        $  89,468  $  92,189  $ 102,143  $  89,468  $ 102,143
    Loans and
     acceptances         173,386    174,580    167,828    173,386    167,828
    Total assets         329,040    343,063    338,881    329,040    338,881
    Deposits             228,601    238,203    230,208    228,601    230,208
    Common
     shareholders'
     equity               10,813     11,046     11,058     10,813     11,058
    Average assets       343,396    349,005    331,553    345,618    324,572
    Average interest-
     earning assets      290,598    296,427    290,157    293,373    284,015
    Average common
     shareholders'
     equity               10,664     12,328     10,992     11,384     10,808
    Assets under
     administration    1,134,843  1,147,887  1,115,719  1,134,843  1,115,719
    --------------------------------------------------- ---------------------
    Balance sheet
     quality measures
    Common equity to
     risk-weighted
     assets(2)               9.1%       9.6%       8.8%       9.1%       8.8%
    Risk-weighted assets
     ($ billions)(2)   $   118.5  $   114.8  $   125.0  $   118.5  $   125.0
    Tier 1 capital
     ratio(2)                9.8%      10.5%       9.7%       9.8%       9.7%
    Total capital
     ratio(2)               14.4%      14.4%      13.7%      14.4%      13.7%
    --------------------------------------------------- ---------------------
    Other information
    Retail/wholesale
     ratio(3)             67%/33%    68%/32%    76%/24%    67%/33%    76%/24%
    Regular workforce
     headcount            40,251     40,345     40,315     40,251     40,315
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------
    (1)  For additional information, see the "Non-GAAP measures" section.
    (2)  Beginning Q1/08, these measures are based upon Basel II framework
         whereas the prior quarters were based upon Basel I methodology.
    (3)  The ratio represents the amount of capital attributed to the
         business lines as at the end of the period.
    n/m  Not meaningful due to the net loss.
    

    OVERVIEW
    -------------------------------------------------------------------------

    Net income for the quarter was $71 million, compared to net income of
$835 million for the same quarter last year and a net loss of $1,111 million
for the prior quarter. Net loss for the nine months ended July 31, 2008 was
$2,496 million, compared with net income of $2,412 million for the same period
in 2007.
    Our results for the current quarter were affected by the following items:

    
    -   Loss on the structured credit run-off business of $885 million
        ($596 million after-tax), which includes gains on index hedges, net
        of mark-to-market (MTM) losses on unhedged exposures related to the
        U.S. residential mortgage market (USRMM), of $12 million ($8 million
        after-tax), charges on credit protection purchased from ACA Financial
        Guaranty Corp. (ACA) and other financial guarantors of $904 million
        ($609 million after-tax), gains on credit hedges on structured credit
        counterparties of $74 million ($50 million after-tax), losses on
        sales of certain positions, and direct expense related to managing
        the run-off activities;
    -   $16 million ($11 million after-tax) of higher than normal severance
        accruals;
    -   $30 million ($20 million after-tax) positive impact of changes in
        credit spreads on the MTM of credit derivatives in our corporate loan
        hedging program;
    -   $28 million ($20 million after-tax and minority interest) gain on
        sale of shares in Visa Inc.;
    -   Interest income on income tax reassessments of $27 million
        ($18 million after-tax); and
    -   Losses and interest expense related to leveraged leases of
        $55 million ($33 million after-tax).
    

    Compared with Q3, 2007

    The loss on structured credit run-off business noted above was the main
factor for the decline in revenue from the same quarter last year. Losses
related to leveraged leases, lower gains on credit derivatives in our
corporate loan hedging program, and lower retail spreads attributable to a
lower interest rate environment also contributed to the decline. Revenue
benefited from volume growth in cards, mortgages and deposits. Provision for
credit losses was up mainly due to higher losses in the cards portfolio as a
result of volume growth, an increase in provisions relating to the expiry of
previous credit card securitizations and higher loss rates. Non-interest
expenses were down largely due to lower performance-related compensation,
partially offset by higher severance related expenses.

    Compared with Q2, 2008

    Revenue was up mainly due to lower charges on credit protection purchased
from financial guarantors and lower MTM losses related to our USRMM positions.
Revenue in the quarter was negatively impacted by lower treasury revenues and
losses and interest expense related to leveraged leases. Non-interest expenses
were down from the prior quarter due to lower litigation expenses, partially
offset by higher performance-related compensation expense.

    Compared with the nine months ended July 31, 2007

    Revenue in the current period was significantly lower due to the charges
on credit protection purchased from financial guarantors and MTM losses
related to our USRMM positions. Lower revenue from U.S. real estate finance
and the impact of the sale of some of our U.S. businesses, and lower retail
spreads attributable to a lower interest rate environment contributed to the
decline. Revenue benefited from higher gains on our corporate loan credit
derivatives, volume growth in cards, mortgages and deposits, and the
FirstCaribbean International Bank (FirstCaribbean) acquisition. Provision for
credit losses was up mainly due to the reversal of general allowance in the
same period last year and higher losses in the cards portfolio driven by
volume growth, increase in provisions relating to the expiry of previous
credit card securitizations and higher loss rates. Non-interest expenses were
down largely due to lower performance-related compensation and the sale of
some of our U.S. businesses. The loss for the period resulted in a tax
benefit.
    Our results for the prior periods were affected by the following items:

    
    ------------------------------------------------------------------------
    Q2, 2008
    --------

    -   Loss on structured credit run-off business of $2.5 billion
        ($1.7 billion after-tax), which included MTM losses, net of gains on
        index hedges, on unhedged exposures related to the USRMM
        ($114 million, $77 million after-tax), charges on credit protection
        purchased from ACA and other financial guarantors ($2.2 billion,
        $1.5 billion after-tax), gain on credit hedges on structured credit
        counterparties ($63 million, $42 million after-tax), losses on sales
        of certain positions, and direct expenses related to managing the
        run-off activities;
    -   $50 million ($34 million after-tax) of valuation charges against
        credit exposures to derivatives counterparties, other than financial
        guarantors;
    -   $22 million ($19 million after-tax and minority interest) loss on
        Visa Inc.'s initial public offering (IPO) adjustment;
    -   $26 million ($18 million after-tax) of severance accruals;
    -   $65 million ($21 million after-tax) foreign exchange loss on the
        repatriation of retained earnings from our U.S. operations; and
    -   $14 million ($9 million after-tax) positive impact of changes in
        credit spreads on corporate loan credit derivatives.

    Q1, 2008
    --------

    -   $2.3 billion ($1.5 billion after-tax) charge on the credit protection
        purchased from ACA;
    -   $626 million ($422 million after-tax) charge on the credit protection
        purchased from financial guarantors other than ACA;
    -   $473 million ($316 million after-tax) MTM losses, net of gains on
        related hedges, on collateralized debt obligations (CDOs) and
        residential mortgage-backed securities (RMBS) related to the USRMM;
    -   $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);
    -   $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, and
    -   $56 million positive impact of favourable tax-related items.

    Q3, 2007
    --------

    -   $290 million ($190 million after-tax) MTM losses, net of gains on
        related hedges, on CDOs and RMBS related to the USRMM;
    -   $75 million ($70 million after-tax) of net reversal of litigation
        accruals;
    -   $77 million ($50 million after-tax) positive impact of changes in
        credit spreads on corporate loan credit derivatives; and
    -   $48 million of tax recovery.

    Q2, 2007
    --------

    -   $91 million of favourable tax recoveries and reversals;
    -   $24 million ($17 million after-tax) reversal of the general allowance
        for credit losses; and
    -   $10 million ($7 million after-tax) positive impact of changes in
        credit spreads on corporate loan credit derivatives.

    Q1, 2007
    --------

    -   $6 million ($4 million after-tax) negative impact of changes in
        credit spreads on corporate loan credit derivatives.
    -------------------------------------------------------------------------
    

    Significant events

    Global market credit issues

    Problems originating in the U.S. subprime mortgage market last year
continued to impact the conditions for credit and liquidity globally. Our
structured credit business, within CIBC World Markets, had losses for the
quarter of $885 million ($6.8 billion for the nine months ended July 31,
2008), primarily due to deterioration in the credit quality of financial
guarantors and MTM losses on the underlying assets, which resulted in
significant increases in valuation adjustments to the value of credit
protection bought. During the quarter, we continued to actively manage our
exposures, reducing notional exposures by approximately $1.5 billion and
unwound related purchased credit derivatives of a similar amount for a total
reduction in notional of approximately US$3 billion.
    In April 2008, the Financial Stability Forum (a group of G7 central banks
and supervision groups) tabled recommendations with the G7 countries to
enhance disclosure of what are deemed to be high risk activities. Based on
these recommendations we have presented a number of related disclosures in the
"Run-off businesses" and "Other selected activities" sections of the MD&A.

    Sale of some of our U.S. businesses

    Effective January 1, 2008, we sold our U.S. based investment banking,
leveraged finance, equities and related debt capital markets businesses and
our Israeli investment banking and equities businesses to Oppenheimer Inc.
During the nine months ended July 31, 2008, we recorded a loss of $80 million
on the sale. It is anticipated that the sale of certain other U.S. capital
markets related activities located in the U.K. and Asia to Oppenheimer will
close in the fourth quarter of 2008.
    CIBC restricted share awards (RSAs) held by employees transferred to
Oppenheimer will continue to vest in accordance with their original terms. To
support this compensation arrangement, Oppenheimer will reimburse CIBC for the
cost of these RSAs to the extent they vest, at which time we will record the
reimbursements in other non-interest income.
    Pursuant to the sale agreement, CIBC invested in a US$100 million
subordinated debenture issued by Oppenheimer and is providing certain credit
facilities to Oppenheimer and its investment banking clients to facilitate
Oppenheimer's business, with each loan subject to approval by CIBC's credit
committee.
    The disposition is not expected to have a significant impact on our
ongoing results of operations.

    Issue of share capital

    During the first quarter, we issued 45.3 million common shares for net
proceeds of $2.9 billion, through a combination of private placements and a
public offering.
    We issued 23.9 million common shares for net proceeds of $1.5 billion,
through a private placement to a group of institutional investors, comprising
Manulife Financial Corporation, Caisse de dépôt et placement du Québec, Cheung
Kong (Holdings) Ltd. and OMERS Administration Corporation.
    We also issued 21.4 million common shares for net proceeds of
$1.4 billion, through a public offering.

    Visa Inc.

    As a result of the worldwide restructuring of Visa in the last quarter of
2007, in March 2008, Visa Inc. proceeded with the IPO of Class A shares at
US$44 per share. As a result of the mandatory redemption of 56.1% of our
shares and the final adjustment process, we recorded a pre-tax loss of $22
million ($19 million after-tax and minority interest) in the second quarter.
    In July 2008, we sold our remaining shares in Visa Inc. to another former
bank member in the Visa network as permitted by the terms of Visa's
restructuring agreements and recorded a gain of $28 million ($20 million
after-tax and minority interest).

    Global restructuring of ACA

    On August 7, 2008, we, together with other institutions reached an
agreement with ACA to restructure the credit derivatives that ACA had in place
with various counterparties. The restructuring resulted in the termination of
the credit derivative contracts and, in return, we received cash of
approximately US$33 million representing our pro-rata share (16%) of an
initial cash payment. We also received, on a pro-rata basis, a counterparty
surplus note (CSN) issued by ACA, valued at US$8 million. The CSN entitles the
holder to receive any residual cash flows of ACA and is subject to the review
and approval of the Maryland Insurance Administration.
    We consider that the events of August 7, 2008 represent additional
information relating to our best estimate of the amounts recoverable from ACA
as at July 31, 2008, and have accordingly adjusted our credit valuation
adjustment against ACA resulting in a credit to net income before tax of
US$11 million.

    Leveraged leases

    Effective November 1, 2007, we adopted the amended CICA Emerging Issues
Committee Abstract (EIC) 46, "Leveraged Leases", which was based upon the
Financial Accounting Standards Board Staff Position FAS 13-2, "Accounting for
a Change or Projected Change in the Timing of Cash Flows Relating to Income
Taxes Generated by a Leveraged Lease Transaction".
    The EIC requires that a change in the estimated timing of the cash flows
relating to income taxes result in a recalculation of the timing of income
recognition from the leveraged lease. The adoption resulted in a $66 million
charge to opening retained earnings as at November 1, 2007. An amount
approximating this non-cash charge will be recognized into income over the
remaining lease terms using the effective interest rate method.
    On August 5, 2008, CIBC received a settlement offer from the Internal
Revenue Service (IRS) with respect to its leveraged leases. The terms and
conditions of the letter are identical to that received by other industry
participants in these transactions. The effect of the communication is a
further change in the cash flows from the previous offer to settle by the IRS
and from what was reflected in the opening retained earnings amount as
described above. The current quarter income statement includes a pre-tax
charge of $22 million resulting from a GAAP lease income adjustment and a
further pre-tax charge of $33 million for interest payments on deficient tax
installments. The settlement offer includes certain other terms and conditions
which CIBC is attempting to have clarified with the IRS including a "best
efforts" clause to terminate all leases before December 31, 2008 when all
associated tax benefits for leases not terminated will be deemed to end. CIBC
has 60 days from August 5, 2008 to accept this offer. The IRS will provide
additional written information on the offer shortly. While CIBC believes its
provisions and charges to date accurately reflect the terms of the IRS
settlement offer, it is possible that clarification by the IRS of certain
terms and conditions (and agreement on actual numbers) could result in
additional charges in future quarters.

    Outlook

    Canadian economic growth is expected to remain very sluggish in the final
fiscal quarter of this year, held back by weak exports and the impacts of
recent employment declines on consumer spending. Housing construction is also
showing some tentative signs of a slowdown. Interest rates are likely to
remain generally stable until 2009 as the central bank awaits signs of an
economic pick-up in the U.S.
    CIBC Retail Markets should benefit from what are still historically low
unemployment rates that support lending growth and household credit quality. A
slower pace of real estate price increases and home sales may moderate
mortgage growth rates.
    For CIBC World Markets, mergers and acquisition and equity activity will
likely remain slower than in the prior year due to credit concerns affecting
global leveraged deals. We expect loan demand to increase due to reduced
investor appetite for asset-backed securities. Economic softness could lead to
a less favourable period for corporate credit risk in certain parts of the
Canadian economy.

    RUN-OFF BUSINESSES
    -------------------------------------------------------------------------

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

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

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

    Structured credit run-off business

    Overview and results

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

    
    Exposures

    Our exposures largely consist of the following categories:

    Unhedged -
    -   USRMM
    -   non-USRMM

    Hedged -
    -   financial guarantors (USRMM and non-USRMM)
    -   other counterparties (USRMM and non-USRMM)

    Results - losses before taxes
    ------------------------------------------------------------  -----------
                                                                     For the
                                                  For the three  nine months
                                                   months ended        ended
                                        ------------------------  -----------
                                              2008         2008         2008
    $ millions                             Jul. 31      Apr. 30      Jul. 31
    ------------------------------------------------------------  -----------
    Trading                             $      885   $    2,340   $    6,603
    Available-for-sale (AFS)                     -          144          230
    ------------------------------------------------------------  -----------
    Total                               $      885   $    2,484   $    6,833
    ------------------------------------------------------------  -----------
    ------------------------------------------------------------  -----------

    The structured credit business had losses during the quarter of
$885 million, compared to losses of $2.5 billion in the prior quarter. These
losses were primarily driven by further deterioration in the credit quality of
financial guarantors and the mark-to-market losses of the underlying assets,
which resulted in significant increases in credit valuation adjustments.

    Change in exposures

    ACA
    ---
    During the quarter, the following events took place with respect to
written credit derivatives against which we purchased protection from ACA:

    -   US$97 million of notional of our written credit derivatives were
        cancelled as a result of default in the underlyings, generating a
        loss of US$9 million in the quarter. The corresponding purchased
        credit derivatives with ACA were also cancelled.
    -   We terminated US$339 million of written credit derivatives with a
        loss of US$2 million. As a result, the corresponding purchased credit
        derivatives with ACA became unmatched protection.
    -   Normal amortization reduced the notional of our written and
        corresponding purchased credit derivatives with ACA by US$28 million.
    

    On August 7, 2008, we together with other institutions reached an
agreement with ACA to restructure the credit derivatives that ACA had in place
with various counterparties. The restructuring resulted in the termination of
the credit derivatives contracts and in return, we received cash of
approximately $33 million representing our pro-rata share (16%) of an initial
cash payment. We also received, on a pro-rata basis, a CSN issued by ACA,
valued at $8 million. The CSN entitles the holder to receive any residual cash
flows of ACA and is subject to the review and approval of the Maryland
Insurance Administration.
    As a consequence of the restructuring, our investments (notional
US$217 million, fair value US$11 million) and our written credit derivatives,
(notional US$1,226 million, fair value liability US$1,097 million) previously
hedged by ACA, became unhedged as of August 7, 2008.

    Others
    ------
    During the quarter, in addition to the reduction of the ACA related
positions noted above we have also reduced exposures in the intermediation,
correlation and flow trading books by approximately US$1.5 billion, and
unwound related purchased credit derivatives of a similar amount for a total
reduction in notional of approximately US$3.0 billion.

    
    -------------------------------------------------------------------------
                                                           2008         2008
    US$ millions, as at                                 Jul. 31      Apr. 30
    -------------------------------------------------------------------------
    Notional
      Investments and loans(1)                       $   10,261   $   10,678
      Written credit derivatives(2)                      34,128       35,832
    -------------------------------------------------------------------------
    Total gross exposures                            $   44,389   $   46,510
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Purchased credit derivatives and index hedges    $   43,384   $   44,963
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Notional for investments and loans represent original investment
        costs.
    (2) Includes notional amount for written credit derivatives and liquidity
        and credit facilities.
    

    Total exposures

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

    
    US$ millions, as at July 31, 2008
    -------------------------------------------------------------------------
                                         Exposures(1)              Hedged by
                           -------------------------------------- -----------
                                                  Written credit    Purchased
                                                     derivatives       credit
                                                   and liquidity  derivatives
                                                      and credit    and index
                            Investments & loans    facilities(2)       hedges
                           -------------------- ----------------- -----------
                                                                    Financial
                                                                   guarantors
                                                                  -----------
                                         Fair               Fair
                            Notional  value(3)   Notional  value(4)  Notional
                           ---------- --------- --------- --------- ---------
    USRMM
    Unhedged(6)
    -----------
      Super senior
        CDO of mezzanine
         RMBS               $      -  $      -  $    278  $    264  $      -
      Warehouse - RMBS           365        20         -         -         -
      Various(7)                 146        11         -         -         -
      Index hedges                 -         -         -         -         -
    -------------------------------------------------------------------------
                                 511        31       278       264         -
    Hedged
    ------
        Other CDO              1,498       226     4,908     3,867     5,789
      Unmatched purchased
       credit derivatives(8)       -         -         -         -     1,880
    -------------------------------------------------------------------------
    Total USRMM             $  2,009  $    257  $  5,186  $  4,131  $  7,669
    -------------------------------------------------------------------------
    Non-USRMM
    Unhedged
    --------
      CLO(2)                $    257  $    218  $    161  $     12  $      -
      Corporate debt             209       187         -         -         -
      Third party sponsored
       ABCP conduits(2)(10)      459       270       639       n/a         -
      Warehouse - non-RMBS       160        78         -         -         -
      Others(2)                  254       251        94       n/a         -
    -------------------------------------------------------------------------
                               1,339     1,004       894        12         -

    Hedged
    ------
      CLO(11)                  6,197     5,170     8,284       765    13,967
      Corporate debt               -         -    16,139       872     6,959
      CMBS                         -         -       777       191       777
      Others                     716       585     2,848       303     2,871
    Unmatched purchased
     credit derivatives            -         -         -         -         -
    -------------------------------------------------------------------------
    Total non-USRMM            8,252     6,759    28,942     2,143    24,574
    -------------------------------------------------------------------------
    Total                   $ 10,261  $  7,016  $ 34,128  $  6,274  $ 32,243
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008           $ 10,678  $  7,529  $ 35,832  $  6,073  $ 32,632
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    US$ millions, as at July 31, 2008
    -------------------------------------------------------------------------
                                       Hedged by           Unhedged  Unhedged
                           ------------------------------ exposures   USRMM
                            Purchased
                              credit
                           derivatives
                            and index
                              hedges
                           ------------------------------
                            Financial
                           guarantors       Others
                           ---------- ------------------- --------- ---------
                               Fair                                    Net
                              value                Fair        Net    expo-
                              (3)(4)  Notional   value(3) notional   sure(5)
                           ---------- --------- --------- --------- ---------
    USRMM
    Unhedged(6)
    -----------
      Super senior
        CDO of mezzanine
         RMBS               $      -  $      -  $      -  $    278  $     14
      Warehouse - RMBS             -         -         -       365        20
      Various(7)                   -         -         -       146        11
      Index hedges                 -        75        58       (75)      (17)
    -------------------------------------------------------------------------
                                   -        75        58       714
    Hedged
    ------
        Other CDO              4,695       550(9)    361        67
      Unmatched purchased
       credit derivatives(8)   1,771         -         -         -
    -------------------------------------------------------------------------
    Total USRMM             $  6,466  $    625  $    419  $    781
    -------------------------------------------------------------------------
    Non-USRMM
    Unhedged
    --------
      CLO(2)                $      -  $      -  $      -  $    418
      Corporate debt               -         -         -       209
      Third party sponsored
        ABCP conduits(2)(10)       -         -         -     1,098
      Warehouse - non-RMBS         -         -         -       160
      Others(2)                    -         -         -       348
    -------------------------------------------------------------------------
                                   -         -         -     2,233

