CIBC announces third quarter 2007 results



    HIGHLIGHTS
        -  Cash diluted EPS(1) of $2.34
        -  Return on equity of 28.3%
        -  Cash efficiency ratio (TEB)(1) of 59.4%
        -  Tier 1 capital ratio of 9.7%
        -  Common share dividend increase of 10 cents to 87 cents per quarter

    TORONTO, Aug. 30 /CNW/ - CIBC (CM: TSX; NYSE) announced net income of
$835 million for the third quarter ended July 31, 2007, up from $662 million
for the same period last year. Diluted earnings per share (EPS) were $2.31, up
from $1.86 a year ago. Cash diluted EPS were $2.34, up from $1.87 a year ago.
    Return on equity for the third quarter was 28.3%, up from 27.2% for the
same period last year.
    CIBC's Tier 1 capital ratio at July 31, 2007 was 9.7%.
    Diluted EPS of $2.31 and cash diluted EPS(1) of $2.34 for the third
quarter of 2007 were increased by:

    -   $75 million ($70 million after-tax, or $0.21 per share) net reversal
        of litigation accruals.
    -   $77 million ($50 million after-tax, or $0.15 per share) due to the
        impact of changes in credit spreads on the mark-to-market of
        corporate loan credit derivatives.
    -   $48 million ($0.14 per share) tax recovery related to the favourable
        resolution of an income tax audit in CIBC World Markets.
    -   Higher than normal merchant banking gains.

    Diluted EPS of $2.31 and cash diluted EPS(1) of $2.34 for the third
quarter of 2007 were decreased by:

    -   $290 million ($190 million after-tax, or $0.56 per share) due to the
        impact of mark-to-market write-downs, net of gains on related hedges,
        in CIBC's structured credit business on collateralized debt
        obligations (CDOs) and residential mortgage-backed securities (RMBS)
        related to the U.S. residential mortgage market.
    -   $16 million ($16 million after-tax, or $0.05 per share) premium paid
        on preferred share redemption.

    CIBC's net income, diluted EPS and cash diluted EPS(1) for the third
quarter of 2007 were up from net income of $807 million, diluted EPS of $2.27
and cash diluted EPS(1) of $2.29 for the prior quarter, which included items
of note aggregating to an increase in earnings of $0.34 per share.
    CIBC has not yet completed the August month-end mark-to-market process
for its CDOs and RMBS and related hedges. However, based on indicative dealer
quotations and the ABX indices as proxies, the mark-to-market write-downs are
approximately $90 million ($60 million after-tax) for the month-to-date.

    Update on business priorities

    Business strength

    "Our first priority is to sustain and enhance the strength of our core
businesses," says Gerald T. McCaughey, President and Chief Executive Officer.
    CIBC Retail Markets reported revenue of $2,259 million, up from
$2,189 million for the prior quarter and $2,038 million for the same period
last year. Net income for the third quarter was $555 million, up 14% from a
year ago, primarily due to volume growth. CIBC's acquisition of a controlling
interest in FirstCaribbean International Bank (FirstCaribbean) also
contributed to this result.
    While the environment in Canada remains competitive, CIBC's retail
businesses continue to perform well overall and remain strongly positioned in
the market. CIBC's credit cards business is the market leader in Canada and
continues to grow; cards outstandings were up 10.7% from the third quarter of
last year. CIBC Wood Gundy's assets under administration increased to
$118.5 billion, up 4.8% from a year ago. Assets under management in mutual
funds and managed accounts increased to $62.4 billion in the quarter, up 15.7%
from a year ago. CIBC had market share increases during the quarter in key
areas such as credit card outstandings, mortgages, deposits and fixed term
investments.
    In the area of personal lending, CIBC's focus on credit quality has been
reflected in improved loan loss performance. Retail loan losses were
$170 million in the third quarter and $505 million for the nine months ended
July 31, 2007, compared with $519 million for the same nine months last year.
Revenue growth in CIBC's personal lending business is expected to converge
with industry levels as CIBC continues to improve its risk profile.
    CIBC World Markets reported revenue of $582 million, down from
$726 million in the prior quarter and $677 million for the same period last
year. Net income for the third quarter was $261 million, up from $190 million
a year ago.
    CIBC World Markets' results include the mark-to-market write-downs on
CDOs and RMBS related to the U.S. residential mortgage market, the net
reversal of litigation accruals, the impact of changes in credit spreads on
the mark-to-market of corporate loan credit derivatives, higher than normal
merchant banking gains and the tax recovery, all noted previously.
    With the exception of its structured credit business, CIBC World Markets
reported solid performance and broad-based business strength. In Canada, CIBC
World Markets advised BCE Inc. with regard to the pending $51.7 billion
acquisition of BCE Inc. by Teachers' Private Capital, Providence Equity
Partners Inc. and Madison Dearborn Partners LLC. CIBC World Markets was also
the lead manager on a $9 billion issue of Canada Mortgage Bonds from Canada
Housing Trust, the largest debt transaction in Canadian history. In the U.S.,
CIBC World Markets' real estate finance business completed a large commercial
mortgage-backed securities offering, acting as co-lead manager with J.P.
Morgan Securities Inc. on a US$3.3 billion transaction.
    CIBC World Markets continued to demonstrate its leadership in advising
and financing mining companies around the globe, acting as a principal advisor
to Rio Tinto PLC on its announced US$38.1 billion acquisition of Alcan Inc.

    Productivity

    CIBC's second priority is to improve productivity.
    CIBC's target in 2007 is to hold expenses flat to Q4 2006 levels,
excluding the FirstCaribbean acquisition, by absorbing normal inflationary
increases with reductions elsewhere in its cost base. Expenses for the third
quarter of $1,819 million were down from $1,976 million in the prior quarter,
primarily due to the net reversal of litigation accruals and lower than normal
performance-related compensation. CIBC's third quarter expenses included
$94 million related to FirstCaribbean, compared with $99 million in the prior
quarter.
    CIBC's efficiency ratio for the third quarter improved to 61.1% from
66.6% for the same period last year. CIBC's cash efficiency ratio (TEB)(1) for
the third quarter improved to 59.4% from 65.0% a year ago.
    "Our third quarter results reflect the balance we are seeking between
revenue growth and expense containment," says McCaughey. "We believe that a
balanced approach of generating higher revenue through consistent investment
in core businesses and continued expense discipline is the most effective way
to achieve further productivity improvements."

    Balance sheet strength and capital usage

    CIBC's third priority is balance sheet strength and capital usage. CIBC's
Tier 1 ratio of 9.7% remains above its medium term target of 8.5%.
    "Our first priority in the area of capital usage is to invest in our core
businesses," says McCaughey. "After funding internal growth, we will balance
opportunities for future strategic acquisitions with capital returns to our
shareholders."
    During the quarter, CIBC began repurchasing shares under its normal
course issuer bid (NCIB) announced in April, 2007. As of August 30, 2007, CIBC
had repurchased 3.1 million of the maximum 10 million shares allowed under the
NCIB, which expires on October 31, 2007.
    Dividends are also an important part of CIBC's capital management plan.
CIBC's dividend payout ratio for the quarter was 33.0%, below its medium term
objective of 40% to 50%. Today, CIBC announced an increase to its common share
dividend of 13% or 10 cents per share (to 87 cents per share), payable
October 29, 2007.

    Making a difference in communities

    During the quarter, CIBC employees in British Columbia and the Northern
Territories raised more than $400,000 for the 2007 British Columbia Children's
Hospital campaign. Since 1995, CIBC employees have raised more than
$3.2 million for the pediatric hospital that provides expert care for the
province's most seriously ill or injured children.
    For a second consecutive year, CIBC was the title sponsor of the CIBC
Charles-Bruneau Tour, a four-day bicycle trip across Quebec that raises funds
for research and treatment of children fighting cancer. With the support of
employees and clients, CIBC raised approximately $90,000 which will be donated
to the Centre de cancérologie Charles-Bruneau at the Sainte-Justine Hospital.
    In May, CIBC marked the 140th anniversary of the opening of the first
Canadian Bank of Commerce branch in Toronto on May 15, 1867 at what is now the
Commerce Court main branch. In 1961, the Canadian Bank of Commerce merged with
the Imperial Bank of Canada to create Canadian Imperial Bank of Commerce.
    "On behalf of CIBC's leadership team, I would like to thank all of our
employees for their professionalism, dedication and contribution to serving
our customers over so many years," says McCaughey.

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

    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 2006 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 30, 2007.
Additional information relating to CIBC is available on SEDAR at www.sedar.com
and on the U.S. Securities and Exchange Commission's (SEC) 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 142 and 143 of our 2006 Annual Accountability Report.

    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 we make in the "Highlights," "Update on
business priorities," "Outlook" and "Review of consolidated statement of
operations - Income taxes" sections of this report and other statements about
our operations, business lines, financial condition, risk management,
priorities, targets, ongoing objectives, strategies and outlook for 2007 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 "Outlook"
section of this report, and are subject to inherent risks and uncertainties
that may be general or specific. A variety of factors, many of which are
beyond our control, affect our operations, performance and results and could
cause actual results to differ materially from the expectations expressed in
any of our forward-looking statements. These factors include: continued
volatility in the U.S. residential mortgage markets; 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
applying future accounting changes; changes in our estimates of reserves and
allowances; changes in tax laws; that our estimate of our 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 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; intensifying competition from established
competitors and new entrants in the financial services industry; technological
change; global capital market activity; interest rate and currency value
fluctuations; general economic conditions worldwide, as well as in Canada, the
U.S. and other countries where we have operations; changes in market rates and
prices which may adversely affect the value of financial products; our success
in developing and introducing new products and services, expanding existing
distribution channels, developing new distribution channels and realizing
increased revenue from these channels; changes in client spending and saving
habits; and our ability to anticipate and manage the risks associated with
these factors. This list is not exhaustive of the factors that may affect any
of our forward- looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on our
forward-looking statements. We do not undertake to update any forward-looking
statement that is contained in this report or other communications.

    
    THIRD QUARTER FINANCIAL HIGHLIGHTS
    -------------------------------------------------------------------------

                                      As at or for the      As at or for the
                                    three months ended     nine months ended
                       -------------------------------- ---------------------
                            2007       2007       2006       2007       2006
    Unaudited            Jul. 31    Apr. 30    Jul. 31    Jul. 31    Jul. 31
    --------------------------------------------------- ---------------------
    Common share information
    Per share
      - basic earnings $    2.33  $    2.29  $    1.88  $    6.75  $    5.16
      - cash basic
        earnings(1)         2.36       2.32       1.89       6.81       5.20
      - diluted earnings    2.31       2.27       1.86       6.69       5.11
      - cash diluted
        earnings(1)         2.34       2.29       1.87       6.75       5.15
      - dividends           0.77       0.77       0.70       2.24       2.06
      - book value         33.05      32.67      27.96      33.05      27.96
    Share price
      - high              106.75     104.00      83.63     106.75      86.00
      - low                92.37      97.70      73.94      92.37      72.90
      - closing            92.50      97.70      77.25      92.50      77.25
    Shares outstanding
     (thousands)
      - average basic    335,755    337,320    335,513    336,511    335,004
      - average diluted  338,691    340,613    338,461    339,739    338,233
      - end of period    334,595    337,487    335,332    334,595    335,332
    Market
     capitalization
     ($ millions)      $  30,950  $  32,972  $  25,904  $  30,950  $  25,904
    --------------------------------------------------- ---------------------
    Value measures
    Price to earnings
     multiple (12 month
     trailing)              10.3       11.4       10.8       10.3       10.7
    Dividend yield
     (based on closing
     share price)            3.3%       3.2%       3.6%       3.2%       3.6%
    Dividend payout ratio   33.0%      33.7%      37.3%      33.2%      40.0%
    Market value to book
     value ratio            2.80       2.99       2.76       2.80       2.76
    --------------------------------------------------- ---------------------
    Financial results
     ($ millions)
    Total revenue      $   2,979  $   3,050  $   2,826  $   9,120  $   8,461
    Provision for
     credit losses           162        166        152        471        456
    Non-interest
     expenses              1,819      1,976      1,883      5,738      5,596
    Net income               835        807        662      2,412      1,827
    --------------------------------------------------- ---------------------
    Financial measures
    Efficiency ratio        61.1%      64.8%      66.6%      62.9%      66.1%
    Cash efficiency
     ratio, taxable
     equivalent basis
     (TEB)(1)               59.4%      63.2%      65.0%      61.4%      64.8%
    Return on equity        28.3%      28.9%      27.2%      28.1%      26.2%
    Net interest margin     1.41%      1.36%      1.53%      1.37%      1.53%
    Net interest margin
     on average
     interest-earning
     assets                 1.61%      1.55%      1.77%      1.56%      1.78%
    Return on average
     assets                 1.00%      1.02%      0.90%      0.99%      0.85%
    Return on average
     interest-earning
     assets                 1.14%      1.16%      1.04%      1.14%      0.98%
    Total shareholder
     return                 (4.6)%    (2.4)%     (5.8)%       8.0%       9.8%
    --------------------------------------------------- ---------------------
    On- and off-balance
     sheet information
     ($ millions)
    Cash, deposits
     with banks and
     securities        $ 102,143  $ 100,204  $  93,163  $ 102,143  $  93,163
    Loans and
     acceptances         167,828    164,797    149,224    167,828    149,224
    Total assets         338,881    326,580    294,990    338,881    294,990
    Deposits             230,208    221,169    200,015    230,208    200,015
    Common shareholders'
     equity               11,058     11,025      9,377     11,058      9,377
    Average assets       331,553    326,088    291,395    324,572    288,501
    Average interest-
     earning assets      290,157    285,127    251,607    284,015    248,360
    Average common
     shareholders'
     equity               10,992     10,964      9,167     10,808      8,818
    Assets under
     administration    1,124,079  1,165,585  1,027,931  1,124,079  1,027,931
    --------------------------------------------------- ---------------------
    Balance sheet
     quality measures
    Common equity to
     risk-weighted
     assets                  8.8%       8.7%       8.0%       8.8%       8.0%
    Risk-weighted
     assets
     ($ billions)      $   125.0  $   127.2  $   117.0  $   125.0  $   117.0
    Tier 1 capital
     ratio                   9.7%       9.5%       9.6%       9.7%       9.6%
    Total capital ratio     13.7%      14.1%      14.0%      13.7%      14.0%
    --------------------------------------------------- ---------------------
    Other information
    Retail/wholesale
     ratio(2)             76%/24%    73%/27%    70%/30%    76%/24%    70%/30%
    Regular workforce
     headcount            40,315     40,488     36,781     40,315     36,781
    --------------------------------------------------- ---------------------
    (1) For additional information, see the "Non-GAAP measures" section.
    (2) Retail includes CIBC Retail Markets and commercial banking (reported
        as part of CIBC World Markets). Wholesale reflects CIBC World
        Markets, excluding commercial banking. The ratio represents the
        amount of capital attributed to the business lines as at the end of
        the period. For further details, see the "Non-GAAP measures" section
        on page 37 of the 2006 Annual Accountability Report.


    Overview
    -------------------------------------------------------------------------

    Net income for the quarter was $835 million, compared with $662 million
for the same quarter last year and $807 million for the prior quarter. Net
income for the nine months ended July 31, 2007 was $2,412 million, compared
with $1,827 million for the same period in 2006.
    Our results for the current period were affected by the following items:

    -   $290 million ($190 million after-tax) mark-to-market losses, net of
        gains on related hedges, on collateralized debt obligations (CDOs)
        and residential mortgage-backed securities (RMBS) related to the U.S.
        residential mortgage market (see page 8 for additional details);
    -   $75 million ($70 million after-tax) of net reversal of litigation
        accruals;
    -   $77 million ($50 million after-tax) positive impact of changes in
        credit spreads on the mark-to-market of our corporate loan credit
        derivatives (credit derivatives spread); and
    -   $48 million of tax recovery.

    Compared with Q3, 2006

    Net income was up $173 million or 26%. Revenue was up resulting from the
FirstCaribbean International Bank (FirstCaribbean) acquisition, higher
investment banking and credit products and merchant banking revenue, volume
growth in cards, deposits and mortgages, and higher treasury and retail
brokerage revenue. Offsetting these increases were mark-to-market losses on
CDOs and RMBS noted above and spread compression in retail products. Non-
interest expenses were lower, resulting from the net reversal of litigation
accruals noted above and lower performance-related compensation, offset in
part by the impact of the FirstCaribbean acquisition. Tax recoveries were also
lower in the current quarter.

    Compared with Q2, 2007

    Net income was up $28 million or 3%. Revenue was down largely driven by
the mark-to-market losses on CDOs and RMBS noted above and spread compression
in retail products. Offsetting these decreases were higher investment banking
and credit products and merchant banking revenue, three more days in the
quarter, higher fee income in retail products, and volume growth in cards,
deposits and mortgages. Non-interest expenses were down resulting from the net
reversal of litigation accruals noted above and lower performance-related
compensation. Tax recoveries were also lower in the current quarter.

