CIBC Announces Third Quarter 2009 Results



    TORONTO, Aug. 26 /CNW/ - CIBC (CM: TSX; NYSE) announced net income of
$434 million for the third quarter ended July 31, 2009, compared with net
income of $71 million for the same period last year. Diluted earnings per
share were $1.02, compared with $0.11 a year ago. Cash diluted earnings per
share were $1.04(1), compared with $0.13(1) a year ago.
    CIBC's Tier 1 and total capital ratios at July 31, 2009 remain strong, at
12.0% and 16.5%, respectively.
    "CIBC's third quarter performance was solid, driven by good performances
in our core retail and wholesale banking businesses, continued expense
discipline and a gain from run-off activities following several quarters of
losses," says Gerald T. McCaughey, President and Chief Executive Officer of
CIBC. "In addition, while growing our businesses, we further enhanced our
strong capital position which continues to be a clear strategic advantage for
CIBC."

    
    Results for the third quarter of 2009 were affected by the following items
of note aggregating to a negative impact of $0.32 per share:

    -   $155 million ($106 million after-tax, or $0.27 per share) of
        mark-to-market (MTM) losses on credit derivatives in CIBC's corporate
        loan hedging program as a result of the narrowing of credit spreads
        during the quarter;

    -   $95 million ($65 million after-tax, or $0.17 per share) gain on
        structured credit run-off activities;

    -   $83 million ($56 million after-tax, or $0.15 per share) of loan
        losses within the leveraged loan and other run-off portfolios;

    -   $42 million ($29 million after-tax, or $0.07 per share) provision for
        credit losses in the general allowance; and

    -   Other items of note as described on page 7 of CIBC's Third Quarter
        2009 Management Discussion and Analysis aggregating to a positive
        impact on earnings of $2 million ($3 million after-tax and no impact
        on earnings per share).
    

    Net income of $434 million for the third quarter of 2009 compared to a
net loss of $51 million for the prior quarter. Diluted earnings per share and
cash diluted earnings per share of $1.02 and $1.04(1), respectively, for the
third quarter of 2009 compared to a diluted loss per share and a cash diluted
loss per share of $0.24 and $0.21(1), respectively, for the prior quarter. The
prior quarter included items of note that aggregated to a negative impact on
results of $1.65 per share.

    
    Update on business priorities

    Capital strength

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

    CIBC's Tier 1 capital ratio of 12.0%, which is among the highest of major
commercial banks in North America, is well above its target of 8.5% and the
regulatory minimum of 7.0%. CIBC's capital strength provides CIBC with
capacity to meet the ongoing investment needs of its core businesses, while
also positioning the bank for future growth opportunities.

    
    Business strength

    CIBC Retail Markets reported net income of $416 million.
    

    CIBC's Retail Markets business continues to effectively balance growth
with expense and risk discipline.
    Revenue of $2.3 billion was down $32 million from the third quarter of
2008, which included a $28 million gain on the sale of shares in Visa Inc.
Volume growth was offset by lower spreads and the impact of weaker equity
markets.
    Expenses of $1,324 million were down $53 million from the third quarter
of 2008. Lower performance-related compensation and effective cost management
were partially offset by the negative impact of a weaker Canadian dollar on
the translated U.S. dollar expenses of FirstCaribbean.
    Loan losses of $423 million were up $199 million from the third quarter
of 2008, and included $63 million of higher allowances. Loan losses were
higher in cards and personal lending due to higher delinquencies and
bankruptcies related to the deteriorating economic environment.

    
    During the third quarter of 2009, CIBC Retail Markets continued to deliver
on its strategy of providing clients with greater access, choice and advice by
further strengthening its branch network and enhancing its competitive product
capabilities:

    -   Retail Markets opened or expanded 11 additional branches in high
        growth locations, bringing the year-to-date total to 28 of the 40
        planned branch openings in 2009;

    -   Retail Markets launched the new Renaissance High Interest Savings
        Account to positive market response both through the Wood Gundy
        brokerage network and also third party channels;

    -   Retail Markets relaunched its highly successful chequing account and
        credit card promotional campaign to acquire new clients to the bank;
        and

    -   Retail Markets was voted the "Best Consumer Internet Bank" in Canada
        and the "Best Online Consumer Credit Site" in North America for the
        second year in a row by Global Finance magazine.
    

    Wholesale Banking reported net income of $86 million for the third
quarter.

    Revenue of $531 million was up $772 million from the prior quarter,
primarily due to gains on structured credit run-off activities compared with
losses on these activities in the prior quarter. In addition, revenue was
higher for Wholesale Banking's core capital markets and investment and
corporate banking businesses, reflecting the combination of progress on the
goals Wholesale Banking set for its businesses last year and improving
financial market conditions.
    Expenses of $258 million were up $11 million from the prior quarter,
primarily due to higher employee compensation and benefits and higher
professional expenses, partially offset by lower performance-related
compensation.
    Loan losses of $129 million were up $111 million from the prior quarter
primarily due to higher losses in the leveraged loan and other run-off
portfolios and the U.S. real estate finance businesses.

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

    -   CIBC's wholesale banking business was named Investment Bank of the
        Year - North America by ACQ, a U.K.-based acquisition finance
        magazine, for its continued leadership in mergers and acquisitions;

    -   Wholesale Banking launched a set of tradable indices that give
        investors greater access to futures contracts involving interest
        rates, currencies and commodities. CIBC will be offering a range of
        products linked to the indices including over-the-counter
        derivatives, swaps, principal at risk notes and principal protected
        notes;

    -   Wholesale Banking solidified its position as the leading equity
        trader on the Canadian exchanges for volume and value for the
        quarter, building on the leadership position it established during
        the second quarter. On a fiscal year-to-date basis CIBC ranked No. 1
        with 15.5% market share by value;

    -   CIBC's wholesale banking business acted as lead manager on an $8.0
        billion new issue of Canada Housing Trust No. 1 and acted as lead
        manager and joint bookrunner in a $946 million IPO of Genworth MI
        Canada Inc.; and

    -   Wholesale Banking also acted as a senior co-manager in Teck Resources
        Limited's US$4.2 billion multi-tranche issuance of senior secured
        notes and acted as joint lead and joint bookrunner for a $1.0 billion
        offering of medium term notes for Manulife Financial Corporation.

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

    -   CIBC commuted its U.S. residential mortgage market (USRMM) exposure
        with a financial guarantor and CIBC's non-USRMM contracts with this
counterparty were transferred to a newly created and capitalized entity.  This
commutation and restructuring activity resulted in a gain of $163 million
(US$152 million);

    -   CIBC terminated $2.8 billion (US$2.6 billion) of written credit
        derivatives in its correlation portfolio for a gain of $8 million (US
        $8 million);

    -   CIBC terminated $494 million (US$452 million) of written credit
        derivatives with exposures to commercial mortgage-backed securities
        for a gain of $49 million (US$45 million); and

    -   Normal amortization of $215 million (US$200 million) reduced the
        notional amount of credit derivatives purchased from financial
        guarantors.
    

    As at July 31, 2009, the fair value, net of valuation adjustments, of
purchased protection from financial guarantor counterparties was $1.8 billion
(US$1.7 billion). Further significant losses could result depending on the
performance of both the underlying assets and the financial guarantors.

    Productivity

    In addition to continuing to invest and position its businesses for
long-term performance, CIBC continues to make progress in the area of expense
discipline.
    Non-interest expenses for the third quarter were $1,699 million, down
from $1,725 million a year ago and below its quarterly run-rate target of
$1,776 million.
    "We continue to manage our run rate expenses by adjusting our
infrastructure support activities to business changes and evolving market
conditions," says McCaughey. "We expect the largest contributor to further
productivity improvements to come from better revenue performance as market
conditions and the general economy stabilize and improve."

    Making a difference in communities

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

    
    CIBC's achievements this quarter included:

    -   Awarding thirty scholarships to students from across Canada under the
        CIBC Youthvision Scholarship(TM) program, marking the 10th
        anniversary of the program and bringing CIBC's total commitment to
        over $10 million since the program's inception in 1999;

    -   Supporting the launch of a new national public awareness campaign by
        the Canadian Centre for Child Protection, the goal of which is to
        remind parents of the major role they play in ensuring that their
        children grow up smart, strong and safe;

    -   CIBC clients and employees throughout British Columbia and the Yukon
        Territories raised more than $405,000 during the 2009 BC Children's
        Hospital fundraising campaign. This brings the total amount raised
        since 1995 to $4.2 million, building on $1.3 million in corporate
        donations from CIBC; and

    -   The Tour CIBC Charles Bruneau, a four-day bicycle ride across Quebec
        to help children with cancer, raised $1,025,000 in support of the
        Fondation Centre de cancérologie Charles-Bruneau, widely surpassing
        the $850,000 fundraising goal. Of this, CIBC employees and clients
        contributed $250,000 to help fund cancer research and treatment for
        children.
    

    In addition to these community endeavours, CIBC was selected by Corporate
Knights as a member of their Best 50 Corporate Citizens list for 2009, which
ranks Canadian companies on corporate sustainability initiatives and
responsible business practices. CIBC was also awarded the 2009 Philanthropy
Award for Outstanding Corporation by the Greater Toronto Chapter of the
Association of Fundraising Professionals, which recognizes contributions of
time, leadership and financial support.

    
    ------------------------------
    (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 2008 Annual Accountability Report.
The unaudited interim consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles (GAAP) and
are expressed in Canadian dollars. This MD&A is current as of August 26, 2009.
Additional information relating to CIBC is available on SEDAR at www.sedar.com
and on the U.S. Securities and Exchange Commission's website at www.sec.gov.
No information on CIBC's website (www.cibc.com) should be considered
incorporated herein by reference. Certain comparative amounts have been
reclassified to conform with the presentation adopted in the current period. A
glossary of terms used throughout this quarterly report can be found on pages
167 to 169 of our 2008 Annual Accountability Report.

    
    Contents

    5  External reporting changes

    6  Third quarter financial highlights

    7  Overview

    8  Significant events
    9  Outlook

    10 Run-off businesses and other selected activities

    10 Run-off businesses
    18 Other selected activities

    20 Financial performance review

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

    24 Business line overview

    24 CIBC Retail Markets
    26 Wholesale Banking
    28 Corporate and Other

    30 Financial condition

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

    32 Management of risk

    32 Risk overview
    32 Credit risk
    34 Market risk
    35 Liquidity risk
    36 Operational risk
    36 Other risks

    37 Accounting and control matters
    

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


    
                         EXTERNAL REPORTING CHANGES

    Third Quarter

    -   Provision for credit losses related to general allowance has been
        included within Corporate and Other. Prior period information has
        been restated.

    Second Quarter

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

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

    First Quarter

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

        CIBC Retail Markets:

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

        Wholesale Banking:

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

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

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

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


                     THIRD QUARTER FINANCIAL HIGHLIGHTS

    -------------------------------------------------------------------------
                                      As at or for the      As at or for the
                                    three months ended     nine months ended
                       -------------------------------- ---------------------
                            2009       2009       2008       2009       2008
    Unaudited            Jul. 31    Apr. 30    Jul. 31    Jul. 31    Jul. 31
    --------------------------------------------------- ---------------------
    Common share
     information
    Per share
      - basic earnings
         (loss)        $    1.02  $   (0.24) $    0.11  $    1.08  $   (7.05)
      - cash basic
         earnings
         (loss)(1)          1.04      (0.21)      0.13       1.14      (6.99)
      - diluted
         earnings
         (loss)             1.02      (0.24)      0.11       1.08      (7.05)
      - cash diluted
         earnings
         (loss)(1)          1.04      (0.21)      0.13       1.14      (6.99)
      - dividends           0.87       0.87       0.87       2.61       2.61
      - book value         27.87      27.95      28.40      27.87      28.40
    Share price
      - high               67.20      54.90      76.75      67.20      99.81
      - low                53.02      37.10      49.56      37.10      49.56
      - closing            66.31      53.57      61.98      66.31      61.98
    Shares outstanding
     (thousands)
      - average basic    381,584    381,410    380,877    381,300    366,686
      - average diluted  382,556    381,779    382,172    381,921    368,352
      - end of period    382,657    381,478    380,732    382,657    380,732
    Market
     capitalization
     ($ millions)      $  25,374  $  20,436  $  23,598  $  25,374  $  23,598
    --------------------------------------------------- ---------------------
    Value measures
    Price to earnings
     multiple (12 month
     trailing)              31.0       43.7        n/m       31.0        n/m
    Dividend yield
     (based on closing
     share price)            5.2%       6.7%       5.6%       5.3%       5.6%
    Dividend payout
     ratio                  85.0%       n/m        n/m        n/m        n/m
    Market value to
     book value ratio       2.38       1.92       2.18       2.38       2.18
    --------------------------------------------------- ---------------------
    Financial results
     ($ millions)
    Total revenue      $   2,857  $   2,161  $   1,905  $   7,040  $   1,510
    Provision for
     credit losses           547        394        203      1,225        551
    Non-interest
     expenses              1,699      1,639      1,725      4,991      5,274
    Net income (loss)        434        (51)        71        530     (2,496)
    --------------------------------------------------- ---------------------
    Financial measures
    Efficiency ratio        59.4%      75.9%      90.5%      70.9%       n/m
    Cash efficiency
     ratio, taxable
     equivalent basis
     (TEB)(1)               59.0%      74.9%      88.0%      70.1%       n/m
    Return on equity        14.6%     (3.5)%       1.6%       5.1%    (30.3)%
    Net interest margin     1.59%      1.48%      1.54%      1.50%      1.48%
    Net interest margin
     on average
     interest-earning
     assets                 1.95%      1.85%      1.82%      1.85%      1.74%
    Return on average
     assets                 0.51%    (0.06)%      0.08%      0.20%    (0.96)%
    Return on average
     interest-earning
     assets                 0.62%    (0.07)%      0.10%      0.25%    (1.14)%
    Total shareholder
     return                25.69%     17.03%   (15.25)%     27.77%   (36.79)%
    --------------------------------------------------- ---------------------
    On- and off-balance
     sheet information
     ($ millions)
    Cash, deposits with
     banks and
     securities        $  90,872  $  94,523  $  89,468  $  90,872  $  89,468
    Loans and
     acceptances         166,040    162,962    173,386    166,040    173,386
    Total assets         335,917    347,363    329,040    335,917    329,040
    Deposits             214,227    221,912    228,601    214,227    228,601
    Common
     shareholders'
     equity               10,664     10,661     10,813     10,664     10,813
    Average assets       340,661    353,819    343,396    354,585    345,618
    Average
     interest-earning
     assets              277,919    282,414    290,598    286,535    293,373
    Average common
     shareholders'
     equity               10,601     10,644     10,664     10,736     11,384
    Assets under
     administration    1,160,473  1,096,028  1,134,843  1,160,473  1,134,843
    --------------------------------------------------- ---------------------
    Balance sheet
     quality measures
    Common equity to
     risk-weighted
     assets                  9.2%       8.9%       9.1%       9.2%       9.1%
    Risk-weighted
     assets
     ($ billions)      $   115.4  $   119.6  $   118.5  $   115.4  $   118.5
    Tier 1 capital
     ratio                  12.0%      11.5%       9.8%      12.0%       9.8%
    Total capital
     ratio                  16.5%      15.9%      14.4%      16.5%      14.4%
    --------------------------------------------------- ---------------------
    Other information
    Retail / wholesale
     ratio(2)             69%/31%    64%/36%    67%/33%    69%/31%    67%/33%
    Full time
     equivalent
     employees            42,474     42,305     44,583     42,474     44,583
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------
    (1) For additional information, see the "Non-GAAP measures" section.
    (2) The ratio represents the amount of capital attributed to the business
        lines as at the end of the period.
    n/m Not meaningful.


                                  OVERVIEW

    Net income for the quarter was $434 million, compared to net income of $71
million for the same quarter last year and net loss of $51 million for the
prior quarter.

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

    -   $155 million ($106 million after-tax) negative impact of changes in
        credit spreads on the mark-to-market (MTM) of credit derivatives in
        our corporate loan hedging programs as a result of the narrowing of
        credit spreads during the quarter;
    -   $95 million ($65 million after-tax) gains on the structured credit
        run-off business;
    -   $83 million ($56 million after-tax) loan losses in our leveraged loan
        and other run-off portfolios;
    -   $42 million ($29 million after-tax) provision for credit losses in
        the general allowance;
    -   $27 million ($18 million after-tax) of a higher litigation provision
        and other operational costs;
    -   $26 million ($18 million after-tax) decrease in credit valuation
        adjustments (CVA) against other than financial guarantors derivatives
        counterparties, on non-structured credit contracts;
    -   $25 million ($17 million after-tax) interest income on income tax
        reassessments; and
    -   $22 million ($14 million after-tax) of valuation charges related to
        certain available for sale (AFS) positions in exited and other
        run-off businesses.

    Compared with Q3, 2008
    

    Revenue was higher than the same quarter last year, primarily due to
gains in the structured credit run-off business compared to losses in the last
year quarter. The current quarter also benefited from volume growth in most
personal banking products, partially offset by spread compression on retail
products. The current quarter was also impacted by the MTM losses of credit
derivatives in our corporate loan hedging programs, compared to gains in the
last year quarter, lower wealth management related fee income and lower
treasury revenue. The last year quarter included losses and interest expense
related to leveraged leases.
    Provision for credit losses was up primarily due to higher losses in the
cards and personal lending portfolios driven by higher delinquencies and
bankruptcies, higher losses in the leveraged loans, other run-off and U.S.
real estate finance businesses, and an increase in allowances, all related to
the deteriorating economic environment.
    Non-interest expenses were down from the same quarter last year,
primarily due to lower salaries, benefits, commissions, and advertising
expenses, partially offset by higher performance-related expenses and a higher
litigation provision.
    The structured credit losses in the last year quarter resulted in a
higher tax benefit in that quarter.

    Compared with Q2, 2009

    Revenue was higher in the current quarter, primarily due to gains in the
structured credit run-off business compared to losses in the prior quarter.
The current quarter also benefited from lower valuation charges related to
certain AFS and trading positions in run-off and exited businesses, lower
write-downs in merchant banking portfolios, the impact of three more days,
wider spreads on personal banking products and volume growth on retail
products. These factors were partially offset by lower AFS securities gains.
The prior quarter benefited from a foreign exchange gain on repatriation
activities.
    Provision for credit losses was up primarily due to higher losses in the
cards and personal lending portfolios driven by higher delinquencies and
bankruptcies, higher losses in the leveraged loans, other run-off and U.S.
real estate finance businesses, and an increase in allowances, all related to
the difficult economic environment.
    Non-interest expenses were higher than the prior quarter, primarily due
to the impact of three more days, a higher litigation provision, salaries,
benefits and commissions, and computer and office equipment, partially offset
by lower performance-related expenses, advertising and occupancy expenses.
    The prior quarter included a tax expense related to the foreign exchange
gain on repatriation activities noted above and write-off of future tax assets
due to lower future statutory tax rates. The structured credit losses also
resulted in a higher tax benefit in the prior quarter.

    Compared with the nine months ended July 31, 2008

    Revenue in the current period was higher than the same period last year,
primarily due to the lower structured credit losses and higher AFS securities
gains. The foreign exchange gain on repatriation activities compared to a
foreign exchange loss in the prior year period, and the prior year loss on the
sale of some of our U.S. businesses also contributed to the increase. The
current period also benefited from volume growth in most personal banking
products and higher interest income from corporate credit products and U.S.
real estate finance. These factors were partially offset by losses associated
with corporate loan hedging programs compared to gains in the prior year
period, lower wealth management related fee income, spread compression on
retail products, higher write-downs in the merchant banking portfolio, an
increase in valuation charges on certain trading and AFS positions in exited
and run-off businesses and lower treasury revenue.
    Provision for credit losses was up primarily due to higher losses in the
cards and personal lending portfolios driven by higher delinquencies and
bankruptcies, higher losses in the leveraged loans, other run-off and U.S.
real estate finance businesses, and an increase in allowances, all related to
the deteriorating economic environment.
    Non-interest expenses for the nine months ended July 31, 2009 were down
from the same period in 2008, primarily due to lower salaries, benefits and
commissions, computer and office equipment, professional fees, and advertising
expenses, partially offset by higher performance-related expenses.
    Income tax expense was up compared to an income tax benefit in the same
period last year, primarily due to higher structured credit losses in the
prior year period.

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

    -------------------------------------------------------------------------
    Q2, 2009
    --------
    -   $475 million ($324 million after-tax) loss on the structured credit
        run-off business;
    -   $168 million ($115 million after-tax) negative impact of changes in
        credit spreads on the MTM of credit derivatives in our corporate loan
        hedging programs;
    -   $159 million foreign exchange gain ($3 million after-tax) on
        repatriation activities;
    -   $100 million of valuation charges ($65 million after-tax) related to
        certain trading and AFS positions in exited and other run-off
        businesses;
    -   $65 million ($44 million after-tax) provision for credit losses in
        the general allowance;
    -   $57 million write-off of future tax assets; and
    -   $49 million ($29 million after-tax) net losses/write-downs in our
        legacy merchant banking portfolio.