    Hedged
    ------
      CLO(11)                  1,436       529        39       (15)
      Corporate debt             415     9,176       475         4
      CMBS                       192         -         -         -
      Others                     381       730        46       (37)
    Unmatched purchased
     credit derivatives            -        81         -         -
    -------------------------------------------------------------------------
    Total non-USRMM            2,424    10,516       560     2,185
    -------------------------------------------------------------------------
    Total                   $  8,890  $ 11,141  $    979  $  2,966
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008           $  8,063  $ 12,331  $    776  $  3,435
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1)    We have excluded from the table above our total holdings of the
           following entities, including those related to our treasury
           activities, as at July 31, 2008 of notional US$4,187 million and
           fair value US$4,149 million. (Total holdings as at April 30, 2008
           was notional US$5,309 million and fair value US$5,283 million.
           Amounts reported in the prior quarter did not include money market
           positions in an offshore subsidiary):
           -  Debt securities issued by Federal National Mortgage Association
              (Fannie Mae) (notional US$1,904 million, fair value
              US$1,880 million), Federal Home Loan Mortgage Corporation
              (Freddie Mac) (notional US$1,029 million, fair value
              US$1,008 million), Government National Mortgage Association
              (Ginnie Mae) (notional US$198 million, fair value
              US$195 million), Federal Home Loan Banks (notional
              US$1,000 million, fair value US$999 million), and Federal Farm
              Credit Bank (notional US$400 million, fair value
              US$400 million).
           -  Trading equity securities issued by Fannie Mae (fair value
              US$3 million) and Freddie Mac (fair value US$1 million) which
              are hedged by short positions in stock indices, and trading
              equity securities in, Student Loan Marketing Association
              (Sallie Mae) (fair value US$2 million)
           -  Short positions in debt securities, predominantly To Be
              Announced securities, of Fannie Mae (notional US$133 million,
              fair value US$131 million) and Freddie Mac (notional US$217
              million, fair value US$208 million)
    (2)    Liquidity and credit facilities to third party sponsored ABCP
           conduits amounted to US$639 million, to non-USRMM unhedged CLO
           amounted to US$64 million and to non-USRMM unhedged others
           amounted to US$94 million.
    (3)    Gross of valuation adjustments (VA) for purchased credit
           derivatives of $6.0 billion.
    (4)    This is the fair value of the contracts, which were typically
           zero, or close to zero, at the time they were entered into.
    (5)    After write-downs.
    (6)    As at July 31, 2008, the rating for super senior CDO of Mezzanine
           RMBS was CC. The rating for the warehouse RMBS was approximately
           46% investment grade and 54% non-investment grade (based on % of
           market value).
    (7)    Includes USRMM exposures held in FirstCaribbean which mature in
           25 to 38 years and are rated AA1 to AAA.
    (8)    During the quarter, we have sold and unwound some of our USRMM
           exposures that were previously hedged, leaving the purchased
           credit derivatives unmatched.
    (9)    Hedged with a large American diversified multi-national insurance
           and financial services company with which CIBC has market standard
           collateral arrangements.
    (10)   Estimated USRMM exposure in the third party sponsored ABCP
           conduits was $110 million as at July 31, 2008.
    (11)   Investments and loans include unfunded investment commitments with
           a notional of US$318 million (April 30, 2008: US$331 million) and
           negative fair value of US$44 million (April 30, 2008:
           US$31 million).
    n/a    not applicable
    

    Unhedged USRMM exposures

    Our remaining unhedged exposure to the USRMM, after write downs, was
US$45 million ($46 million) as at July 31, 2008. To mitigate this exposure, we
also have subprime index hedges with a notional amount of US$75 million
($77 million) and a fair value of US$58 million ($59 million) as at July 31,
2008. During the quarter, we terminated $225 million notional of index hedges
as a result of the reduction in our exposures. We had gains on index hedges,
net of realized and unrealized losses on our unhedged USRMM exposures, in the
quarter of US$12 million ($12 million).

    Unhedged non-USRMM exposures

    Our unhedged exposures to non-USRMM primarily relates to four categories:
CLO, corporate debt, third party sponsored ABCP conduits, warehouse non-RMBS,
and other. A fifth category, commercial mortgage backed securities (CMBS) in
FirstCaribbean was sold during the quarter.

    CLO

    Our unhedged CLO assets with notional of US$418 million ($428 million)
were mostly rated AAA as at July 31, 2008, and are backed by diversified pools
of European based senior secured leveraged loans.

    Corporate debt

    Approximately 21%, 53% and 26% of the unhedged corporate debt exposures
with notional of US$209 million ($214 million) are related to positions in
Europe, Canada and other countries respectively.

    Third party sponsored ABCP conduits

    We hold positions in and provide liquidity facilities with a total
notional of US$1,098 million ($1,124 million) to ABCP conduits that are
parties to the "Montreal Accord" and ABCP conduits that are not parties to the
Montreal Accord.

    Montreal Accord
    ---------------
    As at July 31, 2008 we held $452 million (October 31, 2007: $358 million)
in par value holdings in non-bank sponsored ABCP subject to the Montreal
Accord, including $94 million notional purchased in the third quarter which
was in excess of management's estimate of fair value of these instruments, to
settle claims. These non-bank sponsored ABCP are backed by traditional
securitization assets, and leveraged and unleveraged CDOs, some of which have
U.S sub-prime exposures (estimated notional exposure to U.S sub-prime
mortgages was $110 million as at July 31, 2008).
    We also provided a liquidity facility of $270 million to one of these
conduits which was undrawn as at July 31, 2008. The conditions of the facility
require the conduit's notes, which are currently unrated, to be rated R-1
(high) by DBRS, hence it is unlikely to be drawn. If the restructuring plan
set out in the Montreal Accord ultimately prevails as we expect, we will
receive $145 million in senior Class A-1 notes, $153 million in senior Class
A- 2 notes and $152 million in various subordinated and tracking notes and
$2 million in accrued interest in exchange for our existing ABCP with par
value of $452 million in the third quarter. The Class A-1 and Class A-2 notes
pay a variable rate of interest that will be below market levels. The
subordinated notes are expected to be 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 will pass through the cash flows of the underlying
assets. All of the notes are expected to mature in December 2016.
    Based on our estimate of the $258 million combined fair value of these
notes, we recorded cumulative losses of $170 million, all in previous
quarters.
    In addition, pursuant to the restructuring plan, we expect to participate
in a Margin Funding Facility (MFF) to support the collateral requirements of
the restructured conduits. Under the terms of the MFF, we will be committed to
provide a $300 million undrawn loan facility to be used in the unlikely event
that the amended collateral triggers of the related credit derivatives are
breached and the new trusts to be created under the Montreal Accord do not
have sufficient assets to support the collateral requirements. If the loan
facility was fully drawn and more collateral was required, we would then have
the right to limit our commitment to the original $300 million, although the
consequence would likely be the loss of that $300 million loan.

    Other ABCP conduits
    -------------------
    We also provided liquidity and credit related facilities to third party
sponsored ABCP conduits that are not parties to the Montreal Accord. During
the quarter, $100 million and $140 million of the facilities have been
terminated and drawn respectively. The drawn amounts are included in non-USRMM
unhedged others in the table on page 11. As at July 31, 2008, $384 million of
the facilities, all to U.S. conduits, remained undrawn. The underlying assets
of these conduits comprise U.S. auto loans (50%) and U.S. CDO (48%), with
maturities ranging from five to eight years. Of the $384 million, $40 million
was subject to liquidity agreements under which the conduits maintain the
right to put their assets back to CIBC at par. Approximately 87% of the
$40 million is provided to conduits with CDO assets. In addition, as at
July 31, 2008, we had investments and loans of $18 million in third party
sponsored ABCP conduits that are not parties to the Montreal Accord.

    Warehouse non-RMBS

    Of the unhedged warehouse non-RMBS assets with notional of US$160 million
($164 million), 73% is investment in CLOs backed by diversified pools of U.S.
based senior secured leveraged loans. Approximately 14% is investment in CDOs
backed by trust preferred securities with exposure to U.S. real estate
investment trusts. Another 7% has exposure to the U.S. commercial real estate
market.

    Other

    Other unhedged exposure with notional of US$254 million ($260 million) is
primarily related to film rights receivables (40%), lottery receivables (23%),
and U.S. mortgage defeasance loans (27%).

    Hedged with financial guarantors (USRMM and non-USRMM)

    ACA
    ---
    During the quarter, we recorded a charge of US$102 million ($104 million)
on our exposures hedged by ACA. We have increased our valuation adjustments by
US$12 million ($12 million) against the receivable from ACA for unmatched
purchased credit derivatives, bringing the total valuation adjustments for ACA
to US$3.0 billion ($3.1 billion) as at July 31, 2008. With the restructuring
of ACA on August 7, 2008 as noted above, we have reduced our credit valuation
adjustments against ACA resulting in a credit to earnings of US$11 million
($11 million). As a result, the fair value of derivative contracts with ACA
net of valuation adjustments was US$41 million ($42 million) as at July 31,
2008.

    Other counterparties
    --------------------
    We also recorded a charge of US$799 million ($800 million) on the hedging
contracts provided by other financial guarantors to increase their related
valuation adjustments to US$3.0 billion ($3.0 billion) as at July 31, 2008.
The fair value of derivative contracts with other financial guarantors net of
valuation adjustments was US$2.9 billion ($2.9 billion). Further significant
losses could result depending on the performance of both the underlying assets
and the financial guarantors.
    Mitigating our exposure to these financial guarantors are credit hedges
with a notional amount of US$205 million ($210 million) and a fair value of
US$65 million ($67 million) as at July 31, 2008. During the quarter, we
recognized a gain of US$66 million ($68 million) net of premium cost on these
remaining hedges and others that were unwound in the quarter. These credit
hedges are market standard contracts and generic to each insurer. They do not
specifically refer to the contracts that we have with each insurer. Subsequent
to July 31, 2008, we terminated these hedges realizing their gains.
    In addition, we have loan and tranched securities positions that are
partly secured by direct guarantees from financial guarantors or by bonds
guaranteed by financial guarantors. As at July 31, 2008, these positions were
performing and the total amount guaranteed by financial guarantors was
approximately US$220 million.
    The following tables present 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 July 31, 2008
    -------------------------------------------------------------------------

                                                         USRMM related
    ------------------------------------- -----------------------------------
             Standard  Moody's                                       Credit-
    Counter-      and investor   Fitch                        Fair   related
    party      Poor's services Ratings          Notional   value(1)       VA
    -------------------------------------------------------------------------
    I         AA(2)(3)      A2     -(4)         $     75  $     23  $    (12)
    II        AA(2)(3)     Aa3     -(4)              541       434      (169)
    III          A-(2)   Ba2(5)    CCC               618       573      (366)
    IV           BB(2)      B1     CCC               533       494      (333)
    V          BBB-(2) B2(5)(6)  CCC(6)            2,580     1,873      (807)
    VI            CCC        -       -             3,322     3,069    (3,028)
    VII           AAA    Aaa(2)    AAA                 -         -         -
    VIII          AAA    Aaa(2)    AAA                 -         -         -
    IX            AAA    Aaa(2)    AAA                 -         -         -
    X             A(2)      A3     -(7)                -         -         -
    XI             A+       A3    A+(2)                -         -         -
    -------------------------------------------------------------------------
    Total financial guarantors                  $  7,669  $  6,466  $ (4,715)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008                              $  7,879  $  6,223  $ (4,667)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                         Non-USRMM              Total
    ---------------------- ------------------------------ -------------------
                                                 Credit-                 Net
    Counter-                              Fair   related                fair
    party                   Notional   value(1)       VA  Notional     value
    -------------------------------------------------------------------------
    I                       $  2,031  $    292  $   (157) $  2,106  $    146
    II                         1,786       319      (125)    2,327       459
    III                        1,515       185      (118)    2,133       274
    IV                         2,308       222      (150)    2,841       233
    V                          2,678       281      (121)    5,258     1,226
    VI                             -         -         -     3,322        41
    VII                        5,200       285      (178)    5,200       107
    VIII                       5,115       481      (218)    5,115       263
    IX                         1,491       156       (56)    1,491       100
    X                          2,252       200      (146)    2,252        54
    XI                           198         3        (1)      198         2
    -------------------------------------------------------------------------
    Total financial
     guarantors             $ 24,574  $  2,424  $ (1,270) $ 32,243  $  2,905
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008           $ 24,753  $  1,840  $   (502) $ 32,632  $  2,894
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Before VA
    (2) On credit watch with negative implications
    (3) Credit watch removed in August, 2008.
    (4) Rating withdrawn in June, 2008. No longer rated by Fitch ratings.
    (5) On credit watch
    (6) Changed to credit watch with positive implications in August, 2008.
    (7) Rating withdrawn in May, 2008. No longer rated by Fitch ratings.


    The assets underlying the exposure hedged by financial guarantors are as
follows:

    US$ millions, as at July 31, 2008
    -------------------------------------------------------------------------
                    USRMM
                   related             Non-USRMM related
                  --------- -------------------------------------------------
                  Notional                      Notional
                  -----------------------------------------------------------
                                     Corporate
    Counterparty       CDO       CLO      debt      CMBS    Others     Total
    -------------------------------------------------------------------------
    I             $     75  $    686  $      -  $    777  $    568  $  2,031
    II                 541       952         -         -       834     1,786
    III                618     1,387         -         -       128     1,515
    IV                 533     2,010         -         -       298     2,308
    V                2,580     2,678         -         -         -     2,678
    VI               3,322         -         -         -         -         -
    VII                  -         -     5,200         -         -     5,200
    VIII                 -     4,865         -         -       250     5,115
    IX                   -     1,314         -         -       177     1,491
    X                    -        75     1,759         -       418     2,252
    XI                   -         -         -         -       198       198
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total
     financial
     guarantors   $  7,669  $ 13,967  $  6,959  $    777  $  2,871  $ 24,574
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008 $  7,879  $ 14,075  $  6,959  $    777  $  2,942  $ 24,753
    -------------------------------------------------------------------------
    

    USRMM

    Hedged
    ------
    Our USRMM related positions of notional $5.8 billion hedged by financial
guarantors comprise super senior CDOs with underlyings being approximately 45%
subprime RMBS, 28% Alt-A RMBS, 13% ABS CDOs and 14% non-USRMM. Sub-prime and
Alt-A underlyings consist of approximately 22% pre-2006 vintage as well as 78%
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.

    Unmatched purchased credit derivatives
    --------------------------------------
    Underlying reference assets for unmatched credit derivatives of notional
$1.9 billion purchased from financial guarantors represent super senior CDOs
with approximately 81% sub-prime RMBS, 1% Alt-A RMBS, and 18% ABS CDOs. Sub-
prime and Alt-A underlyings consist of approximately 46% pre-2006 vintage and
54% 2006 and 2007 vintage RMBS.

    Non-USRMM

    The following provides further data and description of the assets
underlying the non-USRMM exposures hedged by financial guarantors:

    
    US$ millions, as at July 31, 2008
    ----------------------------------------------------------------



                                            Total  Notional/Tranche
                                    Fair tranches  -----------------
                       Notional    value       (1)    High      Low
    ----------------------------------------------------------------
    CLO                 $13,967  $ 1,436       82  $   375  $    25
    Corporate debt        6,959      415       11      800      259
    CMBS                    777      192        2      453      324
    Others
      Non-US RMBS           481       57        5      178       20
      TruPS                 873      175       12      128       24
      Other               1,517      149       13      270        1
    ----------------------------------------------------------------
    Total               $24,574   $2,424      125  $ 2,204  $   653
    ----------------------------------------------------------------
    ----------------------------------------------------------------


    -------------------------------------------------------------------------
                                         Weighted
                                          average   Invest-
                                             life     ment
                       Fair value/Tranche    (WAL) grade(2)   Subordination
                       ------------------      in    under- -----------------
                           High      Low    years   lyings  Average    Range
    -------------------------------------------------------------------------
    CLO                 $    46  $     -      5.4        1%      32%    6-67%
    Corporate debt           93       13      4.3       75%      19%   15-30%
    CMBS                    102       90      6.5       66%      44%   43-46%
    Others
      Non-US RMBS            22        -      6.9      n/a       32%    1-53%
      TruPS                  50        3      5.1      n/a       49%   46-57%
      Other                  68        -      8.0      n/a       17%    0-53%
    -------------------------------------
    Total               $   381  $   106
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1)  A tranche is a portion of a security offered as part of the same
         transaction where the underlying may be an asset, pool of assets,
         index or another tranche. The value of the tranche depends on the
         value of the underlying, subordination and deal specific structures
         such as tests/triggers.
    (2)  Or equivalent based on internal credit ratings.
    n/a  Not available
    

    CLO

    The CLO, which are primarily AAA rated tranches, comprise assets in a
wide range of industries with the highest concentration in the services
(personal and food) industry (30%), the broadcasting, publishing and
telecommunication sector (18%), and the manufacturing sector (15%). Only 4% is
in the real estate sector. Approximately 63% and 32% 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 (34%)
corporate debt in various industries (manufacturing 27%, financial
institutions 14%, cable and telecommunications 10%, retail and wholesale 9%).

    CMBS

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

    Others

    Others are CDOs backed by trust preferred securities (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 movie
receivables.

    Hedged with other counterparties

    The following table provides the notional amounts and fair values of
purchased credit derivatives from counterparties other than financial
guarantors. Approximately 99% of other counterparties hedging our non-USRMM
exposures have internal credit ratings equivalent to investment grade.

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

                                                    Fair                Fair
    US$ millions, as at               Notional     value  Notional     value
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    550  $    361  $    309  $     18
    Banks                                    -         -       948        66
    Canadian conduits                        -         -     9,176       475
    Governments                              -         -         -         -
    Others                                   -         -         2         1
    -------------------------------------------------------------------------
    Total                             $    550  $    361  $ 10,435  $    560
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                                       Total
                                      ---------------------------------------
                                            Notional           Fair value
                                      ------------------- -------------------
                                          2008      2008      2008      2008
    US$ millions, as at                Jul. 31   Apr. 30   Jul. 31   Apr. 30
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    859  $    992  $    379  $    305
    Banks                                  948     1,434        62        28
    Canadian conduits                    9,176     9,256       475       245
    Governments                              -       347         -         -
    Others                                   2         2         1         1
    -------------------------------------------------------------------------
    Total                             $ 10,985  $ 12,031  $    917  $    579
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The assets underlying the exposure hedged by counterparties other than
financial guarantors is as follows:

                                        USRMM         Non-USRMM related
                                       related
                                     ---------- -----------------------------
                                      Notional            Notional
                                     ---------- -----------------------------
                                         CDO(1)   CLO(2) Corporate   Other(3)
    US$ millions, as at July 31, 2008                         debt
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    550  $      -  $      -  $  309(4)
    Banks                                    -       529         -     419(4)
    Canadian conduits                        -         -     9,176         -
    Governments                              -         -         -         -
    Others                                   -         -         -       2(4)
    -------------------------------------------------------------------------
    Total                             $    550  $    529  $  9,176  $    730
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008                     $    591  $    529  $  9,256  $  1,655
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The US$550 million represents super senior CDOs with approximately
        76% subprime RMBS, 3% Alt-A RMBS, 10% ABS CDOs, and 11% non-USRMM.
        Subprime and Alt-A are all pre-2006 vintage.
    (2) 3% of underlyings is investment grade. 4% is North American exposure
        and 96% is European exposure. Major industry concentration is in the
        services industry (40%), the manufacturing sector (20%), the
        broadcasting and communication industries (14%); and only 3% is in
        the real estate sector.
    (3) 71% of underlyings is investment grade or equivalent. 36% is U.S.
        exposure and 31% is European exposure. Major industry concentration
        is in the banking and finance sector (31%), the broadcasting,
        publishing and telecommunication industries (14%), and the mining and
        oil and gas sector (12%); only 2% is in the real estate sector.
    (4) Consist largely of single name credit default swaps which hedge
        written single name credit default swaps and securities.
    