    Compared with the nine months ended July 31, 2006

    Net income was up $585 million or 32%. The FirstCaribbean acquisition,
higher investment banking and credit products and merchant banking revenue,
volume growth in cards, deposits and mortgages, higher treasury revenue, and
higher fee income in retail products contributed to the increase. These were
partially offset by mark-to-market losses on CDOs and RMBS noted above and
spread compression in retail products. Non-interest expenses were higher,
driven by the FirstCaribbean acquisition, offset in part by the net reversal
of litigation accruals. Taxes were lower, mainly due to higher recoveries and
reversals in the current period.

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

    Q2, 2007
    --------
    -   Favourable tax-related items of $91 million;
    -   General allowance reversal of $24 million ($17 million after-tax);
        and
    -   Positive impact of credit derivatives spread of $10 million
        ($7 million after-tax).

    Q1, 2007
    --------
    -   Negative impact of credit derivatives spread of $6 million
        ($4 million after-tax).

    Q3, 2006
    --------
    -   Favourable tax-related items of $62 million;
    -   Interest expense on U.S. income tax reassessments of $22 million
        ($12 million after-tax); and
    -   Positive impact of credit derivatives spread of $13 million
        ($8 million after-tax).

    Q2, 2006
    --------
    -   Favourable tax-related items of $35 million;
    -   General allowance reversal of $25 million ($16 million after-tax);
    -   Negative impact of credit derivatives spread of $14 million
        ($9 million after-tax); and
    -   Negative impact of an accounting adjustment of $11 million
        ($7 million after-tax).
    -------------------------------------------------------------------------

    Outlook

    Despite recent financial market weakness, the economic outlook continues
to point to moderate growth over the remainder of calendar 2007 as interest
rates for governments and high grade corporations remain moderate by
historical standards, and the Bank of Canada is not expected to raise rates
further. Canadian housing activity looks to be accelerating, and consumer
spending should be supported by a healthy labour market, enabling steady
growth in retail lending balances.
    While investment banking activities and capital markets are difficult to
predict, market liquidity will likely be less supportive of leveraged M&A
activity, and volatile equity markets could reduce new issuance. Credit
spreads may remain wider and more volatile until the market gains clarity over
global default rates, which outside of U.S. sub-prime and second lien
mortgages, have been very low thus far, but which could increase after the
past year's rise in leveraged buyout activity.

    Review of results of operations and financial position
    -------------------------------------------------------------------------

    Review of consolidated statement of operations

    --------------------------------------------------- ---------------------
                                               For the               For the
                                    three months ended     nine months ended
                       -------------------------------- ---------------------
                            2007       2007       2006       2007       2006
    $ millions           Jul. 31    Apr. 30    Jul. 31    Jul. 31    Jul. 31
    --------------------------------------------------- ---------------------
    Net interest
     income            $   1,180  $   1,079  $   1,121  $   3,318  $   3,305
    Non-interest
     income                1,799      1,971      1,705      5,802      5,156
    --------------------------------------------------- ---------------------
    Total revenue          2,979      3,050      2,826      9,120      8,461
    Provision for
     credit losses           162        166        152        471        456
    Non-interest expenses  1,819      1,976      1,883      5,738      5,596
    --------------------------------------------------- ---------------------
    Income before taxes
     and non-controlling
     interests               998        908        791      2,911      2,409
    Income taxes             157         91        125        479        553
    Non-controlling
     interests                 6         10          4         20         29
    --------------------------------------------------- ---------------------
    Net income         $     835  $     807  $     662  $   2,412  $   1,827
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------

    Net interest income

    Net interest income was up $59 million or 5% from the same quarter last
year and up $13 million for the nine months ended July 31, 2007 from the same
period in 2006. The increase was mainly due to the impact of the
FirstCaribbean acquisition, volume growth in cards, deposits and mortgages and
higher treasury revenue. These were partially offset by lower trading revenue
and spread compression in retail products. The prior year quarter included a
hedge accounting reclassification from non-interest income.
    Net interest income was up $101 million or 9% from the prior quarter,
primarily due to three more days in the quarter, volume growth in cards,
deposits and mortgages, higher fee income on mortgages, and higher trading
revenue. These increases were partially offset by spread compression in retail
products.

    Non-interest income

    Non-interest income was up $94 million or 6% from the same quarter last
year, primarily due to higher fees for services (underwriting and advisory,
mutual funds and investment management and custodial), higher gains associated
with corporate loan hedging programs, and revenue on financial instruments
designated at fair value (the majority of which were classified as trading in
2006). Realized gains net of write-downs on available-for-sale (AFS)
securities (classified in 2006 as investment securities and limited
partnership investments) were also higher. In addition, the current quarter
benefited from the impact of the FirstCaribbean acquisition. The prior year
quarter included a hedge accounting reclassification to net interest income.
These factors were partially offset by lower trading revenue, resulting mainly
from the mark-to-market losses on the CDOs and RMBS noted above.
    Non-interest income was down $172 million or 9% from the prior quarter,
primarily due to lower trading revenue, resulting mainly from the mark-to-
market losses on the CDOs and RMBS noted above. The decrease was partially
offset by higher gains associated with corporate loan hedging programs and
higher gains net of write-downs on AFS securities and equity-accounted
investments.
    Non-interest income for the nine months ended July 31, 2007 was up
$646 million or 13% from the same period in 2006, primarily due to higher
realized gains net of write-downs on AFS securities (classified in 2006 as
investment securities and limited partnership investments), higher fees for
services (underwriting and advisory, mutual funds, investment management and
custodial), and revenue on financial instruments designated at fair value (the
majority of which were classified as trading in 2006). The current period also
benefited from higher gains associated with corporate loan hedging programs
and the impact of the FirstCaribbean acquisition. The prior year quarter
included a hedge accounting reclassification to net interest income. These
factors were partially offset by lower trading revenue, largely due to the
mark-to-market losses on the CDOs and RMBS noted above.

    Provision for credit losses

    Provision for credit losses was up $10 million or 7% from the same
quarter last year, mainly due to volume-driven higher losses in the cards
portfolio and the impact of the FirstCaribbean acquisition.
    Provision for credit losses was down $4 million or 2% from the prior
quarter, largely due to lower losses in the cards and small business
portfolios, partially offset by higher losses in the personal lending
portfolios. In addition, the corporate lending portfolio had higher recoveries
net of losses. The prior quarter included the $24 million reversal of the
general allowance.
    Provision for credit losses for the nine months ended July 31, 2007 was
up $15 million or 3% from the same period in 2006. Volume-driven higher losses
in the cards portfolio, lower reversals and recoveries in the corporate
lending portfolio, and the impact of the FirstCaribbean acquisition were
partially offset by improvements in the personal lending portfolio.

    Non-interest expenses

    Non-interest expenses were down $64 million or 3% from the same quarter
last year, primarily due to the net reversal of litigation accruals noted
above and lower performance-related compensation, partially offset by the
impact of the FirstCaribbean acquisition.
    Non-interest expenses were down $157 million or 8% from the prior
quarter, primarily due to the net reversal of litigation accruals noted above
and lower performance-related compensation.
    Non-interest expenses for the nine months ended July 31, 2007 were up
$142 million or 3% from the same period in 2006, primarily due to the impact
of the FirstCaribbean acquisition, offset in part by the net reversal of
litigation accruals noted above.

    Income taxes

    Income taxes were up $32 million or 26% from the same quarter last year,
mainly due to higher income and lower income tax recoveries. These were
partially offset by an increase in the relative proportion of earnings subject
to lower rates of tax, including a lower effective tax rate on the net
reversal of litigation accruals noted above.
    Income taxes were up $66 million or 73% from the prior quarter due to the
reasons noted above and lower income tax reversals.
    Income taxes for the nine months ended July 31, 2007 were down
$74 million or 13% from the same period in 2006, mainly due to higher income
tax recoveries and reversals and an increase in the relative proportion of
earnings subject to lower rates of tax. The prior period included a tax
expense of $47 million on the repatriation of capital and retained earnings
from our non-U.S. foreign operations.
    The effective tax rate was 15.7% for the quarter, compared with 15.8% for
the same quarter last year and 10.0% for the prior quarter. The effective tax
rate for the nine months ended July 31, 2007 was 16.5% compared with 23.0% for
the same period in 2006.
    The adjusted effective tax and taxable equivalent (TEB) rates for the
quarter ended July 31, 2007 (excluding the income tax recovery of $48 million
and an adjustment of $21 million related to the lower effective tax rate
applied to the net reversal of litigation accruals) were 22.6%(1) and
27.4%(1), respectively.
    While rates will vary from quarter to quarter, our current estimate is
that the adjusted sustainable effective tax rate will be in the 20-23% range
and the adjusted sustainable TEB tax rate will be in the 24-27% range. These
rates are determined based on the estimated earnings in various jurisdictions
over the near term and the expected enacted tax rates in these jurisdictions.
The impact of one-time items is excluded.

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


    Review of consolidated balance sheet

    -------------------------------------------------------------------------
                                                             2007       2006
    $ millions, as at                                     Jul. 31    Oct. 31
    -------------------------------------------------------------------------
    Assets
    Cash and deposits with banks                        $  16,943  $  11,853
    Securities                                             85,200     83,498
    Securities borrowed or purchased under
     resale agreements                                     35,084     25,432
    Loans                                                 160,139    145,625
    Derivative instruments market valuation                20,424     17,122
    Other assets                                           21,091     20,454
    -------------------------------------------------------------------------
    Total assets                                        $ 338,881  $ 303,984
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and shareholders' equity
    Deposits                                            $ 230,208  $ 202,891
    Derivative instruments market valuation                19,435     17,330
    Obligations related to securities lent or sold
     short or under repurchase agreements                  48,079     44,221
    Other liabilities                                      20,843     21,013
    Subordinated indebtedness                               6,171      5,595
    Preferred share liabilities                               600        600
    Non-controlling interests                                 156         12
    Shareholders' equity                                   13,389     12,322
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity          $ 338,881  $ 303,984
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Assets

    Total assets as at July 31, 2007 were up $34.9 billion or 11% from
October 31, 2006.
    Cash and deposits with banks increased as a result of normal treasury
funding requirements and the impact of the FirstCaribbean acquisition.
    The increase in securities driven by the FirstCaribbean acquisition and
the reclassification of limited partnerships from other assets on November 1,
2006 under the new financial instruments accounting standards was partially
offset by a decrease in trading securities in our wholesale banking reflecting
normal trading activities.
    The increase in securities borrowed or purchased under resale agreements
was primarily due to normal client-driven business activities.
    Loans increased largely due to volume growth in residential mortgages
(net of securitizations) and cards. The FirstCaribbean acquisition also
contributed to the increase.
    Derivative instruments market valuation increased primarily due to volume
growth, higher mark-to-market gains on credit derivatives, and the
reclassification of hedging derivative instruments from other assets under the
new financial instruments accounting standards.
    Other assets increased mainly due to an increase in acceptances, and
goodwill and other intangible assets acquired resulting from the
FirstCaribbean acquisition. These increases were partially offset by the
reclassification of hedging derivative instruments to derivative instruments
market valuation and investment in limited partnerships to AFS securities,
both under the new financial instruments accounting standards. In addition, as
a result of acquiring control, our investment in FirstCaribbean is no longer
included in other assets.

    Liabilities

    Total liabilities as at July 31, 2007 were up $33.8 billion or 12% from
October 31, 2006.
    Deposits increased mainly due to volume growth attributed to funding
requirements and client-driven activities. The FirstCaribbean acquisition also
contributed to the increase.
    Derivative instruments market valuation increased primarily due to volume
growth, higher mark-to-market losses on credit derivatives, and the
reclassification of hedging derivative instruments from other liabilities
under the new financial instruments accounting standards.
    The increase in obligations related to securities lent or sold short or
under repurchase agreements is largely as a result of normal increases from
client-driven and treasury funding activities. The FirstCaribbean acquisition
also contributed to the increase.
    Subordinated indebtedness increased primarily due to new issuance and the
FirstCaribbean acquisition.
    The increase in non-controlling interests mainly represents the minority
interest in FirstCaribbean.

    Shareholders' equity

    Shareholders' equity as at July 31, 2007 was up $1.1 billion or 9% from
October 31, 2006, primarily due to an increase in retained earnings.

    FirstCaribbean International Bank

    On December 22, 2006, we obtained control of FirstCaribbean International
Bank (FirstCaribbean) by acquiring a further 39.3% ownership interest from
Barclays Bank PLC (Barclays) (FirstCaribbean acquisition). After completing
the transaction, we owned approximately 83.0% of the common shares of
FirstCaribbean with the remaining common shares held by both Barclays and
other minority shareholders. The transaction took place at a share price of
US$1.62 plus accrued dividends with a total transaction value of
US$989 million ($1,153 million), which we paid in cash to Barclays. In
addition, we incurred transaction costs, net of tax, of US$7 million
($8 million).
    On February 2, 2007, pursuant to a tender offer at the same price for the
remaining common shares held by Barclays and the other minority shareholders,
we acquired an additional 8.5% interest in FirstCaribbean in exchange for
additional cash consideration of US$212 million ($250 million), bringing our
total ownership to 91.5%. In addition, we incurred additional transaction
costs, net of tax, of US$2 million ($2 million).
    For additional details, see Note 2 to the interim consolidated financial
statements. As a result of subsequent transactions, including the sale of
two million shares of our holding to FirstCaribbean's compensation trusts, our
ownership interest as at July 31, 2007 declined to 91.4%.

    Exposures to U.S. residential mortgage market

    During the quarter, we had mark-to-market losses, net of related hedges,
of $290 million ($190 million after-tax) on CDOs and RMBS related to the U.S.
residential mortgage market. As at July 31, 2007, our exposure to the U.S.
residential mortgage market was approximately US$1.7 billion (excluding
exposure directly hedged with other counterparties). We estimate that less
than 60% of this exposure related to underlying sub-prime mortgages, while the
remainder was mid-prime and higher grade assets. The exposure has been
mitigated by sub-prime index hedges of approximately US$300 million.

    Liquidity facilities to asset-backed commercial paper (ABCP) conduits

    As at July 31, 2007, the total backstop liquidity facilities committed by
CIBC to ABCP conduits in Canada and the U.S. was approximately $20 billion. Of
these committed facilities, approximately 85% of the amount was for the
benefit of CIBC sponsored Canadian ABCP conduits.

    Contingent liabilities

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

    Review of quarterly financial information

                                                             2007       2006
    -------------------------------------------------------------------------
    $ millions, except per
     share amounts, for the
     three months ended             Jul. 31    Apr. 30    Jan. 31    Oct. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets         $   2,259  $   2,189  $   2,151  $   2,046
      CIBC World Markets                582        726        784        697
      Corporate and Other               138        135        156        147
    -------------------------------------------------------------------------
    Total revenue                     2,979      3,050      3,091      2,890
    Provision for credit losses         162        166        143         92
    Non-interest expenses             1,819      1,976      1,943      1,892
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests          998        908      1,005        906
    Income taxes                        157         91        231         87
    Non-controlling interests             6         10          4          -
    -------------------------------------------------------------------------
    Net income                    $     835  $     807  $     770  $     819
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings per share - basic    $    2.33  $    2.29  $    2.13  $    2.34
                       - diluted  $    2.31  $    2.27  $    2.11  $    2.32
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                             2006       2005
    -------------------------------------------------------------------------
    $ millions, except per
     share amounts, for the
     three months ended             Jul. 31    Apr. 30    Jan. 31    Oct. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets         $   2,038  $   1,975  $   2,068  $   2,063
      CIBC World Markets                677        607        679        964
      Corporate and Other               111        195        111        399
    -------------------------------------------------------------------------
    Total revenue                     2,826      2,777      2,858      3,426
    Provision for credit losses         152        138        166        170
    Non-interest expenses             1,883      1,836      1,877      2,060
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests          791        803        815      1,196
    Income taxes                        125        190        238        436
    Non-controlling interests             4         28         (3)        32
    -------------------------------------------------------------------------
    Net income                    $     662  $     585  $     580  $     728
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings per share - basic    $    1.88  $    1.65  $    1.64  $    2.08
                       - diluted  $    1.86  $    1.63  $    1.62  $    2.06
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Our quarterly results are modestly affected by seasonal factors. The
first quarter is normally characterized by increased credit card purchases
over the holiday period. The second quarter has fewer days as compared with
the other quarters, generally leading to lower earnings. The summer months
(July - third quarter and August - fourth quarter) typically experience lower
levels of capital markets activity, which affects our brokerage, investment
management and wholesale activities.
    The acquisition of FirstCaribbean resulted in increased revenue in CIBC
Retail Markets in the first three quarters of 2007. Mark-to-market losses, net
of related hedges, on CDOs and RMBS related to the U.S. residential mortgage
market resulted in lower revenue for CIBC World Markets in the current
quarter, while merchant banking gains net of write-downs contributed to higher
revenue in the fourth quarter of 2005. Foreign exchange revenue on the
repatriation of capital and retained earnings from our foreign operations led
to an increase in revenue in Corporate and Other in the second quarter of 2006
and the fourth quarter of 2005.
    Retail lending provisions increased in the first three quarters of 2007
largely due to volume-driven higher losses in the cards portfolio and the
impact of the FirstCaribbean acquisition. Reversals of the general allowance
were included in the second quarters of 2007 and 2006 and the fourth quarters
of 2006 and 2005.
    Expenses of FirstCaribbean were included in the first three quarters of
2007. Net reversal of litigation accruals and lower performance-related
compensation led to a decrease in expenses in the third quarter of 2007.
Severance costs were higher in the fourth quarter of 2005.
    Income tax recoveries related to the favourable resolution of various
income tax audits and reduced tax contingencies were included in the second
and third quarters of 2007, the last three quarters of 2006 and the fourth
quarter of 2005. The third quarter of 2007 benefited from a lower effective
tax rate on the net reversal of litigation accruals. Income tax expense on the
repatriation of capital and retained earnings from our foreign operations was
also included in the second quarter of 2006 and the fourth quarter of 2005.