    Q1, 2009
    --------
    -   $708 million ($483 million after-tax) loss on structured credit
        run-off business;
    -   $94 million ($64 million after-tax) positive impact of changes in
        credit spreads on corporate loan credit derivatives;
    -   $92 million ($51 million after-tax) MTM losses relating to
        interest-rate hedges for the leveraged lease portfolio that did not
        qualify for hedge accounting;
    -   $87 million ($52 million after-tax) losses/write-downs on our
        merchant banking portfolio; and
    -   $48 million foreign exchange losses ($4 million after-tax gain) on
        repatriation activities.

    Q3, 2008
    --------
    -   $885 million ($596 million after-tax) loss on structured credit
        run-off business;
    -   $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).

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

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

    Significant events

    Global market credit issues
    

    Our structured credit business within Wholesale Banking had income,
before taxes, for the quarter of $95 million ($1,088 million loss, before
taxes for the nine months ended July 31, 2009). We continue to reduce our
exposures in this business, through the termination of written and purchased
credit derivatives. These activities are discussed in more detail in our
"Run-off businesses" section.

    Innovative Tier 1 Notes

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

    Leveraged leases

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

    Outlook for 2009

    A recovery in global financial market sentiment, nascent rebounds in
Canadian housing and retailing in response to low interest rates, and a
potential pickup in export orders could see the Canadian economy return to
growth in the third calendar quarter, a quarter ahead of earlier expectations.
The pace of growth could still be too modest to reduce the unemployment rate
over the remainder of the fiscal year, and interest rates should stay low as
the Bank of Canada provides much needed stimulus.
    CIBC Retail Markets is expected to benefit from continued healthy
household credit demand. Personal bankruptcies could remain elevated given
high unemployment levels, while small business bankruptcies are likely to rise
in a lagged response to the recessionary conditions faced earlier in the year.
    For Wholesale Banking, provisions for credit losses are likely to
increase as a result of continued weakness in the business climate. Our
investment banking business is operating in an uncertain environment but a
sustained recovery in new issuance of equities and corporate bonds could
support improved corporate finance activities. In corporate credit products,
increased loan demand could be driven by a reduction in lending activity by
foreign-based banks.


    
                             RUN-OFF BUSINESSES
    

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

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

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

    Structured credit run-off business

    Overview and results
    

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

    
    Exposures

    Our exposures largely consist of the following categories:

    Unhedged -
    - U.S. residential mortgage market (USRMM)
    - non-USRMM

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


    Results - gains (losses) before taxes
    ------------------------------------------------------------ ------------
                                                                     For the
                                                        For the  nine months
                                             three months ended        ended
                                          ---------------------- ------------
                                              2009         2009         2009
    $ millions                             Jul. 31      Apr. 30      Jul. 31
    ------------------------------------------------------------ ------------
    Trading                               $     83     $   (514)    $ (1,189)
    Held-to-maturity (HTM)                      14           28          111
    Available-for-sale (AFS)                    (2)          11          (10)
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    Total                                 $     95     $   (475)    $ (1,088)
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    

    Results for the current quarter were primarily driven by gains from
restructuring of exposures to a financial guarantor and terminations of credit
derivatives. These gains were partially offset by deterioration in the credit
quality of financial guarantors, which resulted in increases in CVA. The
losses in prior quarters were primarily driven by deterioration in the credit
quality of financial guarantors and MTM losses for certain underlying assets.

    Reclassification of certain exposures

    As a result of the unprecedented extent of the deterioration in global
market conditions and the lack of an active trading market, in the fourth
quarter of 2008, we changed our intention on certain positions from trading to
held-to-maturity. As a consequence, we reclassified notional of $5,973 million
(US$5,833 million) of CLOs and $455 million (US$444 million) CDOs of trust
preferred securities (TruPs) in our structured credit run-off business from
trading to non-trading held-to-maturity effective August 1, 2008. As at July
31, 2009, the estimated remaining weighted average life (WAL) of the CLOs, and
TruPs was 4.6 years and 15 years respectively. The impact of the
reclassifications is summarized in Note 4 to the 2008 annual consolidated
financial statements.
    If the reclassification had not been made, income before taxes would have
increased by $512 million (US$383 million) and $113 million (US$66 million)
for the current quarter and for the nine months ended July 31, 2009,
respectively.

    Change in exposures

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

    
    -------------------------------------------------------------------------
                                                           2009         2008
    US$ millions, as at                                 Jul. 31      Oct. 31
    -------------------------------------------------------------------------
    Notional
      Investments and loans                            $ 10,734     $ 10,304
      Written credit derivatives(1)                      23,104       30,931
    -------------------------------------------------------------------------
    Total gross exposures                              $ 33,838     $ 41,235
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Purchased credit derivatives                       $ 32,423     $ 37,039
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes notional amount for written credit derivatives and liquidity
        and credit facilities.

    Cerberus transaction
    

    In the fourth quarter of 2008, we transacted with Cerberus Capital
Management LP (Cerberus) to obtain downside protection on our USRMM CDO
exposures while retaining upside participation if the underlying securities
recover. As at July 31, 2009, the outstanding principal and fair value of the
limited recourse note issued as part of the Cerberus transaction was $570
million (US$529 million) and $243 million (US$226 million) respectively. The
underlying CDO exposures had a fair value of $379 million (US$351 million) as
at July 31, 2009. We recorded a loss of $6 million (US$7 million) and a gain
of $264 million (US$214 million) on the limited recourse note in the current
quarter and for the nine months ended July 31, 2009 respectively.

    
    Commutation of USRMM contracts and restructuring with a financial
    guarantor
    

    In July 2009, we commuted USRMM contracts with a financial guarantor
(reported as counterparty "V") for cash consideration of $207 million (US$192
million) and securities valued at $34 million (US$32 million), for a total of
$241 million (US$224 million). In addition, our non-USRMM contracts with this
counterparty were transferred to a newly created and capitalized entity. This
commutation and restructuring activity resulted in a pre-tax gain of $163
million (US$152 million) and a significant reduction in the gross receivable
and CVA. The underlying USRMM exposures that became unhedged subsequent to the
commutation, are written credit derivatives with a notional $1,923 million
(US$1,785 million) and a fair value of $1,690 million (US$1,568 million) and a
security with a notional of $779 million (US$723 million) and a fair value of
$78 million (US$72 million).
    As a result of the commutation, we are considered the primary beneficiary
of certain third-party structured CDOs and are therefore required to
consolidate them. The consolidation resulted in $621 million of mortgages and
asset-backed securities, $428 million of FVO deposits and related interest
rate derivatives with a negative MTM of $193 million, being recognized in the
consolidated balance sheet as at July 31, 2009. Only our direct investments
and exposures through written credit derivatives to these CDOs are included in
the total exposures table on page 12 and the accompanying discussions.

    Other changes in exposures

    In addition to the termination of the $5.3 billion (US$4.3 billion) of
written credit derivatives and $274 million (US$226 million) of normal
amortization of our purchased credit derivatives in the first and second
quarters, we undertook a number of transactions during the current quarter to
further reduce our exposures, noted below:

    
    -   We terminated $2.8 billion (US$2.6 billion) of written credit
        derivatives in the correlation book resulting in a pre-tax gain of
        $8 million (US$8 million). Subsequent to this transaction,
        US$2.6 billion of purchased credit derivatives that previously hedged
        these positions became unmatched;
    -   We terminated $494 million (US$452 million) of written credit
        derivatives with exposures to commercial mortgage backed securities
        resulting in a pre-tax gain of $49 million (US$45 million).
        Subsequent to this transaction, US$452 million of purchased credit
        derivatives that previously hedged these positions became unmatched;
        and
    -   Normal amortization reduced the notional of our purchased credit
        derivatives with financial guarantors by $215 million
        (US$200 million).
    

    Total exposures

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

    
    -------------------------------------------------------------------------
    US$ millions, as at July 31, 2009
    -------------------------------------------------------------------------
                                          Exposures(1)
    -------------------------------------------------------------------------
                           Investments & loans(2)          Written credit
                                                            derivatives
                                                         and liquidity and
                                                        credit facilities(3)
                    ---------------------------------- ----------------------


                                    Fair    Carrying                    Fair
                     Notional      value       value    Notional     value(5)
                    ---------------------------------------------------------
    Hedged
    USRMM
    -----
      Other CDO     $    527    $     35    $     35    $    489    $    449
    -------------------------------------------------------------------------
                         527          35          35         489         449
    Non-USRMM
    ---------
      CLO                210         186         186       7,834         760
      CLO HTM(7)       5,726       4,869       5,155           -           -
      Corporate debt       -           -           -       9,739         462
      Corporate debt
       (Unmatched)
      CMBS                 -           -           -           2           2
      CMBS
       (Unmatched)
      Others             241          59          59       1,646         676
      Others HTM(8)      707         263         442           -           -
      Other
       unmatched
       purchased
       credit
       derivatives         -           -           -           -           -
    -------------------------------------------------------------------------
    Total Hedged    $  7,411    $  5,412    $  5,877    $ 19,710    $  2,349
    -------------------------------------------------------------------------

    Unhedged
    USRMM(9)
    --------
      Super senior
      CDO of
       mezzanine
       RMBS         $  1,174    $     73    $     73    $  2,331    $  2,109
      Warehouse -
       RMBS              281           1           1           -           -
      Various            342           1           1         343         317
    -------------------------------------------------------------------------
                       1,797          75          75       2,674       2,426

    Non-USRMM
    ---------
      CLO                 67           1           1          94           9
      CLO HTM            209         187         199           -           -
      Corporate
       debt              189         125         125           -           -
      Montreal
       Accord
       related
       notes(3)(10)      410         199         199         278         n/a
      Third party
       sponsored
       ABCP
       conduits(3)       131         131         131         106         n/a
      Warehouse -
       non-RMBS          155           1           1           -           -
      Others(3)          192         183         183         242          39
      Others HTM         173         148         148           -           -
    -------------------------------------------------------------------------
    Total Unhedged  $  3,323    $  1,050    $  1,062    $  3,394    $  2,474
    -------------------------------------------------------------------------
    Total           $ 10,734    $  6,462    $  6,939    $ 23,104    $  4,823
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008   $ 10,304    $  6,430    $  6,952    $ 30,931    $  5,924
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    US$ millions, as at July 31, 2009
    -------------------------------------------------------------------------
                                     Hedged by                      Unhedged
                   ----------------------------------------------
                   Purchased credit derivatives and index hedges       USRMM


                   ----------------------------------------------------------
                     Financial guarantors          Others
                   ----------------------  --------------------
                                    Fair                    Fair         Net
                    Notional  value(4)(5)   Notional  value(4)(5) exposure(6)
                   ----------------------------------------------------------
    Hedged
    USRMM
    -----

      Other CDO     $    597    $    527    $    419    $    412
    -------------------------------------------------------------
                         597         527         419         412
    Non-USRMM
    ---------
      CLO              7,790         765         255          30
      CLO HTM(7)       5,521         566         228          27
      Corporate debt   2,559         159       7,184         314
      Corporate debt
       (Unmatched)     4,400          95
      CMBS                 2           2           -           -
      CMBS
       (Unmatched)       775         642
      Others           1,471         808         471          57
      Others HTM(8)      709         455           -           -
      Other
       unmatched
       purchased
       credit
       derivatives         -           -          42           -
    -------------------------------------------------------------
    Total Hedged    $ 23,824    $  4,019    $  8,599    $    840
    -------------------------------------------------------------

    Unhedged
    USRMM(9)
    --------
      Super senior
      CDO of
       mezzanine
       RMBS         $      -    $      -    $      -    $      -    $    295
      Warehouse -
       RMBS                -           -           -           -           1
      Various              -           -           -           -          27
    -------------------------------------------------------------------------
                           -           -           -           -    $    323

    Non-USRMM
    ---------
      CLO                  -           -           -           -
      CLO HTM              -           -           -           -
      Corporate
       debt                -           -           -           -
      Montreal
       Accord
       related
       notes(3)(10)        -           -           -           -
      Third party
       sponsored
       ABCP
       conduits(3)         -           -           -           -
      Warehouse -
       non-RMBS            -           -           -           -
      Others(3)            -           -           -           -
      Others HTM           -           -           -           -
    -------------------------------------------------------------
    Total Unhedged  $      -    $      -    $      -    $      -
    -------------------------------------------------------------
    Total           $ 23,824    $  4,019    $  8,599    $    840
    -------------------------------------------------------------
    -------------------------------------------------------------
    Oct. 31, 2008   $ 27,108    $  5,711    $  9,931    $  1,195
    -------------------------------------------------------------
    -------------------------------------------------------------
    (1)  We have excluded our total holdings, including holdings related to
         our treasury activities, of notional US$2,134 million with fair
         value of US$2,125 million in debt securities issued by Federal
         National Mortgage Association (Fannie Mae) (notional US$1,107
         million, fair value US$1,102 million), Federal Home Loan Mortgage
         Corporation (Freddie Mac) (notional US$259 million, fair value
         US$254 million), Government National Mortgage Association (Ginnie
         Mae) (notional US$118 million, fair value US$119 million), Federal
         Home Loan Banks (notional US$550 million, fair value US$550
         million), and Federal Farm Credit Bank (notional US$100 million,
         fair value US$100 million).
    (2)  Excludes equity and surplus notes that we obtained in consideration
         for commutation of our USRMM contracts with financial guarantors
         with notional $261 million and fair value $39 million, as at July
         31, 2009.
    (3)  Liquidity and credit facilities to Montreal Accord related notes
         amounted to US$278 million, third party non-bank sponsored ABCP
         conduits amounted to US$106 million, and to unhedged other non-USRMM
         amounted to US$37 million.
    (4)  Gross of CVA for purchased credit derivatives of US$2.3 billion.
    (5)  This is the gross fair value of the contracts, which were typically
         zero, or close to zero, at the time they were entered into.
    (6)  After write-downs.
    (7)  Investments and loans include unfunded investment commitments with a
         notional of US$275 million.
    (8)  Represents CDOs with TruPs collateral.
    (9)  As at July 31, 2009, the rating for the RMBS was non-investment
         grade (based on market value).
    (10) Includes estimated USRMM exposure of $110 million as at July 31,
         2009.
    n/a  Not applicable.
    

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

    The total CVA charge for financial guarantors was $148 million (US$125
million) for the current quarter ($1,441 million (US$1,145 million) for nine
months ended July 31, 2009). As at July 31, 2009, CVA on credit derivative
contracts with financial guarantors was $2.5 billion (US$2.3 billion) (October
31, 2008: $4.6 billion (US$3.8 billion)), and the fair value of credit
derivative contracts with financial guarantors net of valuation adjustments
was $1.8 billion (US$1.7 billion) (October 31, 2008: $2.3 billion (US$1.9
billion)). Further significant losses could result depending on the
performance of both the underlying assets and the financial guarantors.
    In addition, in our other run-off portfolios, we also have loans and
tranched securities positions that are partly secured by direct guarantees
from financial guarantors or by bonds guaranteed by financial guarantors. As
at July 31, 2009, these positions were performing and the total amount
guaranteed by financial guarantors was approximately $82 million (US$76
million).
    The following table presents the notional amounts and fair values of
purchased protection from financial guarantors by counterparty. The fair value
net of valuation adjustments is included in derivative instruments in other
assets on the consolidated balance sheet.

    
    -------------------------------------------------------------------------
    US$ millions, as at July 31, 2009                  USRMM related
    ----------------------------------------  -------------------------------
             Standard    Moody's
    Counter-      and   Investor      Fitch                  Fair
     party     Poor's   Services    Ratings   Notional    value(1)       CVA
    -------------------------------------------------------------------------

    I(5)        BBB(2)      B3(2)       -(4)  $     70   $     37   $    (26)
    II           CC(3)    Caa2(3)       -(4)       527        490       (342)
    III(6)       CC(2)     Ba3(3)       -(4)         -          -          -
    IV            -(4)    Caa3(2)       -(4)         -          -          -
    V(5)          -(4)       -(4)       -(4)         -          -          -
    VI            A(2)       Ba1       AA(2)         -          -          -
    VII         AAA(2)     Aa2(2)      AA(2)         -          -          -
    VIII        AAA(2)     Aa3(2)     AA+(2)         -          -          -
    IX         BBB-(2)       Ba1        -(4)         -          -          -
    -------------------------------------------------------------------------
    Total
     financial
     guarantors                               $    597   $    527   $   (368)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31,
     2008                                     $  3,786   $  3,086   $ (2,260)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    US$ millions, as at
     July 31, 2009                  Non-USRMM                    Total
                        ------------------------------- ---------------------
                                                                        Fair
    Counter-                           Fair                            value
     party              Notional    value(1)       CVA   Notional   less CVA
    -------------------------------------------------------------------------

    I(5)                $  1,558   $    804   $   (560)  $  1,628   $    255
    II                     1,692        549       (384)     2,219        313
    III(6)                 1,464        211       (150)     1,464         61
    IV                     2,157        233       (196)     2,157         37
    V(5)                   2,640        285        (77)     2,640        208
    VI                     5,200        204        (66)     5,200        138
    VII                    4,866        669       (258)     4,866        411
    VIII                   1,427        235       (107)     1,427        128
    IX                     2,223        302       (142)     2,223        160
    -------------------------------------------------------------------------
    Total
     financial
     guarantors         $ 23,227   $  3,492   $ (1,940)  $ 23,824   $  1,711
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31,
     2008               $ 23,322   $  2,625   $ (1,520)  $ 27,108   $  1,931
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Before CVA.
    (2) Credit watch / outlook with negative implication.
    (3) Watch developing.
    (4) Rating withdrawn.
    (5) Counterparties I and V were restructured in February and July 2009,
        respectively, with part of its businesses transferred to new
        entities.
    (6) Counterparty III was restructured in January 2009.

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

    -------------------------------------------------------------------------
    US$ millions,    USRMM
     as at         related             Non-USRMM related
     July 31,     --------- -------------------------------------------------
     2009         Notional                  Notional
    ------------- --------- -------------------------------------------------
                                     Corporate
    Counterparty       CDO       CLO      debt      CMBS    Others     Total
    -------------------------------------------------------------------------
    I             $     70  $    584  $      -  $  777(1) $    197  $  1,558
    II                 527       873         -         -       819     1,692
    III                  -     1,341         -         -       123     1,464
    IV                   -     1,885         -         -       272     2,157
    V                    -     2,640         -         -         -     2,640
    VI                   -         -   5,200(1)        -         -     5,200
    VII                  -     4,616         -         -       250     4,866
    VIII                 -     1,297         -         -       130     1,427
    IX                   -        75     1,759         -       389     2,223
    -------------------------------------------------------------------------
    Total
     financial
     guarantors   $    597  $ 13,311  $  6,959  $    777  $  2,180  $ 23,227
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31,
     2008         $  3,786  $ 13,125  $  6,959  $    777  $  2,461  $ 23,322
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes US$4.4 billion and US$775 million of unmatched purchase
        protection related to corporate debt and CMBS respectively.

    USRMM
    

    Our USRMM related positions of notional $643 million (US$597 million)
hedged by financial guarantors comprise super senior CDOs with underlyings
being approximately 35% sub-prime RMBS, 43% Alt-A RMBS, 15% asset-backed
securities (ABS) CDO and 7% non-USRMM. Sub-prime and Alt-A underlyings consist
of approximately 42% pre-2006 vintage as well as 58% 2006 and 2007 vintage
RMBS. Sub-prime exposures are defined as having Fair Isaac Corporation (FICO)
scores less than 660; and Alt-A underlyings are defined as those exposures
that have FICO scores of 720 or below, but greater than 660.

    Non-USRMM

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

    
    -------------------------------------------------------------------------
                           Fair
    US$                   value
     millions,           of pur-   Total       Notional/        Fair value/
     as at               chased     tran-       tranche           tranche
     July 31,            protec-    ches  ----------------- -----------------
     2009     Notional     tion       (1)    High      Low     High      Low
    -------------------------------------------------------------------------
    CLO
     (includes
     HTM)      $13,311  $ 1,331       82  $   375  $    22  $    56  $     2
    Corporate
     debt        2,559      159        5      800      259      109        9
    Corporate
     debt
     (Unmatched) 4,400       95        6      800      400       45        4
    U.S. CMBS        2        2        -        1        1        1        1
    U.S. CMBS
     (Unmatched)   775      642        2      452      323      361      281
    Others
      TruPs
      (inclu-
       des HTM)    803      522       12      128       24       88       16
      Non-US
       RMBS        166       89        3       73       30       39       16
      Other      1,211      652        9      263        5      226        -
    -------------------------------------------------------------------------
    Total      $23,227  $ 3,492      119  $ 2,892  $ 1,064  $   925  $   329
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------
               Weighted
    US$         average
     millions,     life    Subordination/
     as at         (WAL)    attachment(4)   Detachment(5)
     July 31,  in years ----------------- -----------------
     2009        (2)(3) Average    Range  Average    Range
    -------------------------------------------------------
    CLO
     (includes
     HTM)          4.6      31%    6-67%      99%  50-100%
    Corporate
     debt          4.3      24%   15-30%      48%   30-60%
    Corporate
     debt
     (Unmatched)   2.5      16%   15-20%      39%   30-45%
    U.S. CMBS      5.4      44%   43-46%     100%     100%
    U.S. CMBS
     (Unmatched)   5.4      44%   43-46%     100%     100%
    Others
      TruPs
      (inclu-
       des HTM)   15.0      49%   45-57%     100%     100%
      Non-US
       RMBS        2.9      53%      53%     100%     100%
      Other        6.8      20%    0-53%     100%     100%

    -------------------------------------------------------
    -------------------------------------------------------
    (1) A tranche is a portion of a security offered as part of the same
        transaction where the underlying may be an asset, pool of assets,
        index or another tranche. The value of the tranche depends on the
        value of the underlying, subordination and deal specific structures
        such as tests/triggers.
    (2) The WAL of the positions is impacted by assumptions on collateral,
        interest deferrals and defaults, and prepayments, and for TruPs CDOs,
        also the potential for successful future auctions. These assumptions
        and the resulting WAL, especially for TruPs CDOs, may change
        significantly from quarter to quarter.
    (3) The WAL of a tranche will typically be shorter than the WAL for the
        underlying collateral for one or more reasons relating to how cash
        flows from repayment and default recoveries are directed to pay down
        the tranche.
    (4) Subordination/attachment points are the level of losses which can
        be sustained on the collateral underlying the reference assets
        without those losses impacting the tranches shown above.
    (5) The detachment points are the level of losses on the collateral
        underlying the reference assets at which point any further losses
        cease to impact the tranches shown above.
    