    Canadian conduits

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

    
    -------------------------------------------------------------------------
    US$ millions,                                                 Collateral
     as at                                              Mark-to-         and
     July 31, 2008     Underlying       Notional(1)      market  guarantee(2)
    -------------------------------------------------------------------------
    Conduits
    --------
    Great North Trust  Investment grade
                        corporate
                        credit index(3)  $   4,826    $     291    $   406(4)
    Nemertes I/        160 Investment
     Nemertes II        grade
                        corporates(5)        4,350          184        462
    -------------------------------------------------------------------------
    Total                                $   9,176    $     475    $   868
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008                        $   9,256    $     245    $   766
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) These exposures mature within 5 to 8 years.
    (2) Comprises investment grade notes issued by third party sponsored
        conduits, corporate floating rate notes, commercial paper issued by
        CIBC-sponsored securitization conduits, CIBC bankers acceptances, and
        funding commitments.
    (3) Consists of a static portfolio of 125 North American corporate
        reference entities that were investment grade rated when the index
        was created. 85% of the entities are rated Baa3 or higher.
        123 reference entities are U.S. entities. Financial guarantors
        represent approximately 2.4% of the portfolio. Attachment point is
        30% and there is no direct exposure to USRMM or the U.S. commercial
        real estate market.
    (4) Includes US$114 million of funding commitments (with indemnities)
        from certain third party investors in Great North Trust.
    (5) Consists of a static portfolio of 160 corporate reference entities of
        which 91.3% was investment grade on the trade date. 87% entities are
        currently rated Baa3 or higher (investment grade). 77 reference
        entities are U.S. entities. Financial guarantors represent
        approximately 2.5% of the portfolio. Attachment point is 20% and
        there is no direct exposure to USRMM or the U.S. commercial real
        estate market. Nereus is the sponsor for Nemertes I and Nemertes II
        trusts.
    

    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 July 31, 2008, we have funded leveraged loans of
$924 million (April 30, 2008: $851 million), of which $1 million (April 30,
2008: nil) is considered impaired, and unfunded letters of credits and
commitments of $288 million (April 30, 2008: $374 million) of which
$23 million, (April 30, 2008: nil) is considered impaired. Associated with
this, we had a loss of $5 million related to a credit loss provision on
impaired loans and unfunded commitments during the quarter.

    
    Exposures of ELF loans by industry are as follows:

                                                     ------------------------
    $ millions, as at July 31, 2008                     Drawn(1)   Undrawn(1)
    -------------------------------------------------------------------------
    Construction                                      $      85    $      37
    Manufacturing                                           312          111
    Services                                                254           63
    Transportation and public utilities                      41           33
    Wholesale trade                                         232           44
    -------------------------------------------------------------------------
    Total                                             $     924    $     288
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes impairment
    


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

    Securitization business

    Our securitization business provides clients access to funding in the
debt capital markets. We sponsor several multi-seller conduits in Canada that
purchase pools of financial assets from our clients, and finance the purchases
by issuing commercial paper to investors. We generally provide the conduits
with commercial paper backstop liquidity facilities, securities distribution,
accounting, cash management and other financial services.
    As at July 31, 2008, our holdings of ABCP issued by our sponsored
conduits were $44 million (October 31, 2007: $3.1 billion), and our committed
backstop liquidity facilities to these conduits were $9.8 billion. We also
provided credit facilities of $60 million to these conduits as at July 31,
2008.
    The following table shows the underlying collateral and the average
maturity for each asset type in our multi-seller conduits:

    
    -------------------------------------------------------------------------
                                                                   Estimated
                                                                    weighted
                                                         Funded    avg. life
    $ millions, as at July 31, 2008                      amount       (years)
    -------------------------------------------------------------------------
    Asset class
    Residential mortgages                             $   3,642        2.3
    Auto leases                                           2,709        1.2
    Franchise loans                                         785        1.7
    Auto loans                                              608        1.1
    Credit cards                                            975        4.6(1)
    Dealer floorplan                                        487        1.3
    Equipment leases/loans                                  351        1.4
    Other                                                    26        1.9
    -------------------------------------------------------------------------
    Total                                             $   9,583        2.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008                                     $  12,160        2.0
    -------------------------------------------------------------------------
    (1) Based on the revolving period and amortization period contemplated in
        the transaction.
    

    The short-term notes issued by the conduits are backed by the above
assets. The performance of the above assets has met the criteria required to
retain the ratings of the notes issued by the multi-seller conduits.
    In addition, we also securitize our mortgages and credit cards
receivables. Details of our securitization transactions during the quarter are
provided in Note 6 to the 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. Once the construction and interim phases are
complete and the properties are income producing, borrowers are offered fixed
rate financing within the permanent program. These commercial mortgages are
then sold into CMBS programs. The business also maintains CMBS trading and
distribution capabilities. As at July 31, 2008, the group has a CMBS inventory
with a market value of US$3.3 million. The following table provides a summary
of our positions in this business as at July 31, 2008:

    
    -------------------------------------------------------------------------
                                                       Unfunded       Funded
    US$ millions, as at July 31, 2008               commitments      loans(2)
    -------------------------------------------------------------------------
    Construction program                              $     298    $     622
    Interim program                                         164        1,129
    Commercial fixed rate mortgages                           -        151(1)
    -------------------------------------------------------------------------
    Total                                             $     462    $   1,902
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008                                     $     413    $   1,944
    -------------------------------------------------------------------------
    (1) This represents the market value of funded loans of US$209 million.
    (2) Funded loans of US$190 million are economically hedged with interest
        rate swap and total rate of return swaps. The loans are provided for
        commercial real estate and the maturities of the loans are between
        1-2 years.


    FINANCIAL PERFORMANCE REVIEW
    ----------------------------------------------------- -------------------
                                           For the three        For the nine
                                            months ended        months ended
                            ----------------------------- -------------------
                                2008      2008      2007      2008      2007
    $ millions               Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Net interest income     $  1,327  $  1,349  $  1,180  $  3,830  $  3,318
    Non-interest income          578    (1,223)    1,799    (2,320)    5,802
    ----------------------------------------------------- -------------------
    Total revenue              1,905       126     2,979     1,510     9,120
    Provision for credit
     losses                      203       176       162       551       471
    Non-interest expenses      1,725     1,788     1,819     5,274     5,738
    ----------------------------------------------------- -------------------
    (Loss) income before
     taxes and non-
     controlling interests       (23)   (1,838)      998    (4,315)    2,911
    Income tax (benefit)
     expense                    (101)     (731)      157    (1,834)      479
    Non-controlling interests      7         4         6        15        20
    ----------------------------------------------------- -------------------
    Net income (loss)       $     71  $ (1,111) $    835  $ (2,496) $  2,412
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    

    Net interest income

    Net interest income was up $147 million or 12% from the same quarter last
year, mainly due to decreased trading interest expense, volume growth in
retail products, interest income on tax reassessments, and higher interest
income in FirstCaribbean. These factors were offset in part by interest
expense related to leveraged leases.
    Net interest income was down $22 million or 2% from the prior quarter,
primarily due to interest expense related to leveraged leases, offset in part
by volume growth in retail products, interest income on tax reassessments, and
the impact of two more days in this quarter.
    Net interest income for the nine months ended July 31, 2008 was up
$512 million or 15% from the same period in 2007, mainly due to volume growth
in retail products, decreased trading interest expense, higher interest income
in FirstCaribbean, interest income on tax reassessments, and the impact of one
more day. These factors were offset in part by interest expense related to
leveraged leases.

    Non-interest income

    Non-interest income was down $1,221 million or 68% from the same quarter
last year, primarily due to charges on credit protection purchased from
financial guarantors and MTM losses related to our exposure to the USRMM. In
addition, lower trading activities, the impact of the sale of some of our U.S.
businesses, lower fair value option (FVO) revenue, and lower gains on
available for sale (AFS) securities also contributed to the decline.
    Non-interest income was up $1,801 million from the prior quarter, mainly
due to lower charges on credit protection purchased from financial guarantors
and lower MTM losses related to our exposure to the USRMM. In addition, higher
trading activities, the prior quarter foreign exchange loss on the
repatriation of retained earnings from our U.S. operations, and higher gains
on AFS securities also contributed to the increase.
    Non-interest income for the nine months ended July 31, 2008 was down
$8,122 million from the same period in 2007, primarily due to charges on
credit protection purchased from financial guarantors and MTM losses related
to our exposure to the USRMM. In addition, lower trading activities, the
impact of the sale of some of our U.S. businesses, lower FVO revenue, and
lower gains on AFS securities also contributed to the decline. These factors
were partially offset by higher gains on credit derivatives.

    Provision for credit losses

    Provision for credit losses was up $41 million or 25% from the same
quarter last year, largely due to higher losses in the cards portfolio as a
result of volume growth, an increase in the provision relating to the expiry
of previous credit card securitizations, and higher loss rates. These factors
were partially offset by improvements in the personal lending portfolio.
Higher losses in CIBC World Markets in the U.S. and Europe also contributed to
the increase.
    Provision for credit losses was up $27 million or 15% from the prior
quarter, primarily due to higher losses in the cards portfolio as a result of
the reasons noted above.
    Provision for credit losses for the nine months ended July 31, 2008 was
up $80 million or 17% from the same period in 2007. Higher losses in the cards
portfolio as a result of the reasons noted above and lower recoveries in
Europe in CIBC World Markets were partially offset by improvements in the
personal lending portfolio. The second quarter of 2007 benefited from the
$24 million reversal of the general allowance.

    Non-interest expenses

    Non-interest expenses were down $94 million or 5% from the same quarter
last year primarily due to lower performance-related compensation, commission,
pension, telecommunication, and computer expenses. These were offset in part
by higher litigation expenses.
    Non-interest expenses were down $63 million or 4% from the prior quarter,
primarily due to lower litigation expenses, partially offset by higher
performance-related compensation.
    Non-interest expenses were down $464 million or 8% for the nine months
ended July 31, 2008 from the same period in 2007. The decrease was mainly due
to lower performance-related compensation, partially offset by higher
litigation expenses. The current period also benefited from lower commission,
pension, and communication expenses.

    Income taxes

    Income tax benefit was $101 million, compared to an expense of
$157 million in the same quarter last year. The change was largely due to
reduced income. The prior period also benefited from income tax recoveries.
The income tax benefit in the current quarter is large relative to the loss
before taxes and non-controlling interests owing to the mix of earnings in
jurisdictions that have different tax rates. Income tax benefit was down
$630 million from the prior quarter, primarily due to a lower loss before tax.
    The income tax benefit for the nine months ended July 31, 2008 was
$1,834 million, compared with an expense of $479 million in the same period in
2007. The income tax benefit was due to the loss during the current period.
    The effective tax recovery rate was 439.1% for the quarter, compared to
an effective tax rate of 15.7% for the same quarter last year and a tax
recovery rate of 39.8% for the prior quarter. The current quarter recovery
rate is high for the reason noted above. The effective tax recovery rate for
the nine months ended July 31, 2008 was 42.5% compared to an effective tax
rate of 16.5% for the same period in 2007.
    At the end of the quarter, our future income tax asset was $1.3 billion,
net of a US$82 million ($84 million) valuation allowance.  Included in the
future income tax asset are $954 million related to a Canadian non-capital
loss carryforward which expires in 20 years, and $68 million related to a
Canadian capital loss carryforward which has no expiry date.  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.

    Foreign exchange

    Our U.S. dollar denominated results are impacted by fluctuations in the
U.S. dollar/Canadian dollar exchange rate. The Canadian dollar appreciated 5%
on average relative to the U.S. dollar from the same quarter last year,
resulting in a $11 million decrease in the translated value of our U.S. dollar
functional 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 functional earnings.
    The Canadian dollar appreciated 11% on average relative to the U.S.
dollar for the nine months ended July 31, 2008 from the same period in 2007,
resulting in a $223 million decrease in the translated value of our U.S.
dollar functional earnings.

    
    Review of quarterly financial information

                                                             2008       2007
    -------------------------------------------------------------------------
    $ millions, except per
     share amounts, for the
     three months ended             Jul. 31    Apr. 30    Jan. 31    Oct. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets         $   2,355  $   2,239  $   2,371  $   2,794
      CIBC World Markets               (598)    (2,166)    (2,957)         5
      Corporate and Other               148         53         65        147
    -------------------------------------------------------------------------
    Total revenue                     1,905        126       (521)     2,946
    Provision for credit losses         203        176        172        132
    Non-interest expenses             1,725      1,788      1,761      1,874
    -------------------------------------------------------------------------
    (Loss) income before taxes and
     non-controlling interests          (23)    (1,838)    (2,454)       940
    Income tax (benefit) expense       (101)      (731)    (1,002)        45
    Non-controlling interests             7          4          4         11
    -------------------------------------------------------------------------
    Net income (loss)             $      71  $  (1,111) $  (1,456) $     884
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings (loss) per share
      - basic                     $    0.11  $   (3.00) $   (4.39) $    2.55
      - diluted(1)                $    0.11  $   (3.00) $   (4.39) $    2.53
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                             2007       2006
    -------------------------------------------------------------------------
    $ millions, except per
     share amounts, for the
     three months ended             Jul. 31    Apr. 30    Jan. 31    Oct. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets         $   2,386  $   2,309  $   2,273  $   2,171
      CIBC World Markets                455        606        662        572
      Corporate and Other               138        135        156        147
    -------------------------------------------------------------------------
    Total revenue                     2,979      3,050      3,091      2,890
    Provision for credit losses         162        166        143         92
    Non-interest expenses             1,819      1,976      1,943      1,892
    -------------------------------------------------------------------------
    (Loss) income before taxes and
     non-controlling interests          998        908      1,005        906
    Income tax (benefit) expense        157         91        231         87
    Non-controlling interests             6         10          4          -
    -------------------------------------------------------------------------
    Net income (loss)             $     835  $     807  $     770  $     819
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings (loss) per share
      - basic                     $    2.33  $    2.29  $    2.13  $    2.34
      - diluted(1)                $    2.31  $    2.27  $    2.11  $    2.32
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) In case of a loss, the effect of stock options potentially
        exercisable on diluted earnings (loss) per share will be anti-
        dilutive; therefore, basic and diluted earnings (loss) per share will
        be the same.
    

    Our quarterly results are modestly affected by seasonal factors. The
first quarter is normally characterized by increased credit card purchases
over the holiday period. The second quarter has fewer days as compared with
the other quarters, generally leading to lower earnings. The summer months
(July - third quarter and August - fourth quarter) typically experience lower
levels of capital markets activity, which affects our brokerage, investment
management and wholesale activities.
    The acquisition of FirstCaribbean resulted in an increase in revenue in
CIBC Retail Markets since the first quarter of 2007. In addition, revenue was
particularly high in the fourth quarter of 2007 due to the gain recorded on
the Visa restructuring. CIBC World Markets revenue has been adversely affected
since the third quarter of 2007 due to the MTM losses on CDOs and RMBS, and
more significantly in the current three quarters due to the charges on credit
protection purchased from financial guarantors and MTM losses related to our
exposure to the USRMM.
    The retail lending provision increased in 2008 largely due to higher
losses in the cards portfolio, attributable to volume growth, an increase in
the provision relating to the expiry of previous credit card securitizations,
and higher loss rates, partially offset by improvements in the personal
lending portfolio. Corporate lending recoveries and reversals have decreased
from the high levels in the past. Reversals of the general allowance were
included in the second quarter of 2007 and the fourth quarter of 2006.
    Non-interest expenses were higher in 2007 resulting from the
FirstCaribbean acquisition. Performance-related compensation has been lower
since the third quarter of 2007. The net reversal of litigation accruals also
led to lower expenses in the third and fourth quarters of 2007.
    The first three quarters of 2008 had an income tax benefit resulting from
the loss during the period. Income tax recoveries related to the favourable
resolution of various income tax audits and reduced tax contingencies were
included in the last three quarters of 2007 and the last quarter of 2006. Tax-
exempt income has generally been increasing over the period, until the second
and third quarters of 2008. Larger tax-exempt dividends were received in the
fourth quarters of 2007 and 2006. 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 benefit on the foreign exchange loss on the
repatriation of retained earnings from our foreign operations was included in
the second quarter of 2008. Income tax expense on the repatriation of capital
and retained earnings from our foreign operations was included in the fourth
quarter of 2007.

    Non-GAAP measures

    We use a number of financial measures to assess the performance of our
business lines. Some measures are calculated in accordance with GAAP, while
other measures do not have a standardized meaning under GAAP, and,
accordingly, these measures may not be comparable to similar measures used by
other companies. Investors may find these non-GAAP financial measures useful
in analyzing financial performance. For a more detailed discussion on our non-
GAAP measures, see page 45 of the 2007 Annual Accountability Report.
    The following tables provide a reconciliation of non-GAAP to GAAP
measures related to CIBC on a consolidated basis. The reconciliation of the
non-GAAP measures of our business lines are provided in their respective
sections.

    
    ----------------------------------------------------- -------------------
                                                 For the             For the
                                      three months ended   nine months ended
    $ millions,             ----------------------------- -------------------
     except per                 2008      2008      2007      2008      2007
     share amounts           Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Net interest income     $  1,327  $  1,349  $  1,180  $  3,830  $  3,318
    Non-interest income          578    (1,223)    1,799    (2,320)    5,802
    ----------------------------------------------------- -------------------
    Total revenue per
     financial
     statements          A     1,905       126     2,979     1,510     9,120
    TEB adjustment       B        44        60        65       165       181
    ----------------------------------------------------- -------------------
    Total revenue
     (TEB)(1)            C  $  1,949  $    186  $  3,044  $  1,675  $  9,301
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Non-interest
     expenses
     per financial
     statements          D  $  1,725  $  1,788  $  1,819  $  5,274  $  5,738
    Less: amortization
     of other
     intangible assets            11        10        11        31        28
    ----------------------------------------------------- -------------------
    Cash non-interest
     expenses(1)         E  $  1,714  $  1,778  $  1,808  $  5,243  $  5,710
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (Loss) income
     before taxes and
     non-controlling
     interests
     per financial
     statements          F  $    (23) $ (1,838) $    998  $ (4,315) $  2,911
    TEB adjustment       B        44        60        65       165       181
    ----------------------------------------------------- -------------------
    Income (loss)
     before taxes and
     non-controlling
     interests (TEB)(1)  G  $     21  $ (1,778) $  1,063  $ (4,150) $  3,092
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Reported income
     taxes per
     financial
     statements          H  $   (101) $   (731) $    157  $ (1,834) $    479
    TEB adjustment       B        44        60        65       165       181
    Other tax
     adjustments         I         -         -        69        56       160
    ----------------------------------------------------- -------------------
    Adjusted income
     taxes(1)            J  $    (57) $   (671) $    291  $ (1,613) $    820
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Net income (loss)
     applicable to
     common shares       K  $     41  $ (1,141) $    783  $ (2,586) $  2,271
    Add: after tax-
     effect of
     amortization of
     other intangible
     assets                        8         8         8        24        21
    ----------------------------------------------------- -------------------
    Cash net income
     (loss) applicable
     to common
     shares(1)           L  $     49  $ (1,133) $    791  $ (2,562) $  2,292
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Basic weighted-
     average common
     shares (thousands)  M   380,877   380,754   335,755   366,686   336,511
    Diluted weighted-
     average common
     shares (thousands)  N   382,172   382,377   338,691   368,352   339,739
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Cash efficiency
     ratio (TEB)(1)    E/C     88.0%       n/m     59.4%       n/m     61.4%
    Reported
     effective
     income
     tax rate
     (TEB)(1)(2)   (H+B)/G  (271.4)%     37.7%     20.9%     40.2%     21.3%
    Adjusted
     effective
     income tax
     rate (1)(2)   (H+I)/F    439.1%     39.8%     22.6%     41.2%     22.0%
    Adjusted
     effective
     income tax
     rate (TEB)(1)(2)  J/G  (271.4)%     37.7%     27.4%     38.9%     26.5%
    Cash basic
     earnings (loss)
     per share (1)     L/M  $   0.13  $  (2.98) $   2.36  $  (6.99) $   6.81
    Cash diluted
     earnings (loss)
     per share (1)(3)  L/N  $   0.13  $  (2.98) $   2.34  $  (6.99) $   6.75
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Non-GAAP measure.
    (2) For the periods ended July 31, 2008 and April 30, 2008, represents
        tax recovery rates applicable to the loss before tax and non-
        controlling interests.
    (3) In case of a loss, the effect of stock options potentially
        exercisable on diluted earnings (loss) per share will be anti-
        dilutive; therefore, basic and diluted earnings (loss) per share will
        be the same.
    n/m Not meaningful due to the net loss.
    

    Internal allocations

    Treasury impacts the reported financial results of the strategic business
units (CIBC Retail Markets and CIBC World Markets) through two mechanisms:

    Internal funds transfer pricing

    Each business line is charged a marginal, market based cost of funds on
originated assets and credited with value for funds for any liabilities or
funding provided by the business line. As market rates change, the funds
transfer pricing system immediately reflects these changes for newly
originated balances and this impacts the revenue performance of each business
line.

    Treasury revenue allocations

    Once the risk inherent in our customer driven assets and liabilities is
transfer priced into Treasury, it is managed within CIBC's risk framework and
limits. The majority of revenues from these activities is allocated to, and
impacts, the "Other" business line within each strategic business unit. A
component of Treasury revenue, earnings on unallocated capital, remains in
Corporate and Other.