    CIBC Retail Markets
    -------------------------------------------------------------------------

    CIBC Retail Markets comprises CIBC's retail and wealth management
businesses. We provide a full range of financial products and services to
individual and small business clients, as well as investment management
services globally to retail and institutional clients.

    Results(1)
    --------------------------------------------------- ---------------------
                                               For the               For the
                                    three months ended     nine months ended
                       -------------------------------- ---------------------
                            2007       2007       2006       2007       2006
    $ millions           Jul. 31    Apr. 30    Jul. 31    Jul. 31    Jul. 31
    --------------------------------------------------- ---------------------
    Revenue
      Personal and
       small business
       banking         $     537  $     501  $     533  $   1,555  $   1,533
      Imperial Service       247        232        242        716        699
      Retail brokerage       308        306        275        928        891
      Cards                  367        360        340      1,098      1,024
      Mortgages and
       personal lending      400        361        359      1,150      1,129
      Asset management       113        112        106        336        321
      FirstCaribbean(2)      133        150          -        333          -
      Other                  154        167        183        483        484
    --------------------------------------------------- ---------------------
    Total revenue (a)      2,259      2,189      2,038      6,599      6,081
    Provision for credit
     losses                  170        182        159        505        519
    Non-interest
     expenses (b)          1,341      1,353      1,251      3,982      3,733
    --------------------------------------------------- ---------------------
    Income before taxes      748        654        628      2,112      1,829
    Income taxes             188         64        141        428        472
    Non-controlling
     interests                 5          7          -         16          -
    --------------------------------------------------- ---------------------
    Net income (c)     $     555  $     583  $     487  $   1,668  $   1,357
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------

    --------------------------------------------------- ---------------------
    Efficiency ratio
     (b/a)                  59.3%      61.8%      61.4%      60.3%      61.3%
    Amortization of
     other intangible
     assets (d)        $       8  $      10  $       1  $      21  $       3
    Cash efficiency
     ratio(3) ((b-d)/a)     59.0%      61.3%      61.3%      60.0%      61.3%
    ROE(3)                  48.2%      52.9%      51.4%      51.8%      48.1%
    Charge for economic
     capital(3) (e)    $    (145) $    (141) $    (124) $    (411) $    (370)
    Economic profit(3)
     (c+e)             $     410  $     442  $     363  $   1,257  $     987
    Regular workforce
     headcount            27,098     27,266     23,197     27,098     23,197
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) Consistent with other businesses, revenue includes earnings on
        capital and internal funding charges.
    (3) For additional information, see the "Non-GAAP measures" section.

    Financial overview

    Net income was up $68 million or 14% from the same quarter last year.
Revenue increased as a result of the FirstCaribbean acquisition, volume growth
in cards, deposits and mortgages, and higher securitization and retail
brokerage revenue, partially offset by spread compression. Non-interest
expenses were higher resulting from the FirstCaribbean acquisition. The prior
year quarter benefited from $35 million of income tax recoveries.
    Net income was down $28 million or 5% from the prior quarter. Revenue was
up due to higher fee income across all business lines, three more days in the
quarter, volume growth in cards, deposits and mortgages, and higher
securitization revenue, partially offset by spread compression. The prior
quarter benefited from a tax recovery of $80 million related to the favourable
resolution of an income tax audit.
    Net income for the nine months ended July 31, 2007 was up $311 million or
23% from the same period in 2006. The increase in revenue was due mainly to
the FirstCaribbean acquisition, volume growth in cards, deposits and
mortgages, and higher fee income in retail brokerage, mortgages and cards and
securitization revenue, partially offset by spread compression. Non-interest
expenses were up largely as a result of the FirstCaribbean acquisition.

    Revenue

    FirstCaribbean revenue is included from the date of acquisition on
December 22, 2006. Prior to December 22, 2006, FirstCaribbean was equity-
accounted and the revenue was included in "Other".

    Revenue was up $221 million or 11% from the same quarter last year.
    Retail brokerage revenue was up $33 million, primarily due to higher fee-
based revenue resulting from growth in asset values.
    Cards revenue was up $27 million, mainly due to volume growth.
    Mortgages and personal lending revenue was up $41 million. Higher
securitization revenue, higher fee income from seasonal mortgage refinancings,
and volume growth in mortgages contributed to the increase. These were
partially offset by spread compression.
    Asset management revenue was up $7 million, mainly due to higher fee
income driven by growth in average funds managed, partially offset by higher
internal commissions paid to retail brokerage and Imperial Service.
    Other revenue was down $29 million, mainly due to lower insurance revenue
and treasury revenue allocations.

    Revenue was up $70 million or 3% from the prior quarter.
    Personal and small business banking and Imperial Service revenue were up
primarily due to higher internal commissions received from mortgages and
personal lending, three more days in the quarter, increased fee income, and
volume growth.
    Cards revenue was up $7 million, mainly due to volume growth, three more
days in the quarter, and higher fee income, partially offset by spread
compression.
    Mortgages and personal lending revenue was up $39 million. Higher fee
income from seasonal mortgage refinancings, higher securitization revenue, and
three more days in the quarter contributed to the increase. These increases
were partially offset by spread compression and higher internal commissions
paid to personal and small business banking and Imperial Service.
    Other revenue was down $13 million, mainly due to lower treasury revenue
allocations.

    Revenue for the nine months ended July 31, 2007 was up $518 million or 9%
from the same period in 2006.
    Personal and small business banking revenue was up $22 million, primarily
due to volume growth, partially offset by lower internal commissions received
from mortgages and personal lending.
    Imperial Service revenue was up $17 million, mainly due to higher revenue
from investment product sales, partially offset by spread compression.
    Retail brokerage revenue was up $37 million, primarily due to higher fee-
based revenue resulting from growth in asset values, partially offset by lower
trading commissions.
    Cards revenue was up $74 million, primarily due to volume growth and
higher fee income, partially offset by spread compression.
    Mortgages and personal lending revenue was up $21 million. Higher
securitization revenue, volume growth in mortgages, and higher fee income from
seasonal mortgage refinancings were partially offset by spread compression.
    Asset management revenue was up $15 million due to higher fee income
driven by growth in average funds managed, partially offset by higher internal
commissions paid to retail brokerage and Imperial Service.

    Provision for credit losses

    Provision for credit losses was up $11 million or 7% from the same
quarter last year, largely due to volume-driven increased losses in the cards
portfolio and the impact of the FirstCaribbean acquisition.
    Provision for credit losses was down $12 million or 7% from the prior
quarter, primarily due to lower losses in the cards and small business
portfolios, offset in part by higher losses in the personal lending portfolio.
    Provision for credit losses for the nine months ended July 31, 2007 was
down $14 million or 3% from the same period in 2006, largely due to
improvements in the personal lending portfolio, partially offset by volume-
driven increased losses in the cards portfolio and the impact of the
FirstCaribbean acquisition.

    Non-interest expenses

    Non-interest expenses were up $90 million or 7% from the same quarter
last year and up $249 million or 7% for the nine months ended July 31, 2007
from the same period in 2006, largely due to the FirstCaribbean acquisition.
    Non-interest expenses were down $12 million or 1% from the prior quarter,
primarily due to lower communication expenses.

    Income taxes

    Income taxes were up $47 million or 33% from the same quarter last year
and up $124 million from the prior quarter, primarily due to the tax
recoveries noted above. Higher income in the quarter also contributed to the
increase in income taxes.
    Income taxes for the nine months ended July 31, 2007 were down
$44 million or 9% from the same period in 2006, mainly due to an increase in
the relative proportion of earnings subject to lower rates of tax.

    Non-controlling interests

    Non-controlling interests represents the minority interest in
FirstCaribbean.

    Regular workforce headcount

    The regular workforce headcount was up 3,901 from the same quarter last
year, largely due to the FirstCaribbean acquisition and a realignment of staff
from Administration, Technology and Operations.

    CIBC World Markets

    CIBC World Markets is the wholesale and corporate banking arm of CIBC,
providing a range of integrated credit and capital markets, investment
banking, and merchant banking products and services to clients in key
financial markets in North America and around the world. We provide capital
solutions and advisory expertise across a wide range of industries as well as
research for our corporate, government and institutional clients.

    Results(1)
    --------------------------------------------------- ---------------------
                                               For the               For the
                                    three months ended     nine months ended
                       -------------------------------- ---------------------
                            2007       2007       2006       2007       2006
    $ millions           Jul. 31    Apr. 30    Jul. 31    Jul. 31    Jul. 31
    --------------------------------------------------- ---------------------
    Revenue (TEB)(2)
      Capital markets  $      28  $     351  $     325  $     828  $   1,050
      Investment
       banking
       and credit
       products(3)           328        247        217        779        573
      Commercial
       banking(3)            127        121        126        369        369
      Merchant banking       161         85         90        323        171
      Other                    3        (24)       (22)       (26)       (53)
    --------------------------------------------------- ---------------------
    Total revenue
     (TEB)(2) (a)            647        780        736      2,273      2,110
    TEB adjustment            65         54         59        181        147
    --------------------------------------------------- ---------------------
    Total revenue (b)        582        726        677      2,092      1,963
    (Recovery of)
     provision for
     credit losses            (8)         4         (7)       (14)       (38)
    Non-interest
     expenses (c)            384        524        518      1,459      1,556
    --------------------------------------------------- ---------------------
    Income before taxes
     and non-controlling
     interests               206        198        166        647        445
    Income tax (benefit)
     expense                 (56)         1        (25)       (22)        14
    Non-controlling
     interests                 1          3          1          4          3
    --------------------------------------------------- ---------------------
    Net income (d)     $     261  $     194  $     190  $     665  $     428
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------

    --------------------------------------------------- ---------------------
    Efficiency ratio
     (c/b)                  66.0%      72.2%      76.5%      69.8%      79.3%
    Efficiency ratio
     (TEB)(2) (c/a)         59.3%      67.1%      70.4%      64.2%      73.7%
    ROE(2)                  51.7%      36.8%      39.1%      43.3%      29.5%
    Charge for economic
     capital(2) (e)    $     (64) $     (67) $     (62) $    (195) $    (186)
    Economic profit(2)
     (d+e)             $     197  $     127  $     128  $     470  $     242
    Regular workforce
     headcount             2,339      2,353      2,252      2,339      2,252
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.
    (3) Effective November 1, 2006, all cash management revenue previously
        allocated to investment banking and credit products was transferred
        to commercial banking on a retroactive basis.

    Financial overview

    Net income was up $71 million or 37% from the same quarter last year.
Revenue was down largely due to the mark-to-market losses, net of related
hedges, of $290 million ($190 million after-tax) on CDOs and RMBS related to
the U.S. residential mortgage market, offset in part by higher investment
banking and credit products and merchant banking revenue. Non-interest
expenses were lower mainly due to the $75 million net reversal of litigation
accruals. Taxes were also lower resulting from the lower effective tax rate on
the net reversal of litigation accruals noted above.
    Net income was up $67 million or 35% from the prior quarter. Revenue and
non-interest expenses were lower due to the reasons noted above. Income taxes
were lower primarily due to the tax recovery of $48 million and the lower
effective tax rate on the net reversal of litigation accruals noted above.
    Net income for the nine months ended July 31, 2007 was up $237 million or
55% from the same period in 2006. Revenue increased mainly due to higher
investment banking and credit products and merchant banking revenue, offset in
part by the mark-to-market losses on the CDOs and RMBS noted above. Non-
interest expenses were lower resulting from the net reversal of litigation
accruals noted above. Taxes were also lower due to the lower effective tax
rate on the net reversal of litigation accruals noted above.

    Revenue

    Revenue was down $95 million or 14% from the same quarter last year.
    Capital markets revenue was down $297 million, driven by the mark-to-
market losses on the CDOs and RMBS noted above.
    Investment banking and credit products revenue was up $111 million,
primarily due to higher gains associated with corporate loan hedging programs,
higher U.S. and Canadian investment banking revenue, and higher revenue in a
consolidated variable interest entity (VIE).
    Merchant banking revenue was up $71 million, resulting from higher gains
net of write-downs.
    Other revenue was up $25 million, primarily due to lower interest expense
on tax settlements.

    Revenue was down $144 million or 20% from the prior quarter.
    Capital markets revenue was down $323 million, driven by the mark-to-
market losses on the CDOs and RMBS noted above and lower revenue in equity and
commodity structured products, and Canadian and U.S. equities.
    Investment banking and credit products revenue was up $81 million,
primarily due to higher gains associated with corporate loan hedging programs,
higher U.S. and Canadian investment banking revenue, and higher revenue in a
consolidated VIE. These increases were partially offset by lower revenue in
U.S. real estate finance, which completed its largest commercial mortgage-
backed securities offering in the prior quarter.
    Merchant banking revenue was up $76 million, resulting from higher gains
net of write-downs.
    Other revenue was up $27 million, primarily due to higher treasury
revenue allocations and interest income on tax settlements.

    Revenue for the nine months ended July 31, 2007 was up $129 million or 7%
from the same period in 2006.
    Capital markets revenue was down $222 million, primarily due to the mark-
to-market losses on the CDOs and RMBS noted above, partially offset by higher
revenue in equity and commodity structured products and Canadian equities.
    Investment banking and credit products revenue was up $206 million,
primarily due to higher gains associated with corporate loan hedging programs,
and higher revenue in a consolidated VIE, investment banking, and U.S. real
estate finance.
    Merchant banking revenue was up $152 million, resulting from higher gains
net of write-downs.
    Other revenue was up $27 million, primarily due to lower interest expense
on tax settlements.

    (Recovery of) provision for credit losses

    Recovery of credit losses was $8 million, compared with a provision of
$4 million in the prior quarter, primarily due to net reversals in commercial
banking and higher recoveries in the U.S.
    Recovery of credit losses for the nine months ended July 31, 2007 was
down $24 million or 63% from the same period in 2006, as higher recoveries in
Europe and lower losses net of recoveries in commercial banking were more than
offset by higher losses net of recoveries in the U.S.

    Non-interest expenses

    Non-interest expenses were down $134 million or 26% from the same quarter
last year and down $140 million or 27% from the prior quarter, primarily due
to the net reversal of litigation accruals noted above and lower performance-
related compensation.
    Non-interest expenses for the nine months ended July 31, 2007 were down
$97 million or 6% from the same period in 2006, primarily due to the net
reversal of litigation accruals noted above.

    Income taxes

    Income tax benefit was up $31 million from the same quarter last year,
primarily due to the lower effective tax rate on the net reversal of
litigation accruals noted above.
    Income tax benefit was $56 million, compared with an income tax expense
of $1 million in the prior quarter, primarily due to the tax recovery and the
lower effective tax rate on the net reversal of litigation accruals noted
above.
    Income tax benefit for the nine months ended July 31, 2007 was
$22 million, compared with an income tax expense of $14 million from the same
period in 2006, primarily due to the lower effective tax rate on the net
reversal of litigation accruals noted above.

    Regular workforce headcount

    The regular workforce headcount was up 87 from the same quarter last
year, primarily due to a realignment of staff from Administration, Technology
and Operations into commercial banking.

    Corporate and Other
    -------------------------------------------------------------------------

    Corporate and Other comprises the five functional groups -
Administration, Technology and Operations; Corporate Development; Finance;
Legal and Regulatory Compliance; 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 revenue and expenses of the functional groups are generally
allocated to the business lines.
    During the quarter, we moved the Treasury function from Treasury and Risk
Management (TRM) into Finance. TRM was subsequently renamed Risk Management.