    CLO

    The CLO underlyings consist of 82 tranches. Approximately 99% of the
total notional amount of the CLO tranches was rated equivalent to AAA with the
remainder rated equivalent to AA, at July 31, 2009. Approximately 2% of the
underlying collateral was rated equivalent to BBB- or higher and 57% of the
underlying collateral was rated equivalent to between B- and B+, at July 31,
2009. The collateral comprise assets in a wide range of industries with the
highest concentration in the services (personal and food) industry (29%); the
broadcasting, publishing and telecommunication sector (17%); and the
manufacturing sector (14%). Only 3% is in the real estate sector.
Approximately 65% 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 (29%)
corporate debt in various industries (manufacturing 28%, financial
institutions 13%, cable and telecommunications 11%, retail and wholesale 9%).
Approximately 66% of the total notional amount of US$6.9 billion of the
corporate debt underlyings were rated equivalent to BBB- or higher with the
remainder rated equivalent to BB+ or lower, at July 31, 2009.

    CMBS

    The two synthetic tranches reference CMBS portfolios which are backed by
pools of commercial real estate mortgages located primarily in the U.S.
Approximately 27% of the underlyings continue to be rated equivalent to BBB-
or higher with the remainder rated equivalent to BB+ or lower, at July 31,
2009.

    Others

    Others are CDOs with TruPs collateral, 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, railcar leases and film receivables.

    Purchased protection from other counterparties

    The following table provides the notional amounts and fair values (before
CVA of US$16 million (October 31, 2008: US$21 million)) of purchased credit
derivatives from counterparties other than financial guarantors, excluding
unmatched purchased credit derivatives:

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


                                                    Fair                Fair
    US$ millions, as at               Notional     value  Notional     value
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    419  $    412  $    101  $      8
    Banks                                    -         -       851       106
    Canadian conduits                        -         -     7,184       314
    Others                                   -         -         2         -
    -------------------------------------------------------------------------
    Total                             $    419  $    412  $  8,138  $    428
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                       Total
                                      ---------------------------------------
                                           Notional           Fair value
                                      ------------------- -------------------
                                          2009      2009      2009      2009
    US$ millions, as at                Jul. 31   Apr. 30   Jul. 31   Apr. 30
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    520  $    561  $    420  $    441
    Banks                                  851       810       106       121
    Canadian conduits                    7,184     6,740       314       416
    Others                                   2         2         -         -
    -------------------------------------------------------------------------
    Total                             $  8,557  $  8,113  $    840  $    978
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The non-financial guarantor counterparty hedging our USRMM exposures is a
large U.S.-based diversified multinational insurance and financial services
company with which CIBC has market standard collateral arrangements.
Approximately 99% of other counterparties hedging our non-USRMM exposures have
internal credit ratings equivalent to investment grade.
    The assets underlying the exposure hedged by counterparties other than
financial guarantors are as below:

    
    -------------------------------------------------------------------------
                                        USRMM         Non-USRMM related
                                       related
                                     ---------- -----------------------------
                                      Notional            Notional
                                     ---------- -----------------------------
    US$ millions, as at                                  Corporate
     July 31, 2009                       CDO(1)   CLO(2)      debt   Other(3)
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    419  $     -   $      -  $    101
    Banks                                    -      483          -       368
    Canadian conduits                        -        -      7,184         -
    Others                                   -        -          -         2
    -------------------------------------------------------------------------
    Total                             $    419  $   483   $  7,184  $    471
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The US$419 million represents super senior CDO with approximately 71%
        sub-prime RMBS, 3% Alt-A RMBS, 13% ABS CDO, and 13% non-USRMM.
        Sub-prime and Alt-A are all pre-2006 vintage.
    (2) All underlyings are non-investment grade. 5% is North American
        exposure and 95% is European exposure. Major industry concentration
        is in the services industry (40%), the manufacturing sector (18%),
        the broadcasting and communication industries (14%), and only 3% is
        in the real estate sector.
    (3) Approximately 64% of the underlyings are investment grade or
        equivalent with the majority of the exposure located in the U.S. and
        Europe. The industry concentration is primarily banking and finance,
        manufacturing, broadcasting, publishing and telecommunication and
        mining, oil and gas, with less than 3% in the real estate sector.
    

    Canadian conduits

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

    
    -------------------------------------------------------------------------
                                                       Mark-to-   Collateral
    US$ millions,                                        market          and
     as at July                                         (before    guarantee
     31, 2009             Underlying    Notional(1)         CVA) notionals(2)
    -------------------------------------------------------------------------
    Conduits
    --------
    Great North Trust  Investment grade
                       corporate
                       credit index(3)   $   4,586    $     247    $   278(4)
    MAV I              160 Investment
                       grade
                       corporates(5)         2,598           67          327
    -------------------------------------------------------------------------
    Total                                $   7,184    $     314    $     605
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                        $   8,453    $     660    $     944
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) These exposures mature within 4 to 8 years.
    (2) Comprises investment grade notes issued by third party sponsored
        conduits, corporate floating rate notes, banker's acceptances, and
        funding commitments. The fair value of the collateral at July 31,
        2009 was US$561 million (October 31, 2008: US$921 million).
    (3) Consists of a static portfolio of 126 North American corporate
        reference entities that were investment grade rated when the index
        was created. 80% of the entities are rated BBB- or higher. 98% of the
        entities are U.S. entities. Financial guarantors represent
        approximately 1.6% of the portfolio. 2.4% of the entities have
        experienced credit events. Attachment point is 30% and there is no
        direct exposure to USRMM or the U.S. commercial real estate market.
    (4) The value of funding commitments (with indemnities) from certain
        third party investors in Great North Trust was $ nil as at July 31,
        2009 (October 31, 2008:US$219 million).
    (5) These transactions were transferred from Nemertes I and Nemertes II
        trusts to MAV I and MAV II (before being unwound in March 2009) upon
        the restructuring under the Montreal Accord. The underlying portfolio
        consists of a static portfolio of 160 corporate reference entities of
        which 91.3% were investment grade on the trade date. 83.1% of the
        entities are currently rated BBB- or higher (investment grade). 54%
        of the entities are U.S. entities. Financial guarantors represent
        approximately 2.5% of the portfolio. 1.88% of the entities have
        experienced credit events. Attachment point is 20% and there is no
        direct exposure to USRMM or the U.S. commercial real estate market.
    

    Unhedged USRMM exposures

    Our remaining unhedged exposure (excluding the Cerberus protection) to
the USRMM, after write-downs, was $348 million (US$323million) as at July 31,
2009.

    Unhedged non-USRMM exposures

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

    CLO

    Our unhedged CLO exposures, including HTM, with notional of $399 million
(US$370 million) are mostly tranches rated AAA as at July 31, 2009, and are
backed by diversified pools of European-based senior secured leveraged loans.

    Corporate debt

    Approximately 20%, 55% and 25% of the unhedged corporate debt exposures
with notional of $204 million (US$189 million) are related to positions in
Europe, Canada and other countries respectively.

    Montreal Accord related notes

    The standstill and court approved restructuring plan proposed by
signatories to the Montreal Accord was ratified on January 21, 2009. As a
result, we received $141 million in senior Class A-1 notes, $152 million in
senior Class A-2 notes and $178 million of various subordinated and tracking
notes in exchange for our non-bank sponsored ABCP with par value of $471
million. As was the case with the original ABCP instruments, the new notes are
backed by fixed income, traditional securitization and CDO assets as well as
super senior credit default swaps on investment grade corporates. The
underlying assets that have U.S. subprime mortgage exposures have been
isolated and are specifically linked to tracking notes with a notional value
of $110 million as at July 31, 2009. In the current quarter, $6 million of the
tracking notes were paid down at par. As at July 31, 2009, the remaining
notional amount on all the notes was $442 million (US$410 million).
    The Class A-1 and Class A-2 notes pay a variable rate of interest below
market levels. The subordinated notes are zero coupon in nature, paying
interest and principal only after the Class A-1 and Class A-2 notes are
settled in full. The tracking notes pass through the cash flows of the
underlying assets. All of the restructured notes are expected to mature in
December 2016.
    Based on our estimate of the $214 million combined fair value of the
notes as at July 31, 2009, we recorded a gain of $39 million during the
current quarter ($5 million loss for the nine months ended July 31, 2009).
    In addition, pursuant to the restructuring plan, we are a participant in
a Margin Funding Facility (MFF) to support the collateral requirements of the
restructured conduits. Under the terms of the MFF, we have provided a $300
million undrawn loan facility to be used if the amended collateral triggers of
the related credit derivatives are breached and the new trusts created under
the restructuring plan do not have sufficient assets to meet any collateral
calls. If the loan facility was fully drawn and subsequently more collateral
was required due to breaching further collateral triggers, we would not be
obligated to fund any additional collateral, although the consequence would
likely be the loss of that $300 million loan.

    Third party non-Bank sponsored ABCP conduits

    We provided liquidity and credit related facilities to third party
non-bank sponsored ABCP conduits. As at July 31, 2009, $255 million (US$237
million) of the facilities remained committed. Of this amount, $53 million
(US$51 million), which remained undrawn as at July 31, 2009, was provided to a
conduit, with U.S. auto loan assets, sponsored by a U.S. based auto
manufacturer.
    The remaining $200 million (US$186 million) primarily relates to U.S.
CDOs, of which $141 million (US$131 million) was drawn as at July 31, 2009.
$39 million (US$36 million) of the undrawn facilities was subject to liquidity
agreements under which the conduits maintain the right to put their assets
back to CIBC at par. The underlying assets of the U.S. CDOs have maturities
ranging from three to seven years.

    Warehouse non-RMBS

    Of the unhedged warehouse non-RMBS assets with notional of $167 million
(US$155 million), 75% represents investments in CLOs backed by diversified
pools of U.S.-based senior secured leveraged loans. Approximately 12%
represents investments in CDOs backed by TruPs with exposure to U.S. real
estate investment trusts. Another 8% has exposure to the U.S. commercial real
estate market.

    Other

    Other unhedged exposures with notional of $468 million (US$434 million)
include $213 million (US$197 million) credit facilities (drawn US$160 million
and undrawn US$37 million) provided to SPEs with film rights receivables
(27%), lottery receivables (22%), and U.S. mortgage defeasance loans (51%).
    The remaining $255 million (US$237 million) primarily represents written
protection on mostly AAA tranches of portfolios of high yield corporate debt.
We are only obligated to pay for any losses upon both the default of the
underlying corporate debt as well as that of the primary financial guarantor,
which was restructured in February 2009.
    Other HTM unhedged exposures with notional of $186 million (US$173
million) relate to collateral received from the unwinding of MAV II and
primarily represent investment grade commercial paper.

    Leveraged finance business

    We provided leveraged finance to non-investment grade customers to
facilitate their buyout, acquisition and restructuring activities. We
generally underwrote leveraged financial loans and syndicated the majority of
the loans, earning a fee during the process.
    In the prior fiscal year we sold our U.S. leveraged finance business as
part of our sale of some of our U.S. businesses to Oppenheimer and stopped
transacting new business in European leveraged finance (ELF).
    As with the structured credit run-off business, the risk in the ELF
run-off business is monitored by a team focused on proactively managing all
accounts in the portfolio. As at July 31, 2009, we have drawn leveraged loans
of $907 million (October 31, 2008: $935 million) of which $113 million
(October 31, 2008: Nil) is considered impaired, and unfunded letters of
credits and commitments of $155 million (October 31, 2008: $210 million).
    During the quarter we recognized provisions for credit losses of $65
million on the impaired loans. In addition, non-impaired loans and commitments
with a face value of $466 million were added to the watch list as a result of
deteriorating credit conditions.
    Exposures of ELF loans (net of write-downs and allowance for credit
losses) by industry are as below:

    
    -------------------------------------------------------------------------
    $ millions, as at July 31, 2009                       Drawn      Undrawn
    -------------------------------------------------------------------------
    Publishing and printing                           $      45    $       -
    Telecommunications                                       13           14
    Manufacturing                                           282           51
    Business services                                        19           16
    Hardware and software                                   238           23
    Transportation                                           16            8
    Wholesale trade                                         229           43
    -------------------------------------------------------------------------
    Total                                             $     842    $     155
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                     $     935    $     210
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    U.S. total return swaps portfolio

    Our U.S. total return swaps (TRS) portfolio consists of TRS on primarily
non-investment grade loans and units in hedge funds. The remaining underlying
loan consists of five term loans to the corporate sector. The underlying
assets are rated Baa2 and below. The portfolio has an average term of 340
days. The total current notional of the TRS portfolio is approximately $136
million (US$126 million). Of this total portfolio, $28 million (US$26 million)
is loan related and backed by $17 million (US$16 million) of cash collateral.
The remaining hedge fund exposures are subject to net asset value tests which
determine margin requirements keeping total assets available at 133% of
notional. The table below summarizes the notional value of our positions in
the portfolio:

    
    -------------------------------------------------------------------------
    US$ millions, as at July 31, 2009                               Notional
    -------------------------------------------------------------------------
    Loans                                                          $      26
    Hedge Funds                                                          100
    -------------------------------------------------------------------------
    Total                                                          $     126
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                                  $   1,458
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    During the quarter we continued to reduce the portfolio by closing some
of the TRS and selling off the related underlying assets. The net loss of the
TRS portfolio was $3 million for the quarter ($16 million for nine months
ended July 31, 2009).


    
                          OTHER SELECTED ACTIVITIES
    

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

    Securitization business

    Our securitization business provides clients access to funding in the
debt capital markets. We sponsor several multi-seller conduits in Canada that
purchase pools of financial assets from our clients, and finance the purchases
by issuing ABCP to investors. We generally provide the conduits with
commercial paper backstop liquidity facilities, securities distribution,
accounting, cash management and other financial services.
    As at July 31, 2009, our holdings of ABCP issued by our non-consolidated
sponsored conduits that offer ABCP to external investors was $453 million
(October 31, 2008: $729 million) and our committed backstop liquidity
facilities to these conduits was $4.6 billion (October 31, 2008: $8.7
billion). We also provided credit facilities (undrawn) of $40 million (October
31, 2008: $70 million) and banker's acceptances of $70 million (October 31,
2008: $76 million) to these conduits as at July 31, 2009.
    The following table shows the underlying collateral and the average
maturity for each asset type in these multi-seller conduits:

    
    -------------------------------------------------------------------------
                                                                 Estimated
                                                                  weighted
                                                                 avg. life
    $ millions, as at July 31, 2009                  Amount(1)      (years)
    -------------------------------------------------------------------------
    Asset class
    Canadian residential mortgages                  $   1,454          1.8
    Auto leases                                           907          0.9
    Franchise loans                                       719          0.7
    Auto loans                                            189          0.8
    Credit cards                                          975          3.6(2)
    Equipment leases/loans                                163          1.1
    Other                                                   6          1.2
    -------------------------------------------------------------------------
    Total                                           $   4,413          1.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                   $   8,440          1.9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The committed backstop facility of these assets was the same as the
        amounts noted in the table, other than for franchise loans, for which
        the facility was $900 million.
    (2) Based on the revolving period and amortization period contemplated in
        the transaction.
    

    The short-term notes issued by the conduits are backed by the above
assets. The performance of the above assets has met the criteria required to
retain the credit ratings of the notes issued by the multi-seller conduits.
    $151 million of the $1,454 million Canadian residential mortgages relates
to amounts securitized by the subsidiary of the finance arm of a U.S. auto
manufacturer.
    Of the $907 million relating to auto leases, $290 million relates to
balances originated by Canadian fleet leasing companies and the remaining
relates to non-North American auto manufacturers.
    Of the $189 million relating to auto loans, approximately $40 million
relates to balances originated by the finance arms of two U.S. auto
manufacturers and the remaining relates to non-North American auto
manufacturers.
    In addition, during the first and second quarters, we acquired all of the
commercial paper issued by MACRO Trust, a CIBC-sponsored conduit. During the
second quarter, MACRO Trust acquired auto lease receivables from one of our
multi-seller conduits. The consolidation of the conduit resulted in $111
million of dealer floorplan receivables, $372 million of auto leases, and $13
million of medium term notes backed by Canadian residential mortgages being
recognized in the consolidated balance sheet as at July 31, 2009. The dealer
floor plan and auto lease receivables were originated by the finance arm of a
U.S. auto manufacturer, and have an estimated weighted average life of less
than a year.
    We also participated in a syndicated facility for a 364 day commitment of
$475 million to a CIBC-sponsored single-seller conduit that provides funding
to franchisees of a major Canadian retailer. Our portion of the commitment is
$95 million. At July 31, 2009 we funded $70 million (October 31, 2008: $76
million) by the issuance of bankers' acceptances.
    We also securitize our mortgages and credit cards receivables. Details of
our consolidated variable interest entities and securitization transactions
during the quarter are provided in Note 5 to the interim consolidated
financial statements.

    U.S. real estate finance

    In our U.S. real estate finance business, we operate a full-service
platform which originates commercial mortgages to mid-market clients, under
three programs. The construction program offers floating rate financing to
properties under construction. The interim program offers fixed and floating-
rate financing for properties that are fully leased or with some leasing or
renovation yet to be done. These programs provide feeder product for the
group's permanent fixed-rate loan program and typically have an average term
of 1 to 3 years.
    Once the construction and interim phases are complete and the properties
are income-producing, borrowers are offered fixed-rate financing within the
permanent program (typically with average terms of 10 years). The business
also maintains CMBS trading and distribution capabilities. As at July 31, 2009
we had CMBS inventory with a market value of less than US$1 million (October
31, 2008: US$2 million).
    During the quarter we recorded provisions for credit losses of $42
million (US$39 million).
    The following table provides a summary of our positions in this business
as at July 31, 2009:

    
    -------------------------------------------------------------------------
                                                       Unfunded       Funded
    US$ millions, as at July 31, 2009               commitments        loans
    -------------------------------------------------------------------------
    Construction program                              $      74    $     384
    Interim program                                         194        1,774
    Commercial fixed rate mortgages                           -            -
    -------------------------------------------------------------------------
    Total                                             $     268    $   2,158
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                     $     416    $   2,018
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    North American auto industry exposure

    We have exposures to the North American auto industry through our
securitization business and in our run-off exposure to third party non-Bank
sponsored ABCP conduits as discussed above. As at July 31, 2009, we had loans
and undrawn credit commitments to the North American auto-related industries
as shown in the table below. In addition, we also have MTM receivables of
approximately $37 million from derivatives transactions with these
counterparties.

    
    -------------------------------------------------------------------------
                                                                     Undrawn
                                                                      credit
    $ millions, as at July 31, 2009                     Loans(2) commitments
    -------------------------------------------------------------------------
    Finance arms associated with
     the U.S. auto manufacturers(1)                   $     162    $       1
    Motor vehicle parts suppliers and wholesalers            85          305
    Canadian automobile dealers                             443          549
    -------------------------------------------------------------------------
    Total                                             $     690    $     855
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                     $     819    $     865
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) $109 million of the finance arms' exposure is economically hedged
        with credit derivatives in our corporate loan hedging programs.
    (2) Includes impaired loans of $3 million, $1 million net of allowances
        as at July 31, 2009 (Impaired loans of $9 million, $6 million net of
        allowances as at October 31, 2008).