    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             For the
                                      three months ended   nine months ended
                            ----------------------------- -------------------
                                2008      2008      2007      2008      2007
    $ millions               Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Revenue
      Personal and small
       business banking     $    563  $    540  $    537  $  1,647  $  1,555
      Imperial Service           250       239       247       733       716
      Retail brokerage           275       264       295       815       891
      Cards                      460       415       405     1,298     1,214
      Mortgages and
       personal lending          292       302       367       913     1,104
      Asset management           117       116       126       353       373
      Commercial banking         127       117       127       370       369
      FirstCaribbean             165       122       133       413       333
      Other                      106       124       149       423       413
    ----------------------------------------------------- -------------------
    Total revenue (a)          2,355     2,239     2,386     6,965     6,968
    Provision for credit
     losses                      196       174       167       525       501
    Non-interest
     expenses (b)              1,377     1,380     1,406     4,110     4,177
    ----------------------------------------------------- -------------------
    Income before taxes
     and non-controlling
     interests                   782       685       813     2,330     2,290
    Income tax expense           203       174       212       579       491
    Non-controlling
     interests                     7         2         5        13        16
    ----------------------------------------------------- -------------------
    Net income (c)          $    572  $    509  $    596  $  1,738  $  1,783
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    ----------------------------------------------------- -------------------
    Efficiency ratio (b/a)     58.5%     61.6%     58.9%     59.9%     60.0%
    Amortization of other
     intangible assets (d)  $      7  $      8  $      8  $     23  $     21
    Cash efficiency
     ratio(2) ((b-d)/a)        58.2%     61.3%     58.6%     58.7%     59.6%
    ROE(2)                     45.6%     42.0%     47.8%     47.2%     50.9%
    Charge for economic
     capital(2) (e)         $   (162) $   (154) $   (157) $   (472) $   (447)
    Economic profit(2)
     (c+e)                  $    410  $    355  $    439  $  1,266  $  1,336
    Regular workforce
     headcount                28,341    28,253    27,612    28,341    27,612
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.
    

    Financial overview

    Net income was down $24 million or 4% from the same quarter last year,
largely due to a slight decline in revenue and higher loan losses, partially
offset by lower expenses.
    Net income was up $63 million or 12% from the prior quarter, largely due
to the gain on the sale of our remaining Visa Inc. shares, volume growth and
two more days in the quarter, partially offset by higher loan losses.
    Net income for the nine months ended July 31, 2008 was down $45 million
or 3% from the same period in 2007, which benefited from a tax recovery of
$80 million. Excluding the tax recovery, net income was up on lower expenses,
partially offset by higher loan losses.
    Our internal funds transfer pricing methodology provides a liquidity
payment to business units that source or provide funding and charges a
liquidity cost to business units that use funding. Compared to the prior
quarter and the same quarter last year on an aggregate basis, this has a
minimal impact to the results of CIBC Retail Markets.

    Revenue

    Revenue was down $31 million or 1% from the same quarter last year.
Continued strong volume growth and the gain on the sale of Visa Inc. shares
were offset by lower treasury revenue allocations. Spreads were relatively
flat as compression from a lower interest rate environment, the continued
shift in our product mix due to growth in secured lending and competitive
market conditions were offset by improvements in FirstCaribbean.
    Personal and small business banking revenue was up $26 million, mainly
due to higher deposit revenue driven by 4% volume growth and favourable
internal funds transfer pricing.
    Retail brokerage revenue was down $20 million, largely due to lower
trading and new issue activity.
    Cards revenue was up $55 million, primarily driven by 12% volume growth,
the gain on the sale of Visa Inc. shares and higher fee income, partially
offset by unfavourable internal funds transfer pricing.
    Mortgages and personal lending revenue was down $75 million. Strong
volume growth in residential mortgages of 12% and secured lending of 16% was
more than offset by unfavourable internal funds transfer pricing and lower
mortgage refinancing fees.
    FirstCaribbean revenue was up $32 million due to higher deposit spreads,
fee income and securities revenue.
    Other revenue was down $43 million, due to lower treasury revenue
allocations, partially offset by increased revenue in President's Choice
Financial as product balances grew 20%.
    Revenue was up $116 million or 5% from the prior quarter. Solid volume
growth, the gain on the sale of Visa Inc. shares and the impact of two more
days were partially offset by lower allocated treasury revenue, which also
compressed spreads.
    Personal and small business banking revenue was up $23 million, mainly
due to volume growth, two more days and higher fee income, partially offset by
slightly lower spreads.
    Cards revenue was up $45 million, primarily due to the sale of Visa Inc.
shares, volume growth and two more days in the quarter.
    Mortgages and personal lending revenue was down $10 million largely due
to a lower spreads, partially offset by volume growth and two more days in the
quarter.
    Commercial banking revenue was up $10 million, largely due to volume
growth in deposits and higher fee income.
    FirstCaribbean revenue was up $43 million, primarily due to higher
securities revenue and the sale of Visa Inc. shares.
    Other revenue was down $18 million, primarily due to lower treasury
revenue allocations.
    Revenue for the nine months ended July 31, 2008 was down $3 million from
the same period in 2007. Strong volume growth was offset by lower brokerage
revenue. Spreads were relatively flat as compression from a lower interest
rate environment, a change in our product mix due to growth in secured
lending, and competitive market conditions were offset by improvements in
FirstCaribbean.
    Personal and small business banking revenue was up $92 million, led by
favourable internal funds transfer pricing and 4% growth in consumer deposits.
    Imperial Service revenue was up $17 million, led by volume growth.
    Retail brokerage revenue was down $76 million, as a result of lower
trading and new issue activity.
    Cards revenue was up $84 million, primarily due to 13% growth in
outstandings and higher fee income, partially offset by unfavourable internal
funds transfer pricing.
    Mortgages and personal lending revenue was down $191 million. Strong
volume growth in residential mortgages and secured lending of 12% and 15%
respectively was more than offset by unfavourable internal funds transfer
pricing and lower mortgage refinancing fees. Continued shift of the lending
portfolio to secured lines of credit negatively impacted spreads.
    Asset management revenue was down $20 million, primarily due to lower fee
income.
    FirstCaribbean revenue was up $80 million as the prior period revenue is
only included from the date of acquisition on December 22, 2006. Prior to
December 22, 2006, FirstCaribbean was equity-accounted and the revenue was
included in other.
    Other revenue was up $10 million, due to higher revenue in President's
Choice Financial, partially offset by lower treasury revenue allocations.

    Provision for credit losses

    Provision for credit losses was up $29 million or 17% from the same
quarter last year, largely due to higher losses in the cards portfolio driven
by volume growth, an increase in the provision relating to the expiry of
previous credit card securitizations and higher loss rates. The impact of the
increase in cards was partially offset by lower losses in the personal lending
portfolio.
    Provision for credit losses was up $22 million or 13% from the prior
quarter, largely due to higher losses in the cards portfolio.
    Provision for credit losses for the nine months ended July 31, 2008 was
up $24 million or 5% from the same period in 2007, primarily due to higher
losses in the cards portfolio, partially offset by lower losses in the
personal lending portfolio.

    Non-interest expenses

    Non-interest expenses were down $29 million or 2% from the same quarter
last year, primarily due to lower corporate support costs and performance-
related compensation.
    Non-interest expenses for the nine months ended July 31, 2008 were down
$67 million or 2% from the same period in 2007, primarily due to lower
performance-related compensation and corporate support costs, partially offset
by the FirstCaribbean acquisition.

    Income taxes

    Income tax expense was down $9 million or 4% from the same quarter last
year, mainly due to a decrease in income.
    Income tax expense was up $29 million or 17% from the prior quarter,
mainly due to an increase in income.
    Income tax expense was up $88 million or 18% for the nine months ended
July 31, 2008 from the same period in 2007, primarily due to the tax recovery
of $80 million in the prior period.

    Regular workforce headcount

    The regular workforce headcount of 28,341 was up 729 from the same
quarter last year, primarily due to increases in customer-facing staff.

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

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

    
    Results(1)
    ----------------------------------------------------- -------------------
                                                 For the             For the
                                      three months ended   nine months ended
                            ----------------------------- -------------------
                                2008      2008      2007      2008      2007
    $ millions               Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Revenue (TEB)(2)
      Capital markets       $   (689) $ (2,253) $     28  $ (6,111) $    828
      Investment banking
       and credit products       134       102       328       519       779
      Merchant banking            20         5       161        34       323
      Other                      (19)       40         3         2       (26)
    ----------------------------------------------------- -------------------
    Total revenue
     (TEB)(2) (a)               (554)   (2,106)      520    (5,556)    1,904
    TEB adjustment                44        60        65       165       181
    ----------------------------------------------------- -------------------
    Total revenue (b)           (598)   (2,166)      455    (5,721)    1,723
    Provision for
     (reversal of) credit
     losses                        7         2        (5)       26       (10)
    Non-interest
     expenses (c)                266       358       319       975     1,264
    ----------------------------------------------------- -------------------
    (Loss) income before
     taxes and non-
     controlling interests      (871)   (2,526)      141    (6,722)      469
    Income tax benefit          (333)     (891)      (80)   (2,390)      (85)
    Non-controlling
     interests                     -         2         1         2         4
    ----------------------------------------------------- -------------------
    Net (loss) income (d)   $   (538) $ (1,637) $    220  $ (4,334) $    550
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    ----------------------------------------------------- -------------------
    Efficiency ratio (c/b)       n/m       n/m     70.0%       n/m     73.3%
    Efficiency ratio
     (TEB)(2) (c/a)              n/m       n/m     61.3%       n/m     66.4%
    ROE(2)                  (101.7)%  (293.9)%     53.7%  (264.2)%     43.9%
    Charge for economic
     capital(2) (e)         $    (71) $    (73) $    (52) $   (216) $   (159)
    Economic (loss)
     profit(2) (d+e)        $   (609) $ (1,710) $    168  $ (4,550) $    391
    Regular workforce
     headcount                 1,060     1,145     1,825     1,060     1,825
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.
    n/m Not meaningful due to the net loss.
    

    Financial overview

    Net loss was $538 million, compared to net income of $220 million in the
same quarter last year. CIBC World Markets' results were significantly
affected by the $596 million after-tax charge related to structured credit
run- off activities primarily due to credit valuation charges on credit
protection purchased from financial guarantors.
    Net loss was down $1,099 million from the prior quarter, primarily due to
lower credit valuation charges on credit protection purchased from financial
guarantors.
    Net loss for the nine months ended July 31, 2008 was up $4,884 million
from the same period in 2007, mainly due to losses related to structured
credit run-off activities.

    Revenue

    Revenue was down $1,053 million from the same quarter last year mainly
due to higher losses in the run-off businesses and the sale of certain U.S.
businesses. For a more detailed discussion of some of the significant items,
refer to the "Run-off businesses" section of the MD&A.
    Capital markets revenue was down $717 million, primarily due to the
credit valuation charges on credit protection purchased from financial
guarantors. Revenue was also lower due to the impact of the sale of our U.S.
equities businesses in the first quarter.
    Investment banking and credit products revenue was down $194 million,
primarily due to lower investment banking revenue, including the impact of the
sale of our U.S. investment and corporate banking business, which accounted
for $61 million of the decrease, lower revenue from non-core portfolios
including a charge related to leveraged leases, lower gains associated with
corporate loan hedging programs and lower revenue from U.S. real estate
finance.
    Merchant banking revenue was down $141 million, mainly due to lower gains
from third-party managed funds and direct investments.
    Other revenue was down $22 million, primarily due to the interest expense
related to leveraged leases.
    Revenue was up $1,568 million from the prior quarter.
    Capital markets revenue was up $1,564 million, primarily due to lower
credit valuation charges on credit protection purchased from financial
guarantors.
    Investment banking and credit products revenue was up $32 million,
primarily due to higher gains associated with corporate loan hedging programs,
partially offset by lower investment banking revenue and the charge related to
leveraged leases.
    Merchant banking revenue was up $15 million, primarily due to higher
gains net of write downs.
    Other revenue was down $59 million, primarily due to lower net internal
funding credits and the interest expense related to leveraged leases.
    Revenue for the nine months ended July 31, 2008 was down $7,444 million
from the same period in 2007.
    Capital markets revenue was down $6,939 million, primarily due to the
losses related to structured credit run-off activities, which included a
$6 billion charge on credit protection purchased from financial guarantors and
MTM losses, net of gains on index hedges, of $575 million related to our
un-hedged exposure to the USRMM.
    Investment banking and credit products revenue was down $260 million,
primarily due to lower gains from U.S. real estate finance and the impact of
the sale of our U.S. investment and corporate banking business and lower gains
from non-core portfolios including a charge related to leveraged leases,
partially offset by higher gains associated with corporate loan hedging
programs.
    Merchant banking revenue was down $289 million, primarily due to lower
gains from direct investments and third-party managed funds.
    Other revenue was up $28 million mainly due to higher net internal
funding credits, partially offset by the loss on sale of certain U.S.
businesses and the interest expense related to leveraged leases.

    Provision for (reversal of) credit losses

    Provision for credit losses was $7 million, compared with a reversal of
$5 million for the same quarter last year due to higher losses in the U.S. and
Europe.
    Provision for credit losses for the nine months ended July 31, 2008 was
$26 million, compared to a reversal of $10 million in the same period in 2007,
mainly due to lower recoveries in Europe, higher losses in Canada and the
allocation of general provision for credit losses to strategic business lines
commencing this year, partially offset by lower losses in the U.S.

    Non-interest expenses

    Non-interest expenses were down $53 million or 17% from the same quarter
last year, primarily due to the impact of the sale of some of our U.S.
businesses and lower performance-related compensation, partially offset by a
reversal of a litigation provision in the prior year quarter.
    Non-interest expenses were down $92 million or 26% from the prior
quarter, primarily due to a higher litigation expense in the prior quarter and
lower performance-related compensation.
    Non-interest expenses for the nine months ended July 31, 2008 were down
$289 million or 23% from the same period in 2007, primarily due to lower
performance-related compensation and the impact of the sale of some of our
U.S. businesses, partially offset by higher litigation and professional
expenses.

    Income taxes

    Income tax benefit was $333 million, compared to $80 million in the same
quarter last year, due to the higher credit valuation charges on credit
protection purchased from financial guarantors.
    Income tax benefit was down $558 million from the prior quarter, mainly
due to the higher loss in the prior quarter, resulting from the credit
valuation charges on the credit protection purchased from financial guarantors
noted above.
    Income tax benefit for the nine months ended July 31, 2008 was
$2,390 million, compared with $85 million for the same period in 2007, mainly
due to the reasons noted above.

    Regular workforce headcount

    The regular workforce headcount of 1,060 was down 765 from the same
quarter last year primarily due to the sale of some of our U.S. businesses and
the exiting of certain activities, including structured credit and European
leveraged finance.
    Regular workforce headcount was down 85 from the prior quarter primarily
due to the restructuring initiative announced in May 2008.

    CORPORATE AND OTHER
    -------------------------------------------------------------------------

    Corporate and Other comprises the five functional groups - Technology and
Operations; Corporate Development; Finance; Administration; and Treasury and
Risk Management (TRM) - that support CIBC's business lines, as well as CIBC
Mellon joint ventures, and other income statement and balance sheet items, not
directly attributable to the business lines. The revenue and expenses of the
functional groups are generally allocated to the business lines.

    
    Results(1)
    ----------------------------------------------------- -------------------
                                                 For the             For the
                                      three months ended   nine months ended
                            ----------------------------- -------------------
                                2008      2008      2007      2008      2007
    $ millions               Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Total revenue           $    148  $     53  $    138  $    266  $    429
    Recovery of credit
     losses                        -         -         -         -       (20)
    Non-interest expenses         82        50        94       189       297
    ----------------------------------------------------- -------------------
    Income before taxes
     and non-controlling
     interests                    66         3        44        77       152
    Income tax (benefit)
     expense                      29       (14)       25       (23)       73
    ----------------------------------------------------- -------------------
    Net income              $     37  $     17  $     19  $    100  $     79
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    ----------------------------------------------------- -------------------
    Regular workforce
     headcount                10,850    10,947    10,878    10,850    10,878
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    

    Financial overview

    Net income was up $18 million or 95% from the same quarter last year,
primarily due to the interest income from income tax reassessments.
    Net income was up $20 million from the prior quarter, mainly due to the
interest income from reassessments and higher net unallocated revenue from
treasury. The prior quarter was impacted by the foreign exchange loss on the
repatriation of retained earnings from our U.S. operations.
    Net income for the nine months ended July 31, 2008 was up $21 million or
27% from the same period in 2007 primarily due to lower unallocated corporate
support costs and higher income tax recoveries, offset by lower unallocated
revenue from treasury and foreign exchange loss on the repatriation noted
above.

    Revenue

    Revenue was up $10 million or 7% from the same quarter last year,
primarily due to the interest income from reassessments.
    Revenue was up $95 million from the prior quarter, mainly due to the
interest income from reassessments, higher net unallocated revenue from
treasury and prior quarter foreign exchange loss on the repatriation noted
above, partially offset by lower revenue from the hedging of stock
appreciation rights (SARs).
    Revenue for the nine months ended July 31, 2008 was down $163 million or
38% from the same period in 2007, mainly due to lower unallocated revenue from
treasury, foreign exchange loss on the repatriation noted above, and lower
revenue from the hedging of SARs, offset by the interest income from
reassessments.

    Recovery of credit losses

    The nine months ended July 31, 2007 included a $20 million reversal of
the general allowance. Commencing 2008, we have allocated the general
allowance for credit losses between the two strategic business lines, CIBC
Retail Markets and CIBC World Markets.

    Non-interest expenses

    Non-interest expenses were down $12 million or 13% from the same quarter
last year, primarily due to lower unallocated corporate support costs, and
lower expenses related to SARs.
    Non-interest expenses were up $32 million or 64% from the prior quarter,
mainly due to higher unallocated corporate support costs, partially offset by
lower expenses related to SARs.
    Non-interest expenses for the nine months ended July 31, 2008 were down
$108 million or 36% for the same period in 2007, primarily due to lower
unallocated corporate support costs and lower expenses related to SARs.

    Income tax

    Income tax expense was up $4 million or 16% from the same quarter last
year, primarily due to higher income.
    Income tax expense was $29 million, compared to an income tax benefit of
$14 million in the prior quarter. The prior quarter income tax benefit was due
to the repatriation noted above and income tax recoveries, offset by the tax
effecting of the prior quarter losses at rates in future years that are
expected to be less than the current year statutory rates.
    Income tax benefit was $23 million for the nine months ended July 31,
2008, compared to a $73 million income tax expense from the same period in
2007. This change was due to reduced income and tax effecting of a portion of
the losses at prior years' tax rates, which were higher than the current year
statutory rate, partially offset by the tax effecting of a portion of the
losses at rates in future years that are expected to be less than the current
year statutory rates.

    
    FINANCIAL CONDITION
    -------------------------------------------------------------------------

    Review of consolidated balance sheet
    -------------------------------------------------------------------------
                                                              2008      2007
    $ millions, as at                                      Jul. 31   Oct. 31
    -------------------------------------------------------------------------
    Assets

    Cash and deposits with banks                          $ 12,446  $ 13,747
    Securities                                              77,022    86,500
    Securities borrowed or purchased under resale
     agreements                                             25,513    34,020
    Loans                                                  164,608   162,654
    Derivative instruments                                  22,967    24,075
    Other assets                                            26,484    21,182
    -------------------------------------------------------------------------
    Total assets                                          $329,040  $342,178
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and shareholders' equity

    Deposits                                              $228,601  $231,672
    Derivative instruments                                  24,812    26,688
    Obligations related to securities lent or sold
     short or under repurchase agreements                   34,531    42,081
    Other liabilities                                       20,668    21,977
    Subordinated indebtedness                                6,521     5,526
    Preferred share liabilities                                600       600
    Non-controlling interests                                  163       145
    Shareholders' equity                                    13,144    13,489
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity            $329,040  $342,178
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Assets

    Total assets as at July 31, 2008 were down $13.1 billion or 4% from
October 31, 2007.
    Securities decreased due to lower trading and AFS securities, offset in
part by higher securities designated at fair value (FVO). Trading securities
decreased due to reduction in the equity portfolio, offset partially by the
purchase of assets at par from third-party structured securitization vehicles.
AFS securities decreased due to the sale of U.S. treasuries and a reduction in
CIBC-sponsored ABCP securities, offset partially by purchase of Government of
Canada bonds. FVO securities increased due to higher mortgage-backed
securities inventory to support our ongoing CIBC-originated residential
mortgage securitization program and to be available for collateral management
purposes.
    The decrease in securities borrowed or purchased under resale agreements
was primarily due to normal client-driven business activity.
    Loans have increased mainly due to volume growth in consumer loans and
credit cards. Residential mortgages decreased largely due to securitizations,
net of volume growth.
    Derivative instruments decreased largely due to lower market valuation on
foreign exchange and equity derivatives, offset in part by higher interest
rate derivatives market valuation. The valuation adjustments related to the
credit protection purchased from financial guarantors was largely offset by
higher market valuation on credit derivatives resulting from widening of
credit spreads.
    Other assets increased mainly due to an increase in income tax receivable
and derivatives collateral.