    Results(1)
    --------------------------------------------------- ---------------------
                                               For the               For the
                                    three months ended     nine months ended
                       -------------------------------- ---------------------
                            2007       2007       2006       2007       2006
    $ millions           Jul. 31    Apr. 30    Jul. 31    Jul. 31    Jul. 31
    --------------------------------------------------- ---------------------
    Total revenue      $     138  $     135  $     111  $     429  $     417
    Recovery of credit
     losses                    -        (20)         -        (20)       (25)
    Non-interest
     expenses                 94         99        114        297        307
    --------------------------------------------------- ---------------------
    Income (loss)
     before taxes and
     non-controlling
     interests                44         56         (3)       152        135
    Income taxes              25         26          9         73         67
    Non-controlling
     interests                 -          -          3          -         26
    --------------------------------------------------- ---------------------
    Net income (loss) $       19  $      30  $     (15) $      79  $      42
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------

    --------------------------------------------------- ---------------------
    Regular workforce
     headcount            10,878     10,869     11,332     10,878     11,332
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.

    Financial overview

    Net income was $19 million, compared with a net loss of $15 million from
the same quarter last year, primarily due to higher revenue from treasury and
lower unallocated corporate support costs.
    Net income was down $11 million or 37% from the prior quarter, primarily
due to the reversal of the general allowance for credit losses in the prior
quarter, partially offset by higher earnings from the CIBC Mellon joint
ventures and lower unallocated corporate support costs.
    Net income for the nine months ended July 31, 2007 was up $37 million or
88% from the same period in 2006, primarily due to higher revenue from
treasury and CIBC Mellon joint ventures and lower project costs, partially
offset by higher unallocated corporate support costs.

    Revenue

    Revenue was up $27 million or 24% from the same quarter last year,
primarily due to higher revenue from treasury and CIBC Mellon joint ventures.
    Revenue for the nine months ended July 31, 2007 was up $12 million or 3%
from the same period in 2006, primarily due to higher revenue from treasury
and CIBC Mellon joint ventures. The prior year period included foreign
exchange revenue of $47 million on the repatriation of capital and retained
earnings from our non-U.S. foreign operation and revenue from a VIE which was
deconsolidated as of July 31, 2006.

    Recovery of credit losses

    A $20 million reversal of the general allowance for credit losses was
included in the nine months ended July 31, 2007, compared with $25 million in
the prior year period.

    Non-interest expenses

    Non-interest expenses were down $20 million or 18% from the same quarter
last year, primarily due to lower unallocated corporate support costs.
    Non-interest expenses for the nine months ended July 31, 2007 were down
$10 million or 3% from the same period in 2006, primarily due to lower project
costs, partially offset by higher unallocated corporate support costs.

    Income taxes

    Income taxes were up $16 million from the same quarter last year,
primarily due to higher income.
    Income taxes for the nine months ended July 31, 2007 were up $6 million
or 9% from the same period in 2006, primarily due to higher income subject to
tax. The prior year period included an income tax expense of $47 million on
the repatriation noted above.

    Non-controlling interests

    Non-controlling interests in the third quarter of 2006 and the nine
months ended July 31, 2006 represents the minority interest in a consolidated
VIE. The VIE was deconsolidated as of July 31, 2006.

    Regular workforce headcount

    The regular workforce headcount was down 454 from the same quarter last
year, primarily due to the reduction of back office functions and the
realignment of staff to the business groups. These decreases were partially
offset by the transfer of staff from an external service provider relating to
the repatriation of desktop support and related network management services to
CIBC.

    Management of risk
    -------------------------------------------------------------------------

    Our approach to the management of risk and capital resources has not
changed significantly from that described on pages 53 to 66 of the 2006 Annual
Accountability Report.

    Management of credit risk

    -------------------------------------------------------------------------
    CREDIT QUALITY PERFORMANCE
                                                             2007       2006
    $ millions, as at                                     Jul. 31    Oct. 31
    -------------------------------------------------------------------------
    Gross impaired loans

    Consumer                                            $     526  $     386
    Business and government                                   397        244
    -------------------------------------------------------------------------
    Total gross impaired loans                          $     923  $     630
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Allowance for credit losses

    Consumer                                            $     367  $     363
    Business and government                                   241        181
    -------------------------------------------------------------------------
    Specific allowance                                        608        544
    General allowance                                         892        900
    -------------------------------------------------------------------------
    Total allowance for credit losses                   $   1,500  $   1,444
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Gross impaired loans were up $293 million or 47% from October 31, 2006.
Consumer gross impaired loans were up $140 million or 36%. Business and
government gross impaired loans were up $153 million or 63%. Total gross
impaired loans decreased $20 million in Canada, increased $14 million in the
U.S. and $299 million in other countries. The overall increase in gross
impaired loans was largely due to the FirstCaribbean acquisition.
    Allowance for credit losses was up $56 million or 4% from October 31,
2006. Specific allowance was up $64 million or 12% from the year-end,
primarily due to the FirstCaribbean acquisition. This increase was partially
offset by a reduction in the specific allowance of the remainder of the loan
portfolio. The general allowance totalled $892 million, down $8 million from
the year-end. The reversal of $26 million of general allowance, and a transfer
of $5 million to specific allowance related to the student loans portfolio
were largely offset by the FirstCaribbean acquisition.
    For details on the provision for credit losses, see the "Review of
consolidated statement of operations" section.

    Management of market risk

    Trading activities
    ------------------
    The following table shows Value-at-Risk (VaR) by risk-type for CIBC's
trading activities. Total average risk was down from the same quarter last
year primarily due to lower levels of equity risk and increased portfolio
diversification, partially offset by higher levels of credit spread risk.
Credit spread risk increased during the quarter primarily due to higher spread
levels for structured credit assets.
    Trading revenue (TEB)(A) was positive for 66% of the days in the quarter
and 79% of the days for the nine months ended July 31, 2007. Trading losses
exceeded VaR for three days during the quarter, reflecting losses on
structured credit assets, which were marked-to-market periodically.

    VaR BY RISK TYPE - TRADING PORTFOLIO
                                         As at or for the three months ended
                         ----------------------------------------------------
                                             Jul. 31, 2007     Apr. 30, 2007
                         ----------------------------------------------------
    $ millions              High     Low    As at  Average    As at  Average
    -------------------------------------------------------------------------
    Interest rate risk   $  8.7   $  4.6   $  8.4   $  7.2   $  7.5   $  7.0
    Credit spread risk     12.4      4.5     11.4      6.9      4.7      3.9
    Equity risk             6.3      4.0      4.3      5.3      5.8      5.9
    Foreign exchange risk   1.2      0.1      0.4      0.5      0.4      0.5
    Commodity risk          2.3      1.0      1.2      1.3      1.0      1.4
    Diversification
     effect(1)            n/m(2)   n/m(2)   (14.8)   (11.3)    (9.7)    (9.5)
    ---------------------                ------------------------------------
    Total risk           $ 12.4   $  8.1   $ 10.9   $  9.9   $  9.7   $  9.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                          As at or for the      For the nine
                                        three months ended      months ended
                                        ------------------- -----------------
                                                   Jul. 31, Jul. 31, Jul. 31,
                                                      2006     2007     2006
                                        ------------------- -----------------
    $ millions                              As at  Average  Average  Average
    ------------------------------------------------------- -----------------
    Interest rate risk                     $  7.1   $  7.3   $  7.1   $  5.8
    Credit spread risk                        5.5      5.3      4.8      4.9
    Equity risk                               4.6      6.1      5.9      6.1
    Foreign exchange risk                     0.4      0.3      0.4      0.3
    Commodity risk                            2.2      1.9      1.4      1.7
    Diversification
     effect(1)                              (10.4)   (10.6)   (10.2)    (9.4)
    ------------------------------------------------------- -----------------
    Total risk                             $  9.4   $ 10.3   $  9.4   $  9.4
    ------------------------------------------------------- -----------------
    ------------------------------------------------------- -----------------
    (1) Aggregate VaR is less than the sum of the VaR of the different market
        risk types due to risk offsets resulting from portfolio
        diversification effect.
    (2) 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.

    -----------------------------------
    (A) For additional information, see the "Non-GAAP measures" section on
        page 37 of our 2006 Annual Accountability Report.
    

    Non-trading activities
    ----------------------
    The following table shows the potential impact of an immediate 100 basis
points increase or decrease in interest rates over the next 12 months, as
adjusted for estimated prepayments.


    -------------------------------------------------------------------------
    INTEREST RATE SENSITIVITY -
    NON TRADING (AFTER-TAX)                       2007       2007       2006
    $ millions, as at                          Jul. 31    Apr. 30    Jul. 31
    -------------------------------------------------------------------------
    100 basis points increase in interest
     rates
    Impact on net interest income            $      30  $      22  $      34
    Impact on shareholders' equity(1)              205        292        183

    100 basis points decrease in interest
     rates
    Impact on net interest income            $     (99) $     (95) $     (70)
    Impact on shareholders' equity(1)             (278)      (326)      (183)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Measured on a present value basis.

    Management of liquidity risk

    Consistent with our liquidity risk mitigation strategies, we continue to
source term funding in the wholesale markets from a variety of clients and
geographic locations, borrowing across a range of maturities using a mix of
funding instruments.
    Core personal deposits remain a prime source of dependable retail
funding. As at July 31, 2007, Canadian dollar deposits from individuals
totalled $83.0 billion (October 31, 2006: $77.4 billion).
    Strategies for managing liquidity risk include maintaining diversified
sources of wholesale term funding, asset securitization initiatives, capital
and subordinated debt issuance, and maintenance of segregated pools of high-
quality liquid assets that can be sold or pledged as security to provide a
ready source of cash.
    The following table summarizes our liquid assets:
    -------------------------------------------------------------------------
                                                             2007       2006
    $ billions, as at                                     Jul. 31    Oct. 31
    -------------------------------------------------------------------------
    Cash                                                $     1.0  $     0.9
    Deposits with banks                                      15.9       10.9
    Securities(1)                                            67.1       66.8
    Securities borrowed or purchased
     under resale agreements                                 35.1       25.4
    -------------------------------------------------------------------------
                                                        $   119.1  $   104.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes available-for-sale securities (2006: investment securities)
        and securities designated at fair value with residual term to
        contractual maturity within one year, and trading securities.

    In the course of our regular business activities, certain assets are
pledged as part of collateral management, including those necessary for    
day-to-day clearing and settlement of payments and securities. Pledged assets
as at July 31, 2007 totalled $26.0 billion (October 31, 2006: $25.5 billion).

    Management of capital resources

    Regulatory capital
    ------------------
    We manage capital in accordance with policies established by the Board
and a Board-approved annual capital plan.
    Regulatory capital is determined in accordance with guidelines issued by
the Office of the Superintendent of Financial Institutions (OSFI).

    -------------------------------------------------------------------------
                                                             2007       2006
    $ millions, as at                                     Jul. 31    Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                      $  12,082  $  11,935
    Total regulatory capital                               17,163     16,583
    Risk-weighted assets                                  125,030    114,780
    Tier 1 capital ratio                                      9.7%      10.4%
    Total capital ratio                                      13.7%      14.5%
    Assets-to-capital multiple                               19.4x      18.0x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Our Tier 1 ratio was down 0.7% from the year-end, largely due to an
increase in risk-weighted assets and goodwill, both arising from the
acquisition of FirstCaribbean. These factors were partially offset by the
increase in consolidated retained earnings, and the minority interest in
FirstCaribbean.
    Our Total capital ratio was down 0.8% from the year-end, largely due to
the factors noted above and reduction in subordinated indebtedness eligible
for inclusion in Tier 2 capital.

    Significant capital management activities
    -----------------------------------------

    The following table summarizes our significant capital management
activities:

    -------------------------------------------------------------------------
                                                          For the    For the
                                                            three       nine
                                                           months     months
                                                            ended      ended
                                                          July 31,   July 31,
     $ millions                                              2007       2007
    -------------------------------------------------------------------------
    Issue of Class A Preferred Shares                   $       -  $     750
    Redemption of Class A Preferred Shares                  416(1)     832(1)
    Issue of common shares (options exercised)                 15         86
    Purchase of common shares for cancellation              306(2)     306(2)
    Issue of subordinated indebtedness                        292        292
    Dividends
      Preferred shares - classified as equity                  36        109
      Preferred shares - classified as liabilities              7         23
      Common shares                                           258        752
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes $16 million (for the nine months ended July 31, 2007:
        $32 million) of premium on the redemptions of preferred shares.
    (2) Includes $277 million of premium on the purchase of common shares.

    For additional details, see Note 5 to the interim consolidated financial
statements.

    Normal course issuer bid
    ------------------------
    On April 30, 2007, the Toronto Stock Exchange accepted our notice of
intention to commence a normal course issuer bid. Purchases under this bid
commenced on May 2, 2007 and will conclude on the earlier of the termination
of the bid, the date on which purchases under the bid have been completed, or
October 31, 2007. Under this bid, from time to time we may purchase for
cancellation up to 10 million common shares.
    Common shares purchased during the quarter are included in the table
above.

    Dividends
    ---------
    During the second quarter of 2007, we increased our quarterly common
share dividend from $0.70 per share to $0.77 per share. Subsequent to the
quarter end, on August 30, 2007, we announced an increase to our quarterly
common share dividend of 13% or 10 cents per share (to 87 cents per share).


    Off-balance sheet arrangements and contractual obligations
    ----------------------------------------------------------

    Off-balance sheet arrangements

    We enter into several types of off-balance sheet arrangements in the
normal course of our business. These include transactions with VIEs,
derivatives, credit-related arrangements and guarantees. Details on our off-
balance sheet arrangements are provided on pages 67 to 69 of the 2006 Annual
Accountability Report. For additional details on securitizations and
guarantees, see the notes to the interim consolidated financial statements.
There were no other significant changes to off-balance sheet arrangements for
the three and nine months ended July 31, 2007.

    Contractual obligations

    Details on our contractual obligations are provided on page 69 of the
2006 Annual Accountability Report.
    On November 1, 2006, we amended an information technology services
contract with an external service provider to extend an existing three year
commitment to seven years, and thereby increased the purchase obligation by
approximately $600 million through 2013. There were no significant changes to
contractual obligations that were not in the ordinary course of our business.

    Critical accounting policies and estimates
    ------------------------------------------

    A summary of significant accounting policies is presented in Note 1 to
the 2006 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. Significant
changes in accounting policies were adopted on November 1, 2006 related to the
financial instruments standards noted below. 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
70 to 73 of the 2006 Annual Accountability Report.

    Changes in accounting policy
    ----------------------------

    Financial instruments

    On November 1, 2006, we adopted the Canadian Institute of Chartered
Accountants (CICA) handbook sections 3855 "Financial Instruments - Recognition
and Measurement," 3865 "Hedges" (including the amendments to the transitional
provisions finalized by the CICA on December 15, 2006 by way of a Board
Notice), 1530 "Comprehensive Income," and 3251 "Equity."
    The standards require that all financial assets be classified as trading,
designated at fair value, available for sale, held to maturity, or loans and
receivables. In addition, the standards require that all financial assets,
including all derivatives, be measured at fair value with the exception of
loans and receivables, debt securities classified as held-to-maturity, and
available-for-sale equities that do not have quoted market values in an active
market. All financial liabilities must be recorded at amortized cost with the
exception of derivatives and other financial liabilities classified as trading
or designated at fair value, which must be carried at fair value. As required,
these standards have been applied as an adjustment to opening retained
earnings and accumulated other comprehensive income (AOCI). As a result,
retained earnings decreased by $50 million; and AOCI increased by
$123 million, excluding the impact of the reclassification of the foreign
currency translation adjustments opening balance to AOCI. Prior period
balances have not been restated.
    For further details, see Note 1 to the interim consolidated financial
statements.

    Future accounting changes
    -------------------------

    Leveraged leases

    In July 2006, the Financial Accounting Standards Board (FASB) issued a
FASB Staff Position (FSP) FAS 13-2, "Accounting for a Change or Projected
Change in the Timing of Cash Flows Relating to Income Taxes Generated by a
Leveraged Lease Transaction," which amends Statement of Financial Accounting
Standard 13, "Accounting for Leases," certain aspects of which are
incorporated in the CICA Emerging Issues Committee Abstract (EIC) 46,
"Leveraged Leases." The FSP is effective for CIBC beginning November 1, 2007.
    For additional details, see page 130 of our 2006 Annual Accountability
Report.

    Capital disclosures

    In December 2006, the CICA issued a new handbook section 1535, "Capital
Disclosures," which requires an entity to disclose its objectives, policies
and processes for managing capital. This new standard is effective for CIBC
beginning November 1, 2007.