                         FINANCIAL PERFORMANCE REVIEW

    ----------------------------------------------------- -------------------
                                           For the three        For the nine
                                            months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    $ millions               Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Net interest income     $  1,369  $  1,273  $  1,327  $  3,975  $  3,830
    Non-interest income
     (loss)                    1,488       888       578     3,065    (2,320)
    ----------------------------------------------------- -------------------
    Total revenue              2,857     2,161     1,905     7,040     1,510
    Provision for credit
     losses                      547       394       203     1,225       551
    Non-interest expenses      1,699     1,639     1,725     4,991     5,274
    ----------------------------------------------------- -------------------
    Income (loss) before
     taxes and non-
     controlling interests       611       128       (23)      824    (4,315)
    Income tax expense
     (benefit)                   172       174      (101)      279    (1,834)
    Non-controlling
     interests                     5         5         7        15        15
    ----------------------------------------------------- -------------------
    Net income (loss)       $    434  $    (51) $     71  $    530  $ (2,496)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    

    Net interest income

    Net interest income was up $42 million or 3% from the same quarter last
year, mainly due to volume growth in most personal banking products and higher
interest income from corporate credit products, partially offset by spread
compression on retail products and lower treasury revenue. The last year
quarter included interest expense related to leveraged leases.
    Net interest income was up $96 million or 8% from the prior quarter,
primarily due to the impact of three more days, wider spreads on personal
banking products and volume growth on retail products. The current quarter
also included interest income on tax reassessments.
    Net interest income for the nine months ended July 31, 2009 was up $145
million or 4% from the same period in 2008, mainly due to volume growth in
most personal banking products and higher interest income from corporate
credit products and U.S. real estate finance. These factors were offset in
part by lower treasury revenue and spread compression on retail products.

    Non-interest income

    Non-interest income was up $910 million from the same quarter last year,
primarily due to gains in the structured credit run-off business compared to
losses in the last year quarter. The current quarter also benefited from
higher AFS securities gains and a decrease in CVA on counterparties other than
financial guarantors. The last year quarter included a gain on sale of Visa
Inc. shares. These factors were partially offset by the negative impact of the
MTM of credit derivatives in our corporate loan hedging programs, compared to
a positive impact in the last year quarter, lower wealth management related
fee income, and valuation charges on certain AFS positions in our run-off
businesses.
    Non-interest income was up $600 million from the prior quarter, primarily
due to gains in the structured credit run-off business compared to losses in
the prior quarter. The current quarter also benefited from lower valuation
charges related to certain AFS and trading positions in run-off and exited
businesses, lower write-downs in the merchant banking portfolios, decrease in
CVA on other than financial guarantors, and higher wealth management related
fee income. These factors were partially offset by lower AFS securities gains.
The prior quarter benefited from a foreign exchange gain on repatriation
activities.
    Non-interest income for the nine months ended July 31, 2009 was up $5,385
million from the same period in 2008, primarily due to lower structured credit
losses, and higher AFS securities gains of $285 million. The foreign exchange
gain on repatriation activities compared to a foreign exchange loss in the
prior period, and the prior year loss on the sale of some of our U.S.
businesses also contributed to the increase. These factors were partially
offset by losses associated with corporate loan hedging programs compared to
gains in the prior year, lower wealth management related fee income, higher
write-downs in the merchant banking portfolio, increased valuation charges on
certain trading and AFS positions in exited and run-off businesses, and higher
MTM losses relating to interest-rate hedges for the leveraged lease portfolio
that did not qualify for hedge accounting.

    Provision for credit losses

    Provision for credit losses was up $344 million from the same quarter
last year, $153 million or 39% from the prior quarter and $674 million or 122%
for the nine months ended July 31, 2009 compared with the same period last
year.
    Provision for credit losses in consumer portfolios was up $137 million
from the same quarter last year, and $32 million from the prior quarter, while
the nine month year to date provision was up $346 million from the same period
last year. The increase was driven by higher delinquencies and bankruptcies in
the credit cards and personal lending portfolios.
    Provision for credit losses in business and government lending increased
by $166 million from the same quarter last year and by $144 million from the
prior quarter, while the provision for the nine months ended July 31, 2009,
was up $188 million from the same period last year. The increase was primarily
due to higher losses in the run-off and U.S. real estate finance businesses.
    In addition, the general allowance increased by $42 million in the
current quarter and $144 million for the nine months ended July 31, 2009
primarily related to credit cards and large corporate lending due to the
difficult economic environment.

    Non-interest expenses

    Non-interest expenses were down $26 million or 2% from the same quarter
last year, primarily due to lower salaries, benefits, commissions, and
advertising expenses, partially offset by higher performance-related expenses
and a higher litigation provision.
    Non-interest expenses were up $60 million or 4% from the prior quarter,
primarily due to a higher litigation provision, salaries, benefits and
commissions, computer and office equipment, and professional fees, partially
offset by lower performance-related expenses, advertising and occupancy
expenses. The prior quarter benefited from three fewer days.
    Non-interest expenses for the nine months ended July 31, 2009 were down
$283 million or 5% from the same period in 2008, primarily due to lower
salaries, benefits and commissions, computer and office equipment,
professional fees, and advertising expenses, partially offset by higher
performance-related expenses.

    Income taxes

    Income tax expense was $172 million, compared to a benefit of $101
million in the same quarter last year. The primary reason for this change was
the tax impact of the increased income in the current quarter.
    Income tax expense was $172 million compared to an expense of $174
million in the prior quarter. Despite lower income, the prior quarter included
a $156 million tax expense related to foreign exchange gains on repatriation
activities and a $57 million tax expense mainly related to the write off of
future tax assets due to lower statutory tax rates.
    Income tax expense was $279 million for the nine months ended July 31,
2009 compared to an income tax benefit of $1,834 million in the same period
last year. The primary reason for this change was the tax impact of the
increased income in the current period.
    At the end of the quarter, our future income tax asset was $1,853
million, net of a US$57 million ($61 million) valuation allowance. Included in
the future income tax asset are $1,242 million related to Canadian non-capital
loss carryforwards that expire in 20 years, $68 million related to Canadian
capital loss carryforwards that have no expiry date, and $342 million related
to our U.S. operations. Accounting standards require a valuation allowance
when it is more likely than not that all or a portion of a future income tax
asset will not be realized prior to its expiration. Although realization is
not assured, we believe that based on all available evidence, it is more
likely than not that all of the future income tax asset, net of the valuation
allowance, will be realized.
    On August 5, 2009 Canada Revenue Agency (CRA) issued draft reassessments
proposing to disallow the deduction of the 2005 Enron settlement payments of
approximately $3 billion. Once reassessed, we intend to commence legal
proceedings to defend our tax filing position. We believe that we will be
successful in sustaining at least the amount of the accounting tax benefit
recognized to date. Should we successfully defend our tax filing position in
its entirety, we would be able to recognize an additional accounting tax
benefit of $214 million and refund interest thereon. Should we fail to defend
our position in its entirety, additional tax expense of approximately $826
million plus interest thereon would be incurred.
    The Ontario Government, as part of its 2009 Budget, proposed to reduce
Ontario corporate tax rates from 14% to 10% by 2013. These reductions were not
substantively enacted for accounting purposes as at July 31, 2009. If
substantively enacted, we would have to write down our future tax assets by up
to $45 million.

    Foreign exchange

    Our U.S. dollar denominated results are impacted by fluctuations in the
U.S. dollar/Canadian dollar exchange rate. The Canadian dollar depreciated 10%
on average relative to the U.S. dollar from the same quarter last year,
resulting in a $12 million increase in the translated value of our U.S. dollar
earnings.
    The Canadian dollar appreciated 11% on average relative to the U.S.
dollar from the prior quarter, resulting in a $15 million decrease in the
translated value of our U.S. dollar earnings.
    The Canadian dollar depreciated 19% on average relative to the U.S.
dollar for the nine months ended July 31, 2009 from the same period in 2008,
resulting in a $48 million increase in the translated value of our U.S. dollar
earnings.

    
    Review of quarterly financial information

    -------------------------------------------------------------------------
    $ millions, except per                                   2009       2008
     share amounts, for the      --------------------------------------------
     three months ended             Jul. 31    Apr. 30    Jan. 31    Oct. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets         $   2,339  $   2,251  $   2,413  $   2,361
      Wholesale Banking                 531       (241)      (368)      (318)
      Corporate and Other               (13)       151        (23)       161
    -------------------------------------------------------------------------
    Total revenue                     2,857      2,161      2,022      2,204
    Provision for credit losses         547        394        284        222
    Non-interest expenses             1,699      1,639      1,653      1,927
    -------------------------------------------------------------------------
    Income (loss) before taxes and
     non-controlling interests          611        128         85         55
    Income tax expense (benefit)        172        174        (67)      (384)
    Non-controlling interests             5          5          5          3
    -------------------------------------------------------------------------
    Net income (loss)             $     434  $     (51) $     147  $     436
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings (loss) per share
      - basic                     $    1.02  $   (0.24) $    0.29  $    1.07
      - diluted(1)                $    1.02  $   (0.24) $    0.29  $    1.06
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    $ millions, except per                                   2008       2007
     share amounts, for the      --------------------------------------------
     three months ended             Jul. 31    Apr. 30    Jan. 31    Oct. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets         $   2,371  $   2,278  $   2,409  $   2,855
      Wholesale Banking                (598)    (2,166)    (2,957)         5
      Corporate and Other               132         14         27         86
    -------------------------------------------------------------------------
    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
    -------------------------------------------------------------------------
    Income (loss) before taxes and
     non-controlling interests          (23)    (1,838)    (2,454)       940
    Income tax expense (benefit)       (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
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) In case of a loss, the effect of stock options potentially
        exercisable on diluted earnings (loss) per share will be
        anti-dilutive; therefore, basic and diluted earnings (loss) per share
        will be the same.
    

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

    Non-GAAP measures

    We use a number of financial measures to assess the performance of our
business lines. Some measures are calculated in accordance with GAAP, while
other measures do not have a standardized meaning under GAAP, and,
accordingly, these measures may not be comparable to similar measures used by
other companies. Investors may find these non-GAAP financial measures useful
in analyzing financial performance. For a more detailed discussion on our non-
GAAP measures, see page 54 of the 2008 Annual Accountability Report.
    The following table provides a reconciliation of non-GAAP to GAAP
measures related to CIBC on a consolidated basis. The reconciliation of the
non-GAAP measures of our business lines are provided in their respective
sections.

    
    Operations Measures
    ----------------------------------------------------- -------------------
                                           For the three        For the nine
                                            months ended        months ended
                            ----------------------------- -------------------
    $ millions, except          2009      2009      2008      2009      2008
     per share amounts       Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Net interest income     $  1,369  $  1,273  $  1,327  $  3,975  $  3,830
    Non-interest income        1,488       888       578     3,065    (2,320)
    ----------------------------------------------------- -------------------
    Total revenue per
     financial
     statements          A     2,857     2,161     1,905     7,040     1,510
    TEB adjustment       B         6        14        44        35       165
    ----------------------------------------------------- -------------------
    Total revenue
     (TEB)(1)            C  $  2,863  $  2,175  $  1,949  $  7,075  $  1,675
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Non-interest
     expenses per
     financial
     statements          D  $  1,699  $  1,639  $  1,725  $  4,991  $  5,274
    Less: amortization
     of other
     intangible assets            10        12        11        33        31
    ----------------------------------------------------- -------------------
    Cash non-interest
     expenses(1)         E  $  1,689  $  1,627  $  1,714  $  4,958  $  5,243
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Income (loss)
     before taxes and
     non-controlling
     interests per
     financial
     statements          F  $    611  $    128  $    (23) $    824  $ (4,315)
    TEB adjustment       B         6        14        44        35       165
    ----------------------------------------------------- -------------------
    Income (loss)
     before taxes and
     non-controlling
     interests (TEB)(1)  G  $    617  $    142  $     21  $    859  $ (4,150)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Net (loss) income
     applicable to
     common shares       K  $    390  $    (90) $     41  $    411  $ (2,586)
    Add: after-tax
     effect of
     amortization of
     other intangible
     assets                        7         9         8        25        24
    ----------------------------------------------------- -------------------
    Cash net income
     (loss) applicable
     to common
     shares(1)           L  $    397  $    (81) $     49  $    436  $ (2,562)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Basic weighted-
     average common
     shares (thousands)  M   381,584   381,410   380,877   381,300   366,686
    Diluted weighted-
     average common
     shares (thousands)  N   382,556   381,779   382,172   381,921   368,352
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Cash efficiency
     ratio (TEB)(1)    E/C      59.0%     74.9%     88.0%     70.1%      n/m
    Cash basic
     earnings (loss)
     per share(1)      L/M  $   1.04  $  (0.21) $   0.13  $   1.14  $  (6.99)
    Cash diluted
     earnings (loss)
     per share(1)(2)   L/N  $   1.04  $  (0.21) $   0.13  $   1.14  $  (6.99)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Non-GAAP measure.
    (2) In case of a loss, the effect of stock options potentially
        exercisable on diluted earnings (loss) per share will be
        anti-dilutive; therefore, basic and diluted earnings (loss) per share
        will be the same.
    n/m Not meaningful due to the net loss.
    

    Business unit allocations

    Treasury activities impact the reported financial results of CIBC's
strategic business units (CIBC Retail Markets and Wholesale Banking).
    Each business line is charged or credited with a market-based cost of
funds on assets and liabilities, respectively, and this impacts the revenue
performance of the business units. Once the interest and liquidity risk
inherent in our customer-driven assets and liabilities is transfer priced into
Treasury, it is managed within CIBC's risk framework and limits. The majority
of the revenue from these Treasury activities is then allocated to the "Other"
business line within CIBC Retail Markets and Wholesale Banking.
    Treasury also allocates capital to the business units in a manner that is
intended to consistently measure and align economic costs with the underlying
benefits and risks associated with business unit activities. Earnings on
unallocated capital and the impact of securitization activities remain in
Corporate and Other.
    In addition, non-interest expenses are attributed to the business unit to
which they relate. Indirect expenses are allocated to the business units based
on appropriate criteria.
    We review our transfer pricing and treasury allocations methodologies on
an ongoing basis to ensure they reflect changing market environments and
industry practices. We made certain modifications to our allocation
methodologies during the quarter to better reflect product and business
funding costs and observed client behaviour in the current environment. The
modifications resulted in an increase in the revenue of CIBC Retail Markets
and a corresponding decrease in the revenue of Wholesale Banking, including
the structured credit run-off business, and Corporate and Other. Including
these modifications, total treasury allocations to Retail Markets in the
current quarter were in line with the prior quarter and the same quarter last
year, and total treasury allocations to Wholesale Banking, including the
structured credit run-off business, in the current quarter were lower compared
with the prior quarter and the same quarter last year. The modifications were
applied on a prospective basis and prior period information has not been
restated.


    
                             CIBC RETAIL MARKETS

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


    Results(1)
    ----------------------------------------------------- -------------------
                                           For the three        For the nine
                                            months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    $ millions               Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Revenue
      Personal banking      $  1,518  $  1,398  $  1,478  $  4,370  $  4,295
      Business banking           343       312       340       985     1,020
      Wealth management          318       297       393       938     1,169
      FirstCaribbean             169       204       165       553       413
      Other                       (9)       40        (5)      157       161
    ----------------------------------------------------- -------------------
    Total revenue (a)          2,339     2,251     2,371     7,003     7,058
    Provision for
     credit losses               423       366       224     1,105       633
    Non-interest expenses (b)  1,324     1,304     1,377     3,933     4,110
    ----------------------------------------------------- -------------------
    Income before taxes and
     non-controlling
     interests                   592       581       770     1,965     2,315
    Income tax expense           171       161       198       552       574
    Non-controlling
     interests                     5         5         7        15        13
    ----------------------------------------------------- -------------------
    Net income (c)          $    416  $    415  $    565  $  1,398  $  1,728
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    ----------------------------------------------------- -------------------
    Efficiency ratio (b/a)      56.6%     57.9%     58.1%     56.2%     58.2%
    Amortization of other
     intangible assets (d)  $      8  $      9  $      8  $     25  $     23
    Cash efficiency ratio(2)
     ((b-d)/a)                  56.3%     57.6%     57.8%     55.8%     57.9%
    ROE(2)                      33.2%     34.1%     45.0%     37.5%     46.9%
    Charge for economic
     capital(2) (e)         $   (170) $   (166) $   (163) $   (504) $   (472)
    Economic profit(2)
     (c+e)                  $    246  $    249  $    402  $    894  $  1,256
    Full time equivalent
     employees                29,331    29,241    30,060    29,331    30,060
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (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 for the quarter was $416 million, a decrease of $149 million
or 26% from the same quarter last year. These results continue to reflect the
difficult economic conditions which resulted in an increase in the provision
for credit losses and lower wealth management revenues. These declines were
partially offset by volume growth across most products and expense management
activities.
    Net income was in line with the prior quarter as higher revenue was
offset by an increase in the provision for credit losses, and higher non-
interest expenses.
    Net income for the nine months ended July 31, 2009 was $1,398 million, a
decrease of $330 million or 19% from the same period in 2008. An increase in
the provision for credit losses was partially offset by lower expenses.

    Revenue

    Revenue was down $32 million or 1% from the same quarter last year.
    Personal banking revenue was up $40 million, with volume growth in most
products, particularly in deposits and secured lending, partially offset by
narrower spreads. Overall spreads were compressed due to a lower interest rate
environment impacting spreads on deposits and a decrease in prepayment penalty
fees, partially offset by wider spreads on retail lending products. The last
year quarter included a gain on sale of VISA Inc. shares.
    Business banking revenue was up $3 million, as improved customer rate
changes were offset by the impact of a lower interest rate environment.
    Wealth management revenue was down $75 million, primarily due to lower
fee income as a result of a market- driven decline in asset values.
    FirstCaribbean revenue was up $4 million, primarily due to the impact of
a weaker Canadian dollar and higher treasury allocations partially offset by
narrower spreads on most products.
    Revenue was up $88 million or 4% from the prior quarter.
    Personal banking revenue was up $120 million, primarily due to three more
days in the quarter, wider lending spreads and volume growth in most products.
    Business banking revenue was up $31 million, primarily due to improved
customer rates, the impact of three more days, and higher treasury revenue
allocations, partially offset by the impact of a lower interest rate
environment.
    Wealth management revenue was up $21 million, mainly due to higher fee
income as a result of a market- driven increase in asset values.
    FirstCaribbean revenue was down $35 million, primarily due to a stronger
Canadian dollar, narrower spreads and lower gains on redemption of
subordinated debt.
    Other revenue was down $49 million, mainly due to lower treasury revenue
allocations.
    Revenue for the nine months ended July 31, 2009 was down $55 million or
1% from the same period in 2008.
    Personal banking revenue was up $75 million, primarily due to volume
growth in most products, partially offset by narrower spreads driven by lower
prepayment penalty fees, and the declining interest rate environment.
    Business banking revenue was down $35 million, mainly due to lower
spreads, partially offset by volume growth.
    Wealth management revenue was down $231 million, mainly due to lower fee
income as a result of a decline in asset values due to market conditions.
    FirstCaribbean revenue was up $140 million, primarily due to a weaker
Canadian dollar, lower securities losses, and gains on redemption of
subordinated debt.

    Provision for credit losses

    Provision for credit losses was up $199 million or 89% from the same
quarter last year and included a net increase to the allowance for loan losses
of $63 million. The increase was largely attributed to the cards and personal
lending portfolios driven by higher delinquencies and bankruptcies related to
the general economic environment.
    Provision for credit losses was up $57 million or 16% from the prior
quarter mainly due to an increase in bankruptcies in cards and higher
commercial banking delinquencies.
    Provision for credit losses for the nine months ended July 31, 2009 was
up $472 million or 75% from the same period in 2008 and included a net
increase to the allowance for loan losses of $95 million. The increase was
largely attributed to cards and personal lending portfolios driven by higher
delinquencies and bankruptcies related to the deteriorating economic
environment.

    Non-interest expenses

    Non-interest expenses were down $53 million or 4% from the same quarter
last year. The decreases were primarily due to lower performance-related
compensation and expense management activities, offset in part by a weaker
Canadian dollar impacting FirstCaribbean and a higher litigation provision.
    Non-interest expenses were up $20 million or 2% from the prior quarter.
The increase was primarily due to higher performance-related compensation and
a higher litigation provision, offset in part by lower communication expense
and a stronger Canadian dollar impacting FirstCaribbean.
    Non-interest expenses for the nine months ended July 31, 2009 were down
$177 million or 4% from the same period in 2008. The decreases were primarily
due to lower performance-related compensation and also expense management
activities, offset in part by a weaker Canadian dollar impacting
FirstCaribbean.

    Income taxes

    Income taxes were down $27 million or 14% from the same quarter last year
and were down $22 million or 4% for the nine months ended July 31, 2009 from
the same period in 2008, mainly due to a decrease in income.
    Income taxes were up $10 million or 6% from the prior quarter, primarily
due to an increase in income.


    
                              WHOLESALE BANKING

    Wholesale Banking provides a wide range of capital markets, credit,
investment banking, merchant banking and research products and services to
government, institutional, corporate and retail clients in Canada and in key
markets around the world. In the second quarter, we changed the name of our
wholesale banking business from CIBC World Markets to Wholesale Banking.