    Liabilities

    Total liabilities as at July 31, 2008 were down $12.8 billion or 4% from
October 31, 2007.
    The decrease in deposits was mainly due to a reduction in our funding
requirements, offset partially by retail volume growth.
    Derivative instruments decreased mainly due to lower market valuation on
foreign exchange and equity derivatives, partially offset by higher market
valuation on interest rate and credit derivatives.
    The decrease in obligations related to securities lent or sold short or
under repurchase agreements is largely as a result of normal client-driven and
treasury funding activities resulting from a reduction in our funding
requirements.
    Subordinated indebtedness increased due to two new issuances, partially
offset by redemptions.

    Shareholders' equity

    Shareholders' equity as at July 31, 2008 was down $345 million or 3% from
October 31, 2007, due to lower retained earnings resulting from the loss in
the current year to date, partially offset by the issuance of additional share
capital.

    Capital resources

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

    Regulatory capital

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

    
    -------------------------------------------------------------------------
                                                          Basel II   Basel I
                                                             basis     basis
                                                              2008      2007
    $ millions, as at                                      Jul. 31   Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                        $ 11,626  $ 12,379
    Tier 2 capital                                           5,461     6,304
    Total regulatory capital                                17,087    17,758
    Risk-weighted assets                                   118,494   127,424
    Tier 1 capital ratio                                      9.8%      9.7%
    Total capital ratio                                      14.4%     13.9%
    Assets-to-capital multiple                               17.7x     19.0x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Tier 1 ratio was up by 0.1% from the year-end, largely due to the issue
of common shares, and a reduction in risk-weighted assets that resulted from
the change to Basel II methodology commencing November 1, 2007. This was
offset in part by the reduction in retained earnings due to the loss in the
current period, and certain other deductions, which under Basel II are now
subtracted directly from Tier 1 capital.
    Total capital ratio was up by 0.5% from the year-end due to the reasons
noted above and the issuance of subordinated debt, partially offset by a
reduction in the Tier 2 capital, as only a portion of the general allowance is
eligible for inclusion in Tier 2 capital under the Basel II methodology.

    Significant capital management activities

    The following table summarizes our significant capital management
activities:

    
    -------------------------------------------------------------------------
                                                           For the   For the
                                                             three      nine
                                                            months    months
                                                             ended     ended
                                                           Jul. 31,  Jul. 31,
    $ millions                                                2008      2008
    -------------------------------------------------------------------------
    Issue of common shares(1)                             $      4  $  2,927
    Issue of subordinated indebtedness                       1,150     1,150
    Redemption of subordinated indebtedness                      -      (339)
    Dividends
      Preferred shares - classified as equity                  (30)      (90)
      Preferred shares - classified as liabilities              (7)      (23)
      Common shares                                           (331)     (954)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) After issuance costs, net of tax, (Q3/08: nil; for the nine months
        ended July 31, 2008: $33 million).
    

    For additional details, see Notes 7 and 8 to the interim consolidated
financial statements.

    Off-balance sheet arrangements

    We enter into several types of off-balance sheet arrangements in the
normal course of our business. These include securitizations, derivatives,
credit-related arrangements, and guarantees. Details of our off-balance sheet
arrangements are provided on pages 57 to 59 of the 2007 Annual Accountability
Report.
    The following table summarizes our exposures to entities involved in the
securitization of third-party assets (both CIBC-sponsored/structured and
third- party structured). This table differs from the Total Exposures on
Page 10 ("Total Exposures") of this report as a consequence of the exclusion
of positions with corporate underlyings which are included in Total Exposures
and the inclusion of CIBC sponsored multi-seller conduits and other non
run-off positions which are excluded from total exposures.

    
    -------------------------------------------------------------------------
                                                                        2008
    $ millions, as at                                                Jul. 31
    -------------------------------------------------------------------------
                                                           Undrawn   Written
                                                         liquidity    credit
                                                               and    deriv-
                                              Investment    credit    atives
                                                     and    facil-    (noti-
                                                 loans(1)    ities   onal)(2)
    -------------------------------------------------------------------------
    CIBC-sponsored multi-seller conduits        $    120 $ 9,828(3) $      -
    CIBC structured CDO vehicles                     795      70         763
    Third-party structured vehicles                7,475   1,218      16,468
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                                        2007
    $ millions, as at                                                Oct. 31
    -------------------------------------------------------------------------
                                                           Undrawn   Written
                                                         liquidity    credit
                                                               and    deriv-
                                              Investment    credit    atives
                                                     and    facil-    (noti-
                                                 loans(1)    ities   onal)(2)
    -------------------------------------------------------------------------
    CIBC-sponsored multi-seller conduits        $  3,029 $12,092(3) $      -
    CIBC structured CDO vehicles                     647     154       1,147
    Third-party structured vehicles                3,083   2,236      31,467
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Amounts are net of mark-to-market losses. Excludes securities issued
        by entities established by Canada Mortgage and Housing Corporation
        (CMHC), Fannie Mae, Freddie Mac, Ginnie Mae and Sallie Mae.
        $6.1 billion (Oct. 31, 2007: $2.0 billion) of the exposure was hedged
        by credit derivatives with third parties.
    (2) Comprises credit derivatives written options and total return swaps
        under which we assume exposures. The fair value recorded on the
        consolidated balance sheet was $(5.5) billion (Oct. 31, 2007:
        $(3.8) billion). Notional amounts of $16.8 billion (Oct. 31, 2007:
        $31.7 billion) were hedged with credit derivatives protection from
        third parties, the fair value of these hedges net of the valuation
        adjustments was $2.0 billion (Oct. 31, 2007: $3.4 billion).
        Accumulated fair value losses amount to $345 million (Oct. 31, 2007:
        $484 million) on unhedged written credit derivatives.
    (3) Net of $44 million (Oct. 31, 2007: $3,029 million) of investment in
        CIBC sponsored multi-seller conduits.
    

    During the quarter, we purchased certain reference assets at a par amount
of $189 million ($6.8 billion for the nine months ended July 31, 2008) from
two third-party structured vehicles in consideration for the termination of
the related total return swaps. The reference assets purchased were
categorized as trading securities on our consolidated balance sheet.
    For further details on securitizations of our own assets and guarantees
provided by us, see Notes 6 and 13 to the interim consolidated financial
statements.

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

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

    Risk overview

    We manage risk and related balance sheet resources within tolerance
levels established by our management committees and approved by the Board of
Directors and its committees. Several groups within Risk Management,
independent of the originating businesses, contribute to our management of
risk. During the quarter, we completed a restructuring of our risk management
department. The new structure is based on the results of a comprehensive
review that began earlier this year and comprises five groups as follows:

    
    -   Capital Markets - 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.
    -   Credit Portfolio Management - provides direction and leadership in
        credit portfolio management and reporting, policies and risk limits,
        risk rating methodology and credit systems for both retail and
        wholesale 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 loan and
        investment portfolios.
    -   Balance Sheet Measurement, Monitoring & Control - responsible for a
        range of activities, including: strategic risk analytics and
        assessments of CIBC's portfolio; enterprise-wide oversight of the
        measurement, monitoring and control of CIBC's balance sheet resources
        including economic capital; management of CIBC's corporate insurance,
        business continuity and environmental risk programs; independent
        oversight of the measurement, monitoring and control of operational
        risk; vetting CIBC's analytic and statistical models; validating
        parameters and models used for regulatory capital.
    

    In addition to the oversight provided by Risk Management, Treasury
provides enterprise-wide funding and asset/liability, liquidity, cash and
collateral management; manages the capital structure within the constraints of
regulatory requirements; and manages capital in our subsidiaries, affiliates
and legal entities.

    Basel II Capital Accord

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

    Credit risk

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

    Process and control

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

    Credit risk limits

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

    Credit derivatives

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

    Guarantees

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

    Collateral

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

    Exposure to credit risk

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

    
    $ millions, as at            July 31, 2008                April 30, 2008
    -------------------------------------------------------------------------
                              Stand-                        Stand-
                      AIRB   ardized                AIRB   ardized
                  approach  approach     Total  approach  approach     Total
    -------------------------------------------------------------------------
    Business and
     government
     portfolios
      Corporate
        Drawn     $ 35,134  $  5,569  $ 40,703  $ 35,528  $  4,999  $ 40,527
        Undrawn
         commit-
         ments      18,491       280    18,771    17,891       373    18,264
        Repo-style
         trans-
         actions    21,376        28    21,404    25,114        18    25,132
        Other off-
         balance
         sheet       5,196       185     5,381     5,235       174     5,409
        OTC deri-
         vatives    11,431        78    11,509    11,533        60    11,593
    -------------------------------------------------------------------------
                    91,628     6,140    97,768    95,301     5,624   100,925
    -------------------------------------------------------------------------
      Sovereign
        Drawn       33,547     1,718    35,265    22,465     1,722    24,187
        Undrawn
         commit-
         ments       2,734         -     2,734     2,636         -     2,636
        Repo-style
         trans-
         actions       196         -       196     1,055         -     1,055
        Other off-
         balance
         sheet          29         -        29        29         -        29
        OTC deri-
         vatives     1,692         -     1,692     1,395         -     1,395
    -------------------------------------------------------------------------
                    38,198     1,718    39,916    27,580     1,722    29,302
    -------------------------------------------------------------------------
      Banks
        Drawn        8,469     1,183     9,652    10,206     1,631    11,837
        Undrawn
         commit-
         ments         595         -       595       787         -       787
        Repo-style
         trans-
         actions    47,918       307    48,225    48,647       175    48,822
        Other off-
         balance
         sheet      46,534         -    46,534    50,657         -    50,657
        OTC deri-
         vatives     5,517         1     5,518     5,407         3     5,410
    -------------------------------------------------------------------------
                   109,033     1,491   110,524   115,704     1,809   117,513
    -------------------------------------------------------------------------
    Total business
     and government
     portfolios    238,859     9,349   248,208   238,585     9,155   247,740
    -------------------------------------------------------------------------
    Retail
     portfolios
      Real estate
       secured
       personal
       lending
        Drawn      101,372     2,083   103,455   103,360     2,033   105,393
        Undrawn
         commit-
         ments      31,539         -    31,539    28,101         -    28,101
    -------------------------------------------------------------------------
                   132,911     2,083   134,994   131,461     2,033   133,494
    -------------------------------------------------------------------------
      Qualifying
       revolving
       retail
        Drawn       16,739         -    16,739    15,756         -    15,756
        Undrawn
         commit-
         ments      21,855         -    21,855    23,462         -    23,462
    -------------------------------------------------------------------------
                    38,594         -    38,594    39,218         -    39,218
    -------------------------------------------------------------------------
      Other retail
        Drawn        9,179     1,009    10,188     9,207       975    10,182
        Undrawn
         commit-
         ments       2,128        54     2,182     2,104        53     2,157
        Other off-
         balance
         sheet         107         -       107       108         -       108
    -------------------------------------------------------------------------
                    11,414     1,063    12,477    11,419     1,028    12,447
    -------------------------------------------------------------------------
    Total retail
     portfolios    182,919     3,146   186,065   182,098     3,061   185,159
    -------------------------------------------------------------------------
    Securitization
     exposures(1)   13,800       563    14,363    16,204       761    16,965
    -------------------------------------------------------------------------
    Gross credit
     exposure     $435,578  $ 13,058  $448,636  $436,887  $ 12,977  $449,864
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Under the internal ratings based approach.
    

    The portfolios are categorized based upon how we manage the business and
the associated risks. Amounts provided are after valuation adjustments related
to financial guarantors, and before allowance for credit losses and risk
mitigation, including $63.0 billion (April 30, 2008: $70.3 billion) of
collateral held for our repurchase agreement activities. Non-trading equity
exposures are not included in the table above as they have been deemed
immaterial under the OSFI guidelines, and hence, are subject to 100% risk-
weighting.

    
    Exposures subject to AIRB approach

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

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

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

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

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

    The effectiveness of the risk rating systems and the parameters
associated with the risk ratings are monitored within TRM and are subject to
an annual review. The models used in the estimation of the risk parameters are
also subject to independent validation by the Risk Management validation
group, which is independent of both the origination business and the model
development process.
    We have counterparty credit exposure that arises from our interest rate,
foreign exchange, equity, commodity and credit derivatives trading, hedging
and portfolio management activities, as explained in Note 14 to the 2007
consolidated financial statements. The PD of our counterparties is measured in
the same manner as our direct lending activity. We establish a valuation
adjustment for expected future credit losses from each of our derivative
counterparties. Traditionally, the valuation adjustment has been a function of
our estimates of the PD, the expected loss/exposure in the event of default,
and other factors such as risk mitigants. Market observed credit spreads where
available are a key factor in establishing valuation adjustments against our
counterparty credit exposures related to financial guarantors (excluding ACA)
In the prior quarter, to reflect the deterioration in general credit
conditions, we added $50 million to our historical, formulaic calculation of
the credit valuation adjustment for non-financial guarantor derivatives
counterparties, and this amount has been maintained in the current quarter.

    Credit quality of the risk-rated portfolios
    -------------------------------------------
    The following table provides the credit quality of the risk-rated
portfolios. Amounts provided are before allowance for credit losses, and after
credit risk mitigation, valuation adjustments related to financial guarantors,
and collateral on repurchase agreement activities. Insured residential
mortgage and student loan portfolios of $48.2 billion (April 30, 2008:
$54.2 billion) are reclassified to either sovereign or corporate exposures in
the table below.

    
    $ millions, as at
    -------------------------------------------------------------------------
                                         EAD                  2008      2008
                           ------------------------------  Jul. 31    Apr.30
    Grade                  Corporate Sovereign     Banks     Total     Total
    -------------------------------------------------------------------------
    Investment grade        $ 35,041  $ 85,510  $ 55,334  $175,885  $176,765
    Non-investment grade      27,672       231    13,534    41,437    38,794
    Watchlist                    414         -         -       414       484
    Default                      206         -         -       206       549
    -------------------------------------------------------------------------
                            $ 63,333  $ 85,741  $ 68,868  $217,942  $216,592
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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

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

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

    
                                                              2008      2008
    $ millions, as at                                      Jul. 31   Apr. 30
    -------------------------------------------------------------------------
    Strong                                                $  5,909  $  5,693
    Good                                                       139       131
    Satisfactory                                                42        40
    Weak                                                         6         6
    Default                                                      7         7
    -------------------------------------------------------------------------
                                                             6,103  $  5,877
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Retail portfolios

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

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

    Credit quality of the retail portfolios
    ---------------------------------------
    The following table presents the credit quality of the retail portfolios.
Amounts provided are before allowance for credit losses and after credit risk
mitigation. Insured residential mortgage and student loan portfolios of
$48.2 billion (April 30, 2008: $54.2 billion) are reclassified to either
sovereign or corporate exposures. Retail portfolios include $3,883 million
(April 30, 2008: $3,913 million) of small business scored exposures.

    
    $ millions, as at
    -------------------------------------------------------------------------
                                       EAD
                         -------------------------------
                         Real estate
                             secured Qualifying               2008      2008
                            personal  revolving    Other   Jul. 31   Apr. 30
    PD                       lending     retail   retail     Total     Total
    -------------------------------------------------------------------------
    Exceptionally low       $ 33,625  $ 16,819  $  2,695  $ 53,139  $ 51,240
    Very low                  24,473     5,367     2,579    32,419    28,734
    Low                       26,584    10,432     4,278    41,294    40,088
    Medium                       129     4,124     1,403     5,656     5,644
    High                          68     1,700       110     1,878     1,867
    Default                       81       152       106       339       328
    -------------------------------------------------------------------------
                            $ 84,960  $ 38,594  $ 11,171  $134,725  $127,901
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Exposures subject to the standardized approach

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

    
    $ millions, as at
    -------------------------------------------------------------------------
                                  Risk-weight category
                  -------------------------------------------------
                        0%       20%       50%       75%      100%     Total
    -------------------------------------------------------------------------
    Jul. 31, 2008
    -------------
    Corporate     $      -  $  1,118  $      -  $      -  $  5,022  $  6,140
    Sovereign        1,366       228        66         -        58     1,718
    Banks                -     1,487         -         -         4     1,491
    Real estate
     secured
     personal
     lending             -         -         -     2,078         5     2,083
    Other retail         -         -         -        54     1,009     1,063
    -------------------------------------------------------------------------
                  $  1,366  $  2,833  $     66  $  2,132  $  6,098  $ 12,495
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008 $  1,426  $  2,949  $     95  $  2,081  $  5,665  $ 12,216
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Securitization exposures

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

    $ millions, as at
    -------------------------------------------------------------------------
                                             EAD            2008        2008
                                   --------------------  Jul. 31     Apr. 30
    Ratings                         IRB    Standardized    Total       Total
    -------------------------------------------------------------------------
    AAA to BBB-                   $ 13,241  $    563    $ 13,804    $ 16,621
    BB+ to BB-                           4         -           4           8
    Below BB-                          101         -         101          57
    Unrated                            454         -         454         279
    -------------------------------------------------------------------------
                                  $ 13,800  $    563    $ 14,363    $ 16,965
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Concentration of exposures

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

    Geographic distribution

    The following table provides a geographic distribution of our business
and government exposures under the AIRB approach. The classification of
geography is based upon the country of ultimate risk. Amounts are before
allowance for credit losses and risk mitigation, and after valuation
adjustments related to financial guarantors and $63.0 billion (April 30, 2008:
$70.3 billion) of collateral held for our repurchase agreement activities.

    
    $ millions, as at
    -------------------------------------------------------------------------
                              Canada      U.S.    Europe     Other     Total
    -------------------------------------------------------------------------
    Jul. 31, 2008
    -------------
    Drawn                   $ 63,232  $  8,387  $  3,606  $  1,925  $ 77,150
    Undrawn commitments       19,400     1,769       302       349    21,820
    Repo-style transactions    2,441     3,611       338        93     6,483
    Other off-balance sheet   32,796     9,929     8,051       983    51,759
    OTC derivatives            6,207     7,795     4,017       621    18,640
    -------------------------------------------------------------------------
                            $124,076  $ 31,491  $ 16,314  $  3,971  $175,852
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008           $113,426  $ 31,987  $ 18,851  $  4,009  $168,273
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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

    Business and government exposures by industry groups

    The following table provides an industry-wide breakdown of our business
and government exposures under the AIRB approach. Amounts are before allowance
for credit losses and risk mitigation, and after valuation adjustments related
to financial guarantors and $63.0 billion (April 30, 2008: $70.3 billion) of
collateral held for our repurchase agreement activities.

    
    $ millions, as at
    -------------------------------------------------------------------------
                                                   Repo-     Other
                                                   style      off-       OTC
                                        Undrawn   trans-   balance    deriv-
                               Drawn commitment  actions     sheet    atives
    -------------------------------------------------------------------------
    Commercial mortgages    $  5,934  $    168  $      -  $      -  $      -
    Financial
     institutions(1)          14,312     2,620     6,466    46,850    14,617
    Retail and wholesale       2,326     1,481         -       205        36
    Business and personal
     services                  3,134     1,026         5       427       355
    Manufacturing,
     capital goods             1,030       965         1       284        67
    Manufacturing,
     consumer goods            1,227       931         -        61        50
    Real estate and
     construction              5,487     1,801         -       638        43
    Agriculture                2,538     1,279         -        17        18
    Oil and gas                3,456     3,798         -       583     1,111
    Mining                     1,624       533         -       150        75
    Forest products              526       200         1       123        16
    Hardware and software        561       431         1       106        12
    Telecommunications
     and cable                   641       635         -       189       425
    Publishing, printing
     and broadcasting            607       463         -       202        84
    Transportation             1,264       529         -       869        49
    Utilities                    634     1,462         -       667       366
    Education, health and
     social services           1,438       801         2       159        47
    Governments               30,411     2,697         7       229     1,269
    -------------------------------------------------------------------------
                            $ 77,150  $ 21,820  $  6,483  $ 51,759  $ 18,640
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                2008      2008
    $ millions, as at        Jul. 31   Apr. 30
    -------------------------------------------
                               Total     Total
    -------------------------------------------
    Commercial mortgages    $  6,102  $  5,877
    Financial
     institutions(1)          84,865    88,987
    Retail and wholesale       4,048     4,237
    Business and personal
     services                  4,947     4,559
    Manufacturing,
     capital goods             2,347     2,454
    Manufacturing,
     consumer goods            2,269     2,176
    Real estate and
     construction              7,969     8,103
    Agriculture                3,852     3,869
    Oil and gas                8,948     8,983
    Mining                     2,382     2,354
    Forest products              866       861
    Hardware and software      1,111     1,056
    Telecommunications
     and cable                 1,890     1,923
    Publishing, printing
     and broadcasting          1,356     1,197
    Transportation             2,711     2,848
    Utilities                  3,129     3,248
    Education, health and
     social services           2,447     2,350
    Governments               34,613    23,191
    -------------------------------------------
                            $175,852  $168,273
    -------------------------------------------
    -------------------------------------------
    (1) OTC derivatives include $5.1 billion (April 30, 2008: $5.2 billion)
        of EAD with financial guarantors hedging our derivative contracts.
        The fair value of these derivative contracts net of the valuation
        adjustments was $3.0 billion (April 30, 2008: $2.9 billion).