    Financial instruments

    In December 2006, the CICA issued two new handbook sections, 3862
"Financial Instruments - Disclosures" and 3863 "Financial Instruments -
Presentation." These new standards are effective for CIBC beginning November
1, 2007.
    These sections replace CICA handbook section 3861, "Financial Instruments
- Disclosure and Presentation." These new sections enhance disclosure
requirements on the nature and extent of risks arising from financial
instruments and how the entity manages those risks.

    Controls and procedures
    -----------------------

    Disclosure controls and procedures

    CIBC's management, with the participation of the Chief Executive Officer
and Chief Financial Officer, has evaluated the effectiveness, as at July 31,
2007, of CIBC's disclosure controls and procedures (as defined in the rules of
the SEC and the Canadian Securities Administrators) and has concluded that
such disclosure controls and procedures are effective.

    Changes in internal control over financial reporting

    There have been no changes in CIBC's internal control over financial
reporting during the quarter ended July 31, 2007 that have materially
affected, or are reasonably likely to materially affect, its internal control
over financial reporting.

    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 37 of the 2006 Annual Accountability Report.
    In the first quarter of 2007, we introduced the cash basis measures which
include: basic and diluted EPS and cash efficiency ratio. Cash basis measures
are calculated by adjusting the amortization of other intangible assets to net
income and non-interest expenses. Management believes these measures permit
uniform measurement, which may enable users of our financial information to
make comparisons more readily.
    The following tables provide a reconciliation of our non-GAAP to GAAP
measures:

    --------------------------------------------------- ---------------------
                                               For the               For the
                                    three months ended     nine months ended
                       -------------------------------- ---------------------
                            2007       2007       2006       2007       2006
    $ millions           Jul. 31    Apr. 30    Jul. 31    Jul. 31    Jul. 31
    --------------------------------------------------- ---------------------
    Net interest
     income            $   1,180  $   1,079  $   1,121  $   3,318  $   3,305
    Non-interest
     income                1,799      1,971      1,705      5,802      5,156
    --------------------------------------------------- ---------------------
    Total revenue
     per financial
     statements    A       2,979      3,050      2,826      9,120      8,461
    TEB
     adjustment    B          65         54         59        181        147
    --------------------------------------------------- ---------------------
    Total
     revenue
     (TEB)(1)      C   $   3,044  $   3,104  $   2,885  $   9,301  $   8,608
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------

    Non-interest
     expenses per
     financial
     statements    D   $   1,819  $   1,976  $   1,883  $   5,738  $   5,596
    Less:
     amortization
     of other
     intangible
     assets                   11         12          7         28         21
    --------------------------------------------------- ---------------------
    Cash
     non-interest
     expenses      E   $   1,808  $   1,964  $   1,876  $   5,710  $   5,575
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------

    Income before
     taxes and
     non-
     controlling
     interests
     per financial
     statements    F   $     998  $     908  $     791  $   2,911  $   2,409
    TEB
     adjustment    B          65         54         59        181        147
    --------------------------------------------------- ---------------------
    Income before
     taxes and non-
     controlling
     interests
     (TEB)(1)      G   $   1,063  $     962  $     850  $   3,092  $   2,556
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------

    Reported income
     taxes per
     financial
     statements    H   $     157  $      91  $     125  $     479  $     553
    TEB
     adjustment    B          65         54         59        181        147
    Income tax
     recoveries    I          48         80         72        128        107
    Other tax
     adjustments   J          21         11        (10)        32        (10)
    --------------------------------------------------- ---------------------
    Adjusted
     income
     taxes(1)      K   $     291  $     236  $     246  $     820  $     797
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------

    Net income
     applicable to
     common
     shares        L   $     783  $     772  $     629  $   2,271  $   1,728
    Add: after
     tax effect
     of amorti-
     zation of
     other intan-
     gible assets              8          9          5         21         15
    --------------------------------------------------- ---------------------
    Cash net
     income
     applicable
     to common
     shares(1)     M   $     791  $     781  $     634  $   2,292  $   1,743
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------

    Basic weighted
     average common
     shares
     (thousands)   N     335,755    337,320    335,513    336,511    335,004
    Diluted
     weighted
     average
     common
     shares
     (thousands)   O     338,691    340,613    338,461    339,739    338,233
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------

    Cash
     efficiency
     ratio
     (TEB)(1)     E/C       59.4%      63.2%      65.0%      61.4%      64.8%
    Reported
     effective
     income tax
     rate
     (TEB)(1)   (H+B)/G     20.9%      15.1%      21.6%      21.3%      27.4%
    Adjusted
     effective
     income     (H+I+J)
     tax rate(1)   /F       22.6%      20.0%      23.6%      22.0%      27.0%
    Adjusted
     effective
     income tax
     rate
     (TEB)(1)    K/G        27.4%      24.5%      28.9%      26.5%      31.2%
    Cash basic
     EPS(1)      M/N   $    2.36  $    2.32  $    1.89  $    6.81  $    5.20
    Cash diluted
     EPS(1)      M/O   $    2.34  $    2.29  $    1.87  $    6.75  $    5.15
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------
    (1) Non-GAAP measure.


    CIBC INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

                                                                     For the
                              For the three months ended   nine months ended
    ----------------------------------------------------- -------------------
                                2007      2007      2006      2007      2006
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Interest income
    Loans                   $  2,501  $  2,350  $  2,206  $  7,155  $  6,247
    Securities borrowed or
     purchased under resale
     agreements                  596       499       402     1,567     1,101
    Securities                   755       719       707     2,236     1,967
    Deposits with banks          212       200       115       585       300
    ----------------------------------------------------- -------------------
                               4,064     3,768     3,430    11,543     9,615
    ----------------------------------------------------- -------------------
    Interest expense
    Deposits                   2,003     1,928     1,591     5,834     4,363
    Other liabilities            798       678       633     2,141     1,702
    Subordinated
     indebtedness                 76        75        78       227       222
    Preferred share
     liabilities                   7         8         7        23        23
    ----------------------------------------------------- -------------------
                               2,884     2,689     2,309     8,225     6,310
    ----------------------------------------------------- -------------------
    Net interest income        1,180     1,079     1,121     3,318     3,305
    ----------------------------------------------------- -------------------
    Non-interest income
    Underwriting and
     advisory fees               192       178       137       555       454
    Deposit and payment fees     205       193       201       591       583
    Credit fees                   77        82        77       228       227
    Card fees                     68        60        61       198       177
    Investment management
     and custodial fees          136       130       120       396       352
    Mutual fund fees             226       216       201       654       596
    Insurance fees, net
     of claims                    55        62        63       175       167
    Commissions on
     securities transactions     224       226       204       679       663
    Trading revenue (Note 8)      35       296       275       706       844
    Investment securities
     gains, net                  n/a       n/a        51       n/a        44
    Realized net gains on
     available-for-sale
     securities                  137       119       n/a       388       n/a
    Revenue on financial
     instruments designated
     at fair value and
     related economic
     hedges (Note 9)              45        59       n/a       147       n/a
    Income from
     securitized assets          121       136       113       386       358
    Foreign exchange
     other than trading          105       101        70       290       238
    Other                        173       113       132       409       453
    ----------------------------------------------------- -------------------
                               1,799     1,971     1,705     5,802     5,156
    ----------------------------------------------------- -------------------
    Total revenue              2,979     3,050     2,826     9,120     8,461
    ----------------------------------------------------- -------------------
    Provision for credit
     losses (Note 3)             162       166       152       471       456
    ----------------------------------------------------- -------------------
    Non-interest expenses
    Employee compensation
     and benefits              1,100     1,126     1,090     3,386     3,224
    Occupancy costs              152       152       136       454       426
    Computer and office
     equipment                   279       279       278       821       825
    Communications                77        88        74       236       224
    Advertising and
     business development         59        66        53       175       154
    Professional fees             45        43        35       127       120
    Business and
     capital taxes                31        34        33       100        99
    Other                         76       188       184       439       524
    ----------------------------------------------------- -------------------
                               1,819     1,976     1,883     5,738     5,596
    ----------------------------------------------------- -------------------
    Income before income
     taxes and
     non-controlling
     interests                   998       908       791     2,911     2,409
    Income tax expense           157        91       125       479       553
    ----------------------------------------------------- -------------------
                                 841       817       666     2,432     1,856
    Non-controlling
     interests                     6        10         4        20        29
    ----------------------------------------------------- -------------------
    Net income              $    835  $    807  $    662  $  2,412  $  1,827
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Earnings per share
     (in dollars)
     (Note 11) - Basic      $   2.33  $   2.29  $   1.88  $   6.75  $   5.16
               - Diluted    $   2.31  $   2.27  $   1.86  $   6.69  $   5.11
    Dividends per common
     share (in dollars)     $   0.77  $   0.77  $   0.70  $   2.24  $   2.06
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    n/a not applicable. Beginning November 1, 2006, certain new accounting
        categories have been created pursuant to adoption of the Canadian
        Institute of Chartered Accountants (CICA) handbook sections 3855,
        3865, 1530 and 3251. These sections were adopted on a prospective
        basis with no restatement of prior period information. See Note 1 for
        additional details.

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



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

                                                              2007      2006
    Unaudited, $ millions, as at                           Jul. 31   Oct. 31
    --------------------------------------------------------------- ---------
    ASSETS
    Cash and non-interest-bearing deposits with banks     $  1,337  $  1,317
    --------------------------------------------------------------- ---------
    Interest-bearing deposits with banks                    15,606    10,536
    --------------------------------------------------------------- ---------
    Securities
    Trading (Note 8)                                        63,452    62,331
    Available-for-sale                                      14,120       n/a
    Designated at fair value (Note 9)                        7,628       n/a
    Investment                                                 n/a    21,167
    --------------------------------------------------------------- ---------
                                                            85,200    83,498
    --------------------------------------------------------------- ---------
    Securities borrowed or purchased under
     resale agreements                                      35,084    25,432
    --------------------------------------------------------------- ---------
    Loans
    Residential mortgages                                   90,582    81,358
    Personal                                                29,136    28,052
    Credit card                                              8,442     7,253
    Business and government (Notes 8 and 9)                 33,478    30,404
    Allowance for credit losses (Note 3)                    (1,499)   (1,442)
    --------------------------------------------------------------- ---------
                                                           160,139   145,625
    --------------------------------------------------------------- ---------
    Other
    Derivative instruments market valuation (Note 7)        20,424    17,122
    Customers' liability under acceptances                   7,689     6,291
    Land, buildings and equipment                            2,082     2,032
    Goodwill                                                 1,964       982
    Other intangible assets                                    446       192
    Other assets                                             8,910    10,957
    --------------------------------------------------------------- ---------
                                                            41,515    37,576
    --------------------------------------------------------------- ---------
                                                          $338,881  $303,984
    --------------------------------------------------------------- ---------
    --------------------------------------------------------------- ---------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits
    Personal                                              $ 91,615  $ 81,829
    Business and government (Note 9)                       122,346   107,468
    Bank (Note 9)                                           16,247    13,594
    --------------------------------------------------------------- ---------
                                                           230,208   202,891
    --------------------------------------------------------------- ---------
    Other
    Derivative instruments market valuation (Note 7)        19,435    17,330
    Acceptances                                              7,689     6,297
    Obligations related to securities sold short
     (Notes 8 and 9)                                        14,035    13,788
    Obligations related to securities lent or sold
     under repurchase agreements                            34,044    30,433
    Other liabilities                                       13,154    14,716
    --------------------------------------------------------------- ---------
                                                            88,357    82,564
    --------------------------------------------------------------- ---------
    Subordinated indebtedness                                6,171     5,595
    --------------------------------------------------------------- ---------
    Preferred share liabilities                                600       600
    --------------------------------------------------------------- ---------
    Non-controlling interests                                  156        12
    --------------------------------------------------------------- ---------
    Shareholders' equity
    Preferred shares                                         2,331     2,381
    Common shares                                            3,121     3,064
    Treasury shares                                            (11)      (19)
    Contributed surplus                                         85        70
    Foreign currency translation adjustments                   n/a      (442)
    Retained earnings                                        8,450     7,268
    Accumulated other comprehensive income
     (AOCI) (Note 6)                                          (587)      n/a
    --------------------------------------------------------------- ---------
                                                            13,389    12,322
    --------------------------------------------------------------- ---------
                                                          $338,881  $303,984
    --------------------------------------------------------------- ---------
    --------------------------------------------------------------- ---------
    n/a not applicable. See the "Consolidated statement of operations" for
        additional details.

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



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

                                                                     For the
                              For the three months ended   nine months ended
    ----------------------------------------------------- -------------------
                                2007      2007      2006      2007      2006
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Preferred shares
    Balance at beginning
     of period              $  2,731  $  2,431  $  2,381  $  2,381  $  2,381
    Issue of preferred
     shares                        -       300         -       750         -
    Redemption of preferred
     shares                     (400)        -         -      (800)        -
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  2,331  $  2,731  $  2,381  $  2,331  $  2,381
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Common shares
    Balance at beginning
     of period              $  3,135  $  3,114  $  3,031  $  3,064  $  2,952
    Issue of common shares        15        21         6        86        85
    Purchase of common
     shares for cancellation     (29)        -         -       (29)        -
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  3,121  $  3,135  $  3,037  $  3,121  $  3,037
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Treasury shares
    Balance at beginning
     of period              $     (4) $     (1) $     (4) $    (19) $      -
    Purchases                 (2,045)   (1,213)     (588)   (4,614)   (2,658)
    Sales                      2,038     1,210       568     4,622     2,634
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $    (11) $     (4) $    (24) $    (11) $    (24)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Contributed surplus
    Balance at beginning
     of period              $     76  $     74  $     53  $     70  $     58
    Stock option expense           2         1         1         5         4
    Stock options exercised       (2)       (1)        -        (7)       (8)
    Net premium on treasury
     shares                        -         2        13         8        13
    Other                          9         -         -         9         -
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $     85  $     76  $     67  $     85  $     67
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Foreign currency
     translation adjustments
    Balance at beginning
     of period              $      -  $      -  $   (466) $   (442) $   (327)
    Transitional adjustment
     on adoption of new
     accounting policies(1)        -         -         -       442         -
    Foreign exchange losses
     from investment in
     subsidiaries and other
     items                       n/a       n/a       182       n/a      (572)
    Foreign exchange gains
     from hedging activities     n/a       n/a      (199)      n/a       708
    Income tax expense           n/a       n/a        68       n/a      (224)
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $      -  $      -  $   (415) $      -  $   (415)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings
    Balance at beginning
     of period, as
     previously reported    $  8,200  $  7,693  $  6,315  $  7,268  $  5,667
    Transitional adjustment
     on adoption of new
     accounting policies(1)        -         -         -       (50)        -
    ----------------------------------------------------- -------------------
    Balance at beginning of
     period, as restated       8,200     7,693     6,315     7,218     5,667
    Net income                   835       807       662     2,412     1,827
    Dividends
      Preferred                  (36)      (35)      (33)     (109)      (99)
      Common                    (258)     (259)     (234)     (752)     (690)
    Premium on redemption
     of preferred shares
     (classified as equity)      (16)        -         -       (32)        -
    Premium on purchase of
     common shares for
     cancellation               (277)        -         -      (277)        -
    Other                          2        (6)        2       (10)        7
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  8,450  $  8,200  $  6,712  $  8,450  $  6,712
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Accumulated other
     comprehensive income,
     net of tax (Note 6)
    Balance at beginning
     of period              $   (382) $   (144)      n/a       n/a       n/a
    Transitional adjustment
     on adoption of new
     accounting policies(1)        -         -       n/a      (319)      n/a
    Other comprehensive
     income                     (205)     (238)      n/a      (268)      n/a
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $   (587) $   (382)      n/a  $   (587)      n/a
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings
     and AOCI               $  7,863  $  7,818  $  6,712  $  7,863  $  6,712
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Shareholders' equity
     at end of period       $ 13,389  $ 13,756  $ 11,758  $ 13,389  $ 11,758
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Represents the transitional adjustment on adoption of the CICA
        handbook sections 3855, 3865, 1530 and 3251. See Note 1 for
        additional details.

    n/a not applicable. See the "Consolidated statement of operations" for
        additional details.