    Results(1)
    ----------------------------------------------------- -------------------
                                           For the three        For the nine
                                            months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    $ millions               Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Revenue (TEB)(2)
      Capital markets       $    325  $    318  $    209  $    950  $    627
      Corporate and
       investment banking        221       200       110       577       400
      Other                       (9)     (745)     (873)   (1,570)   (6,583)
    ----------------------------------------------------- -------------------
    Total revenue (TEB)(2)       537      (227)     (554)      (43)   (5,556)
    TEB adjustment                 6        14        44        35       165
    ----------------------------------------------------- -------------------
    Total revenue                531      (241)     (598)      (78)   (5,721)
    Provision for credit
     losses                      129        18        11       136        19
    Non-interest expenses        258       247       266       772       975
    ----------------------------------------------------- -------------------
    Income (loss) before
     taxes and
     non-controlling
     interests                   144      (506)     (875)     (986)   (6,715)
    Income tax expense
     (benefit)                    58      (152)     (334)     (325)   (2,388)
    Non-controlling
     interests                     -         -         -         -         2
    ----------------------------------------------------- -------------------
    Net income (loss) (a)   $     86  $   (354) $   (541) $   (661) $ (4,329)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    ----------------------------------------------------- -------------------
    ROE(2)                      13.0%    (56.1)%  (102.2)%  (35.9)%  (263.9)%
    Charge for economic
     capital(2) (b)         $    (83) $    (92) $    (71) $   (269) $   (216)
    Economic gain
     (loss)(2) (a+b)        $      3  $   (446) $   (612) $   (930) $ (4,545)
    Full time equivalent
     employees                 1,091     1,084     1,164     1,091     1,164
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (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 for the current quarter was $86 million, compared to a net
loss of $541 million in the same quarter last year primarily due to income in
the structured credit run-off business compared to losses in the last year
quarter. The current quarter also included higher revenue in capital markets
and corporate and investment banking, partially offset by MTM losses on
corporate loan hedges. These factors were partially offset by a higher
provision for credit losses in the current quarter.
    Net income was up $440 million from the prior quarter, mainly due to
income in the current quarter in the structured credit run-off business
compared to losses in the prior quarter. The prior quarter also included
write-downs in the legacy merchant banking portfolio and higher valuation
charges related to certain trading and AFS positions in exited and other
run-off businesses. These factors were partially offset by a higher provision
for credit losses in the current quarter.
    Net loss for the nine months ended July 31, 2009 was down $3,668 million
from the same period in 2008, mainly due to lower structured credit losses.
The current period also included higher revenue in capital markets and
corporate and investment banking, partially offset by MTM losses on corporate
loan hedges. The last year period included losses on the sale of some of our
U.S. businesses. These factors were partly offset by higher write-downs in the
legacy merchant banking portfolio, a higher provision for credit losses and
higher trading and AFS related losses in our exited and other run-off
businesses.

    Revenue

    Revenue was up $1,129 million from the same quarter last year.
    Capital markets revenue was up $116 million, primarily due to higher
revenue from equity, fixed income trading, foreign exchange business and
equity issuances.
    Corporate and investment banking revenue was up $111 million, mainly due
to higher revenue from U.S. real estate finance, corporate credit products and
investment banking.
    Other revenue was up $864 million, primarily due to lower structured
credit losses. The increase was partially offset by MTM losses on corporate
loan hedges.
    Revenue was up $772 million from the prior quarter.
    Capital markets revenue was up $7 million, mainly due to higher revenue
from foreign exchange business and fixed income trading, partially offset by
lower equity trading revenue.
    Corporate and investment banking revenue was up $21 million, primarily
due to higher revenue from corporate credit products and the core merchant
banking portfolio.
    Other revenue was up $736 million due to lower losses from structured
credit, other run-off businesses and the legacy merchant banking portfolio.
    Revenue for the nine months ended July 31, 2009 was up $5,643 million
from the same period in 2008.
    Capital markets revenue was up $323 million, primarily due to higher
revenue from equity and fixed income trading, foreign exchange business, and
higher revenue from equity issuances.
    Corporate and investment banking revenue was up $177 million, primarily
due to higher revenue from U.S. real estate finance and corporate credit
products, partially offset by lower advisory revenue.
    Other revenue was up $5,013 million, primarily due to lower structured
credit losses, partially offset by higher MTM losses on corporate loan hedges,
higher losses in other run-off businesses and higher write-downs in the legacy
merchant banking portfolio. The last year period included losses of the sale
of some of our U.S. businesses.

    Provision for credit losses

    Provision for credit losses was $118 million higher than the same quarter
last year and $111 million higher than the prior quarter. Provision for credit
losses for the nine months ended July 31, 2009 was also up $117 million from
the same period in 2008. The increase was primarily due to higher losses in
the leveraged loans, other run-off and U.S. real estate finance businesses.

    Non-interest expenses

    Non-interest expenses were down $8 million or 3% from the same quarter
last year, primarily due to lower infrastructure support costs and salaries,
partially offset by higher performance-related compensation.
    Non-interest expenses were up $11 million or 4% from the prior quarter,
primarily due to higher employee compensation and benefits and professional
expenses, partially offset by lower performance-related compensation.
    Non-interest expenses for the nine months ended July 31, 2009 were down
$203 million or 21% from the same period last year, primarily due to lower
litigation-related and severance expenses and the impact of the sale of some
of our U.S. businesses, partially offset by higher performance-related
compensation.

    Income taxes

    Income tax expense was $58 million compared to a recovery of $334 million
and $152 million in the same quarter last year and in the prior quarter
respectively. Income tax recovery for the nine months ended July 31, 2009 was
down $2,063 million from the same period last year. The changes were primarily
due to substantially lower structured credit losses.

    Full time equivalent employees

    The full time equivalent employees were down 73 from the same quarter
last year primarily due to cost reduction initiatives.


    
                             CORPORATE AND OTHER
    

    Corporate and Other comprises the five functional groups - Technology and
Operations; Corporate Development; Finance (including Treasury);
Administration; and Risk Management - that support CIBC's business lines, as
well as CIBC Mellon joint ventures, and other income statement and balance
sheet items, including the general allowance, not directly attributable to the
business lines. The general allowance applicable to FirstCaribbean is
determined locally and is included in CIBC Retail Markets. The impact of
securitization is retained within Corporate and Other. The remaining revenue
and expenses are generally allocated to the business lines.

    
    Results(1)
    -------------------------------------------------------------------------
                                           For the three        For the nine
                                            months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    $ millions               Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Revenue                  $   (13) $    151  $    132  $    115  $    173
    (Reversal of) provision
     for credit losses            (5)       10       (32)      (16)     (101)
    Non-interest expenses        117        88        82       286       189
    ----------------------------------------------------- -------------------
    (Loss) income
     before taxes and
     non-controlling
     interests                  (125)       53        82      (155)       85
    Income tax (benefit)
     expense                     (57)      165        35        52       (20)
    ----------------------------------------------------- -------------------
    Net (loss) income        $   (68) $   (112) $     47  $   (207) $    105
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    ----------------------------------------------------- -------------------
    Full time equivalent
     employees                12,052    11,980    13,359    12,052    13,359
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    

    Financial overview

    Net loss in the current quarter was $68 million compared to net income of
$47 million in the same quarter last year, primarily due to lower unallocated
treasury revenue which includes securitization activities. Reversal of credit
losses was lower in the current quarter as a result of a higher provision for
credit losses in the general allowance.
    Net loss was down $44 million from the prior quarter primarily due to
interest income on tax reassessments and lower provision for credit losses in
the general allowance. These factors were mostly offset by lower unallocated
treasury revenue which includes securitization activities and higher
unallocated support costs. The prior quarter was impacted by the adjustment of
future tax assets at future years' lower statutory rates.
    Net loss was $207 million for the nine months ended July 31, 2009,
compared to net income of $105 million for the same period last year,
primarily due to lower unallocated treasury revenue which includes
securitization activities, a higher provision for credit losses in the general
allowance, and adjusting future tax assets at future years' lower statutory
rates. These losses were partially offset by the net gain on repatriation
activities.

    Revenue

    Revenue was down $145 million from the same quarter last year, primarily
due to lower unallocated treasury revenue which includes securitization
activities.
    Revenue was down $164 million from the prior quarter primarily due to
lower unallocated treasury revenue which includes securitization activities
partially offset by interest income from tax reassessments. The prior quarter
included a foreign exchange gain on repatriation activities of $159 million.
    Revenue for the nine months ended July 31, 2009 was down $58 million from
the same period in 2008 primarily due to lower unallocated treasury revenue
which includes securitization activities. These factors were partially offset
by a $111 million foreign exchange gain on repatriation activities compared to
a $65 million loss in the same period last year. The last year period also
included losses from the hedging of stock appreciation rights (SARs).

    Provision for credit losses

    Reversal of credit losses was down $27 million from the same quarter last
year, primarily due to a higher provision for credit losses in the general
allowance, partially offset by the reversal of credit losses as a result of
asset securitization.
    Reversal of credit losses was $5 million, compared to a provision of $10
million from the prior quarter primarily due to a lower provision for credit
losses in the general allowance.
    Reversal of credit losses for the nine months ended July 31, 2009 was
down $85 million from the same period last year, primarily due to a higher
provision for credit losses in the general allowance, partially offset by the
reversal of credit losses as a result of asset securitization.

    Non-interest expenses

    Non-interest expenses were up $35 million from the same quarter last
year, and up $29 million from the prior quarter, primarily due to higher
unallocated corporate support costs.
    Non-interest expenses for the nine months ended July 31, 2009 were up $97
million from the same period in 2008, primarily due to higher unallocated
corporate support costs. The same period last year included higher recoveries
related to SARs.

    Income tax

    Income tax benefit was $57 million compared to an expense of $35 million
in the same quarter last year primarily due to lower income in the current
quarter.
    Income tax benefit was $57 million, compared to an income tax expense of
$165 million in the prior quarter. The prior quarter included a $156 million
tax expense related to the foreign exchange gain on repatriation activities
and the write off of $36 million of future tax assets due to lower future
statutory tax rates.
    Income tax expense for the nine months ended July 31, 2009 was up $72
million from the same period last year, primarily due to the $103 million tax
expense on the gain on repatriation activities compared to a $44 million tax
benefit on repatriation losses in the same period last year. The current
period also included the write off of future tax assets.

    Full time equivalent employees

    The full time equivalent employees were down 1,307 from the same quarter
last year primarily due to continuing cost reduction initiatives and reduced
infrastructure support resulting from the sale of some of our U.S. businesses.


    
                             FINANCIAL CONDITION


    Review of consolidated balance sheet
    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Jul. 31      Oct. 31
    -------------------------------------------------------------------------
    Assets
    Cash and deposits with banks                     $    6,895   $    8,959
    Securities                                           83,977       79,171
    Securities borrowed or purchased
     under resale agreements                             31,029       35,596
    Loans                                               157,111      171,475
    Derivative instruments                               28,357       28,644
    Other assets                                         28,548       30,085
    -------------------------------------------------------------------------
    Total assets                                     $  335,917   $  353,930
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and shareholders' equity
    Deposits                                         $  214,227   $  232,952
    Derivative instruments                               31,455       32,742
    Obligations related to securities lent or sold
     short or under repurchase agreements                47,190       44,947
    Other liabilities                                    22,764       22,015
    Subordinated indebtedness                             5,691        6,658
    Preferred share liabilities                             600          600
    Non-controlling interests                               170          185
    Shareholders' equity                                 13,820       13,831
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity       $  335,917   $  353,930
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Assets

    Total assets decreased for the nine-month period by $18 billion or 5%
from October 31, 2008.
    Cash and deposits with banks decreased by $2.1 billion or 23%, mainly due
to normal treasury activities.
    Securities increased by $4.8 billion or 6% and comprise AFS, trading,
fair value option (FVO) and HTM securities. During the nine-month period,
matured trading securities were reinvested in debt and government securities
that are classified as AFS. FVO securities increased due to the continued
securitization of residential mortgages.
    Securities borrowed or purchased under resale agreements decreased by
$4.6 billion or 13% primarily driven by funding requirements and business
decisions to reduce certain underlying exposures.
    Loans decreased by $14.4 billion or 8% mainly due to a decline in
business and government loans and securitization of mortgages.
    Other assets decreased by $1.5 billion or 5% mainly due to tax refunds
received offset by an increase in derivatives collateral receivable.

    Liabilities

    Total liabilities decreased for the nine-month period by $18 billion or
5% from October 31, 2008.
    Deposits decreased by $18.7 billion or 8% largely due to a reduction in
business and government and bank deposits driven by our funding requirements
and market conditions, partially offset by volume growth in personal deposits.
    Obligations related to securities lent or sold short or under repurchase
agreements increased by $2.2 billion or 5% mainly due to funding requirements.

    Shareholders' equity

    The change in shareholders' equity during the period includes current
period earnings and proceeds from issuance of preferred shares in the second
quarter, offset by dividend payments.

    Capital resources

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

    Significant capital management activities

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

    
    ------------------------------------------------------------ ------------
                                                        For the      For the
                                                          three         nine
                                                         months       months
                                                          ended        ended
                                                           2009         2009
    $ millions                                          Jul. 31      Jul. 31
    ------------------------------------------------------------ ------------
    Issue of common shares                           $       71   $       99
    Issue of preferred shares                                 -          525
    Redemption of subordinated indebtedness                (750)        (750)
    Dividends
      Preferred shares - classified as equity               (44)        (119)
      Preferred shares - classified as liabilities           (7)         (23)
      Common shares                                        (332)        (995)
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    

    For additional details, see Notes 6, 7 and 8 to the interim consolidated
financial statements.

    Regulatory capital

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

    
    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Jul. 31      Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                   $   13,845   $   12,365
    Tier 2 capital                                        5,175        5,764
    Total regulatory capital                             19,020       18,129
    Risk-weighted assets                                115,426      117,946
    Tier 1 capital ratio                                   12.0%        10.5%
    Total capital ratio                                    16.5%        15.4%
    Assets-to-capital multiple                            16.2x        17.9x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The Tier 1 ratio was up 1.5% and the total capital ratio was up 1.1% from
year-end mainly due to the notes issued by CIBC Capital Trust and the issuance
of preferred shares. The ratios also benefited from lower risk- weighted
assets (RWAs), driven by several factors including the benefit of a
strengthening Canadian dollar, the purchase of residential mortgage insurance
and lower market risk, offset in part by higher RWAs against our financial
guarantor exposures.
    The ratios were negatively impacted by the structured credit charges
during the year.
    In addition, the Tier 1 ratio was adversely impacted by the expiry of
OSFI's transition rules related to the grandfathering of substantial
investments pre-December 31, 2006, which were deducted entirely from Tier 2
capital at year-end. The redemption of our $750 million subordinated
indebtedness on June 1, 2009 also reduced the total capital ratio.

    Off-balance sheet arrangements

    We enter into several types of off-balance sheet arrangements in the
normal course of our business. These include securitizations, derivatives,
credit-related arrangements, and guarantees. Details on our off-balance sheet
arrangements are provided on pages 67 to 69 of the 2008 Annual Accountability
Report.
    During the quarter, we securitized credit card receivables of $54 million
to Cards II (the Trust), a qualifying special purpose entity, and purchased
the same amount of a new series of enhancement notes issued by the Trust. The
Trust notes are subordinated to the existing outstanding Series 2005-1, Series
2005-2, Series 2005-3, Series 2005-4, Series 2006-1 and Series 2006-2 notes
issued by the Trust. We also securitized residential mortgages of $114 million
during the quarter. More details of our own asset securitization are provided
on Note 5 to the interim consolidated financial statements.
    The following table summarizes our exposures to unconsolidated entities
involved in the securitization of third-party assets (both CIBC
sponsored/structured and third-party structured). Investments, generally
securities, are at fair value and loans, none of which are impaired, are
carried at par. Undrawn liquidity and credit facilities and written credit
derivatives are at notional amounts.

    
    -------------------------------------------------------------------------
                                                                        2009
    $ millions, as at                                                Jul. 31
    -------------------------------------------------------------------------
                                                        Undrawn      Written
                                                      liquidity       credit
                                        Investment   and credit  derivatives
                                       and loans(1)  facilities (notional)(2)
    -------------------------------------------------------------------------
    CIBC-sponsored conduits             $    525     $  4,179(3)  $        -
    CIBC structured CDO vehicles             745(4)        63            638
    Third-party structured vehicles        6,837(4)       815         11,377
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                                        2008
    $ millions, as at                                                Oct. 31
    -------------------------------------------------------------------------
                                                        Undrawn      Written
                                                      liquidity       credit
                                        Investment   and credit  derivatives
                                       and loans(1)  facilities (notional)(2)
    -------------------------------------------------------------------------
    CIBC-sponsored conduits             $    805     $  7,984(3)  $        -
    CIBC structured CDO vehicles             772(4)        69            766
    Third-party structured vehicles        8,167(4)     1,091         17,174
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Excludes securities issued by entities established by Canada Mortgage
        and Housing Corporation (CMHC), Fannie Mae, Freddie Mac, Ginnie Mae,
        Federal Home Loan Banks, Federal Farm Credit Bank, and Sallie Mae.
        $5.8 billion (Oct. 31, 2008: $6.7 billion) of the exposure related to
        CIBC structured CDO and third-party structured vehicles was hedged by
        credit derivatives.
    (2) Comprises credit derivatives (written options and total return swaps)
        under which we assume exposures. The negative fair value recorded on
        the consolidated balance sheet was $4.7 billion (Oct. 31, 2008:
        $5.6 billion). Notional amounts of $10.7 billion (Oct. 31, 2008:
        $16.0 billion) were hedged with credit derivatives protection from
        third parties, the fair value of these hedges net of CVA was
        $0.7 billion (Oct. 31, 2008: $1.2 billion). Accumulated fair value
        losses amount to $2.7 billion (Oct. 31, 2008: $1.3 billion) on
        unhedged written credit derivatives.
    (3) Net of $525 million (Oct. 31, 2008: $805 million) of investment and
        loans in CIBC sponsored conduits.
    (4) Fair value amount of $5.7 billion (Oct. 31, 2008: $6.1 billion) held
        to maturity securities are included. The related carrying value of
        these securities are $6.2 billion (Oct. 31, 2008: $6.8 billion).
    

    As described in the "Run-off Businesses" section, we consolidated certain
third-party structured CDOs after determining that we are the primary
beneficiary following the commutation of our protection from a financial
guarantor in the current quarter. The table above excludes our investments
(fair value of $77 million as at July 31, 2009) in, and written credit
derivatives (notional of $1.9 billion and negative fair value of $1.7 billion,
as at July 31, 2009) on, the notes of these CDOs.
    During the second quarter, MACRO Trust, a CIBC-sponsored conduit,
acquired auto lease receivables from one of our multi-seller conduits. During
the first and second quarters, we acquired all of the commercial paper issued
by MACRO Trust. The consolidation of the conduit resulted in $111 million of
dealer floorplan receivables, $372 million of auto leases, and $13 million of
medium term notes backed by Canadian residential mortgages being recognized in
the consolidated balance sheet as at July 31, 2009. The dealer floorplan
receivables and retail auto receivables were originated by the finance arm of
a U.S. auto manufacturer and have an estimated weighted average life of less
than a year. In addition, in the second quarter, CIBC Capital Trust, a trust
wholly owned by CIBC, issued $1.6 billion of CIBC Tier 1 notes.
    For additional details, see Notes 5 and 8 to the interim consolidated
financial statements.


    
                             MANAGEMENT OF RISK
    

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

    Risk overview

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

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

    -   Retail Markets Risk Management - 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 - oversees the
        management of credit risk in CIBC's risk-rated credits through the
        global management of adjudication of small business, commercial and
        wholesale credit risks, as well as management of the special loans
        and investments portfolios.

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

    Credit risk

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

    Process and control

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

    Credit risk limits

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

    Credit risk mitigation

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

    Exposure to credit risk

    Our gross credit exposure measured as exposure at default (EAD) for on-
and off-balance sheet financial instruments was $457.7 billion as at July 31,
2009 (October 31, 2008: $458.7 billion). Overall exposure was relatively
unchanged, but a large increase in drawn sovereign exposures was offset by
decreases across most other categories. The increase in drawn exposure since
October 2008 in the sovereign category is largely increased exposure to
Canadian and U.S. governments and their agencies.

    
    Gross exposure at default, before credit risk mitigation
    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Jul. 31      Oct. 31
    -------------------------------------------------------------------------
    Business and government portfolios-AIRB
     approach(1)
    Drawn                                            $  105,176   $   83,686
    Undrawn commitments                                  21,926       21,309
    Repo-style transactions                              80,611       82,975
    Other off-balance sheet                              33,384       41,163
    OTC derivatives                                      16,536       18,763
    -------------------------------------------------------------------------
                                                     $  257,633   $  247,896
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retail Portfolios-AIRB approach(1)
    Drawn                                            $  123,609   $  128,648
    Undrawn commitments                                  45,730       44,003
    Other off-balance sheet                                 328          105
    -------------------------------------------------------------------------
                                                     $  169,667   $  172,756
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Standardized portfolios                          $   12,770   $   14,714
    Securitization exposures                             17,601       23,356
    -------------------------------------------------------------------------
                                                     $  457,671   $  458,722
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Advanced internal ratings based (AIRB) approach.
    

    Included in the business and government portfolios-AIRB approach is EAD
of $2.6 billion in the probability of default band considered watch list as at
July 31, 2009 (October 31, 2008: $1.7 billion).
    The increase in watch list exposures in the current quarter was largely
driven by the downgrade of certain customers in our ELF run-off portfolio. The
majority of watch list exposures are from the financial services sector,
including financial guarantor exposures discussed in more detail in our "Run-
off businesses" section.