    Impaired loans and allowance and provision for credit losses

    -------------------------------------------------------------------------
                                                              2008      2007
    $ millions, as at                                      Jul. 31   Oct. 31
    -------------------------------------------------------------------------
    Gross impaired loans
    Consumer                                              $    517  $    493
    Business and government(1)                                 372       370
    -------------------------------------------------------------------------
    Total gross impaired loans                            $    889  $    863
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Allowance for credit losses
    Consumer                                              $    384  $    359
    Business and government(1)                                 211       194
    -------------------------------------------------------------------------
    Specific allowance                                         595       553
    General allowance                                          889       890
    -------------------------------------------------------------------------
    Total allowance for credit losses                     $  1,484  $  1,443
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes scored small business portfolios which are managed on a pool
        basis under Basel II.
    

    Gross impaired loans were up $26 million or 3% from October 31, 2007.
Consumer gross impaired loans were up $24 million or 5%, whereas business and
government gross impaired loans were up $2 million. The decrease in gross
impaired loans of $28 million in Canada and $9 million in the U.S. was more
than offset by an increase of $63 million in other countries. The overall
increase in gross impaired loans was largely attributed to residential
mortgages outside Canada and the U.S. and the business services sector.
    Allowance for credit losses was up $41 million or 3% from October 31,
2007. Specific allowance was up $42 million or 8% from the year-end, primarily
due to increases in credit cards and retail sector. The general allowance
totaled $889 million, down $1 million from the year-end.
    For details on the provision for credit losses, see the "Financial
performance review" section.

    Market risk

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

    Process and control

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

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

    Trading activities

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

    Value-at-Risk

    Our VaR methodology is a statistical technique that measures the
potential worst-case overnight loss within a 99% confidence level. VaR uses
numerous risk factors as inputs and is computed through the use of historical
volatility of each risk factor and the associated historical correlations
among them, evaluated over a one-year period.
    The VaR for the three months ending July 31, 2008 disclosed in the table
and backtesting chart on the next page exclude our exposures in our run-off
businesses as described on pages 10 to 16 of the MD&A. Due to the volatile and
illiquid markets in recent months, 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, and are not subject
to our internal VaR limits.

    Stress testing and scenario analysis

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

    Backtesting

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

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

                                         As at or for the three months ended
                       ------------------------------------------------------
                                                               Jul. 31, 2008
                       ------------------------------------------------------
    $ millions                               High      Low    As at  Average
    -------------------------------------------------------------------------
    Interest rate risk                     $ 12.2   $  4.9   $  5.5   $  8.1
    Credit spread risk                        6.7      3.8      5.9      5.1
    Equity risk                               7.0      4.1      5.5      5.2
    Foreign exchange risk                     1.2      0.2      0.2      0.5
    Commodity risk                            1.4      0.3      0.7      0.7
    Debt Specific Risk                        8.9      6.0      6.9      7.6
    Diversification
     effect(1)                                n/m      n/m    (12.1)   (14.2)
    -------------------------------------------------------------------------
    Total risk                             $ 15.5   $ 11.2   $ 12.6   $ 13.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                                                For the nine
                       As at or for the three months ended      months ended
                       ------------------------------------ -----------------
                                                            Jul. 31, Jul. 31,
                           Apr. 30, 2008     Jul. 31, 2007     2008     2007
                       ------------------------------------ -----------------
    $ millions            As at  Average    As at  Average  Average  Average
    ------------------------------------------------------- -----------------
    Interest rate risk   $  7.5   $  7.6   $  8.4   $  7.2   $  7.7   $  7.1
    Credit spread risk      3.6      5.0     11.4      6.9      7.6      4.8
    Equity risk             5.0      5.3      4.3      5.3      5.2      5.9
    Foreign exchange risk   0.5      0.6      0.4      0.5      0.6      0.4
    Commodity risk          0.6      0.8      1.2      1.3      0.8      1.4
    Debt Specific Risk      7.8      8.0      n/a      n/a      8.7      n/a
    Diversification
     effect(1)            (13.0)   (13.3)   (14.8)   (11.3)   (16.3)   (10.2)
    ------------------------------------------------------- -----------------
    Total risk           $ 12.0   $ 14.0   $ 10.9   $  9.9   $ 14.3   $  9.4
    ------------------------------------------------------- -----------------
    ------------------------------------------------------- -----------------
    (1) Aggregate VaR is less than the sum of the VaR of the different market
        risk types due to risk offsets resulting from the effect of portfolio
        diversification.
    n/m Not meaningful. It is not meaningful to compute a diversification
        effect because the high and low may occur on different days for
        different risk types.
    n/a Not available as we started reporting this measure only in the fourth
        quarter of 2007.
    

    Total average risk was down 7% from the last quarter, primarily due to
increase in the portfolio diversification. Total average risk was up more than
31% from the same quarter last year, primarily due to inclusion of debt
specific risk measure in VaR starting in the fourth quarter of 2007, as well
as the higher market volatilities used in the calculation of VaR. If the
positions in our run-off businesses had been included for the quarter the
average daily VaR would have been $19.9 million and the VaR at quarter-end
would have been $21.8 million.

    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 67% of the days in the quarter.
Trading losses exceeded VaR for one day during the quarter due to a large move
in short-term interest rates driven by U.S. Federal Reserve's unexpected
decision to leave the overnight rate unchanged. Average daily trading revenue
(TEB)(1) was $1.3 million during the quarter.
    The trading revenue (TEB)(1) for the current quarter excludes
$0.6 million related to the consolidation of variable interest entities as
well as trading losses from the run-off businesses including $920 million
related to reductions in fair value of structured credit assets and
counterparty credit-related valuation adjustments and $5.5 million related to
revenue from other positions in the run-off books.

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

    (image appears here)





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

    Non-trading activities

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

    Interest rate risk

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

    
    -------------------------------------------------------------------------
                                                2008                    2008
                                             Jul. 31                 Apr. 30
    -------------------------------------------------------------------------
    $ millions, as at              $     US$   Other       $     US$   Other
    -------------------------------------------------------------------------
    100 basis points increase
     in interest rates
    Net Income                 $  42   $   5   $   3   $  51   $  (6)  $  (1)
    Change in present value of
     shareholders' equity        151      17      42     171      16      33

    100 basis points decrease
     in interest rates
    Net Income                 $ (89)  $  (5)  $  (3)  $ (62)  $   6   $   1
    Change in present value of
     shareholders' equity       (218)    (18)    (41)   (264)    (16)    (35)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------
                                                2007
                                             Jul. 31
    -------------------------------------------------
    $ millions, as at              $     US$   Other
    -------------------------------------------------
    100 basis points increase
     in interest rates
    Net Income                 $  30   $   2   $  (2)
    Change in present value
     of equity risk              144      23      39

    100 basis points decrease
     in interest rates
    Net Income                 $ (99)  $  (2)  $   2
    Change in present value
     of equity risk             (217)    (22)    (38)
    -------------------------------------------------
    -------------------------------------------------
    

    Foreign exchange risk

    Non-trading foreign exchange risk, also referred to as structural foreign
exchange risk, arises primarily from our investments in foreign operations.
This risk, predominantly in U.S. dollars, is managed using derivative hedges,
and by funding the investments in foreign currencies. We actively manage this
risk to ensure that the potential impact to earnings is minimized and that
potential impact on our capital ratios is within tolerances set by the RMC.
    A 1% appreciation of the Canadian dollar would reduce our shareholders'
equity as at July 31, 2008 by approximately $23.6 million.
    Our non-functional currency denominated earnings are converted into the
functional currencies through spot or forward foreign exchange transactions to
reduce exchange rate fluctuations on our consolidated statement of operations.
Foreign functional currency earnings are translated at average monthly
exchange rates as they arise.
    We hedge certain anticipated foreign currency expenses using derivatives
which are accounted for as cash flow hedges. As at July 31, 2008, the net
change in fair value of these hedging derivatives included in accumulated
other comprehensive income amounted to an after-tax loss of $59 million
(October 31, 2007: after-tax loss of $73 million). This amount will be
released to income to offset the hedged currency fluctuations as the expenses
are incurred.

    Equity risk

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

    
                                                          Carrying      Fair
    $ millions, as at                                        value     value
    -------------------------------------------------------------------------
    Jul. 31, 2008  AFS securities                         $  1,073  $  1,534
                   Other assets(1)                             186       213
    -------------------------------------------------------------------------
                                                          $  1,259  $  1,747
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2007  AFS securities                         $  1,415  $  1,921
                   Other assets(1)                             254       299
    -------------------------------------------------------------------------
                                                          $  1,669  $  2,220
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes equity-accounted investments.
    

    Liquidity risk

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

    Process and control

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

    Risk measurement

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

    Term funding sources and strategies

    We source term funding in the wholesale markets from a variety of clients
and geographic locations, borrowing across a range of maturities using a mix
of funding instruments. Core personal deposits remain a primary source of
retail funding. As at July 31, 2008, Canadian dollar deposits from individuals
totalled $89.0 billion (October 31, 2007: $83.8 billion).
    Strategies for managing liquidity risk include maintaining diversified
sources of wholesale term funding, asset securitization initiatives, capital
and subordinated debt issuance, and maintenance of segregated pools of high
quality liquid assets that can be sold or pledged as security to provide a
ready source of cash.

    The following table summarizes our liquid assets:

    
    -------------------------------------------------------------------------
                                                              2008      2007
    $ billions, as at                                      Jul. 31   Oct. 31
    -------------------------------------------------------------------------
    Cash                                                  $    1.1  $    1.0
    Deposits with banks                                       11.3      12.7
    Securities(1)                                             43.1      65.1
    Securities borrowed or purchased under resale
     agreements                                               25.5      34.0
    -------------------------------------------------------------------------
                                                          $   81.0  $  112.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes AFS and FVO securities with residual term to contractual
        maturity within one year, and trading securities.
    

    In the course of our regular business activities, certain assets are
pledged as part of collateral management, including those necessary for
day-to-day clearing and settlement of payments and securities. Pledged assets
as at July 31, 2008 totalled $26.8 billion (October 31, 2007: $27.7 billion).
    While conditions have stabilized, the recent turmoil in global capital
markets continues to result in reduced liquidity and increased term funding
costs for financial institutions generally. One factor affecting the access of
financial institutions to unsecured funding markets is credit ratings. No
changes to our ratings were made by the major rating agencies during the third
quarter.

    Maturity of financial liabilities

    The following table provides the maturity profile of financial
liabilities based upon contractual repayment obligations, and excludes
contractual cash flows related to derivative liabilities. Although contractual
repayments of many deposit accounts are on demand or at short notice, in
practice short-term deposit balances remain stable. Our deposit retention
history indicates that many customers do not request repayment on the earliest
redemption date and the table therefore does not reflect the anticipated cash
flows.

    
    -------------------------------------------------------------------------
                                                                           No
                           Less than     1 - 3     3 - 5      Over  specified
    $ millions, as at         1 year     years     years   5 years   maturity
    -------------------------------------------------------------------------
    Liabilities
    Deposits                $107,877  $ 24,702  $  9,015  $  4,815  $ 82,192
    Acceptances                8,778         -         -         -         -
    Obligations related to
     securities sold short       529       641       896     2,981     2,832
    Obligations related to
     securities lent or
     sold under repurchase
     agreements               26,652         -         -         -         -
    Other liabilities            551     2,180         -         -     9,322
    Subordinated
     indebtedness                  -         -         -     6,521         -
    Preferred share
     liabilities                 600         -         -         -         -
    -------------------------------------------------------------------------
                            $144,987  $ 27,523  $  9,911  $ 14,317  $ 94,346
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------
                                2008      2008
                             Jul. 31   Apr. 30
    $ millions, as at          Total     Total
    -------------------------------------------
    Liabilities
    Deposits                $228,601  $238,203
    Acceptances                8,778     8,756
    Obligations related to
     securities sold short     7,879    10,285
    Obligations related to
     securities lent or
     sold under repurchase
     agreements               26,652    26,530
    Other liabilities         12,053    13,747
    Subordinated
     indebtedness              6,521     5,359
    Preferred share
     liabilities                 600       600
    -------------------------------------------
                            $291,084  $303,480
    -------------------------------------------
    -------------------------------------------
    

    Maturity of credit and liquidity commitments

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

    
                                      Contract amounts expiration per period
                                    -----------------------------------------
                                     Less than       1-3       3-5      Over
    $ millions, as at                   1 year     years     years   5 years
    -------------------------------------------------------------------------
    Unutilized credit commitments(1)  $ 27,715  $  2,625  $  7,542  $  1,469
    Backstop liquidity facilities       10,948       151         -         -
    Standby and performance letters
     of credit                           4,862       495       605       492
    Documentary and commercial letters
     of credit                             255         -         -         2
    -------------------------------------------------------------------------
                                      $ 43,780  $  3,271  $  8,147  $  1,963
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                          2008      2008
                                       Jul. 31   Apr. 30
    $ millions, as at                    Total     Total
    -----------------------------------------------------
    Unutilized credit commitments(1)  $ 39,351  $ 39,655
    Backstop liquidity facilities       11,099    13,803
    Standby and performance letters
     of credit                           6,454     6,613
    Documentary and commercial letters
     of credit                             257       191
    -----------------------------------------------------
                                      $ 57,161  $ 60,262
    -----------------------------------------------------
    -----------------------------------------------------
    (1) Excludes personal lines of credit and credit card lines, which are
        revocable at our discretion at any time.
    

    Contractual obligations

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

    Operational risk

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

    Process and control

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

    Risk measurement

    Effective November 1, 2007, under Basel II, we use the AMA to calculate
operational risk regulatory capital. Our operational risk measurement
methodology for economic capital purposes attributes operational risk capital
to expected and unexpected losses arising from the following loss event types:

    
    -   Legal liability (with respect to third parties, clients and
        employees);
    -   Client restitution;
    -   Regulatory compliance and taxation violations;
    -   Loss or damage to assets;
    -   Transaction processing errors; and
    -   Theft, fraud and unauthorized activities.
    

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

    Reputation and legal risk

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

    Regulatory risk

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

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

    Critical accounting policies and estimates

    A summary of significant accounting policies is presented in Note 1 to
the 2007 consolidated financial statements.
    Certain accounting policies of CIBC are critical to understanding the
results of operations and financial condition of CIBC. These critical
accounting policies require management to make certain judgments and
estimates, some of which may relate to matters that are uncertain. For a
description of the judgments and estimates involved in the application of
critical accounting policies and assumptions made for pension and other
benefit plans, see pages 74 to 77 of the 2007 Annual Accountability Report.

    Valuation of financial instruments

    The table below presents the amount and percentage of each category of
financial instruments which are fair valued using valuation technique based on
non-market observable inputs.

    
    -------------------------------------------------------------------------
                                          2008      2008      2008      2007
    $ millions, as at                  Jul. 31   Jul. 31   Jul. 31   Oct. 31
    -------------------------------------------------------------------------
                                    Structured
                                        credit
                                       run-off     Total     Total     Total
                                      business      CIBC      CIBC      CIBC
    -------------------------------------------------------------------------
    Assets
      Trading securities              $  6,404  $  6,719      15.9%      4.0%
      AFS securities                       235       669       5.8       3.4
      FVO financial
       instruments                         262       262       1.1       1.8
      Derivative instruments             3,355     3,526      15.4      16.1
    -------------------------------------------------------------------------
    Liabilities
      Obligations related to
       securities sold short          $      -  $      -         -%      0.6%
      Derivative instruments             5,491     5,698      23.0      16.4
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Much of our structured credit run-off business requires the application
of valuation techniques using non-market observable inputs. Indicative broker
quotes in an inactive market, which we consider to be non-market observable,
are primarily used for the initial valuation of these positions.
    After arriving at these valuations, we consider whether a credit
valuation adjustment is required to recognize the risk that any given
counterparty, from whom we have purchased protection through credit
derivatives, may not ultimately be able to fulfill its obligations. This risk
applies to all counterparties, including financial guarantors.
    With respect to our credit valuation adjustments regarding financial
guarantor obligations (excluding ACA), we continued to refine our valuation
methodologies to reflect market developments. Our valuation adjustments
continue to be driven off market observed credit spreads for each of the
financial guarantor counterparties, where such information is available. These
spreads are applied in relation to the weighted average life of the underlying
instruments protected by these guarantors, 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 financial guarantors.
    With respect to all other derivative counterparty exposures, we continue
to use a methodology that utilizes historical default rates in our calculation
of the credit valuation adjustment. In the prior quarter, we added $50 million
to the calculated adjustment amount to reflect the deterioration in general
credit conditions and this amount has been maintained in the current quarter.
    Our unhedged structured credit exposures (USRMM and non-USRMM) are
sensitive to changes in MTM, generally as derived from indicative broker
quotes as described above. A 10% adverse change in mark-to-market of the
underlyings would result in a loss of approximately $5 million in our unhedged
USRMM portfolio and $118 million in our non-USRMM portfolio, before index
hedges.
    The credit valuation allowance applied to our hedged portfolio is
sensitive to changes in both the MTM of the protected instruments and to
changes in credit spreads of the financial guarantors for that portion of the
portfolio that is hedged with those guarantors. A 10% adverse change in
mark-to-market of our hedged USRMM and non-USRMM positions would, primarily
through an increase in credit valuation adjustment for financial guarantors
(excluding ACA), result in a loss of approximately $151 million and
$94 million respectively, before credit hedges.
    The impact of a 10% widening in financial guarantor credit spreads would
result in an increase in the credit valuation adjustments of approximately
$184 million, before credit hedges.

    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 non-compliance
for a particular position, management is required to assess the need for an
appropriate valuation adjustment to address valuation uncertainties arising
therefrom.

    Changes in accounting policy

    Leveraged leases

    Effective November 1, 2007, we adopted the amended CICA EIC 46,
"Leveraged Leases", which was based upon the Financial Accounting Standards
Board Staff Position FAS 13-2, "Accounting for a Change or Projected Change in
the Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged
Lease Transaction".
    The EIC requires that a change in the estimated timing of the cash flows
relating to income taxes results in a recalculation of the timing of income
recognition from the leveraged lease. The adoption resulted in a $66 million
charge to opening retained earnings as at November 1, 2007. An amount
approximating this non-cash charge will be recognized into income over the
remaining lease terms using the effective interest rate method.

    Capital disclosures

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

    Financial instruments

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

    Controls and procedures

    Disclosure controls and procedures

    CIBC's management, with the participation of the Chief Executive Officer
and Chief Financial Officer, has evaluated the effectiveness, as at July 31,
2008, of CIBC's disclosure controls and procedures (as defined in the rules of
the SEC and the Canadian Securities Administrators) and has concluded that
such disclosure controls and procedures are effective.

    Changes in internal control over financial reporting

    There have been no changes in CIBC's internal control over financial
reporting during the quarter ended July 31, 2008 that have materially
affected, or are reasonably likely to materially affect, its internal control
over financial reporting.


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

    -------------------------------------------------------------------------
    CONSOLIDATED BALANCE SHEET
                                                              2008      2007
    Unaudited, $ millions, as at                           Jul. 31   Oct. 31
    -------------------------------------------------------------------------
    ASSETS
    Cash and non-interest-bearing deposits with banks     $  1,546  $  1,457
    -------------------------------------------------------------------------
    Interest-bearing deposits with banks                    10,900    12,290
    -------------------------------------------------------------------------
    Securities
    Trading                                                 42,195    58,779
    Available-for-sale (AFS)                                12,448    17,430
    Designated at fair value (FVO)                          22,379    10,291
    -------------------------------------------------------------------------
                                                            77,022    86,500
    -------------------------------------------------------------------------
    Securities borrowed or purchased under resale
     agreements                                             25,513    34,020
    -------------------------------------------------------------------------
    Loans
    Residential mortgages                                   89,870    91,664
    Personal                                                31,457    29,213
    Credit card                                             10,571     9,121
    Business and government                                 34,108    34,099
    Allowance for credit losses (Note 5)                    (1,398)   (1,443)
    -------------------------------------------------------------------------
                                                           164,608   162,654
    -------------------------------------------------------------------------
    Other
    Derivative instruments                                  22,967    24,075
    Customers' liability under acceptances                   8,778     8,024
    Land, buildings and equipment                            1,913     1,978
    Goodwill                                                 1,932     1,847
    Other intangible assets                                    399       406
    Other assets (Note 10)                                  13,462     8,927
    -------------------------------------------------------------------------
                                                            49,451    45,257
    -------------------------------------------------------------------------
                                                          $329,040  $342,178
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits
    Personal                                              $ 97,124  $ 91,772
    Business and government                                115,733   125,878
    Bank                                                    15,744    14,022
    -------------------------------------------------------------------------
                                                           228,601   231,672
    -------------------------------------------------------------------------
    Other
    Derivative instruments                                  24,812    26,688
    Acceptances                                              8,778     8,249
    Obligations related to securities sold short             7,879    13,137
    Obligations related to securities lent or sold
     under repurchase agreements                            26,652    28,944
    Other liabilities                                       11,890    13,728
    -------------------------------------------------------------------------
                                                            80,011    90,746
    -------------------------------------------------------------------------
    Subordinated indebtedness (Note 7)                       6,521     5,526
    -------------------------------------------------------------------------
    Preferred share liabilities                                600       600
    -------------------------------------------------------------------------
    Non-controlling interests                                  163       145
    -------------------------------------------------------------------------
    Shareholders' equity
    Preferred shares                                         2,331     2,331
    Common shares (Note 8)                                   6,060     3,133
    Treasury shares                                              -         4
    Contributed surplus                                         89        96
    Retained earnings                                        5,409     9,017
    Accumulated other comprehensive (loss) income (AOCI)      (745)   (1,092)
    -------------------------------------------------------------------------
                                                            13,144    13,489
    -------------------------------------------------------------------------
                                                          $329,040  $342,178
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    The accompanying notes and shaded sections in "MD&A - Management of
    risk" on pages 30 to 40 are an integral part of these consolidated
    financial statements.