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



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

                                                                     For the
                                                                        nine
                                                                      months
                                        For the three months ended     ended
    --------------------------------------------------------------- ---------
                                                    2007      2007      2007
    Unaudited, $ millions                        Jul. 31   Apr. 30   Jul. 31
    --------------------------------------------------------------- ---------
    Net income                                  $    835  $    807  $  2,412
    --------------------------------------------------------------- ---------
    Other comprehensive income (loss),
     net of tax
      Foreign currency translation adjustments
      Net losses on investment in self-
       sustaining foreign operations(1)             (719)   (1,089)   (1,003)
      Net gains on hedges of foreign currency
       translation adjustments(2)                    549       840       786
    --------------------------------------------------------------- ---------
                                                    (170)     (249)     (217)
    --------------------------------------------------------------- ---------
      Net change in available-for-sale securities
      Net unrealized (losses) gains on securities
       available-for-sale(3)                         (43)       74       (12)
      Transfer of net (gains) losses to net
       income(4)                                     (17)        1       (44)
    --------------------------------------------------------------- ---------
                                                     (60)       75       (56)
    --------------------------------------------------------------- ---------
      Net change in cash flow hedges
      Net losses on derivatives designated as
       cash flow hedges(5)                           (31)      (55)      (13)
      Net losses (gains) on derivatives
       designated as cash flow hedges transferred
       to net income(6)                               56        (9)       18
    --------------------------------------------------------------- ---------
                                                      25       (64)        5
    --------------------------------------------------------------- ---------
    Total other comprehensive loss(7)               (205)     (238)     (268)
    --------------------------------------------------------------- ---------
    --------------------------------------------------------------- ---------
    Comprehensive income                        $    630  $    569  $  2,144
    --------------------------------------------------------------- ---------
    --------------------------------------------------------------- ---------
    (1) Net of income tax benefit of $2 million for the three and nine months
        ended July 31, 2007.
    (2) Net of income tax (expense) of $(275) million and $(387) million for
        the three and nine months ended July 31, 2007, respectively.
    (3) Net of income tax benefit of $27 million and $4 million for the three
        and nine months ended July 31, 2007, respectively.
    (4) Net of income tax (expense) of $(9) million and $(24) million for the
        three and nine months ended July 31, 2007, respectively.
    (5) Net of income tax benefit of $16 million and $6 million for the three
        and nine months ended July 31, 2007, respectively.
    (6) Net of income tax benefit of $30 million and $9 million for the three
        and nine months ended July 31, 2007, respectively.
    (7) Includes non-controlling interest of nil and $1 million for the three
        and nine months ended July 31, 2007, respectively.

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



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

                                                                     For the
                              For the three months ended   nine months ended
    ----------------------------------------------------- -------------------
                                2007      2007      2006      2007      2006
    Unaudited, $ millions    Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Cash flows provided by
     (used in) operating
     activities
    Net income              $    835  $    807  $    662  $  2,412  $  1,827
    Adjustments to
     reconcile net income
     to cash flows provided
     by (used in) operating
     activities:
      Provision for credit
       losses                    162       166       152       471       456
      Amortization of
       buildings, furniture,
       equipment and lease-
       hold improvements          52        59        50       164       155
      Amortization of other
       intangible assets          11        12         7        28        21
      Stock-based comp-
       ensation                   (3)       (2)       (6)       13        15
      Future income taxes         91        51        23       205       193
      Investment securities
       gains realized, net       n/a       n/a       (51)      n/a       (44)
      Realized net gains on
       available for sale
       securities               (137)     (119)      n/a      (388)      n/a
      Gains on disposal of
       land, buildings and
       equipment                   -         -         -         -        (1)
      Other non-cash items,
       net                       119       (11)        -       158         -
      Changes in operating
       assets and liabilities
        Accrued interest
         receivable               (5)       74        (6)      (37)     (111)
        Accrued interest
         payable                 118        29        20      (327)      233
        Amounts receivable
         on derivative
         contracts            (3,033)      450     1,191    (2,987)    2,912
        Amounts payable on
         derivative contracts  2,214       629    (1,446)    1,885    (2,883)
        Net change in trading
         securities              (48)    4,709    (1,496)      423    (6,816)
        Net change in secur-
         ities designated at
         fair value           (1,496)      837       n/a    (1,288)      n/a
        Net change in other
         assets and lia-
         bilities designated
         at fair value             -     1,194       n/a     1,381       n/a
        Current income taxes      16      (457)       24      (818)      297
        Other, net              (510)    1,325    (1,025)     (927)   (2,880)
    ----------------------------------------------------- -------------------
                              (1,614)    9,753    (1,901)      368    (6,626)
    ----------------------------------------------------- -------------------
    Cash flows provided by
     (used in) financing
     activities
    Deposits, net of with-
     drawals                   9,937    (3,619)    6,512    11,872     7,281
    Obligations related to
     securities sold short      (236)      (14)   (3,860)     (319)     (747)
    Net obligations related
     to securities lent or
     sold under repurchase
     agreements                2,272     2,517     3,210     3,611    10,567
    Issue of subordinated
     indebtedness                288        59         -       347     1,300
    Redemption of sub-
     ordinated indebtedness        -         -       (20)        -      (520)
    Issue of preferred shares      -       300         -       750         -
    Redemption of preferred
     shares                     (416)        -         -      (832)        -
    Issue of common shares        15        21         6        86        85
    Purchase of common shares
     for cancellation           (306)        -         -      (306)        -
    Net proceeds from
     treasury shares
     (purchased) sold             (7)       (3)      (20)        8       (24)
    Dividends                   (294)     (294)     (267)     (861)     (789)
    Other, net                  (555)     (154)      385      (356)      240
    ----------------------------------------------------- -------------------
                              10,698    (1,187)    5,946    14,000    17,393
    ----------------------------------------------------- -------------------
    Cash flows provided by
     (used in) investing
     activities
    Interest-bearing deposits
     with banks                 (872)    1,020      (297)   (2,346)      417
    Loans, net of repayments  (6,140)   (5,976)   (5,466)  (10,821)   (7,412)
    Proceeds from secur-
     itizations                1,581     1,698     2,705     5,816     6,599
    Investment securities
      Purchase of securities     n/a       n/a    (3,694)      n/a   (13,089)
      Proceeds from sale of
       securities                n/a       n/a     1,229       n/a     3,770
      Proceeds from maturity
       of securities             n/a       n/a       772       n/a     2,309
    Available-for-sale secur-
     ities
      Purchase of securities  (1,484)   (2,618)      n/a    (5,889)      n/a
      Proceeds from sale of
       securities              1,453     3,353       n/a     6,268       n/a
      Proceeds from maturity
       of securities             182       986       n/a     3,564       n/a
    Net securities borrowed
     or purchased under re-
     sale agreements          (4,168)   (6,948)       82    (9,652)   (3,126)
    Net cash used in acqui-
     sition(1)                     -      (262)        -    (1,040)      (75)
    Purchase of land,
     buildings and equipment       -         -       (53)     (233)      (59)
    Proceeds from disposal
     of land, buildings and
     equipment                     -         -         -         -         7
    ----------------------------------------------------- -------------------
                              (9,448)   (8,747)   (4,722)  (14,333)  (10,659)
    ----------------------------------------------------- -------------------
    Effect of exchange rate
     changes on cash and
     non-interest-bearing
     deposits with banks          (6)      (50)        8       (15)      (14)
    ----------------------------------------------------- -------------------
    Net increase (decrease)
     in cash and non-
     interest-bearing
     deposits with banks
     during period              (370)     (231)     (669)       20        94
    Cash and non-interest-
     bearing deposits with
     banks at beginning of
     period                    1,707     1,938     2,073     1,317     1,310
    ----------------------------------------------------- -------------------
    Cash and non-interest-
     bearing deposits with
     banks at end of period $  1,337  $  1,707  $  1,404  $  1,337  $  1,404
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash interest paid      $  2,766  $  2,660  $  2,289  $  8,552  $  6,077
    Cash income taxes paid  $     50  $    496  $     77  $  1,091  $     62
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Primarily relates to acquisition of FirstCaribbean International Bank
        and acquisition of the remaining non-controlling interest in INTRIA
        Items Inc.

    n/a not applicable. See the "Consolidated statement of operations" for
        additional details.

    The accompanying notes are an integral part of these interim 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, 2006, 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, 2006, as set out on
    pages 80 to 130 of the 2006 Annual Accountability Report.

    During the first quarter of 2007, we revisited our presentation of
    certain revenue and expense items for prior periods to better reflect the
    nature of these items. Accordingly, certain comparative amounts have been
    reclassified to conform with the presentation adopted in the first
    quarter of 2007.

    1.  Change in accounting policy

    On November 1, 2006, we adopted the CICA handbook sections 3855
    "Financial Instruments - Recognition and Measurement," 3865 "Hedges"
    (including the amendments to the transitional provisions finalized by the
    CICA on December 15, 2006 by way of a Board Notice), 1530 "Comprehensive
    Income," and 3251 "Equity."

    The standards require that all financial assets be classified as trading,
    designated at fair value (FVO), available-for-sale (AFS), held-to-
    maturity (HTM), or loans and receivables. The investment securities
    classification is no longer applicable under the new rules. In addition,
    the standards require that all financial assets, including all
    derivatives, be measured at fair value with the exception of loans and
    receivables, debt securities classified as HTM, and AFS equities that do
    not have quoted market values in an active market.

    Fair values are based on quoted market prices where available from active
    markets, otherwise fair values are estimated using a variety of valuation
    techniques and models. Commencing November 1, 2006, quoted market values
    of financial assets and liabilities classified as trading or FVO are in
    reference to bid or ask prices where available, as appropriate, instead
    of closing prices. Where bid and ask prices are unavailable, we continue
    to use the closing price.

    Transaction costs related to trading and FVO securities are expensed as
    incurred. Transaction costs related to AFS and HTM securities and fees
    and costs relating to loans and receivables are generally capitalized and
    are then amortized over the expected life of the instrument using the
    effective yield method.

    Settlement date accounting continues to be used for all securities,
    except that changes in fair value between the trade date and settlement
    date are reflected in income for trading and FVO securities, while
    changes in fair value between trade date and settlement date are
    reflected in "Other comprehensive income (OCI)" for AFS securities.

    Classification of financial instruments
    Trading financial instruments are financial assets and liabilities held
    for trading activities and are measured at fair value at the balance
    sheet date. Gains and losses realized on disposition and unrealized gains
    and losses from market fluctuations are reported in income as "Trading
    revenue." Dividends and interest earned and interest incurred are
    included in "Interest income" and "Interest expense," respectively.

    Designated at fair value (FVO) financial assets and financial liabilities
    are those that an entity designates on initial recognition as instruments
    that it will measure at fair value through the consolidated statement of
    operations. These are accounted for in the same manner as trading
    financial assets and financial liabilities. In addition to the
    requirement that reliable fair values are available, there are regulatory
    restrictions imposed by the Office of the Superintendent of Financial
    Institutions (OSFI) on the use of this designation precluding direct
    retail asset exposures from being designated and requiring fair value
    designated financial instruments be managed on a fair value basis.

    Available-for-sale (AFS) financial assets are those non-derivative
    financial assets that are designated as AFS, or that are not classified
    as loans and receivables, HTM investments, trading or designated at fair
    value. Securities included in this category comprise debt and equity
    securities, including investments over which we have no significant
    influence. Except for equities that do not have quoted market values in
    an active market, AFS securities are carried at fair value whereby the
    unrealized gains and losses are included in "Accumulated other
    comprehensive income (AOCI)" until sale or other-than-temporary
    impairment when the cumulative gain or loss is transferred to the
    consolidated statement of operations. Equities that do not have quoted
    market values in an active market are carried at cost. Realized gains and
    losses on sale, determined on an average cost basis, and write-downs to
    reflect other-than-temporary impairments in value are included in "Non-
    interest income." Dividends and interest income from these securities are
    included in "Interest income."

    Held-to-maturity (HTM) financial assets are non-derivative financial
    assets with fixed or determinable payments and a fixed maturity, other
    than loans and receivables, that an entity has the positive intention and
    ability to hold to maturity. These financial assets are accounted for at
    amortized cost. We have not currently designated any financial assets as
    HTM.

    Loans and receivables continue to be accounted for at amortized cost.

    Financial liabilities are recorded at amortized cost except for
    derivatives, obligations related to securities sold short, or liabilities
    to which the FVO has been applied.

    Obligations related to securities sold short are accounted for at fair
    value as a trading liability or as an economic hedge of another financial
    instrument.

    Derivatives are always carried at fair value and are reported as assets
    where they have a positive fair value and as liabilities where they have
    a negative fair value, in both cases as "Derivative instruments market
    valuation." Derivatives embedded in other financial instruments are
    valued as separate derivatives when their economic characteristics and
    risks are not clearly and closely related to those of the host contract;
    the terms of the embedded derivative are the same as those of a free
    standing derivative; and the combined contract is not held for trading or
    designated at fair value. These embedded derivatives are classified
    together with the host instrument and measured at fair value with changes
    therein recognized in the consolidated statement of operations. We
    elected to apply this accounting treatment to all host contracts
    containing such embedded derivatives at November 1, 2006.

    Equity
    Accumulated other comprehensive income is included on the consolidated
    balance sheet as a separate component of shareholders' equity (net of
    tax), and includes net unrealized gains and losses on AFS securities, the
    effective portion of gains and losses on derivative instruments
    designated within effective cash flow hedges, and unrealized foreign
    currency translation gains and losses on self-sustaining foreign
    operations net of gains or losses on related hedges.

    Hedge accounting
    Where derivatives are held for risk management purposes, and when
    transactions meet the criteria specified in the CICA handbook section
    3865, we apply fair value hedge accounting, cash flow hedge accounting,
    or accounting for hedges of net investments in self-sustaining foreign
    operations (NIFO), as appropriate, to account for the risks being hedged.
    When hedge accounting is not applied, the change in the fair value of the
    derivative is always recognized in income, including for instruments used
    for economic hedging purposes such as seller swaps that do not meet the
    requirements for hedge accounting.

    In order for derivatives to qualify for hedge accounting, the hedge
    relationship must be designated and formally documented at its inception
    in accordance with the CICA handbook section 3865, outlining the
    particular risk management objective and strategy, the specific asset,
    liability or cash flow being hedged, as well as how hedge effectiveness
    is assessed.

    We document our assessment of the effectiveness of the derivatives that
    are used in hedging transactions in offsetting changes in fair values or
    cash flows of the hedged items both at the hedge inception and on an
    ongoing basis. Ineffectiveness results to the extent that the changes in
    the fair value of the hedging derivative differ from changes in the fair
    value of the hedged risk in the hedged item; or the cumulative change in
    the fair value of the hedging derivative differs from the cumulative
    change in the fair value of expected future cash flows of the hedged
    item. Effectiveness requires a high correlation of changes in fair values
    or cash flows. The amount of ineffectiveness, provided that it is not to
    the extent as to disqualify the entire hedge from hedge accounting, is
    recorded immediately in income.

    The change in fair value of derivatives and non-derivatives not
    designated as accounting hedges but used to economically hedge FVO
    financial assets or liabilities is included in "Revenue on financial
    instruments designated at fair value and related economic hedges." The
    change in fair value of other derivatives not designated as accounting
    hedges but used for other economic hedging purposes is included in either
    "Foreign exchange other than trading (FXOTT)" or "Other non-interest
    income." The change in fair value of all other trading derivatives is
    included in "Trading revenue."

    Fair value hedges
    -----------------
    We designate fair value hedges primarily as part of interest rate risk
    management strategies that use derivatives to hedge changes in the fair
    value of financial instruments with fixed interest rates. These hedges
    minimize fluctuations in income that are caused by interest rate
    volatility through the creation of basis adjustments to the hedged
    financial instruments that are recognized in "Net interest income"
    against the change in fair value recognized in "Net interest income" from
    the hedging derivatives. Accordingly, any hedge ineffectiveness,
    representing the difference between change in fair value of the hedging
    derivative and the change in the basis adjustment to the hedged item, is
    also recognized in "Net interest income."

    The basis adjustment included in income is equal to the change in fair
    value of the hedged item attributed to the risk being hedged. If the
    hedging instrument expires or is sold, terminated or exercised, or where
    the hedge no longer meets the criteria for hedge accounting, the hedge
    relationship is terminated and the basis adjustment to the hedged item is
    amortized over the remaining term of the original hedge. If the hedged
    item is derecognized, the unamortized basis adjustment is recognized
    immediately in income.

    Upon the adoption of the new standards we re-established various fair
    value hedging relationships pursuant to which certain deferred hedge
    balances have been included as a basis adjustment to the hedged item. The
    accumulated ineffectiveness related to these hedges has been recognized
    in retained earnings together with deferred hedge balances related to
    hedging relationships that have not been continued or would not qualify
    for hedge effectiveness under the new rules.

    Cash flow hedges
    ----------------
    We designate cash flows hedges as part of risk management strategies that
    use derivatives and other financial instruments to mitigate our risk from
    variable cash flows by converting certain variable rate financial
    instruments to fixed rate financial instruments and by hedging forecasted
    foreign currency denominated cash flows.