    Counterparty credit exposures

    We have counterparty credit exposure that arises from our interest rate,
foreign exchange, equity, commodity and credit derivatives trading, hedging
and portfolio management activities, as explained in Note 14 to the 2008
consolidated financial statements.
    We establish a credit valuation adjustment for expected future credit
losses from each of our derivative counterparties. As at July 31, 2009, the
credit valuation adjustment for all derivative counterparties was $2.6 billion
(October 31, 2008: $4.7 billion).

    
    Rating profile of derivative MTM receivables(1)
    -------------------------------------------------------------------------
                                                  2009                  2008
    $ billions, as at                          Jul. 31               Oct. 31
    -------------------------------------------------------------------------
    Standard & Poor's rating
    ------------------------
     equivalent
     ----------
    AAA to BBB-                   $     7.0      74.5%  $     8.3      80.9%
    BB+ to B-                           1.2      13.1         1.2      11.5
    CCC+ to CCC-                        1.0      10.9         0.7       6.6
    Below CCC-                          0.1       1.5           -       0.2
    Unrated                               -         -         0.1       0.8
    -------------------------------------------------------------------------
    Total                         $     9.3     100.0%  $    10.3     100.0%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) MTM value of the derivative contracts after credit valuation
        adjustments and derivative master netting agreements but before any
        collateral.


    Impaired loans and allowance and provision for credit losses
    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Jul. 31      Oct. 31
    -------------------------------------------------------------------------
    Gross impaired loans
    Consumer                                         $      738   $      584
    Business and government(1)                              930          399
    -------------------------------------------------------------------------
    Total gross impaired loans                       $    1,668   $      983
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Allowance for credit losses
    Consumer                                         $    1,075   $      888
    Business and government(1)                              824          558
    -------------------------------------------------------------------------
    Total allowance for credit losses                $    1,899   $    1,446
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
    Specific allowance for loans(2)                  $      949   $      631
    General allowance for loans(2)                          950          815
    -------------------------------------------------------------------------
    Total allowance for credit losses                $    1,899   $    1,446
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes scored small business portfolios which are managed on a pool
        basis under Basel II.
    (2) Excludes specific and general allowance for letters of credit and
        undrawn credit facilities of $1 million and $80 million respectively
        (October 31, 2008: nil and $77 million).
    

    Gross impaired loans were up $685 million or 70% from October 31, 2008.
Consumer gross impaired loans were up $154 million or 26%, largely attributed
to increased new classifications in residential mortgages and personal lending
in Canada. The majority of the increase occurred in the third quarter and was
largely attributed to our ELF run-off portfolio, as well as deterioration in
our U.S. real estate exposure.
    The allowance for credit losses was up $453 million or 31% from October
31, 2008. Specific allowance was up $318 million or 50%, primarily due to
credit cards, publishing and broadcasting, real estate, and construction
sectors. General allowance was up $135 million or 17% due to credit cards and
large corporate lending.
    For details on the provision for credit losses, see the "Financial
performance review" section.

    
    Market risk

    Trading activities
    

    The following table shows Value-at-Risk (VaR) by risk type for CIBC's
trading activities.
    The VaR for the three months ended July 31, 2009 disclosed in the table
and backtesting chart below exclude our exposures in our run-off businesses as
described on pages 10 to 17 of the MD&A. Due to volatile and illiquid markets,
the quantification of risk for these positions is subject to a high degree of
uncertainty. These positions are being managed down independent of our trading
businesses.
    Total average risk was down 21% from the last quarter, primarily due to
changes in our market risk exposure across trading books, and general
improvement in market conditions, especially in credit markets.
    Actual realized market loss experience may differ from that implied by
the VaR measure for a variety of reasons. Fluctuations in market rates and
prices may differ from those in the past that are used to compute the VaR
measure. Additionally, the VaR measure does not account for any losses that
may occur beyond the 99% confidence level.

    
    VaR by risk type - trading portfolio
    -------------------------------------------------------------------------
                                         As at or for the three months ended
                                 --------------------------------------------
                                                                        2009
                                                                     Jul. 31
                                 --------------------------------------------
    $ millions                         High        Low      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk            $     7.2  $     1.7  $     6.3  $     3.9
    Credit spread risk                  1.4        0.6        0.7        0.9
    Equity Risk                         2.8        1.0        1.3        1.5
    Foreign exchange risk               4.8        0.1        0.5        0.8
    Commodity risk                      1.2        0.5        0.5        0.7
    Debt specific risk                  5.2        1.2        1.2        2.6
    Diversification effect(1)           n/m        n/m       (4.1)      (5.2)
                                                        ---------------------
    Total risk                    $     7.0  $     3.0  $     6.4  $     5.2
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                         As at or for the three months ended
                                 --------------------------------------------
                                                  2009                  2008
                                               Apr. 30               Jul. 31
                                 --------------------------------------------
    $ millions                        As at    Average      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk            $     2.8  $     3.3  $     5.5  $     8.1
    Credit spread risk                  1.2        1.3        5.9        5.1
    Equity Risk                         1.8        3.3        5.5        5.2
    Foreign exchange risk               0.4        0.6        0.2        0.5
    Commodity risk                      0.6        0.8        0.7        0.7
    Debt specific risk                  5.1        3.9        6.9        7.6
    Diversification effect(1)          (5.4)      (6.6)     (12.1)     (14.2)
                                  -------------------------------------------
    Total risk                    $     6.5  $     6.6  $    12.6  $    13.0
    -------------------------------------------------------------------------


    ---------------------------------------------------
                                          For the nine
                                          months ended
                                 ----------------------
                                       2009       2008
                                    Jul. 31    Jul. 31
                                 ----------------------
    $ millions                      Average    Average
    ---------------------------------------------------
    Interest rate risk            $     4.0  $     7.7
    Credit spread risk                  1.4        7.6
    Equity Risk                         3.2        5.2
    Foreign exchange risk               0.9        0.6
    Commodity risk                      0.7        0.8
    Debt specific risk                  2.9        8.7
    Diversification effect(1)          (6.5)      (16.3)
                                  ---------------------
    Total risk                    $     6.6  $    14.3
    ---------------------------------------------------
    (1) Aggregate VaR is less than the sum of the VaR of the different market
        risk types due to risk offsets resulting from portfolio
        diversification effect.
    n/m Not meaningful. It is not meaningful to compute a diversification
        effect because the high and low may occur on different days for
        different risk types.
    

    Trading Revenue

    The trading revenue (TEB)(1) and VaR backtesting graph below compares the
current quarter and the three previous quarters' actual daily trading revenue
(TEB)(1) with the previous day's VaR measures.
    Trading revenue (TEB)(1) was positive for 95% of the days in the quarter.
Trading losses did not exceed VaR during the quarter. Average daily trading
revenue (TEB)(1) was $3.9 million during the quarter.
    The trading revenue (TEB)(1) for the current quarter excludes a gain of
$105 million related to changes in exposures and fair values of structured
credit assets, as well as trading losses of $1.5 million related to loss from
other positions in the run-off books.

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

    (image appears here)

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


    Non-trading activities

    Interest rate risk
    

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

    
    Interest rate sensitivity - non-trading (after-tax)
    -------------------------------------------------------------------------
                                                2009                    2009
                                             Jul. 31                 Apr. 30
                              -----------------------------------------------
    $ millions, as at              $     US$   Other       $     US$   Other
    -------------------------------------------------------------------------
    100 basis points increase
     in interest rates
    Net income                 $ 132   $  (9)  $   8   $ 158   $ (17)  $   6
    Change in present value
     of shareholders' equity     193     (16)     (5)    203     (47)      3

    100 basis points decrease
     in interest rates
    Net income                 $  17   $   8   $  (9)  $ (11)  $   2   $  (5)
    Change in present value
     of shareholders' equity    (195)     16       5    (160)     26       1
    -------------------------------------------------------------------------


    -------------------------------------------------
                                                2008
                                             Jul. 31
                              -----------------------
    $ millions, as at              $     US$   Other
    -------------------------------------------------
    100 basis points increase
     in interest rates
    Net income                 $  42   $   5   $   3
    Change in present value
     of shareholders' equity     151      17      42

    100 basis points decrease
     in interest rates
    Net income                 $ (89)  $  (5)  $  (3)
    Change in present value
     of shareholders' equity    (218)    (18)    (41)
    -------------------------------------------------
    

    Liquidity Risk

    Liquidity risk arises from our general funding activities and in the
course of managing our assets and liabilities. It is the risk of having
insufficient cash resources to meet current financial obligations without
raising funds at unfavourable rates or selling assets on a forced basis.
    Our liquidity risk management strategies seek to maintain sufficient
liquid financial resources to continually fund our balance sheet under both
normal and stressed market environments.
    We obtain funding through both wholesale and retail sources. Core
personal deposits remain a primary source of retail funding. As at July 31,
2009, Canadian dollar deposits from individuals totalled $98.5 billion
(October 31, 2008: $90.5 billion).
    Strategies for managing liquidity risk include maintaining diversified
sources of wholesale term funding within prudential limits across a range of
maturities, asset securitization initiatives, adequate capitalization, and
segregated pools of high-quality liquid assets that can be sold or pledged as
security to provide a ready source of cash. Collectively, these strategies
result in lower dependency on short-term wholesale funding.
    New facilities introduced in 2008 by various governments and global
central banks including the Bank of Canada and the Federal Reserve Bank
provide liquidity to financial systems. These exceptional liquidity
initiatives include expansion of eligible types of collateral, provision of
term liquidity through Purchase and Resale Agreement facilities, and the
pooling and sale to CMHC of National Housing Act mortgage-backed securities
which are composed of insured residential mortgage pools. From time to time,
we utilize these term funding facilities, pledging a combination of private
and public sector assets against these obligations.

    
    Balance sheet liquid assets are summarized in the following table:

    -------------------------------------------------------------------------
                                                           2009         2008
    $ billions, as at                                   Jul. 31      Oct. 31
    -------------------------------------------------------------------------
    Cash                                             $      1.3   $      1.1
    Deposits with banks                                     5.6          7.9
    Securities issued by Canadian Governments(1)           22.0          5.5
    Mortgage backed securities(1)                          21.3         20.7
    Other securities(2)                                    27.9         39.6
    Securities borrowed or purchased under resale
     agreements                                            31.0         35.6
    -------------------------------------------------------------------------
                                                     $    109.1   $    110.4
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) These represent securities with residual term to contractual maturity
        of more than one year.
    (2) Comprises AFS securities and securities designated at fair value
        (FVO) with residual term to contractual maturity within one year and
        trading securities.
    

    In the course of our regular business activities, certain assets are
pledged as part of collateral management, including those necessary for
day-to-day clearing and settlement of payments and securities. Pledged assets,
including those for covered bonds and securities borrowed or financed through
repurchase agreements, as at July 31, 2009 totalled $46.6 billion (October 31,
2008: $44.6 billion).
    Access to wholesale funding sources and the cost of funds are dependent
on various factors including credit ratings. During the current quarter, DBRS
Limited (DBRS) downgraded preferred share and Innovative Tier 1 note ratings
for all Canadian banks, including CIBC, after a review period following a
methodology change. Our rating outlook at DBRS remains negative. Also during
the quarter, S&P revised its outlook from negative to stable, and affirmed our
long- and short-term ratings.
    Our funding and liquidity levels remained stable and sound over the
period and we do not anticipate any events, commitments or demands which will
materially impact our liquidity risk position.

    Contractual obligations

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

    Operational risk

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

    Other risks

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


    
                       ACCOUNTING AND CONTROL MATTERS

    Critical accounting policies and estimates
    

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

    Valuation of financial instruments

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

    
    -------------------------------------------------------------------------
                                                      Valuation    Valuation
                                                    technique -  technique -
                                                         market   non-market
                                            Quoted   observable   observable
    As at July 31, 2009               market price       inputs       inputs
    -------------------------------------------------------------------------
    Assets
      Trading securities                        64%          25%          11%
      AFS securities                            83           14            3
      FVO financial instruments                  6           93            1
      Derivative instruments                     2           87           11
    -------------------------------------------------------------------------
    Liabilities
      Obligations related to
       securities sold short                    78%          22%           -%
      FVO financial instruments                  -           90           10
      Derivative instruments                     2           78           20
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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

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


    -------------------------------------------------------------------------
                                        Structured
                                            credit
                                           run-off        Total        Total
    $ millions, as at July 31, 2009       business         CIBC         CIBC
    -------------------------------------------------------------------------
    Assets
      Trading securities                $    1,139   $    1,505           11%
      AFS securities                            20        1,300            3
      FVO financial instruments                200          207            1
      Derivative instruments                 2,771        3,072           11
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
      FVO financial instruments         $      675          675           10%
      Derivative instruments                 5,257        6,243           20
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

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

    The following table summarizes our valuation adjustments:

    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Jul. 31      Oct. 31
    -------------------------------------------------------------------------
    Trading securities
      Market risk                                    $       12   $       43
    Derivatives
      Market risk                                           106          223
      Credit risk                                         2,572        4,672
      Administration costs                                   34           30
      Other                                                   2            6
    -------------------------------------------------------------------------
                                                     $    2,726   $    4,974
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Much of our structured credit run-off business requires the application
of valuation techniques using non-market observable inputs. In an inactive
market, indicative broker quotes, proxy valuation from comparable financial
instruments, and other internal models using our own assumptions of how market
participants would price a market transaction on the measurement date (all of
which we consider to be non-market observable), are primarily used for the
valuation of these positions.
    We also consider whether a CVA is required to recognize the risk that any
given counterparty to which we are exposed, may not ultimately be able to
fulfill its obligations.
    Our CVA is driven off market observed credit spreads for each
counterparty, or a proxy for a comparable credit quality where no observed
credit spreads exist, or where observed credit spreads are considered not to
be representative of an active market. These credit spreads are applied in
relation to the weighted average life of the underlying instruments protected
by these counterparties, while considering the probabilities of default
derived from these spreads. Furthermore our approach takes into account the
correlation between the performance of the underlying assets and the
counterparties.
    Where appropriate, on certain financial guarantors, we determined the CVA
based on estimated recoverable amounts.
    Our unhedged structured credit exposures (USRMM and non-USRMM) are
sensitive to changes in MTM, generally as derived from indicative broker
quotes or internal models as described above. A 10% adverse change in
mark-to-market of the underlyings would result in a loss for the quarter of
approximately $34 million in our unhedged USRMM portfolio and $62 million in
our non-USRMM portfolio, excluding unhedged HTM positions and before the
impact of the Cerberus transaction.
    A 10% reduction in the mark-to-market of our on-balance sheet hedged
structured credit positions other than those classified as HTM and a 10%
increase in the fair value (before CVA) of all credit derivatives in our
hedged structured credit positions would result in a net loss for the quarter
of approximately $38 million before the impact of the Cerberus protection. The
fair value of the Cerberus protection is expected to reasonably offset any
changes in fair value of protected USRMM positions.
    The impact of a 10% reduction in receivable net of CVA from financial
guarantors would result in a net loss for the quarter of approximately $187
million.
    The net gain recognized in the consolidated statement of operations on
the financial instruments, for which fair value was estimated using a
valuation technique requiring unobservable market parameters, for the quarter
ended July 31, 2009 was $607 million ($69 million of net loss for the nine
months ended July 31, 2009).

    Risk factors related to fair value adjustments

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

    Reclassification of financial assets

    In October 2008, certain trading financial assets, for which there was no
active market and which management intends to hold to maturity or for the
foreseeable future, were reclassified as HTM and AFS respectively, with effect
from August 1, 2008 at fair value as at that date. In the first quarter, we
also reclassified $144 million of trading financial assets to AFS.
    If the above reclassifications had not been made, income during the
quarter, related to the securities reclassified to HTM and AFS securities
would have been higher by $512 million and higher by $3 million respectively
(higher by $113 million and $14 million, on HTM and AFS securities
respectively, for the nine months ended July 31, 2009).

    
    Accounting Developments

    Financial Instruments
    

    On July 29, 2009, the Accounting Standards Board of the CICA (AcSB)
amended Section 3855, Financial Instruments-Recognition and Measurement for
interim and annual financial statements relating to fiscal years beginning on
or after November 1, 2008.
    The revised standard expands the definition of Loans and Receivables to
include debt securities not quoted in an active market (but excludes loans and
debt securities which are traded or held for sale). The standard also amends
the impairment model for HTM financial assets such that charges to income for
other than temporary impairment are recognized for credit losses only rather
than on the basis of a write-down to fair value. We are assessing the impact
of the standard and will implement in the fourth quarter of 2009.
    In June 2009, the AcSB issued amendments to CICA 3862 "Financial
Instruments - Disclosures" in order to conform with changes made to IFRS 7 -
Financial Instruments: Disclosures" by the IASB. The revised Section 3862
expands disclosures pertaining to the fair value measurements of financial
instruments and the management of liquidity risk. We will implement the
amended CICA 3862 in the fourth quarter.

    Intangibles

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

    Transition to International Financial Reporting Standards (IFRS)

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

    
    Controls and procedures

    Disclosure controls and procedures
    

    CIBC's management, with the participation of the Chief Executive Officer
and Chief Financial Officer, has evaluated the effectiveness, as at July 31,
2009, of CIBC's disclosure controls and procedures (as defined in the rules of
the Securities and Exchange Commission and the Canadian Securities
Administrators) and has concluded that such disclosure controls and procedures
are effective.

    Changes in internal control over financial reporting

    There have been no changes in CIBC's internal control over financial
reporting during the quarter ended July 31, 2009, that have materially
affected, or are reasonably likely to materially affect, its internal control
over financial reporting.


    
                  INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)

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

                                                           2009         2008
    Unaudited, $ millions, as at                        Jul. 31      Oct. 31
    ------------------------------------------------------------ ------------
    ASSETS
    Cash and non-interest-bearing deposits
     with banks                                      $    1,852   $    1,558
    ------------------------------------------------------------ ------------
    Interest-bearing deposits with banks                  5,043        7,401
    ------------------------------------------------------------ ------------
    Securities (Note 3)
    Trading                                              14,391       37,244
    Available-for-sale (AFS)                             39,672       13,302
    Designated at fair value (FVO)                       23,509       21,861
    Held-to-maturity (HTM)                                6,405        6,764
    ------------------------------------------------------------ ------------
                                                         83,977       79,171
    ------------------------------------------------------------ ------------
    Securities borrowed or purchased under
     resale agreements                                   31,029       35,596
    ------------------------------------------------------------ ------------
    Loans
    Residential mortgages                                83,550       90,695
    Personal                                             33,471       32,124
    Credit card                                          11,134       10,829
    Business and government                              30,855       39,273
    Allowance for credit losses (Note 4)                 (1,899)      (1,446)
    ------------------------------------------------------------ ------------
                                                        157,111      171,475
    ------------------------------------------------------------ ------------
    Other
    Derivative instruments                               28,357       28,644
    Customers' liability under acceptances                8,929        8,848
    Land, buildings and equipment                         1,580        1,623
    Goodwill                                              1,992        2,100
    Software and other intangible assets                    650          812
    Other assets (Note 10)                               15,397       16,702
    ------------------------------------------------------------ ------------
                                                         56,905       58,729
    ------------------------------------------------------------ ------------
                                                     $  335,917   $  353,930
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits
    Personal                                         $  106,274   $   99,477
    Business and government (Note 8)                    101,254      117,772
    Bank                                                  6,699       15,703
    ------------------------------------------------------------ ------------
                                                        214,227      232,952
    ------------------------------------------------------------ ------------
    Other
    Derivative instruments                               31,455       32,742
    Acceptances                                           8,930        8,848
    Obligations related to securities sold short          6,175        6,924
    Obligations related to securities lent or
     sold under repurchase agreements                    41,015       38,023
    Other liabilities                                    13,834       13,167
    ------------------------------------------------------------ ------------
                                                        101,409       99,704
    ------------------------------------------------------------ ------------
    Subordinated indebtedness (Note 6)                    5,691        6,658
    ------------------------------------------------------------ ------------
    Preferred share liabilities                             600          600
    ------------------------------------------------------------ ------------
    Non-controlling interests                               170          185
    ------------------------------------------------------------ ------------
    Shareholders' equity
    Preferred shares (Note 7)                             3,156        2,631
    Common shares (Note 7)                                6,161        6,062
    Treasury shares                                           1            1
    Contributed surplus                                     101           96
    Retained earnings                                     4,886        5,483
    Accumulated other comprehensive (loss) (AOCI)          (485)        (442)
    ------------------------------------------------------------ ------------
                                                         13,820       13,831
    ------------------------------------------------------------ ------------
                                                     $  335,917   $  353,930
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    The accompanying notes are an integral part of these consolidated
    financial statements.