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

                                                                     For the
                              For the three months ended   nine months ended
    ----------------------------------------------------- -------------------
                                2008      2008      2007      2008      2007
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------

    Interest income
    Loans                   $  2,212  $  2,310  $  2,501  $  7,104  $  7,155
    Securities borrowed or
     purchased under resale
     agreements                  326       419       596     1,274     1,567
    Securities                   671       697       755     2,032     2,236
    Deposits with banks          104       192       212       526       585
    ----------------------------------------------------- -------------------
                               3,313     3,618     4,064    10,936    11,543
    ----------------------------------------------------- -------------------
    Interest expense
    Deposits                   1,483     1,747     2,003     5,438     5,834
    Other liabilities            430       452       798     1,445     2,141
    Subordinated indebtedness     66        62        76       200       227
    Preferred share
     liabilities                   7         8         7        23        23
    ----------------------------------------------------- -------------------
                               1,986     2,269     2,884     7,106     8,225
    ----------------------------------------------------- -------------------
    Net interest income        1,327     1,349     1,180     3,830     3,318
    ----------------------------------------------------- -------------------
    Non-interest income
    Underwriting and advisory
     fees                         68        88       192       332       555
    Deposit and payment fees     197       191       205       583       591
    Credit fees                   58        56        77       174       228
    Card fees                     81        67        68       225       198
    Investment management and
     custodial fees              129       131       136       396       396
    Mutual fund fees             208       204       226       624       654
    Insurance fees, net of
     claims                       62        63        55       183       175
    Commissions on securities
     transactions                134       133       224       437       679
    Trading revenue (Note 9)    (794)   (2,401)       35    (6,322)      706
    AFS securities gains, net     68        12       137        31       388
    FVO revenue                  (39)      (18)       45       (86)      147
    Income from securitized
     assets                      161       146       121       451       386
    Foreign exchange other than
     trading                      88         3       105       223       290
    Other                        157       102       173       429       409
    ----------------------------------------------------- -------------------
                                 578    (1,223)    1,799    (2,320)    5,802
    ----------------------------------------------------- -------------------
    Total revenue              1,905       126     2,979     1,510     9,120
    ----------------------------------------------------- -------------------
    Provision for credit
     losses (Note 5)             203       176       162       551       471
    ----------------------------------------------------- -------------------
    Non-interest expenses
    Employee compensation
     and benefits                942       933     1,100     2,869     3,386
    Occupancy costs              148       142       152       435       454
    Computer and office
     equipment                   270       265       279       797       821
    Communications                67        72        77       213       236
    Advertising and business
     development                  51        58        59       162       175
    Professional fees             58        61        45       170       127
    Business and capital
     taxes                        29        35        31        89       100
    Other                        160       222        76       539       439
    ----------------------------------------------------- -------------------
                               1,725     1,788     1,819     5,274     5,738
    ----------------------------------------------------- -------------------
    (Loss) income before
     income taxes and
     non-controlling
     interests                   (23)   (1,838)      998    (4,315)    2,911
    Income tax (benefit)
     expense                    (101)     (731)      157    (1,834)      479
    ----------------------------------------------------- -------------------
                                  78    (1,107)      841    (2,481)    2,432
    Non-controlling
     interests                     7         4         6        15        20
    ----------------------------------------------------- -------------------
    Net income (loss)       $     71  $ (1,111) $    835  $ (2,496) $  2,412
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Earnings (loss) per
     share (in dollars)
     (Note 12)   -Basic     $   0.11  $  (3.00) $   2.33  $  (7.05) $   6.75
                 -Diluted   $   0.11  $  (3.00) $   2.31  $  (7.05) $   6.69
    Dividends per common
     share (in dollars)     $   0.87  $   0.87  $   0.77  $   2.61  $   2.24
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    The accompanying notes and shaded sections in "MD&A - Management of
    risk" on pages 30 to 40 are an integral part of these consolidated
    financial statements.



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

                                                                     For the
                              For the three months ended   nine months ended
    ----------------------------------------------------- -------------------
                                2008      2008      2007      2008      2007
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Preferred shares
    Balance at beginning of
     period                 $  2,331  $  2,331  $  2,731  $  2,331  $  2,381
    Issue of preferred
     shares                        -         -         -         -       750
    Redemption of preferred
     shares                        -         -      (400)        -      (800)
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  2,331  $  2,331  $  2,331  $  2,331  $  2,331
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Common shares
    Balance at beginning
     of period              $  6,056  $  6,049  $  3,135  $  3,133  $  3,064
    Issue of common shares
     (Note 8)                      4         8        15     2,960        86
    Issuance costs, net of
     related income taxes          -        (1)        -       (33)        -
    Purchase of common
     shares for
     cancellation                  -         -       (29)        -       (29)
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  6,060  $  6,056  $  3,121  $  6,060  $  3,121
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Treasury shares
    Balance at beginning of
     period                 $      8  $     12  $     (4) $      4  $    (19)
    Purchases                 (2,109)   (2,147)   (2,045)   (7,215)   (4,614)
    Sales                      2,101     2,143     2,038     7,211     4,622
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $      -  $      8  $    (11) $      -  $    (11)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Contributed surplus
    Balance at beginning
     of period              $     90  $     86  $     76  $     96  $     70
    Stock option expense           2         2         2         7         5
    Stock options exercised        -         -        (2)       (1)       (7)
    Net premium (discount)
     on treasury shares            -         3         -       (11)        8
    Other                         (3)       (1)        9        (2)        9
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $     89  $     90  $     85  $     89  $     85
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings
    Balance at beginning
     of period, as
     previously reported    $  5,699  $  7,174  $  8,200  $  9,017  $  7,268
    Adjustment for change in
     accounting policies           -         -         -    (66)(1)   (50)(2)
    ----------------------------------------------------- -------------------
    Balance at beginning of
     period, as restated       5,699     7,174     8,200     8,951     7,218
    Net income (loss)             71    (1,111)      835    (2,496)    2,412
    Dividends
      Preferred                  (30)      (30)      (36)      (90)     (109)
      Common                    (331)     (332)     (258)     (954)     (752)
    Premium on redemption of
     preferred shares
     (classified as equity)        -         -       (16)        -       (32)
    Premium on purchase of
     common shares for
     cancellations                 -         -      (277)        -      (277)
    Other                          -        (2)        2        (2)      (10)
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  5,409  $  5,699  $  8,450  $  5,409  $  8,450
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    AOCI, net of tax
    Balance at beginning of
     period                 $   (807) $   (849) $   (382) $ (1,092) $   (442)
    Adjustment for change in
     accounting policies(2)        -         -         -         -       123
    Other comprehensive
     income (loss) (OCI)          62        42      (205)      347      (268)
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $   (745) $   (807) $   (587) $   (745) $   (587)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings and
     AOCI                   $  4,664  $  4,892  $  7,863  $  4,664  $  7,863
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Shareholders' equity at
     end of period          $ 13,144  $ 13,377  $ 13,389  $ 13,144  $ 13,389
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Represents the impact of adopting the amended Canadian Institute of
        Chartered Accountants (CICA) Emerging Issues Committee Abstract 46,
        "Leveraged Leases".
        See Note 1 for additional details.
    (2) Represents the transitional adjustment on adoption of the CICA
        handbook sections 1530, 3251, 3855, and 3865.

    The accompanying notes and shaded sections in "MD&A - Management of
    risk" on pages 30 to 40 are an integral part of these consolidated
    financial statements.


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

                                                                     For the
                              For the three months ended   nine months ended
    ----------------------------------------------------- -------------------
                                2008      2008      2007      2008      2007
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Net income (loss)       $     71  $ (1,111) $    835  $ (2,496) $  2,412
    ----------------------------------------------------- -------------------
    OCI, net of tax
      Foreign currency
       translation
       adjustments
      Net gains (losses)
       on investment in
       self-sustaining
       foreign operations        260         2      (719)    1,235    (1,003)
      Net (losses) gains on
       hedges of foreign
       currency translation
       adjustments              (203)       25       549      (924)      786
    ----------------------------------------------------- -------------------
                                  57        27      (170)      311      (217)
    ----------------------------------------------------- -------------------
      Net change in AFS
       securities
      Net unrealized gains
       (losses) on AFS
       securities                  8        83       (43)       70       (12)
      Transfer of net (gains)
       losses to net income       (5)      (65)      (17)       36       (44)
    ----------------------------------------------------- -------------------
                                   3        18       (60)      106       (56)
    ----------------------------------------------------- -------------------
      Net change in cash flow
       hedges
      Net  gains (losses) on
       derivatives designated
       as cash flow hedges         -        (5)      (31)      (41)      (13)
      Net losses (gains) on
       derivatives designated
       as cash flow hedges
       transferred to net
       income                      2         2        56       (29)       18
    ----------------------------------------------------- -------------------
                                   2        (3)       25       (70)        5
    ----------------------------------------------------- -------------------
    Total OCI                     62        42      (205)      347      (268)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Comprehensive income
     (loss)                 $    133  $ (1,069) $    630  $ (2,149) $  2,144
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------


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

                                                                     For the
                              For the three months ended   nine months ended
    ----------------------------------------------------- -------------------
                                2008      2008      2007      2008      2007
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Foreign currency
     translation adjustments
      Changes on investment
       in self-sustaining
       foreign operations   $     (1) $      -  $      2  $     (4) $      2
      Changes on hedges of
       foreign currency
       translation
       adjustments                92       (41)     (275)      425      (387)
    Net change in AFS
     securities
      Net unrealized (gains)
       losses on AFS
       securities                 (4)      (50)       27       (39)        4
      Transfer of net gains
       (losses) to net
       income                      3        41         9       (45)       24
    Net change in cash
     flow hedges
      Changes on derivatives
       designated as cash
       flow hedges                 -         1        16        21         6
      Changes on derivatives
       designated as cash
       flow hedges
       transferred to net
       income                     (2)       (2)      (30)       14       (10)
    ----------------------------------------------------- -------------------
                            $     88  $    (51) $   (251) $    372  $   (361)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    The accompanying notes and shaded sections in "MD&A - Management of
    risk" on pages 30 to 40 are an integral part of these consolidated
    financial statements.



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

                                                                     For the
                              For the three months ended   nine months ended
    ----------------------------------------------------- -------------------
                                2008      2008      2007      2008      2007
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Cash flows provided by
     (used in) operating
     activities
    Net income (loss)       $     71  $ (1,111) $    835  $ (2,496) $  2,412
    Adjustments to reconcile
       net income (loss) to
       cash flows provided
       by (used in)
       operating activities:
      Provision for credit
       losses                    203       176       162       551       471
      Amortization of
       buildings, furniture,
       equipment and
       leasehold
       improvements               50        51        52       153       164
      Amortization of other
       intangible assets          11        10        11        31        28
      Stock-based
       compensation               (3)        2        (3)      (20)       13
      Future income taxes       (235)     (765)       91    (1,053)      205
      AFS securities gains,
       net                       (68)      (12)     (137)      (31)     (388)
      (Gains) losses on
       disposal of land,
       buildings and
       equipment                   -        (1)        -        (1)        -
      Other non-cash items,
       net                       (54)      (13)      119        (1)      158
      Changes in operating
       assets and liabilities
        Accrued interest
         receivable              121        32        (5)      257       (37)
        Accrued interest
         payable                (158)      (93)      118      (275)     (327)
        Amounts receivable
         on derivative
         contracts               517       (79)   (3,033)    1,101    (2,987)
        Amounts payable on
         derivative
         contracts            (1,280)      (82)    2,214    (2,316)    1,885
        Net change in
         trading securities   12,701     3,469       (48)   16,584       423
        Net change in FVO
         securities           (6,794)   (1,321)   (1,496)  (12,088)   (1,288)
        Net change in other
         FVO financial
         instruments           2,128       (83)        -     1,464     1,381
        Current income taxes     133       (74)       16    (1,735)     (818)
        Other, net             1,295       218      (510)   (2,266)     (927)
    ----------------------------------------------------- -------------------
                               8,638       324    (1,614)   (2,141)      368
    ----------------------------------------------------- -------------------
    Cash flows (used in)
     provided by financing
     activities
    Deposits, net of
     withdrawals             (10,995)   (1,643)    9,937    (3,794)   11,872
    Obligations related to
     securities sold short    (2,455)      648      (236)   (4,883)     (319)
    Net obligations related
     to securities lent or
     sold under repurchase
     agreements                  122    (2,825)    2,272    (2,292)    3,611
    Issue of subordinated
     indebtedness              1,150         -       288     1,150       347
    Redemption of
     subordinated
     indebtedness                  -       (89)        -      (339)        -
    Issue of preferred shares      -         -         -         -       750
    Redemption of preferred
     shares                        -         -      (416)        -      (832)
    Issue of common shares,
     net                           4         7        15     2,927        86
    Purchase of common shares
     for cancellation              -         -      (306)        -      (306)
    Net proceeds from
     treasury shares
     (purchased) sold             (8)       (4)       (7)       (4)        8
    Dividends                   (361)     (362)     (294)   (1,044)     (861)
    Other, net                  (949)      223      (555)   (1,171)     (356)
    ----------------------------------------------------- -------------------
                             (13,492)   (4,045)   10,698    (9,450)   14,000
    ----------------------------------------------------- -------------------
    Cash flows provided by
     (used in) investing
     activities
    Interest-bearing
     deposits with banks       1,050     4,570      (872)    1,390    (2,346)
    Loans, net of repayments  (2,801)   (4,694)   (6,140)   (9,542)  (10,821)
    Proceeds from
     securitizations           3,145       933     1,581     6,328     5,816
    Purchase of AFS
     securities               (6,248)   (3,286)   (1,484)  (11,458)   (5,889)
    Proceeds from sale of
     AFS securities            1,073     1,944     1,453     8,887     6,268
    Proceeds from maturity
     of AFS securities         1,409     1,288       182     7,638     3,564
    Net securities borrowed
     or purchased under
     resale agreements         7,657     2,455    (4,168)    8,507    (9,652)
    Net cash used in
     acquisition(1)                -         -         -         -    (1,040)
    Purchase of land,
     buildings and equipment     (32)      (23)        -       (98)     (233)
    Proceeds from disposal
     of land, buildings and
     equipment                     -         2         -         2         -
    ----------------------------------------------------- -------------------
                               5,253     3,189    (9,448)   11,654   (14,333)
    ----------------------------------------------------- -------------------
    Effect of exchange rate
     changes on cash and
     non-interest-bearing
     deposits with banks           5         1        (6)       26       (15)
    ----------------------------------------------------- -------------------
    Net increase (decrease)
     in cash and
     non-interest-bearing
     deposits with banks
     during period               404      (531)     (370)       89        20
    Cash and non-interest-
     bearing deposits with
     banks at beginning of
     period                    1,142     1,673     1,707     1,457     1,317
    ----------------------------------------------------- -------------------
    Cash and non-interest-
     bearing deposits with
     banks at end of period $  1,546  $  1,142  $  1,337  $  1,546  $  1,337
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Cash interest paid      $  2,144  $  2,362  $  2,766  $  7,381  $  8,552
    Cash income taxes paid  $      2  $    107  $     50  $    955  $  1,091
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Related to the acquisition of FirstCaribbean International Bank.

    The accompanying notes and shaded sections in "MD&A - Management of
    risk" on pages 30 to 40 are an integral part of these consolidated
    financial statements.


    NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

    The unaudited interim consolidated financial statements of Canadian
    Imperial Bank of Commerce and its subsidiaries (CIBC) have been prepared
    in accordance with Canadian generally accepted accounting principles
    (GAAP). These financial statements follow the same accounting policies
    and their methods of application as CIBC's consolidated financial
    statements for the year-ended October 31, 2007, except as noted below.
    CIBC's interim consolidated financial statements do not include all
    disclosures required by Canadian GAAP for annual financial statements
    and, accordingly, should be read in conjunction with the consolidated
    financial statements for the year-ended October 31, 2007, as set out on
    pages 84 to 137 of the 2007 Annual Accountability Report.

    1.  Change in accounting policy

    Leveraged leases

    Effective November 1, 2007, we adopted the amended Canadian Institute of
    Chartered Accountants (CICA) Emerging Issues Committee Abstract (EIC) 46,
    "Leveraged Leases", which was based upon the Financial Accounting
    Standards Board Staff Position FAS 13-2, "Accounting for a Change or
    Projected Change in the Timing of Cash Flows Relating to Income Taxes
    Generated by a Leveraged Lease Transaction". The EIC requires that a
    change in the estimated timing of the cash flows relating to income taxes
    results in a recalculation of the timing of income recognition from the
    leveraged lease.

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

    Capital disclosures

    Effective November 1, 2007, we adopted the CICA handbook section 1535,
    "Capital Disclosures", which requires an entity to disclose its
    objectives, policies, and processes for managing capital. These were
    provided in Note 17 to the 2007 consolidated financial statements, and
    are unchanged from the prior year. In addition, the section requires
    disclosure of summary quantitative information about capital components.
    See Note 8 for additional details.

    Financial instruments

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

    These sections replace the CICA handbook section 3861 "Financial
    Instruments - Disclosure and Presentation", and enhance disclosure
    requirements on the nature and extent of risks arising from financial
    instruments and how the entity manages those risks. See Note 15 for
    additional details.

    2.  Fair value of financial instruments

    Our approach for fair valuation of financial instruments is presented in
    Note 2 to the 2007 consolidated financial statements.

    Methodology and sensitivity

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

    A 10% adverse change in mark-to-market of our unhedged USRMM and
    non-USRMM positions would result in a loss of approximately $5 million
    and $118 million respectively, before index hedges. A 10% adverse change
    in mark-to-market of our hedged USRMM and non-USRMM positions would,
    primarily through an increase in credit valuation adjustment for
    financial guarantors, result in a loss of approximately $151 million and
    $94 million respectively, before credit hedges.

    The impact of a 10% widening in financial guarantor credit spreads would
    result in an increase in the credit valuation adjustments of
    approximately $184 million, before credit hedges.

    The total recognized loss in the consolidated financial statements on the
    financial instruments outstanding as at the balance sheet date, whose
    fair value was estimated using valuation techniques using non-market
    observable inputs was $856 million for the quarter ($6.6 billion for the
    nine months ended July 31, 2008).

    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 $24,182 million and $2,037 million respectively as at
    July 31, 2008. The FVO designated items and related hedges resulted in a
    net income of $9 million for the quarter and $19 million for the nine
    months ended July 31, 2008.

    The gross impact of changes in credit spread on FVO designated loans was
    a $38 million loss during the quarter (loss of $180 million for the nine
    months ended July 31, 2008) and was a $24 million gain net of credit
    hedges in the quarter (gain of $14 million for the nine months ended
    July 31, 2008).

    The impact of CIBC's credit risk on outstanding FVO designated
    liabilities was a $6 million gain in the quarter ($6 million gain for the
    nine months ended July 31, 2008).

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

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

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

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

    As a result, we recorded a net pre-tax gain of $11 million ($58 million
    loss for the nine months ended July 31, 2008) in other non-interest
    income. These amounts include RSA reimbursements that became receivable
    from Oppenheimer in the second and third quarters of 2008. We also
    recorded impairment and other charges of $9 million ($22 million for the
    nine months ended July 31, 2008) in other non-interest expenses related
    to our remaining U.S. operations.