    The effective portion of the change in fair value of the derivative
    instrument is offset through OCI until the variability in cash flows
    being hedged is recognized in earnings in future accounting periods, at
    which time the amount that was in the AOCI is reclassified into income.
    The ineffective portion of the change in fair value of the hedging
    derivative is recognized either in "FXOTT" or "Net interest income"
    immediately as it arises. If the hedging instrument expires or is sold,
    terminated or exercised, or where the hedge no longer meets the criteria
    for hedge accounting, the hedge relationship is terminated and any
    remaining amount in AOCI remains therein until it is recognized in income
    when the variability in cash flows hedged or the hedged forecast
    transaction is ultimately recognized in income. When the forecasted
    transaction is no longer expected to occur, the related cumulative gain
    or loss that was reported in the AOCI is immediately recognized in
    income.

    Upon the adoption of the new standards we re-established various cash
    flow hedging relationships pursuant to which certain deferred hedge
    balances have been included as an adjustment to the AOCI. The accumulated
    ineffectiveness related to these hedges has been recognized in retained
    earnings together with deferred hedge balances related to hedging
    relationships that have not been continued or would not qualify for hedge
    effectiveness under the new rules.

    Hedges of net investments in self-sustaining foreign operations
    ---------------------------------------------------------------
    We designate NIFO hedges to protect our investment in self sustaining
    operations against adverse movement in foreign exchange rates.

    These hedges are accounted for in a similar manner to cash flow hedges as
    the effective portion of the changes in fair value of the hedging
    derivative instruments is included in OCI until reduction in the net
    investment at which time any gains or losses in the AOCI are recognized
    in "FXOTT." The ineffective portion of the change in fair value of the
    hedging derivative is recognized in "FXOTT."

    Transitional adjustment
    As required, these standards have been applied as an adjustment to
    opening retained earnings and AOCI as at November 1, 2006. Prior period
    balances have not been restated. The impact of adopting these standards
    was as follows:

    -------------------------------------------------------------------------
                                                        Adjustment
                                                              upon
                                                   As at  adoption     As at
                                                 Oct. 31,   of new    Nov. 1,
    $ millions                                      2006 standards      2006
    -------------------------------------------------------------------------
    ASSETS
    Securities
      Investment                                $ 21,167  $(21,167) $      -
      Available-for-sale                               -    16,006    16,006
      Trading                                     62,331      (552)   61,779
      Designated at fair value                         -     6,340     6,340
    -------------------------------------------------------------------------
                                                  83,498       627    84,125
    -------------------------------------------------------------------------
    Loans                                        145,625       136   145,761
    Derivative instruments market valuation       17,122     1,585    18,707
    Other assets                                  10,957    (1,701)    9,256
    -------------------------------------------------------------------------
    Impact on total assets                      $257,202  $    647  $257,849
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits                                    $202,891  $    (44) $202,847
    Derivative instruments market valuation       17,330     1,565    18,895
    Other liabilities                             14,716      (947)   13,769
    -------------------------------------------------------------------------
    Impact on total liabilities                  234,937       574   235,511
    -------------------------------------------------------------------------
    Shareholders' equity
      Foreign currency translation adjustments      (442)      442         -
      Retained earnings                            7,268       (50)    7,218
      Accumulated other comprehensive income
        Foreign currency translation adjustments       -      (442)     (442)
        Unrealized losses on AFS securities            -       (29)      (29)
        Gains on cash flow hedges                      -       152       152
    -------------------------------------------------------------------------
    Impact on shareholders' equity                 6,826        73     6,899
    -------------------------------------------------------------------------
    Impact on liabilities and shareholders'
     equity                                     $241,763  $    647  $242,410
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The $16,006 million of financial assets classified as AFS included
    $15,429 million (fair value $15,391 million) and $615 million (fair value
    $615 million) of financial assets previously classified as investment
    securities and other assets, respectively. The $6,340 million of
    financial assets classified as designated at fair value securities
    included $5,738 million (fair value $5,799 million) and $541 million
    (fair value $541 million) of financial assets previously classified as
    investment securities and trading securities, respectively.


    2.  Acquisition

    Step 1 Acquisition

    On December 22, 2006, we obtained control of FirstCaribbean International
    Bank (FirstCaribbean) by acquiring 90% of Barclay's Bank PLC's (Barclays)
    interest in FirstCaribbean, which represents a further 39.3% ownership
    interest. As a result of this transaction ("the Step 1 Acquisition"), as
    at January 31, 2007, we owned approximately 83.0% of the common shares of
    FirstCaribbean with the remaining common shares held by both Barclays and
    other minority shareholders. The common shares were acquired at US$1.62
    each plus accrued dividends for total cash consideration of
    US$989 million ($1,153 million) paid to Barclays. In addition, we
    incurred transaction costs, net of tax, of US$7 million ($8 million).

    Step 2 Acquisition

    On February 2, 2007, pursuant to a tender offer at the same price for the
    remaining common shares held by Barclays and the other minority
    shareholders, we acquired an additional 8.5% interest in FirstCaribbean
    ("the Step 2 Acquisition) in exchange for additional cash consideration
    of US$212 million ($250 million), bringing our total ownership to 91.5%.
    In addition, we incurred additional transaction costs, net of tax, of
    US$2 million ($2 million).

    The Step 1 Acquisition and the Step 2 Acquisition transactions have been
    accounted for using the purchase method. The results of FirstCaribbean's
    operations have been included within CIBC Retail Markets strategic
    business line in the interim consolidated financial statements since
    December 22, 2006. Prior to that date, we accounted for our 43.7%
    interest in FirstCaribbean using the equity method of accounting.

    The allocation of the purchase equation was finalized in the current
    quarter. Details of the aggregate consideration given and the fair value
    of net assets acquired in respect of the Step 1 Acquisition and the
    Step 2 Acquisition, as reported in the first and second quarters of 2007,
    respectively, and the closing adjustments recorded in the current quarter
    related to both the Steps are as follows:

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

                                        Step 1    Step 2   Closing
                                        Acqui-    Acqui-   Adjust-
    $ millions                          sition    sition     ments     Total
    -------------------------------------------------------------------------
    Aggregate consideration
    Purchase consideration(1)         $  1,153  $    250  $      -  $  1,403
    Transaction costs, net of tax            8         2         -        10
    Carrying value of equity
     investment in FirstCaribbean
     prior to acquisition                  840         -         -       840
    -------------------------------------------------------------------------
                                      $  2,001  $    252  $      -  $  2,253
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Fair value of net assets acquired
    Cash and deposits with banks      $  3,107  $      -  $      -  $  3,107
    Securities                           3,934         -         8     3,942
    Loans                                6,667         -       (27)    6,640
    Goodwill                               958        84        19     1,061
    Other intangible assets                267        45        (6)      306
    Other assets                           876         8         -       884
    -------------------------------------------------------------------------
    Total assets acquired               15,809       137        (6)   15,940
    -------------------------------------------------------------------------
    Deposits                            10,921         -         -    10,921
    Other liabilities                    2,386         4        (6)    2,384
    Subordinated indebtedness              232         -         -       232
    Non-controlling interest               269      (119)        -       150
    -------------------------------------------------------------------------
    Total liabilities assumed           13,808      (115)       (6)   13,687
    -------------------------------------------------------------------------
    Net assets acquired               $  2,001  $    252  $      -  $  2,253
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Paid in cash.

    Subsequent to the Step 2 Acquisition transaction and the closing
    adjustments, the total acquired intangible assets include a core deposit
    intangible of $282 million and the FirstCaribbean brand name of
    $24 million. The core deposit intangible is amortized at 12% per annum
    using the declining balance method, while the brand has an indefinite
    life and is not amortized.

    Goodwill recognized as a result of the Step 1 Acquisition and the Step 2
    Acquisition is not deductible for tax purposes.

    As a result of subsequent transactions, including the sale of two million
    shares of our holding to FirstCaribbean's compensation trusts, our
    ownership interest as at July 31, 2007 declined to 91.4%.


    3.  Allowance for credit losses

    -------------------------------------------------------------------------
                                                  For the three months ended
                          ---------------------------------------------------
                                                 Jul. 31,  Apr. 30,  Jul. 31,
                                                    2007      2007      2006
                          ---------------------------------------------------
                            Specific   General     Total     Total     Total
    $ millions             allowance allowance allowance allowance allowance
    -------------------------------------------------------------------------
    Balance at beginning
     of period              $    622  $    894  $  1,516  $  1,556  $  1,604
    Provision for (recovery
     of) credit losses           164        (2)      162       166       152
    Write-offs                  (202)        -      (202)     (220)     (198)
    Recoveries                    29         -        29        22        23
    Other(1)                      (5)        -        (5)       (8)        1
    -------------------------------------------------------------------------
    Balance at end of
     period                 $    608  $    892  $  1,500  $  1,516  $  1,582
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprised of:
      Loans                 $    607  $    892  $  1,499  $  1,515  $  1,580
      Letters of credit(2)         1         -         1         1         2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------
                     For the nine months ended
                             Jul. 31,  Jul. 31,
                                2007      2006
    -------------------------------------------
                               Total     Total
                           allowance allowance
    -------------------------------------------
    Balance at beginning
     of period              $  1,444  $  1,638
    Provision for (recovery
     of) credit losses           471       456
    Write-offs                  (646)     (614)
    Recoveries                   104        96
    Other(1)                     127         6
    -------------------------------------------
    Balance at end of
    period                  $  1,500  $  1,582
    -------------------------------------------
    -------------------------------------------
    Comprised of:
      Loans                 $  1,499  $  1,580
      Letters of credit(2)         1         2
    -------------------------------------------
    -------------------------------------------

    (1) First quarter of 2007 includes $117 million in specific allowance and
        $23 million in general allowance related to the FirstCaribbean
        acquisition.
    (2) Included in other liabilities.


    4.  Securitizations

    -------------------------------------------------------------------------
                                                  For the three months ended
                          ---------------------------------------------------
                                       Jul. 31,  Apr. 30,            Jul. 31,
    $ millions                            2007      2007                2006
    -------------------------------------------------------------------------
                                Res-      Com-      Res-      Res-      Com-
                            idential   mercial  idential  idential   mercial
                           mortgages mortgages mortgages mortgages mortgages
    -------------------------------------------------------------------------
    Securitized             $  3,843  $    357  $  1,356  $  3,377  $    380
    Sold(1)                    1,251       357     1,707     2,328       380
    Net cash proceeds          1,235       346     1,698     2,313       392
    Retained interests(2)         19         -        34        36         -
    Gain on sale, net of
     transaction costs            11        (1)       16         4         7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained interest
     assumptions (%)

    Prepayment/payment
     rate(3)                  11.0 -         -    11.0 -    11.0 -         -
                                39.0                39.0      39.0
    Discount rate              4.0 -         -     4.1 -     4.4 -         -
                                 4.9                 4.4       4.8
    Expected credit losses     0.0 -         -     0.0 -     0.0 -         -
                                 0.1                 0.1       0.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                   For the nine months ended
                          ---------------------------------------------------
                                                 Jul. 31,            Jul. 31,
    $ millions                                      2007                2006
    -------------------------------------------------------------------------
                                Res-      Com-      Res-                Com-
                            idential   mercial  idential             mercial
                           mortgages mortgages mortgages     Cards mortgages
    -------------------------------------------------------------------------
    Securitized             $  9,049  $    357  $  8,408  $    381  $    380
    Sold(1)                    5,507       357     5,861       381       380
    Net cash proceeds          5,470       346     5,826       381       392
    Retained interests(2)         86         -        94        32         -
    Gain on sale, net of
     transaction costs            37        (1)       21         1         7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained interest
     assumptions (%)

    Prepayment/payment
     rate(3)                  11.0 -         -    11.0 -    43.5 -         -
                                39.0                39.0      43.8
    Discount rate              4.0 -         -     3.5 -                   -
                                 4.9                 4.8       9.0
    Expected credit losses     0.0 -         -     0.0 -                   -
                                 0.1                 0.1       3.6
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Assets securitized and not sold are reported as FVO securities (2006:
        investment securities) on the consolidated balance sheet.
    (2) Retained interests arising from securitization are reported as AFS
        securities (2006: investment securities) on the consolidated balance
        sheet.
    (3) Annual prepayment rate for residential mortgages and monthly payment
        rate for cards.

    5.  Significant capital transactions

    On November 15, 2006, we issued 18 million 4.70% Non-cumulative Class A
    Series 31 Preferred Shares with a par value of $25.00 each for an
    aggregate amount of $450 million. Subject to regulatory approval, we may
    redeem these shares on or after January 31, 2012.

    On January 31, 2007, we redeemed all 16 million outstanding Non-
    cumulative Class A Series 24 Preferred Shares at a price of $26.00 per
    share for an aggregate consideration of $416 million.

    On February 14, 2007, we issued 12 million 4.50% Non-cumulative Class A
    Series 32 Preferred Shares with a par value of $25.00 each for an
    aggregate amount of $300 million. Subject to regulatory approval, we may
    redeem these shares on or after April 30, 2012.

    On June 22, 2007, our wholly-owned subsidiary CIBC World Markets plc
    issued  (euro) 200 million ($292 million) principal amount of Floating
    Rate Subordinated Step-up Callable Notes due 2017. Interest is based on
    the three- month Euribor plus 0.20% until the interest payment date
    falling in June 2012, and thereafter on the three-month Euribor plus
    0.70%. Subject to regulatory approval, CIBC World Markets plc may redeem
    the Notes at par on the interest payment date falling in June 2012, or on
    any interest payment date thereafter.

    On July 2, 2007, CIBC World Markets plc gave notice of its intention to
    redeem all of its US$300 million Floating Rate Subordinated Notes due
    2012 at 100% of their principal amount plus accrued interest on
    August 14, 2007.

    On July 27, 2007, we gave notice to holders of our 5.89% Debentures
    (subordinated indebtedness) due February 26, 2013, of our offer under
    which holders can choose to exchange their Debentures for an equal
    principal amount of deposit notes of CIBC. Subsequent to the quarter-end,
    on August 27, 2007, $31 million of the Debentures were exchanged for
    deposit notes.

    On July 31, 2007, we redeemed all 16 million outstanding Non-cumulative
    Class A Series 25 Preferred Shares at a price of $26.00 per share for an
    aggregate consideration of $416 million.

    During the quarter, we issued 0.2 million common shares for $15 million
    (for the nine months ended July 31, 2007: 1.5 million common shares for
    $86 million), pursuant to stock option plans.

    On April 30, 2007, the Toronto Stock Exchange accepted our notice of
    intention to commence a normal course issuer bid. Purchases under this
    bid commenced on May 2, 2007 and will conclude on the earlier of the
    termination of the bid, the date on which purchases under the bid have
    been completed, or October 31, 2007. Under this bid, from time to time we
    may purchase for cancellation up to 10 million common shares. During the
    quarter, we repurchased and cancelled 3.1 million common shares at an
    average price of $99.54 for a total amount of $306 million.

    6.  Accumulated other comprehensive income (net of tax)

    -------------------------------------------------------------------------
                                                                        2007
    $ millions, as at                                                Jul. 31
    -------------------------------------------------------------------------
    Foreign currency translation adjustments                        $   (659)
    Net unrealized losses on AFS securities                           (85)(1)
    Net gains on cash flow hedges                                      157(2)
    -------------------------------------------------------------------------
                                                                    $   (587)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes $235 million of cumulative loss related to AFS securities
        measured at fair value.
    (2) A net gain of $27 million, deferred in AOCI, as at July 31, 2007, is
        expected to be reclassified to net income during the next 12 months.
        Remaining amounts will be reclassified to net income over periods up
        to six years thereafter.


    7.  Derivative instruments market valuation

    -------------------------------------------------------------------------
                                                                        2007
    $ millions, as at                                                Jul. 31
    -------------------------------------------------------------------------
                                                         Assets  Liabilities
    -------------------------------------------------------------------------
    Trading (Note 8)                                   $ 18,615     $ 17,688
    Designated accounting hedges (Note 12)                  945          515
    Economic hedges(1)
      Economic hedges of FVO financial assets and
       liabilities (Note 9)                                 315          220
      Other economic hedges                                 549        1,012
    -------------------------------------------------------------------------
                                                       $ 20,424     $ 19,435
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Comprises derivatives not part of qualifying hedging relationships
        for accounting purposes under the CICA handbook section 3865.


    8.  Trading activities

    The following tables present the assets and liabilities and income
    related to trading activities. Trading income comprises net interest
    income and non-interest income. Net interest income arises from interest
    and dividends related to trading assets and liabilities other than
    derivatives, and is reported net of interest expense and income
    associated with funding these assets and liabilities. Non-interest income
    includes unrealized gains and losses on security positions held, and
    gains and losses that are realized from the purchases and sales of
    securities. Non-interest income also includes all income from trading
    derivative instruments. Trading income excludes underwriting fees and
    commissions on securities transactions, which are shown separately in the
    consolidated statement of operations.