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

                                                                For the nine
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Interest income
    Loans                   $  1,712  $  1,637  $  2,212  $  5,257  $  7,104
    Securities borrowed or
     purchased under resale
     agreements                   36        86       326       293     1,274
    Securities                   419       480       671     1,561     2,032
    Deposits with banks            5        18       104        77       526
    ----------------------------------------------------- -------------------
                               2,172     2,221     3,313     7,188    10,936
    ----------------------------------------------------- -------------------
    Interest expense
    Deposits                     618       694     1,483     2,352     5,438
    Other liabilities            131       194       430       675     1,445
    Subordinated indebtedness     47        52        66       163       200
    Preferred share liabilities    7         8         7        23        23
    ----------------------------------------------------- -------------------
                                 803       948     1,986     3,213     7,106
    ----------------------------------------------------- -------------------
    Net interest income        1,369     1,273     1,327     3,975     3,830
    ----------------------------------------------------- -------------------
    Non-interest income
    Underwriting and
     advisory fees               132       112        68       346       332
    Deposit and payment fees     199       188       197       580       583
    Credit fees                   87        72        58       219       174
    Card fees                     80        85        81       260       225
    Investment management
     and custodial fees          103        96       129       307       396
    Mutual fund fees             166       158       208       483       624
    Insurance fees, net
     of claims                    69        60        62       195       183
    Commissions on securities
     transactions                122       106       134       348       437
    Trading revenue (Note 9)     328      (440)     (794)     (832)   (6,322)
    AFS securities gains
     (losses), net                25        60        68       233        31
    FVO revenue                   25        53       (39)      122       (86)
    Income from securitized
     assets                      113       137       161       369       451
    Foreign exchange other
     than trading                 73       243        88       433       223
    Other                        (34)      (42)      157         2       429
    ----------------------------------------------------- -------------------
                               1,488       888       578     3,065    (2,320)
    ----------------------------------------------------- -------------------
    Total revenue              2,857     2,161     1,905     7,040     1,510
    ----------------------------------------------------- -------------------
    Provision for credit
     losses (Note 4)             547       394       203     1,225       551
    ----------------------------------------------------- -------------------
    Non-interest expenses
    Employee compensation
     and benefits (Note 11)      901       891       942     2,724     2,869
    Occupancy costs              151       155       148       440       435
    Computer, software and
     office equipment            263       251       270       759       797
    Communications                74        76        67       218       213
    Advertising and business
     development                  35        45        51       127       162
    Professional fees             53        42        58       135       170
    Business and capital taxes    29        30        29        89        89
    Other                        193       149       160       499       539
    ----------------------------------------------------- -------------------
                               1,699     1,639     1,725     4,991     5,274
    ----------------------------------------------------- -------------------
    Income (loss) before
     income taxes and non-
     controlling interests       611       128       (23)      824    (4,315)
    Income tax expense
     (benefit)                   172       174      (101)      279    (1,834)
    ----------------------------------------------------- -------------------
                                 439       (46)       78       545    (2,481)
    Non-controlling interests      5         5         7        15        15
    ----------------------------------------------------- -------------------
    Net income (loss)       $    434  $    (51) $     71  $    530  $ (2,496)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Earnings (loss) per
     share (in dollars)
     (Note 12) - Basic      $   1.02  $  (0.24) $   0.11  $   1.08  $  (7.05)
               - Diluted    $   1.02  $  (0.24) $   0.11  $   1.08  $  (7.05)
    Dividends per common
     share (in dollars)     $   0.87  $   0.87  $   0.87  $   2.61  $   2.61
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    The accompanying notes are an integral part of these consolidated
    financial statements.



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

                                                                For the nine
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Preferred shares
    Balance at beginning
     of period              $  3,156  $  2,631  $  2,331  $  2,631  $  2,331
    Issue of preferred
     shares                        -       525         -       525         -
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  3,156  $  3,156  $  2,331  $  3,156  $  2,331
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Common shares
    Balance at beginning
     of period              $  6,090  $  6,074  $  6,056  $  6,062  $  3,133
    Issue of common shares        71        16         4        99     2,960
    Issuance costs, net of
     related income taxes          -         -         -         -       (33)
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  6,161  $  6,090  $  6,060  $  6,161  $  6,060
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Treasury shares
    Balance at beginning
     of period              $      1  $      -  $      8  $      1  $      4
    Purchases                 (2,340)   (2,059)   (2,109)   (6,354)   (7,215)
    Sales                      2,340     2,060     2,101     6,354     7,211
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $      1  $      1  $      -  $      1  $      -
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Contributed surplus
    Balance at beginning
     of period              $    104  $    100  $     90  $     96  $     96
    Stock option expense           3         3         2        10         7
    Stock options exercised       (1)        -         -        (1)       (1)
    Net premium (discount)
     on treasury shares           (1)        1         -         1       (11)
    Other                         (4)        -        (3)       (5)       (2)
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $    101  $    104  $     89  $    101  $     89
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings
    Balance at beginning
     of period, as
     previously reported    $  4,826  $  5,257  $  5,699  $  5,483  $  9,017
    Adjustment for change
     in accounting policies        -         -         -     (6)(1)   (66)(2)
    ----------------------------------------------------- -------------------
    Balance at beginning
     of period, as restated    4,826     5,257     5,699     5,477     8,951
    Net income (loss)            434       (51)       71       530    (2,496)
    Dividends
      Preferred                  (44)      (39)      (30)     (119)      (90)
      Common                    (332)     (331)     (331)     (995)     (954)
    Other                          2       (10)        -        (7)       (2)
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  4,886  $  4,826  $  5,409  $  4,886  $  5,409
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    AOCI, net of tax
    Balance at beginning
     of period              $   (360) $   (390) $   (807) $   (442) $ (1,092)
    Other comprehensive
     income (OCI)               (125)       30        62       (43)      347
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $   (485) $   (360) $   (745) $   (485) $   (745)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings
     and AOCI               $  4,401  $  4,466  $  4,664  $  4,401  $  4,664
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Shareholders' equity
     at end of period       $ 13,820  $ 13,817  $ 13,144  $ 13,820  $ 13,144
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Represents the impact of changing the measurement date for employee
        future benefits. See Note 11 for additional details.
    (2) Represents the impact of adopting the amended Canadian Institute of
        Chartered Accountants Emerging Issues Committee Abstract 46,
        "Leveraged Leases".

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



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

                                                                For the nine
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Net income (loss)       $    434  $    (51) $     71  $    530  $ (2,496)
    ----------------------------------------------------- -------------------
    OCI, net of tax
      Foreign currency
       translation
       adjustments
      Net (losses) gains on
       investment in self-
       sustaining foreign
       operations               (513)      109       260      (378)    1,235
      Net gains (losses) on
       hedges of foreign
       currency translation
       adjustments               383      (128)     (203)      258      (924)
    ----------------------------------------------------- -------------------
                                (130)      (19)       57      (120)      311
    ----------------------------------------------------- -------------------
      Net change in AFS
       securities
      Net unrealized gains
       on AFS securities          28       168         8       283        70
      Transfer of net
       (gains) losses to
        net income               (18)     (119)       (5)     (199)       36
    ----------------------------------------------------- -------------------
                                  10        49         3        84       106
    ----------------------------------------------------- -------------------
      Net change in cash
       flow hedges
      Net losses on
       derivatives designated
       as cash flow hedges        (8)       (1)        -       (13)      (41)
      Net losses (gains) on
      derivatives designated
      as cash flow hedges
      transferred to net
      income                       3         1         2         6       (29)
    ----------------------------------------------------- -------------------
                                  (5)        -         2        (7)      (70)
    ----------------------------------------------------- -------------------
    Total OCI                   (125)       30        62       (43)      347
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Comprehensive income
     (loss)                 $    309  $    (21) $    133  $    487  $ (2,149)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------



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

                                                                For the nine
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Foreign currency
     translation adjustments
      Changes on investment
      in self-sustaining
       foreign operations   $     34  $     10  $     (1) $     37  $     (4)
      Changes on hedges of
       foreign currency
       translation
       adjustments              (119)      117        92       (17)      425
    Net change in AFS
     securities
      Net unrealized
       losses (gains) on
       AFS securities             41      (102)       (4)     (117)      (39)
      Transfer of net gains
       (losses) to net
       income                      8        55         3        93       (45)
    Net change in cash flow
     hedges
      Changes on derivatives
       designated as cash
       flow hedges                 3         1         -         7        21
      Changes on derivatives
       designated as cash
       flow hedges
       transferred to net
       income                     (2)       (1)       (2)       (4)       14
    ----------------------------------------------------- -------------------
                            $    (35) $     80  $     88  $     (1) $    372
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    The accompanying notes are an integral part of these consolidated
    financial statements.



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

                                                                For the nine
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Cash flows provided by
     (used in) operating
     activities
    Net income (loss)       $    434  $    (51) $     71  $    530  $ (2,496)
    Adjustments to
     reconcile net income
     (loss) to cash flows
     provided by (used in)
     operating activities:
      Provision for credit
       losses                    547       394       203     1,225       551
      Amortization(1)             98       100        61       301       184
      Stock-based
       compensation               13         -        (3)       10       (20)
      Future income taxes         78       (98)     (235)     (150)   (1,053)
      AFS securities (gains)
       losses, net               (25)      (60)      (68)     (233)      (31)
      Losses (gains) on
       disposal of land,
       buildings and
       equipment                   1         3         -         3        (1)
      Other non-cash
       items, net                (36)     (131)      (54)     (175)       (1)
      Changes in operating
       assets and
       liabilities
        Accrued interest
         receivable              109        95       121       338       257
        Accrued interest
         payable                 (47)      (40)     (158)     (179)     (275)
        Amounts receivable
         on derivative
         contracts             5,594       136       517       534     1,101
        Amounts payable
         on derivative
         contracts            (6,251)   (1,062)   (1,280)   (1,968)   (2,316)
        Net change in
         trading securities     (914)    2,880    12,701    22,997(2) 16,584
        Net change in FVO
         securities            5,843    (7,554)   (6,794)   (1,648)  (12,088)
        Net change in other
         FVO financial
         instruments          (4,598)    3,263     2,128     2,748     1,464
        Current income taxes     705     1,499       133     2,291    (1,735)
        Other, net             2,084    (3,029)    1,295    (1,181)   (2,266)
    ----------------------------------------------------- -------------------
                               3,635    (3,655)    8,638    25,443    (2,141)
    ----------------------------------------------------- -------------------
    Cash flows (used in)
     provided by financing
     activities
    Deposits, net of
     withdrawals              (2,542)   (7,151)  (10,995)  (18,997)   (3,794)
    Obligations related to
     securities sold short    (1,587)      818    (2,455)   (1,823)   (4,883)
    Net obligations related
     to securities lent or
     sold under repurchase
     agreements                6,326    (3,452)      122     2,992    (2,292)
    (Redemption/repurchase)/
     issuance of subordinated
     indebtedness               (818)      (77)    1,150      (895)    1,150
    Issue of preferred
     shares                        -       525         -       525      (339)
    Issue of common shares,
     net                          71        16         4        99     2,927
    Net proceeds from
     treasury shares
     (purchased) sold              -         1        (8)        -        (4)
    Dividends                   (376)     (370)     (361)   (1,114)   (1,044)
    Other, net                  (133)      617      (949)      571    (1,171)
    ----------------------------------------------------- -------------------
                                 941    (9,073)  (13,492)  (18,642)   (9,450)
    ----------------------------------------------------- -------------------
    Cash flows (used in)
     provided by investing
     activities
    Interest-bearing
     deposits with banks       1,190     2,076     1,050     2,358     1,390
    Loans, net of repayments  (8,567)    4,661    (2,801)   (5,693)   (9,542)
    Proceeds from
     securitizations           3,834     6,525     3,145    17,969     6,328
    Purchase of AFS/HTM
     securities              (20,515)  (22,849)   (6,248)  (72,089)  (11,458)
    Proceeds from sale of
     AFS securities            7,789     8,215     1,073    21,165     8,887
    Proceeds from maturity
     of AFS securities         9,918    14,376     1,409    25,449     7,638
    Net securities borrowed
     or purchased under
     resale agreements         1,645       579     7,657     4,567     8,507
    Purchase of land,
     buildings and
     equipment                   (40)     (108)      (32)     (183)      (96)
    ----------------------------------------------------- -------------------
                              (4,746)   13,475     5,253    (6,457)   11,654
    ----------------------------------------------------- -------------------
    Effect of exchange rate
     changes on cash and
     non-interest-bearing
     deposits with banks         (46)      (12)        5       (50)       26
    ----------------------------------------------------- -------------------
    Net increase (decrease)
     in cash and non-
     interest-bearing
     deposits with banks
     during period              (216)      735       404       294        89
    Cash and non-interest-
     bearing deposits with
     banks at beginning
     of period                 2,068     1,333     1,142     1,558     1,457
    ----------------------------------------------------- -------------------
    Cash and non-interest-
     bearing deposits with
     banks at end of period $  1,852  $  2,068  $  1,546  $  1,852  $  1,546
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Cash interest paid      $    850  $    988  $  2,144  $  3,392  $  7,381
    Cash income taxes
     (recovered) paid       $   (610) $ (1,227) $      2  $ (1,862) $    955
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Includes amortization of buildings, furniture, equipment leasehold
        improvements, software and other intangible assets.
    (2) Includes securities initially bought as trading securities and
        subsequently reclassified to HTM and AFS securities.

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



           NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)

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

    1.  Changes in accounting policies

    Intangible assets

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

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

    Financial instruments

    On July 29, 2009, the Accounting Standards Board of the CICA (AcSB)
    amended Section 3855, Financial Instruments-Recognition and Measurement
    for interim and annual financial statements relating to fiscal years
    beginning on or after November 1, 2008.

    The revised standard expands the definition of Loans and Receivables to
    include debt securities not quoted in an active market (but excludes
    loans and debt securities which are traded or held for sale). The
    standard also amends the impairment model for HTM financial assets such
    that charges to income for other than temporary impairment are recognized
    for credit losses only rather than on the basis of a write-down to fair
    value. We are assessing the impact of the standard and will implement in
    the fourth quarter of 2009.

    2.  Fair value of financial instruments

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

    Methodology and sensitivity

    Valuation techniques using non-market observable inputs are used for a
    number of financial instruments including our U.S. residential mortgage
    market (USRMM) and certain non-USRMM positions. In an inactive market,
    indicative broker quotes, proxy valuation from comparable financial
    instruments, and other internal models using our own assumptions of how
    market participants would price a market transaction on the measurement
    date (all of which we consider to be non-market observable), are
    primarily used for the valuation of these positions.

    We also consider whether a credit valuation adjustment (CVA) is required
    to recognize the risk that any given counterparty to which we are
    exposed, may not ultimately be able to fulfill its obligations.

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

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

    Our unhedged structured credit exposures (USRMM and non-USRMM) are
    sensitive to changes in mark-to-market, generally as derived from
    indicative broker quotes or internal models as described above. A 10%
    adverse change in mark-to-market of the underlyings would result in a
    loss of approximately $34 million for the quarter ended July 31, 2009 in
    our unhedged USRMM portfolio and $62 million for the quarter ended
    July 31, 2009 in our non-USRMM portfolio, excluding unhedged HTM
    positions and before the impact of the transaction with Cerberus Capital
    Management LP (Cerberus).

    A 10% reduction in the mark-to-market of our on-balance sheet hedged
    structured credit positions other than those classified as HTM and a 10%
    increase in the fair value (before CVA) of all credit derivatives in our
    hedged structured credit positions would result in a net loss of
    approximately $38 million for the quarter ended July 31, 2009 before the
    impact of the Cerberus protection. The fair value of the Cerberus
    protection is expected to reasonably offset any changes in the fair value
    of protected USRMM positions.

    The impact of a 10% reduction in receivable net of CVA from financial
    guarantors would result in a net loss of approximately $187 million for
    the quarter ended July 31, 2009.

    The net gain recognized in the consolidated statement of operations on
    the financial instruments, for which fair value was estimated using a
    valuation technique requiring unobservable market parameters, for the
    quarter ended July 31, 2009 was $607 million ($69 million of net loss for
    the nine months ended July 31, 2009).

    Fair value option

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

    The fair values of the FVO designated assets and liabilities (excluding
    hedges) were $23,736 million and $6,861 million respectively as at
    July 31, 2009 ($22,867 million and $6,388 million as at October 31,
    2008). The FVO designated items and related hedges resulted in net income
    of $91 million for the quarter ended July 31, 2009 ($307 million for the
    nine months ended July 31, 2009).

    The impact of changes in credit spreads on FVO designated loans was a
    gross gain of $26 million for the quarter ended July 31, 2009 (a gross
    loss of $42 million for the nine months ended July 31, 2009), and a
    $14 million gain for the quarter ended July 31, 2009 ($2 million loss for
    the nine months ended July 31, 2009) net of credit hedges.

    The impact of CIBC's credit risk on outstanding FVO designated
    liabilities was a $4 million loss for the quarter ended July 31, 2009
    ($7 million loss for the nine months ended July 31, 2009).

    3.  Securities

    Reclassification of financial instruments

    In October 2008, amendments made to the CICA handbook sections 3855
    "Financial Instruments - Recognition and Measurement" and 3862 "Financial
    Instruments - Disclosures" permitted certain trading financial assets to
    be reclassified to HTM and AFS in rare circumstances. In the current
    quarter, we have not reclassified any securities.

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

    -------------------------------------------------------------------------
                                                  2009                  2008
    $ millions, as at                          Jul. 31               Oct. 31
    -------------------------------------------------------------------------
                                            Previously
                                          Reclassified

                                       Fair   Carrying       Fair   Carrying
                                      value      value      value      value
                                  --------------------- ---------------------
    Trading assets reclassified
     to HTM                       $   5,616  $   6,132  $   6,135  $   6,764
    Trading assets reclassified
     to AFS                             929        929      1,078      1,078
    -------------------------------------------------------------------------
    Total financial assets
     reclassified                 $   6,545  $   7,061  $   7,213  $   7,842
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                               For the               For the
                                    three months ended     nine months ended
                                  --------------------- ---------------------
                                       2009       2009                  2009
    $ millions                      Jul. 31    Apr. 30               Jul. 31
    -------------------------------------------------------------------------
    Income (loss) recognized
     on securities reclassified
    ---------------------------
    Gross income recognized in
     income statement             $      50  $      71             $     245
    Impairment write-downs              (23)       (55)                  (78)
    Funding related interest
     expenses                           (40)       (36)                 (120)
    -------------------------------------------------------------------------
    Net (loss) income recognized,
     before taxes                       (13)       (20)                   47
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Impact if reclassification had
     not been made
    ------------------------------
    On trading assets reclassified
     to HTM                            (512)        77                  (113)
    On trading assets reclassified
     to AFS                              (3)       (37)                  (14)
    -------------------------------------------------------------------------
    (Increase) reduction in
      income, before taxes        $    (515) $      40             $    (127)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    4. Loans

    Allowance for credit losses

    -------------------------------------------------------------------------
                                                  For the three months ended
                                               ------------------------------
                                                    2009      2009      2008
                                                 Jul. 31   Apr. 30   Jul. 31
                           --------------------------------------------------
                            Specific   General     Total     Total     Total
    $ millions             allowance allowance allowance allowance allowance
    -------------------------------------------------------------------------
    Balance at beginning
     of period              $    780  $    988  $  1,768  $  1,627  $  1,468
    Provision for credit
     losses                      505        42       547       394       203
    Write-offs                  (336)        -      (336)     (269)     (211)
    Recoveries                    29         -        29        22        27
    Other                        (28)        -       (28)       (6)       (3)
    -------------------------------------------------------------------------
    Balance at end of
     period                 $    950  $  1,030  $  1,980  $  1,768  $  1,484
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
      Loans                 $    949  $    950  $  1,899  $  1,693  $  1,398
      Undrawn credit
       facilities                  -        80        80        75        86
      Letters of credit            1         -         1         -         -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------
                                  For the nine
                                  months ended
                           --------------------
                                2009      2008
                             Jul. 31   Jul. 31
                           --------------------
                               Total     Total
    $ millions             allowance allowance
    -------------------------------------------
    Balance at beginning
     of period              $  1,523  $  1,443
    Provision for credit
     losses                    1,225       551
    Write-offs                  (833)     (600)
    Recoveries                    95        84
    Other                        (30)        6
    -------------------------------------------
    Balance at end of
     period                 $  1,980  $  1,484
    -------------------------------------------
    -------------------------------------------
    Comprises:
      Loans                 $  1,899  $  1,398
      Undrawn credit
       facilities           $     80        86
      Letters of credit            1         -
    -------------------------------------------
    -------------------------------------------



    Impaired loans

    -------------------------------------------------------------------------
    $ millions,                           2009                          2008
     as at                             Jul. 31                       Oct. 31
    -------------------------------------------------------------------------
                     Gross   Specific      Net     Gross   Specific      Net
                    amount  allowance    total    amount  allowance    total
    -------------------------------------------------------------------------
    Residential
     mortgages    $    403  $     35  $    368  $    287  $     36  $    251
    Personal(1)        335       246        89       297       207        90
    Credit card(1)       -       265      (265)        -       188      (188)
    Business and
     government        930       403       527       399       200       199
    -------------------------------------------------------------------------
    Total impaired
     loans(2)     $  1,668  $    949  $    719  $    983  $    631  $    352
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Specific allowances for large numbers of homogeneous balances of
        relatively small amounts are established by reference to historical
        ratios of write-offs to balances in arrears and to balances
        outstanding; this may result in negative net impaired loans.
    (2) Average balance of gross impaired loans totalled $1,215 million
        (2008: $915 million).