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

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


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


    4.  Past due loans but not impaired

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

    -------------------------------------------------------------- ----------
                                                             2008       2008
                       Less than      31 to       Over    Jul. 31    Apr. 30
    $ millions, as at    30 days    90 days    90 days      Total      Total
    -------------------------------------------------------------- ----------
    Residential
     mortgages         $   1,397  $     508  $     159  $   2,064  $   1,895
    Personal                 528        125         52        705        638
    Credit card              500        136         88        724        622
    Business and
     government              373        139         46  $     558        403
    -------------------------------------------------------------- ----------
                       $   2,798  $     908  $     345  $   4,051  $   3,558
    -------------------------------------------------------------- ----------
    -------------------------------------------------------------- ----------


    5.  Allowance for credit losses

    -------------------------------------------------------------------------
                                                  For the three months ended
                           --------------------------------------------------
                                                 Jul. 31,  Apr. 30,  Jul. 31,
                                                    2008      2008      2007
                           --------------------------------------------------
                            Specific   General     Total     Total     Total
    $ millions             allowance allowance allowance allowance allowance
    -------------------------------------------------------------------------
    Balance at beginning
     of period              $    579  $    889  $  1,468  $  1,469  $  1,516
    Provision for credit
     losses                      202         1       203       176       162
    Write-offs                  (211)        -      (211)     (202)     (202)
    Recoveries                    27         -        27        26        29
    Transfer from general
     to specific(1)                1        (1)        -         -         -
    Other(2)                      (3)        -        (3)       (1)       (5)
    -------------------------------------------------------------------------
    Balance at end of
     period                 $    595  $    889  $  1,484  $  1,468  $  1,500
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprised of:
      Loans                 $    595  $    803  $  1,398  $  1,384  $  1,499
      Undrawn credit
       facilities(3)               -        86        86        84         -
      Letters of credit(4)         -         -         -         -         1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------
                                       For the
                             nine months ended
                           --------------------
                             Jul. 31,  Jul. 31,
                                2008      2007
                           --------------------
                               Total     Total
    $ millions             allowance allowance
    -------------------------------------------
    Balance at beginning
     of period              $  1,443  $  1,444
    Provision for credit
     losses                      551       471
    Write-offs                  (600)     (646)
    Recoveries                    84       104
    Transfer from general
     to specific(1)                -         -
    Other(2)                       6       127
    -------------------------------------------
    Balance at end of
     period                 $  1,484  $  1,500
    -------------------------------------------
    -------------------------------------------
    Comprised of:
      Loans                 $  1,398  $  1,499
      Undrawn credit
       facilities(3)              86         -
      Letters of credit(4)         -         1
    -------------------------------------------
    -------------------------------------------
    (1) Related to student loan portfolio.
    (2) First quarter of 2007 includes $117 million in specific allowance and
        $23 million in general allowance related to the acquisition of the
        FirstCaribbean International Bank.
    (3) Beginning in the first quarter of 2008, allowance on undrawn credit
        facilities is included in other liabilities. Prior to 2008, it was
        included in allowance for credit losses.
    (4) Included in other liabilities.


    6.  Securitizations and variable interest entities

    Securitizations (residential mortgages)

    During the quarter, we securitized $10.8 billion of residential insured
    mortgages through the creation of mortgage-backed securities. We sold
    $3.0 billion to the Canada Housing Trust and retained $7.8 billion as
    inventory on our consolidated balance sheet.

    In addition, we securitized $185 million of mortgage assets to a
    qualifying special purpose entity (QSPE) that holds Prime/Alt A non-
    insured mortgages. Total assets in the QSPE as at July 31, 2008 were
    $635 million of which $112 million represent Prime mortgages and the
    remaining $523 million represent Near Prime/Alt A mortgages. We also hold
    another $28 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 5 years of 14 bps and an average loan-to-value ratio of 74%. We
    retained responsibility for servicing these mortgages.

    -------------------------------------------------------------------------
                                                  For the three months ended
                                      ---------------------------------------
                                              2008         2008         2007
    $ millions                             Jul. 31      Apr. 30      Jul. 31
    -------------------------------------------------------------------------
    Securitized                           $ 10,993     $  2,663     $  3,843
    Sold                                     3,164          937        1,251
    Net cash proceeds                        3,145          933        1,235
    Retained interests                          77           20           19
    Gain on sale, net of transaction
     costs                                      34            9           11
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained interest assumptions (%)

    Weighted-average remaining life
     (in years)                                3.2          4.0          4.4
    Prepayment/payment rate            11.0 - 33.0  11.0 - 35.0  11.0 - 39.0
    Discount rate                        3.3 - 6.9    2.9 - 3.6    4.0 - 4.9
    Expected credit losses               0.0 - 0.1    0.0 - 0.1    0.0 - 0.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    ------------------------------------------------------------
                                                        For the
                                              nine months ended
                                      --------------------------
                                              2008         2007
    $ millions                             Jul. 31      Jul. 31
    ------------------------------------------------------------
    Securitized                           $ 19,964     $  9,049
    Sold                                     6,373        5,507
    Net cash proceeds                        6,328        5,470
    Retained interests                         145           86
    Gain on sale, net of transaction
     costs                                      57           37
    ------------------------------------------------------------
    ------------------------------------------------------------
    Retained interest assumptions (%)

    Weighted-average remaining life
     (in years)                                3.5          3.6
    Prepayment/payment rate            11.0 - 36.0  11.0 - 39.0
    Discount rate                        2.9 - 6.9    4.0 - 4.9
    Expected credit losses               0.0 - 0.1    0.0 - 0.1
    ------------------------------------------------------------
    ------------------------------------------------------------


    Variable interest entities (VIEs)

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

    Under certain total return swap credit derivative arrangements with these
    VIEs held in our trading book, we can be called upon to purchase the
    underlying reference assets at par with the simultaneous termination of
    the credit derivatives. Pursuant to these arrangements, during the third
    quarter of 2008, we purchased certain reference assets at a par amount of
    $189 million from a third-party structured vehicle in consideration for
    the termination of the remaining related total return swaps. This is in
    addition to the $6.6 billion of reference assets purchased during the
    first and second quarters from two third party structured vehicles also
    in consideration for the termination of the related total return swaps.
    The reference assets purchased were categorized as trading securities on
    our consolidated balance sheet and continue to be hedged.

    We continue to support our sponsored conduits from time to time through
    the purchase of commercial paper issued by these conduits. As at
    July 31, 2008, our direct investment in commercial paper issued by our
    sponsored conduits was $120 million. We were not considered to be the
    primary beneficiary of any of these conduits. At July 31, 2008, our
    maximum exposure to loss relating to CIBC-sponsored multi-seller conduits
    and third party structured vehicles was $9.9 billion (October 31, 2007:
    $15.1 billion) and $1.3 billion (October 31, 2007: $1.8 billion)
    respectively. The maximum exposure to loss relating to these conduits
    comprises the fair value for investments and notional amounts of
    liquidity and credit facilities.

    7.  Subordinated indebtedness

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

    On February 26, 2008, in accordance with their terms, we redeemed all
    $89 million of our 5.89% Debentures (subordinated indebtedness) due
    February 26, 2013, for their outstanding principal amount, plus unpaid
    interest accrued to the redemption date.

    On June 6, 2008, we issued $550 million principal amount of 5.15%
    subordinated indebtedness due June 6, 2018 and $600 million principal
    amount of 6.00% subordinated indebtedness due June 6, 2023.

    8.  Share capital

    Regulatory capital and ratios

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

    Bank for International Settlements standards require that banks maintain
    minimum Tier 1 and Total capital ratios of 4% and 8%, respectively. The
    Office of the Superintendent of Financial Institutions has established
    that Canadian deposit-taking financial institutions maintain Tier 1 and
    Total capital ratios of at least 7% and 10%, respectively. During the
    quarter and nine months ended July 31, 2008, we have complied with these
    regulatory capital requirements.

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

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


    -------------------------------------------------------------------------
                                                          Basel II   Basel I
                                                             basis     basis
    -------------------------------------------------------------------------
                                                              2008      2007
    $ millions, as at                                      Jul. 31   Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                        $ 11,626  $ 12,379
    Total regulatory capital                                17,087    17,758
    Risk-weighted assets                                   118,494   127,424
    Tier 1 capital ratio                                      9.8%      9.7%
    Total capital ratio                                      14.4%     13.9%
    Assets-to-capital multiple                               17.7x     19.0x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Common shares

    During the first quarter of 2008, we issued 45.3 million common shares
    for net cash proceeds of $2.9 billion, after issuance costs, net of tax,
    of $32 million. We also issued 0.2 million common shares for $11 million,
    pursuant to stock option plans.

    During the second quarter, we issued 0.2 million common shares for
    $8 million, pursuant to stock option plans. We also incurred additional
    issuance costs net of tax of $1 million related to common shares issued
    for cash.

    During the third quarter we issued 0.1 million common shares for
    $4 million, pursuant to stock option plans.

    9.  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 US$102 million ($104 million) on our exposures
    hedged by ACA. We have increased our valuation adjustments by
    US$12 million ($12 million) against the receivable from ACA for unmatched
    purchased credit derivatives, bringing the total valuation adjustments
    for ACA to US$3.02 billion ($3.09 billion) as at July 31, 2008. With the
    restructuring of ACA on August 7, 2008 as discussed in the MD&A, we have
    reduced our credit valuation adjustments against ACA resulting in a
    credit to earnings of US$11 million ($11 million). As a result, the fair
    value of derivative contracts with ACA net of valuation adjustments was
    US$41 million ($42 million) as at July 31, 2008.

    We also recorded a charge of US$799 million ($800 million) on the hedging
    contracts provided by other financial guarantors to increase their
    related valuation adjustments to US$3.0 billion ($3.0 billion) as at
    July 31, 2008. The fair value of derivative contracts with other
    financial guarantors net of valuation adjustments was US$2.9 billion
    ($2.9 billion).

    The amount of the charge is based on the estimated fair value of the
    derivative contracts, which in turn is based on market value of the
    underlying reference assets.

    During the quarter, our methodology in establishing valuation adjustments
    against our counterparty credit exposures related to financial guarantors
    (excluding ACA) continued to be refined to reflect industry best
    practices and market developments.

    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.

    10. Income taxes

    At the end of the quarter, our future income tax asset was $1.3 billion,
    net of a US$82 million ($84 million) valuation allowance. Included in the
    future income tax asset are $954 million related to a Canadian non-
    capital loss carryforward which expires in 20 years, and $68 million
    related to a Canadian capital loss carryforward which has no expiry date.
    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.

    11. Employee future benefit expenses


    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended   nine months ended
                            ----------------------------- -------------------
                                2008      2008      2007      2008      2007
    $ millions               Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Defined benefit plans

    Pension benefit plans   $     37  $     38  $     45  $    113  $    140
    Other benefit plans           10        13        12        31        31
    ----------------------------------------------------- -------------------
                            $     47  $     51  $     57  $    144  $    171
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Defined contribution
     plans

    CIBC's pension plans    $      2  $      4  $      3  $     10  $     12
    Government pension
     plans(1)                     19        23        19        63        63
    ----------------------------------------------------- -------------------
                            $     21  $     27  $     22  $     73  $     75
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal
        Insurance Contributions Act.


    12. Earnings (loss) per share (EPS)

    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended   nine months ended
                            ----------------------------- -------------------
    $ millions, except          2008      2008      2007      2008      2007
    per share amounts        Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Basic EPS
    Net income (loss)       $     71  $ (1,111) $    835  $ (2,496) $  2,412
    Preferred share
     dividends and premiums      (30)      (30)      (52)      (90)     (141)
    ----------------------------------------------------- -------------------
    Net income (loss)
     applicable to common
     shares                 $     41  $ (1,141) $    783  $ (2,586) $  2,271
    ----------------------------------------------------- -------------------
    Weighted-average common
     shares outstanding
     (thousands)             380,877   380,754   335,755   366,686   336,511
    ----------------------------------------------------- -------------------
    Basic EPS               $   0.11  $  (3.00) $   2.33  $  (7.05) $   6.75
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Diluted EPS
    Net income (loss)
     applicable to common
     shares                 $     41  $ (1,141) $    783  $ (2,586) $  2,271
    ----------------------------------------------------- -------------------
    Weighted-average common
     shares outstanding
     (thousands)             380,877   380,754   335,755   366,686   336,511
    Add: stock options
     potentially
     exercisable(1)
     (thousands)               1,295     1,623     2,936     1,666     3,228
    ----------------------------------------------------- -------------------
    Weighted-average diluted
     common shares
     outstanding(2)
     (thousands)             382,172   382,377   338,691   368,352   339,739
    ----------------------------------------------------- -------------------
    Diluted EPS(3)          $   0.11  $  (3.00) $   2.31  $  (7.05) $   6.69
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Excludes average options outstanding of 2,302,495 with a
        weighted-average exercise price of $78.44; average options
        outstanding of 2,128,531 with a weighted-average exercise price of
        $79.50; and average options outstanding of 8,758 with a
        weighted-average exercise price of $100.02 for the three months ended
        July 31, 2008, April 30, 2008, and July 31, 2007, respectively, as
        the options' exercise prices were greater than the average market
        price of CIBC's common shares.
    (2) Convertible preferred shares/preferred share liabilities have not
        been included in the calculation since we have the right to redeem
        them for cash prior to the conversion date.
    (3) In case of a loss, the effect of stock options potentially
        exercisable on diluted EPS will be anti-dilutive; therefore basic and
        diluted EPS will be the same.


    13. Guarantees

    -------------------------------------------------------------------------
                                               2008                     2007
    $ millions, as at                       Jul. 31                  Oct. 31
    -------------------------------------------------------------------------
                              Maximum                   Maximum
                            potential                 potential
                               future      Carrying      future     Carrying
                            payment(1)       amount   payment(1)      amount
    -------------------------------------------------------------------------
    Securities lending with
     indemnification(2)     $  46,416     $       -   $  43,287    $       -
    Standby and performance
     letters of credit          6,454            15       6,353           13
    Credit derivatives
     written options           30,845         6,070      67,283        3,971
    Other derivative written
     options(3)                     -(4)      4,089           -(4)     5,612
    Other indemnification
     agreements                     -(4)          -           -(4)         -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The total collateral available relating to these guarantees was
        $50.3 billion (October 31, 2007: $46.8(*) billion).
    (2) Comprises the full contract amount of custodial client securities
        lent by CIBC Mellon Global Securities Services Company, which is a
        50/50 joint venture between CIBC and The Bank of New York Mellon.
    (3) Includes $352 million (October 31, 2007: $631 million) related to
        total return swaps (TRS).
    (4) See narrative on page 127 of the 2007 consolidated financial
        statements for further information.
        (*) Restated.


    14. Segmented information

    CIBC has two strategic business lines: CIBC Retail Markets and CIBC World
    Markets. These business lines are supported by five functional groups -
    Administration, Technology and Operations; Corporate Development;
    Finance; Legal and Regulatory Compliance; and Treasury and Risk
    Management. The activities of these functional groups are included within
    Corporate and Other, with their revenue, expenses and balance sheet
    resources generally being allocated to the business lines.

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


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

    Jul. 31, 2008
      Net interest income
       (expense)               $   1,299   $     (67)  $      95   $   1,327
      Non-interest income
       (expense)                   1,055        (531)         54         578
      Intersegment revenue(1)          1           -          (1)          -
    -------------------------------------------------------------------------
      Total revenue                2,355        (598)        148       1,905
      Provision for credit
       losses                        196           7           -         203
      Amortization(2)                 27           4          30          60
      Other non-interest
       expenses                    1,350         262          52       1,665
    -------------------------------------------------------------------------
      Income (loss) before
       income taxes and
       non-controlling
       interests                     782        (871)         66         (23)
      Income tax expense
       (benefit)                     203        (333)         29        (101)
      Non-controlling interests        7           -           -           7
    -------------------------------------------------------------------------
      Net income (loss)        $     572  $     (538)  $      37   $      71
    -------------------------------------------------------------------------
      Average assets(3)        $ 242,407  $   97,357   $   3,632   $ 343,396
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Apr. 30, 2008
      Net interest income      $   1,281  $       17   $      51   $   1,349
      Non-interest income
       (expense)                     956      (2,183)          4      (1,223)
      Intersegment revenue(1)          2           -          (2)          -
    -------------------------------------------------------------------------
      Total revenue                2,239      (2,166)         53         126
      Provision for credit
       losses                        174           2           -         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                     685      (2,526)          3      (1,838)
      Income tax expense
       (benefit)                     174        (891)        (14)       (731)
      Non-controlling interests        2           2           -           4
    -------------------------------------------------------------------------
      Net income (loss)        $     509   $  (1,637)  $      17   $  (1,111)
    -------------------------------------------------------------------------
      Average assets(3)        $ 242,219   $ 104,210   $   2,576   $ 349,005
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Jul. 31, 2007
      Net interest income
       (expense)               $   1,225   $    (129)  $      84   $   1,180
      Non-interest income          1,161         584          54       1,799
      Intersegment revenue(1)          -           -           -           -
    -------------------------------------------------------------------------
      Total revenue                2,386         455         138       2,979
      Provision for (reversal
       of) credit losses             167          (5)          -         162
      Amortization(2)                 29           5          29          63
      Other non-interest
       expenses                    1,377         314          65       1,756
    -------------------------------------------------------------------------
      Income before income taxes
       and non-controlling
       interests                     813         141          44         998
      Income tax expense
       (benefit)                     212         (80)         25         157
      Non-controlling interests        5           1           -           6
    -------------------------------------------------------------------------
      Net income               $     596   $     220   $      19   $     835
    -------------------------------------------------------------------------
      Average assets(3)        $ 228,201   $ 102,667   $     685   $ 331,553
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    Jul. 31, 2008
      Net interest income
       (expense)               $   3,839   $    (214)  $     205   $   3,830
      Non-interest income
       (expense)                   3,122      (5,507)         65      (2,320)
      Intersegment revenue(1)          4           -          (4)          -
    -------------------------------------------------------------------------
      Total revenue                6,965      (5,721)        266       1,510
      Provision for credit
       losses                        525          26           -         551
      Amortization(2)                 83          12          88         183
      Other non-interest
       expenses                    4,027         963         101       5,091
    -------------------------------------------------------------------------
      Income (loss) before
       income taxes and
       non-controlling
       interests                   2,330      (6,722)         77      (4,315)
      Income tax expense
       (benefit)                     579      (2,390)        (23)     (1,834)
      Non-controlling
       interests                      13           2           -          15
    -------------------------------------------------------------------------
      Net income (loss)        $   1,738   $  (4,334)  $     100   $  (2,496)
      Average assets(3)        $ 239,952   $ 103,209   $   2,457   $ 345,618
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Jul. 31, 2007
      Net interest income
       (expense)               $   3,551   $    (484)  $     251   $   3,318
      Non-interest income          3,413       2,207         182       5,802
      Intersegment revenue(1)          4           -          (4)          -
    -------------------------------------------------------------------------
      Total revenue                6,968       1,723         429       9,120
      Provision for (reversal
       of) credit losses             501         (10)        (20)        471
      Amortization(2)                 80          15          97         192
      Other non-interest
       expenses                    4,097       1,249         200       5,546
    -------------------------------------------------------------------------
      Income before income taxes
       and non-controlling
       interests                   2,290         469         152       2,911
      Income tax expense
       (benefit)                     491         (85)         73         479
      Non-controlling interests       16           4           -          20
    -------------------------------------------------------------------------
      Net income               $   1,783   $     550   $      79   $   2,412
    -------------------------------------------------------------------------
      Average assets(3)        $ 222,497   $ 101,431   $     644   $ 324,572
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Intersegment revenue represents internal sales commissions and
        revenue allocations under the
        Manufacturer/Customer Segment/Distributor Management Model.
    (2) Includes amortization of buildings, furniture, equipment, leasehold
        improvements and finite-lived other intangible assets.
    (3) Assets are disclosed on an average basis as this measure is most
        relevant to a financial institution and is the measure reviewed by
        management.


    15. Financial instruments - disclosures

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

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

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


    $ millions, as at July 31, 2008
    -------------------------------------------------------------------------
    Accounting categories                     Basel II portfolios
    -------------------------  ----------------------------------------------
                                                                 Real estate
                                                                     secured
                                                                    personal
                               Corporate    Sovereign        Bank    lending
    -------------------------  ----------------------------------------------
    Non-interest bearing
     deposits with banks       $       -   $       -   $     430   $       -
    Interest-bearing deposits
     with banks                        -         429       2,581           -
    Securities
      Trading                         37           5           -           -
      AFS                          1,989       8,514          29           -
      FVO                            111      22,264           -           -
    Loans
      Residential mortgages          589       1,086           -      86,823
      Personal loans                 202           -          19      16,625
      Credit card loans                -           -           -           -
      Business and government
       loans                      29,222         655         457           -
    Customers' liability under
     acceptances                   7,860         268         650           -
    Other assets                     693       2,044       5,486           7
    -------------------------------------------------------------------------
    Total credit exposure       $ 40,703   $  35,265   $   9,652   $ 103,455
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -----------------------------------------------------------------
    Accounting categories               Basel II portfolios
    -------------------------  --------------------------------------
                               Qualifying
                                revolving      Other
                                   retail     retail  Securitization
    -------------------------  --------------------------------------
    Non-interest bearing
     deposits with banks       $       -   $       -   $       -
    Interest-bearing deposits
     with banks                        -           -           -
    Securities
      Trading                          -           -       1,847
      AFS                              -           -         906
      FVO                              -           -           4
    Loans
      Residential mortgages            -           -           -
      Personal loans               6,197       8,075           -
      Credit card loans           10,465         106           -
      Business and government
       loans                           -       2,000         134
    Customers' liability under
     acceptances                       -           -           -
    Other assets                      77           7          32
    -----------------------------------------------------------------
    Total credit exposure      $  16,739   $  10,188   $   2,923
    -----------------------------------------------------------------
    -----------------------------------------------------------------
    





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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