    5. Securitizations and variable interest entities

    Securitizations

    Residential mortgages

    We securitize insured fixed- and variable-rate residential mortgages
    through the creation of mortgage-backed securities under the Canada
    Mortgage Bond Program and the more recent Government of Canada NHA MBS
    Auction process. We also securitize mortgage assets to a qualifying
    special purpose entity (QSPE) that holds Canadian mortgages. Total assets
    in the QSPE as at July 31, 2009 were $721 million (October 31, 2008:
    $634 million), of which $316 million (October 31, 2008: $171 million)
    represent insured prime mortgages and the remaining $405 million
    (October 31, 2008: $463 million) represent uninsured Near Prime/Alt A
    mortgages. We also hold another $97 million (October 31, 2008:
    $15 million) in inventory that is available for securitization. The Near
    Prime/Alt A mortgages do not meet traditional lending criteria in order
    to qualify for prime-based lending because of either limited credit
    history or specific isolated event driven credit issues, but otherwise
    have a strong credit profile with an average loss rate over the past five
    years of 27 bps and an average loan-to-value ratio of 75%.

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

    Cards

    During the quarter, we securitized credit card receivables of $54 million
    to Cards II (the Trust), a QSPE, and purchased the same amount of a new
    series of enhancement notes issued by the Trust. The notes are
    subordinated to the existing outstanding Series 2005-1, Series 2005-2,
    Series 2005-3, Series 2005-4, Series 2006-1 and Series 2006-2 notes
    issued by the Trust.

    -------------------------------------------------------------------------
                                                  For the three months ended
                          ---------------------------------------------------
                                 2009         2009         2009         2008
    $ millions                Jul. 31      Jul. 31      Apr. 30      Jul. 31
    -------------------------------------------------------------------------
                          Residential               Residential  Residential
                            Mortgages        Cards    Mortgages    Mortgages
    -------------------------------------------------------------------------
    Securitized            $      114   $       54   $   14,405   $   10,993
    Sold                        3,786           54        6,567        3,164
    Net cash proceeds           3,780           54        6,525        3,145
    Retained interests            169            -          350           77
    Gain (loss) on sale,
     net of transaction
     costs                         40           (1)          47           34
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained interest
     assumptions (%)
    Weighted-average
     remaining life
     (in years)                   3.6         0.20          3.6          3.2
    Prepayment/payment
     rate                 12.0 - 17.0        37.92  12.0 - 20.0  11.0 - 33.0
    Discount rate           1.5 - 8.8         2.77    1.7 - 8.8    3.3 - 6.9
    Expected credit
     losses                 0.0 - 0.2         6.88    0.0 - 0.2    0.0 - 0.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    ------------------------------------------------------------
                                      For the nine months ended
                          --------------------------------------
                                 2009         2009         2008
    $ millions                Jul. 31      Jul. 31      Jul. 31
    ------------------------------------------------------------
                          Residential               Residential
                            Mortgages        Cards    Mortgages
    ------------------------------------------------------------
    Securitized            $   22,383   $       54   $   19,964
    Sold                       17,954           54        6,373
    Net cash proceeds          17,915           54        6,328
    Retained interests            905            -          145
    Gain (loss) on sale,
     net of transaction
     costs                         81           (1)          57
    ------------------------------------------------------------
    ------------------------------------------------------------
    Retained interest
     assumptions (%)
    Weighted-average
     remaining life
     (in years)                   3.5         0.20          3.5
    Prepayment/payment
     rate                 12.0 - 24.0        37.92  11.0 - 36.0
    Discount rate           1.4 - 8.8         2.77    2.9 - 6.9
    Expected credit
     losses                 0.0 - 0.2         6.88    0.0 - 0.1
    ------------------------------------------------------------
    ------------------------------------------------------------

    Variable interest entities (VIEs)

    VIEs that are consolidated

    As discussed in Note 6 to our 2008 consolidated financial statements, we
    were considered the primary beneficiary of certain VIEs and consolidated
    total assets and liabilities of approximately $1,353 million as at
    July 31, 2009 (October 31, 2008: $109 million).

    During the third quarter, we consolidated certain CDOs after determining
    that we are the primary beneficiary subsequent to a reconsideration
    event, upon restructuring of our protection from a financial guarantor.
    The consolidation of the CDOs resulted in $621 million of mortgages and
    asset-backed securities, $428 million of FVO deposits and related
    interest rate derivatives with a negative MTM of $193 million, being
    recognized in the consolidated balance sheet as at July 31, 2009.

    During the first and second quarters, we acquired all of the commercial
    paper issued by MACRO Trust, a CIBC-sponsored conduit. This resulted in
    the consolidation of the conduit with $111 million of dealer floorplan
    receivables, $372 million of auto leases, and other assets being
    recognized in the consolidated balance sheet as at July 31, 2009.

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

    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Jul. 31      Oct. 31
    -------------------------------------------------------------------------
    Cash                                             $       76   $        -
    Trading securities                                      621           34
    AFS securities                                           76           60
    Residential mortgages                                    97           15
    Other assets                                            483            -
    -------------------------------------------------------------------------
                                                     $    1,353   $      109
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

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

    As at July 31, 2009, we have significant interests in VIEs involved in
    the securitization of third party assets, where we are not considered the
    primary beneficiary and thus do not consolidate. We may provide these
    VIEs liquidity facilities, hold their notes, or act as counterparty to
    derivative contracts. These VIEs include several multi-seller conduits in
    Canada, which we sponsor, and CDOs for which we acted as structuring and
    placement agents.

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

    We continue to support our sponsored conduits from time to time through
    the purchase of commercial paper issued by these conduits. As at July 31,
    2009, our direct investment in commercial paper issued by our sponsored
    conduits was $453 million (October 31, 2008: $729 million). We were not
    considered to be the primary beneficiary of any of these conduits. At
    July 31, 2009, our maximum exposure to loss relating to CIBC sponsored
    conduits was $4.5 billion (October 31, 2008: $8.7 billion).

    Maximum exposure to loss are amounts net of hedges. The maximum exposure
    comprises the fair value for investments, the notional amounts for
    liquidity and credit facilities, the notional amounts less
    accumulated fair value losses for written credit derivatives on VIE
    reference assets, and the positive fair value for all other derivative
    contracts with VIEs. Excluded hedged positions amount to $18.8 billion
    (October 31, 2008: $25.8 billion).

    -------------------------------------------------------------------------
                                                  2009                  2008
    $ billions, as at                          Jul. 31               Oct. 31
    -------------------------------------------------------------------------
                                               Maximum               Maximum
                                      Total   exposure      Total   exposure
                                     assets    to loss     assets    to loss
    -------------------------------------------------------------------------
    CIBC-sponsored conduits       $     4.8  $     4.5  $    10.1  $     8.7
    CIBC structured CDO vehicles        0.9          -        1.1          -
    Third-party structured vehicles     5.2        0.8        7.2        1.5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    In addition, in the second quarter CIBC Capital Trust, a trust wholly
    owned by CIBC, issued $1.3 billion CIBC Tier 1 Notes - Series A, due
    June 30, 2108 and $300 million of CIBC Tier 1 Notes - Series B, due
    June 30, 2108 which qualifies as Tier 1 regulatory capital. The Trust is
    a VIE which is not consolidated as we are not considered the primary
    beneficiary. For additional details see Note 8.

    6.  Subordinated indebtedness

    On June 1, 2009, we redeemed all $750 million of our 4.25% Debentures
    (subordinated indebtedness) due June 1, 2014, for their outstanding
    principal amount, plus unpaid interest accrued to the redemption date, in
    accordance with their terms.

    7.  Share capital

    Common shares

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

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

    During the third quarter, we issued 0.1 million new common shares for a
    total consideration of $6 million, pursuant to stock options plans. We
    also issued 1.0 million new common shares for a total consideration of
    $65 million, pursuant to the Shareholder Investment Plan.

    Preferred shares

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

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

    Regulatory capital and ratios

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

    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Jul. 31      Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                   $   13,845   $   12,365
    Total regulatory capital                             19,020       18,129
    Risk-weighted assets                                115,426      117,946
    Tier 1 capital ratio                                   12.0%        10.5%
    Total capital ratio                                    16.5%        15.4%
    Assets-to-capital multiple                            16.2x        17.9x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    8.  Capital trust securities

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

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

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

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

    According to OSFI guidelines, innovative capital instruments can comprise
    up to 15% of net Tier 1 capital with an additional 5% eligible for Tier 2
    capital. As at July 31, 2009, $1,598 million represents regulatory Tier 1
    capital and is net of $2 million of Tier 1 Notes - Series B held for
    trading purposes.

    The table below presents the significant terms and conditions of the
    Notes as at July 31, 2009:

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

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

    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 net charge of $148 million ($1,441 million for the nine
    months ended July 31, 2009) on the hedging contracts provided by
    financial guarantors in trading revenue. Their related valuation
    adjustments were $2.5 billion as at July 31, 2009 (October 31, 2008:
    $4.6 billion). The fair value of derivative contracts with financial
    guarantors, net of valuation adjustments, was $1.8 billion as at July 31,
    2009 (October 31, 2008: $2.3 billion).

    In July 2009, we commuted USRMM contracts with a financial guarantor for
    cash consideration of $207 million and securities valued at $34 million,
    for a total of $241 million. In addition, our non-USRMM contracts with
    this counterparty were transferred to a newly created and capitalized
    entity. This commutation and restructuring activity resulted in a
    reduction of the gross receivable by $2.4 billion and CVA by
    $2.3 billion, for a pre-tax gain of $163 million.

    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

    Future income tax asset

    As at July 31, 2009, our future income tax asset was $1,853 million
    (October 31, 2008: $1,822 million), net of a $61 million valuation
    allowance (October 31, 2008: $62 million). Included in the future income
    tax asset are $1,242 million as at July 31, 2009 (October 31, 2008:
    $1,260 million) related to Canadian non-capital loss carryforwards that
    expire in 20 years, $68 million as at July 31, 2009 (October 31, 2008:
    $75 million) related to Canadian capital loss carryforwards that have no
    expiry date, and $342 million as at July 31, 2009 (October 31, 2008:
    $296 million) related to our U.S. operations. Accounting standards
    require a valuation allowance when it is more likely than not that all or
    a portion of a future income tax asset will not be realized prior to its
    expiration. Although realization is not assured, we believe that based on
    all available evidence, it is more likely than not that all of the future
    income tax asset, net of the valuation allowance, will be realized.

    Enron

    On August 5, 2009 Canada Revenue Agency (CRA) issued draft reassessments
    proposing to disallow the deduction of the 2005 Enron settlement payments
    of approximately $3 billion. Once reassessed, we intend to commence legal
    proceedings to defend our tax filing position and we believe that we will
    be successful in sustaining at least the amount of the accounting tax
    benefit recognized to date. Should we successfully defend our tax filing
    position in its entirety, we would be able to recognize an additional
    accounting tax benefit of $214 million and refund interest thereon.
    Should we fail to defend our position in its entirety, additional tax
    expense of approximately $826 million plus interest thereon would be
    incurred.

    11. Employee compensation and benefits

    Share based compensation

    The impact due to changes in CIBC's share price in respect of cash-
    settled share based compensation under the Restricted Share Awards and
    Performance Share Units plans is hedged through the use of derivatives.
    The gains and losses on these derivatives are recognized in employee
    compensation and benefits, within the consolidated statement of
    operations. During the quarter we recorded gains of $40 million (for the
    nine months ended July 31, 2009: $59 million) in the consolidated
    statement of operations and gains of $15 million (for the nine months
    ended July 31, 2009: $21 million) in other comprehensive income.

    Employee future benefit expenses

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

    Pension benefit plans   $     18  $     20  $     37  $     58  $    113
    Other benefit plans            8         9        10        27        31
    ----------------------------------------------------- -------------------
                            $     26  $     29  $     47  $     85  $    144
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Defined contribution
     plans

    CIBC's pension plans    $      3  $      3  $      2  $      9  $     10
    Government pension
     plans(2)                     18        18        19        56        63
    ----------------------------------------------------- -------------------
                            $     21  $     21  $     21  $     65  $     73
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Effective November 1, 2008, we elected to change our measurement date
        for accrued benefit obligations and the fair value of plan assets
        related to our employee defined benefit plans from September 30 to
        October 31. This change aligns our measurement date with our fiscal
        year end and had no impact on our consolidated statement of
        operations for the quarter.
    (2) Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal
        Insurance Contributions Act.

    12. Earnings/(loss) per share (EPS)

    ----------------------------------------------------- -------------------
                                                                For the nine
                              For the three months ended        months ended
                            ----------------------------- -------------------
    $ millions, except          2009      2009      2008      2009      2008
     per share amounts       Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Basic EPS
    Net income (loss)       $    434  $    (51) $     71  $    530  $ (2,496)
    Preferred share
     dividends and premiums      (44)      (39)      (30)     (119)      (90)
    ----------------------------------------------------- -------------------
    Net income (loss)
     applicable to common
     shares                 $    390  $    (90) $     41  $    411  $ (2,586)
    ----------------------------------------------------- -------------------
    Weighted-average common
     shares outstanding
     (thousands)             381,584   381,410   380,877   381,300   366,686
    ----------------------------------------------------- -------------------
    Basic EPS               $   1.02  $  (0.24) $   0.11  $   1.08  $  (7.05)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Diluted EPS
    Net income (loss)
     applicable to common
     shares                 $    390  $    (90) $     41  $    411  $ (2,586)
    ----------------------------------------------------- -------------------
    Weighted-average common
     shares outstanding
     (thousands)             381,584   381,410   380,877   381,300   366,686
    Add: stock options
     potentially
     exercisable(1)
     (thousands)                 972       369     1,295       621     1,666
    ----------------------------------------------------- -------------------
    Weighted-average diluted
     common shares
     outstanding(2)
     (thousands)             382,556   381,779   382,172   381,921   368,352
    ----------------------------------------------------- -------------------
    Diluted EPS(3)          $   1.02  $  (0.24) $   0.11  $   1.08  $  (7.05)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Excludes average options outstanding of 2,269,430 with a weighted-
        average exercise price of $77.88; average options outstanding of
        4,845,876 with a weighted-average exercise price of $64.67; and
        average options outstanding of 2,302,495 with a weighted-average
        exercise price of $78.44 for the three months ended July 31, 2009,
        April 30, 2009, and July 31, 2008, respectively, as the options'
        exercise prices were greater than the average market price of CIBC's
        common shares.
    (2) Convertible preferred shares/preferred share liabilities have not
        been included in the calculation since we have the right to redeem
        them for cash prior to the conversion date.
    (3) In case of a loss, the effect of stock options potentially
        exercisable on diluted EPS will be anti-dilutive; therefore basic and
        diluted EPS will be the same.

    13. Guarantees

    -------------------------------------------------------------------------
                                                  2009                  2008
    $ 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)           $  28,513  $       -  $  36,152  $       -
    Standby and performance
     letters of credit                5,384         19      6,249         14
    Credit derivatives
      Written options                20,847      4,350     32,717      6,877
      Swap contracts written
       protection                     3,474        330      3,892        256
    Other derivative written
     options                            -(3)     3,451        -(3)     4,334
    Other indemnification
     agreements                         -(3)         -        -(3)         -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The total collateral available relating to these guarantees was
        $31.3 billion (October 31, 2008: $39.3 billion).
    (2) Comprises the full contract amount of custodial client securities
        lent by CIBC Mellon Global Securities Services Company, which is a
        50/50 joint venture between CIBC and The Bank of New York Mellon.
    (3) See narrative on page 143 of the 2008 consolidated financial
        statements for further information.

    14. Segmented information

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

    During the quarter, we made certain modifications to our transfer pricing
    and treasury allocations methodologies to more appropriately reflect
    funding costs and observed client behaviour in our business lines in the
    current environment. The modifications resulted in an increase in the
    revenue of CIBC Retail Markets with a corresponding decrease in the
    revenue of Wholesale Banking and Corporate and Other. The modifications
    were applied prospectively and prior period information has not been
    restated. We have also included the provision for credit losses related
    to general allowance within Corporate and Other and prior period
    information has been restated to reflect this change.

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

    -------------------------------------------------------------------------
                                       CIBC
    $ millions, for the three        Retail  Wholesale  Corporate       CIBC
     months ended                   Markets    Banking  and Other      Total
    -------------------------------------------------------------------------
    Jul. 31, 2009
      Net interest income
       (expense)                  $   1,455  $      75  $    (161) $   1,369
      Non-interest income
       (expense)                        884        456        148      1,488
    -------------------------------------------------------------------------
      Total revenue                   2,339        531        (13)     2,857
      Provision for credit losses       423        129         (5)       547
      Amortization(2)                    26          2         70         98
      Other non-interest expenses     1,298        256         47      1,601
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        592        144       (125)       611
      Income tax expense (benefit)      171         58        (57)       172
      Non-controlling interests           5          -          -          5
    -------------------------------------------------------------------------
      Net income (loss)           $     416  $      86  $     (68) $     434
    -------------------------------------------------------------------------
      Average assets(3)           $ 287,725  $  80,759  $ (27,823) $ 340,661
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2009
      Net interest income
       (expense)                  $   1,232  $     124  $     (83) $   1,273
      Non-interest income
       (expense)                      1,018       (365)       235        888
      Intersegment revenue(1)             1          -         (1)         -
    -------------------------------------------------------------------------
      Total revenue                   2,251       (241)       151      2,161
      Provision for credit losses       366         18         10        394
      Amortization(2)                    31          1         68        100
      Other non-interest expenses     1,273        246         20      1,539
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        581       (506)        53        128
      Income tax expense (benefit)      161       (152)       165        174
      Non-controlling interests           5          -          -          5
    -------------------------------------------------------------------------
      Net income (loss)           $     415  $    (354) $    (112) $     (51)
    -------------------------------------------------------------------------
      Average assets(3)           $ 286,748  $  90,106  $ (23,035) $ 353,819
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Jul. 31, 2008
      Net interest income
       (expense)                  $   1,378  $     (67) $      16  $   1,327
      Non-interest income
       (expense)                        992       (531)       117        578
      Intersegment revenue(1)             1          -         (1)         -
    -------------------------------------------------------------------------
      Total revenue                   2,371       (598)       132      1,905
      Provision for credit losses       224         11        (32)       203
      Amortization(2)                    27          4         30         61
      Other non-interest expenses     1,350        262         52      1,664
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        770       (875)        82        (23)
      Income tax expense (benefit)      198       (334)        35       (101)
      Non-controlling interests           7          -          -          7
    -------------------------------------------------------------------------
      Net income (loss)           $     565  $    (541) $      47  $      71
    -------------------------------------------------------------------------
      Average assets(3)           $ 261,624  $  97,452  $ (15,680) $ 343,396
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                       CIBC
    $ millions, for the nine         Retail  Wholesale  Corporate       CIBC
     months ended                   Markets    Banking  and Other      Total
    -------------------------------------------------------------------------
    Jul. 31, 2009
      Net interest income
       (expense)                  $   3,975  $     277  $    (277) $   3,975
      Non-interest income
       (expense)                      3,026       (355)       394      3,065
      Intersegment revenue(1)             2          -         (2)         -
    -------------------------------------------------------------------------
      Total revenue                   7,003        (78)       115      7,040
      Provision for credit losses     1,105        136        (16)     1,225
      Amortization(2)                    92          5        204        301
      Other non-interest expenses     3,841        767         82      4,690
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                      1,965       (986)      (155)       824
      Income tax expense (benefit)      552       (325)        52        279
      Non-controlling interests          15          -          -         15
    -------------------------------------------------------------------------
      Net income (loss)           $   1,398  $    (661) $    (207) $     530
    -------------------------------------------------------------------------
      Average assets(3)           $ 289,329  $  89,421  $ (24,165) $ 354,585
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Jul. 31, 2008
      Net interest income
       (expense)                  $   4,152  $    (214) $    (108) $   3,830
      Non-interest income
       (expense)                      2,902     (5,507)       285     (2,320)
      Intersegment revenue(1)             4          -         (4)         -
    -------------------------------------------------------------------------
      Total revenue                   7,058     (5,721)       173      1,510
      Provision for credit losses       633         19       (101)       551
      Amortization(2)                    83         12         89        184
      Other non-interest expenses     4,027        963        100      5,090
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                      2,315     (6,715)        85     (4,315)
      Income tax expense (benefit)      574     (2,388)       (20)    (1,834)
      Non-controlling interests          13          2          -         15
    -------------------------------------------------------------------------
      Net income (loss)           $   1,728  $  (4,329) $     105  $  (2,496)
    -------------------------------------------------------------------------
      Average assets(3)           $ 259,639  $ 103,275  $ (17,296) $ 345,618
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Intersegment revenue represents internal sales commissions and
        revenue allocations under the Manufacturer/Customer
        Segment/Distributor Management Model.
    (2) Includes amortization of buildings, furniture, equipment, leasehold
        improvements, software and finite-lived intangible assets.
    (3) Assets are disclosed on an average basis as this measure is most
        relevant to a financial institution and is the measure reviewed by
        management.
    (4) Certain prior period information has been restated to conform to the
        presentation in the current quarter.
    

    %SEDAR: 00002543EF




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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