                                                              2007      2006
    $ millions, as at                                      Jul. 31   Oct. 31
    -------------------------------------------------------------------------
    Assets
    Debt securities                                       $ 30,734  $ 28,493
    Equity securities                                       32,718    33,838
    -------------------------------------------------------------------------
    Total securities                                        63,452    62,331
    -------------------------------------------------------------------------
    Business and government loans                                -     3,641
    Derivative instruments (Note 7)                         18,615    16,805
    -------------------------------------------------------------------------
                                                          $ 82,067  $ 82,777
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    Obligations related to securities sold short          $ 13,420  $ 12,716
    Derivative instruments (Note 7)                         17,688    16,891
    -------------------------------------------------------------------------
                                                          $ 31,108  $ 29,607
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                                                     For the
                              For the three months ended   nine months ended
                            ----------------------------- -------------------
                                2007      2007      2006      2007      2006
    $ millions               Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Trading income consists of:

    Interest income         $    694  $    669  $    648  $  2,092  $  1,785
    Interest expense             853       842       771     2,615     2,108
    ----------------------------------------------------- -------------------
    Net interest expense        (159)     (173)     (123)     (523)     (323)
    Non-interest income
      Trading revenue             35       296       275       706       844
    ----------------------------------------------------- -------------------
                            $   (124) $    123  $    152  $    183  $    521
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Income by product line:

    Interest rates          $    137  $     50  $     30  $    252  $    122
    Foreign exchange              49        48        44       141       124
    Equities                     (21)       22        (4)       44        62
    Commodities                    6         2        14        14        29
    Structured credit and
     other                      (295)        1      68(1)     (268)    184(1)
    ----------------------------------------------------- -------------------
                            $   (124) $    123  $    152  $    183  $    521
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Comprises primarily loan trading activities.


    9.  Financial instruments designated at fair value (FVO)

    FVO financial instruments include the following:

    -   Certain commercial real estate fixed rate loans, real estate related
        securities and loans held to hedge structured total return swap
        transactions, and certain loans hedged through credit derivatives.
        These instruments are designated at fair value to significantly
        reduce measurement inconsistencies that would arise if these were
        accounted for at amortized cost, while the related derivatives are
        treated as trading and marked-to-market.
    -   Secondary traded loans. These instruments are designated at fair
        value to match both the accounting and the economics of the
        portfolio. These financial instruments are managed as trading loans
        on a fair value basis in accordance with a documented trading
        strategy and reported to key management personnel on that basis
        pursuant to which the positions are intended to be sold within six
        months.
    -   Certain financial assets, such as mortgage-backed securities,
        Government of Canada bonds and treasury bills, debt securities, and
        certain fixed rate deposit liabilities. These instruments are
        designated at fair value to significantly reduce measurement
        inconsistencies that would arise if these were accounted for at
        amortized cost, while the related hedging derivatives, such as
        interest rate swaps, seller swaps and other asset swaps are treated
        as trading and marked-to-market.

    The following tables present the designated FVO assets and liabilities,
    their economic hedges, and the related income from these financial
    instruments. Net interest income arises from interest and dividends
    related to the FVO assets and liabilities, and is reported net of
    interest expense and income associated with funding these assets and
    liabilities. Non-interest income includes unrealized gains and losses on
    the FVO assets and liabilities and all income from the derivative
    instruments and obligations related to securities sold short held to
    economically hedge these financial instruments.

    -------------------------------------------------------------------------
                                                                        2007
    $ millions, as at                                                Jul. 31
    -------------------------------------------------------------------------
    FVO assets
    Debt securities                                                 $  7,628
    Business and government loans                                      3,866
    -------------------------------------------------------------------------
                                                                    $ 11,494
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    FVO liabilities
    Business and government deposits                                $  3,752
    Bank deposits                                                      1,024
    -------------------------------------------------------------------------
                                                                    $  4,776
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                                                        2007
    $ millions, as at                                                Jul. 31
    -------------------------------------------------------------------------
    Economic hedging assets of FVO financial instruments
    Derivative instruments (Note 7)                                 $    315
    -------------------------------------------------------------------------
                                                                    $    315
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Economic hedging liabilities of FVO financial instruments
    Derivative instruments (Note 7)                                 $    220
    Obligations related to securities sold short                         566
    -------------------------------------------------------------------------
                                                                    $    786
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    Interest income                             $    146  $    143  $    442
    Interest expense(1)                              124       127       401
    --------------------------------------------------------------- ---------
    Net interest income                               22        16        41
    --------------------------------------------------------------- ---------
    Non-interest income
      FVO financial instruments                     (149)       80       (80)
      Economic hedges(2)                             194       (21)      227
    --------------------------------------------------------------- ---------
                                                      45        59       147
    --------------------------------------------------------------- ---------
                                                $     67  $     75  $    188
    --------------------------------------------------------------- ---------
    --------------------------------------------------------------- ---------
    (1) Includes $3 million (for the nine months ended July 31, 2007:
        $9 million) on obligations related to securities sold short, which
        are held to economically hedge FVO financial instruments.
    (2) Comprises derivative instruments held to economically hedge FVO
        financial instruments.


    Deposits designated at fair value

    As at July 31, 2007, the carrying amount of FVO deposits was $1 million
    lower than the amount if the deposits were carried on an amortized cost
    basis.

    For the three and nine months ended July 31, 2007, the cumulative net
    gain attributable to changes in CIBC's credit risk for FVO deposits was
    $5 million.


    10. Employee future benefit expenses

    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended   nine months ended
                            ----------------------------- -------------------
                                2007      2007      2006      2007      2006
    $ millions               Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Defined benefit plan

      Pension benefit plans $     45  $     47  $     58  $    140  $    160
      Other benefit plans         12        11        12        31        49
    ----------------------------------------------------- -------------------
                            $     57  $     58  $     70  $    171  $    209
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Defined contribution plan

      CIBC's pension plans  $      3  $      5  $      5  $     12  $     12
      Government pension
       plans(1)                   19        22        18        63        61
    ----------------------------------------------------- -------------------
                            $     22  $     27  $     23  $     75  $     73
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal
        Insurance Contributions Act.


    11. Earnings per share

    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended   nine months ended
                            ----------------------------- -------------------
    $ millions, except          2007      2007      2006      2007      2006
     per share amounts       Jul. 31   Apr. 30   Jul. 31   Jul. 31   Jul. 31
    ----------------------------------------------------- -------------------
    Basic EPS

    Net income              $    835  $    807  $    662  $  2,412  $  1,827
    Preferred share
     dividends and premiums      (52)      (35)      (33)     (141)      (99)
    ----------------------------------------------------- -------------------
    Net income applicable
     to common shares       $    783  $    772  $    629  $  2,271  $  1,728
    ----------------------------------------------------- -------------------
    Weighted-average common
     shares outstanding
     (thousands)             335,755   337,320   335,513   336,511   335,004
    ----------------------------------------------------- -------------------
    Basic EPS               $   2.33  $   2.29  $   1.88  $   6.75  $   5.16
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Diluted EPS

    Net income applicable
     to common shares       $    783  $    772  $    629  $  2,271  $  1,728
    ----------------------------------------------------- -------------------
    Weighted-average common
     shares outstanding
     (thousands)             335,755   337,320   335,513   336,511   335,004
    Add: stock options
     potentially
     exercisable(1)
     (thousands)               2,936     3,293     2,948     3,228     3,229
    ----------------------------------------------------- -------------------
    Weighted-average
     diluted common shares
     outstanding(2)
     (thousands)             338,691   340,613   338,461   339,739   338,233
    ----------------------------------------------------- -------------------
    Diluted EPS             $   2.31  $   2.27  $   1.86  $   6.69  $   5.11
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Excludes average options outstanding of 8,758 with a weighted-average
        exercise price of $100.02; average options outstanding of 1,698 with
        a weighted-average exercise price of $102.07; and average options
        outstanding of 14,815 with a weighted-average exercise price of
        $84.69 for the three months ended July 31, 2007, April 30, 2007, and
        July 31, 2006, 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.


    12. Designated accounting hedges

    The following table presents the hedge ineffectiveness gains (losses)
    recognized in the consolidated statement of operations:

    -------------------------------------------------------------------------
                                                                     For the
                                                                        nine
                                                     For the three    months
                                                      months ended     ended
    --------------------------------------------------------------- ---------
                                                    2007      2007      2007
    $ millions                                   Jul. 31   Apr. 30   Jul. 31
    --------------------------------------------------------------- ---------
    Fair value hedges(1)                        $    (14) $      2  $    (16)
    Cash flow hedges(2)                                2         1         6
    --------------------------------------------------------------- ---------
    --------------------------------------------------------------- ---------
    (1) Recognized in net interest income.
    (2) Recognized in other income.

    Portions of derivative gains (losses) that were excluded from the
    assessment of hedge effectiveness for fair value and cash flow hedging
    activities are included in the consolidated statement of operations and
    are not significant for the three and nine months ended July 31, 2007.

    The following table presents notional amounts and carrying value of our
    hedging-related derivative instruments:

    -------------------------------------------------------------------------
                                                                        2007
    $ millions, as at                                                Jul. 31
    -------------------------------------------------------------------------
                                             Derivatives    Carrying value
                                                notional  -------------------
                                                  amount  Positive  Negative
    -------------------------------------------------------------------------
    Fair value hedges                           $ 71,439  $    622  $    448
    Cash flow hedges                               4,715       322         5
    NIFO hedges                                    7,090         1        62
    -------------------------------------------------------------------------
                                                $ 83,244  $    945  $    515
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    In addition, foreign currency denominated deposit liabilities of
    $188 million and $15.8 billion have been designated as fair value hedges
    of foreign exchange risk and NIFO hedges, respectively.


    13. Guarantees

    -------------------------------------------------------------------------
                                                              2007      2006
    $ millions, as at                                      Jul. 31   Oct. 31
    -------------------------------------------------------------------------
    Maximum potential future payment
    Securities lending with indemnification(1)            $ 47,116  $ 37,921
    Standby and performance letters of credit                6,769     6,094
    Credit enhancement facilities                                -         -
    Credit derivatives written options                      72,782    59,769
    Other derivative contracts(2)                                -         -
    Other indemnification agreements(2)                          -         -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Comprises the full contract amount of custodial client securities
        lent by CIBC Mellon Global Securities Services (GSS), which is a
        50/50 joint venture between CIBC and Mellon Financial Corporation.
    (2) See page 120 of the 2006 Annual Accountability Report for further
        details on the maximum potential future payment amount.

    As at July 31, 2007, we had a liability of $1.6 billion (October 31,
    2006: $43 million) on our consolidated balance sheet related to the
    guarantees noted above (excluding other derivative contracts). For other
    derivative contracts, some of which provide the right to the counterparty
    to sell its assets to CIBC at par value, as at July 31, 2007, we had a
    liability of $3.6 billion (October 31, 2006: $5.4 billion) on our
    consolidated balance sheet. As at July 31, 2007, the total collateral
    available relating to these guarantees was $61.9 billion (October 31,
    2006: $48.9 billion).


    14. Segmented information

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

    As discussed in Note 2, the results of FirstCaribbean are included in the
    CIBC Retail Markets strategic business line since December 22, 2006.

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

                                         CIBC       CIBC
    $ millions,                         Retail     World  Corporate     CIBC
     for the three months ended        Markets   Markets  and Other    Total
    -------------------------------------------------------------------------
    Jul. 31, 2007
      Net interest income
       (expense)                      $  1,180  $    (84) $     84  $  1,180
      Non-interest income                1,135       610        54     1,799
      Intersegment revenue(1)              (56)       56         -         -
    -------------------------------------------------------------------------
      Total revenue                      2,259       582       138     2,979
      Provision for (recovery of)
       credit losses                       170        (8)        -       162
      Amortization(2)                       29         5        29        63
      Other non-interest expenses        1,312       379        65     1,756
    -------------------------------------------------------------------------
      Income before income taxes and
       non-controlling interests           748       206        44       998
      Income tax expense (benefit)         188       (56)       25       157
      Non-controlling interests              5         1         -         6
    -------------------------------------------------------------------------
      Net income                      $    555  $    261  $     19  $    835
    -------------------------------------------------------------------------
      Average assets(3)               $217,343  $113,525  $    685  $331,553
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Apr. 30, 2007
      Net interest income (expense)   $  1,134  $   (140) $     85  $  1,079
      Non-interest income                1,107       812        52     1,971
      Intersegment revenue(1)              (52)       54        (2)        -
    -------------------------------------------------------------------------
      Total revenue                      2,189       726       135     3,050
      Provision for (recovery of)
       credit losses                       182         4       (20)      166
      Amortization(2)                       31         5        35        71
      Other non-interest expenses        1,322       519        64     1,905
    -------------------------------------------------------------------------
      Income before income taxes and
       non-controlling interests           654       198        56       908
      Income tax expense                    64         1        26        91
      Non-controlling interests              7         3         -        10
    -------------------------------------------------------------------------
      Net income                      $    583  $    194  $     30  $    807
    -------------------------------------------------------------------------
      Average assets(3)               $213,981  $111,404  $    703  $326,088
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Jul. 31, 2006
      Net interest income (expense)   $  1,110  $    (52) $     63  $  1,121
      Non-interest income                  983       672        50     1,705
      Intersegment revenue(1)              (55)       57        (2)        -
    -------------------------------------------------------------------------
      Total revenue                      2,038       677       111     2,826
      Provision for (recovery of)
       credit losses                       159        (7)        -       152
      Amortization(2)                       19         5        33        57
      Other non-interest expenses        1,232       513        81     1,826
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                           628       166        (3)      791
      Income tax expense                   141       (25)        9       125
      Non-controlling interests              -         1         3         4
    -------------------------------------------------------------------------
      Net income (loss)               $    487  $    190  $    (15) $    662
    -------------------------------------------------------------------------
      Average assets(3)               $187,209  $103,285  $    901  $291,395
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

                                         CIBC       CIBC
    $ millions,                         Retail     World  Corporate     CIBC
     for the nine months ended         Markets   Markets  and Other    Total
    -------------------------------------------------------------------------
    Jul. 31, 2007
      Net interest income (expense)   $  3,415  $   (348) $    251  $  3,318
      Non-interest income                3,347     2,273       182     5,802
      Intersegment revenue(1)             (163)      167        (4)        -
    -------------------------------------------------------------------------
      Total revenue                      6,599     2,092       429     9,120
      Provision for (recovery of)
       credit losses                       505       (14)      (20)      471
      Amortization(2)                       80        15        97       192
      Other non-interest expenses        3,902     1,444       200     5,546
    -------------------------------------------------------------------------
      Income before income taxes and
       non-controlling interests         2,112       647       152     2,911
      Income tax expense (benefit)         428       (22)       73       479
      Non-controlling interests             16         4         -        20
    -------------------------------------------------------------------------
      Net income                      $  1,668  $    665  $     79  $  2,412
    -------------------------------------------------------------------------
      Average assets(3)               $212,077  $111,851  $    644  $324,572
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Jul. 31, 2006
      Net interest income (expense)   $  3,292  $   (159) $    172  $  3,305
      Non-interest income                2,953     1,954       249     5,156
      Intersegment revenue(1)             (164)      168        (4)        -
    -------------------------------------------------------------------------
      Total revenue                      6,081     1,963       417     8,461
      Provision for (recovery of)
       credit losses                       519       (38)      (25)      456
      Amortization(2)                       61        16        99       176
      Other non-interest expenses        3,672     1,540       208     5,420
    -------------------------------------------------------------------------
      Income before income taxes and
       non-controlling interests         1,829       445       135     2,409
      Income tax expense                   472        14        67       553
      Non-controlling interests              -         3        26        29
    -------------------------------------------------------------------------
      Net income                      $  1,357  $    428  $     42  $  1,827
    -------------------------------------------------------------------------
      Average assets(3)               $185,971  $101,814  $    716  $288,501
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Intersegment revenue represents internal sales commissions and
        revenue allocations under the Manufacturer/Customer Segment/
        Distributor Management Model.
    (2) Includes amortization of buildings, furniture, equipment, leasehold
        improvements and finite-lived other intangible assets.
    (3) Assets are disclosed on an average basis as this measure is most
        relevant to a financial institution and is the measure reviewed by
        management.

    15. Future accounting changes

    Leveraged leases

    In July 2006, the Financial Accounting Standards Board (FASB) issued a
    FASB Staff Position (FSP) FAS 13-2, "Accounting for a Change or Projected
    Change in the Timing of Cash Flows Relating to Income Taxes Generated by
    a Leveraged Lease Transaction," which amends Statement of Financial
    Accounting Standard 13, "Accounting for Leases," certain aspects of which
    are incorporated in the CICA Emerging Issues Committee Abstract (EIC) 46,
    "Leveraged Leases." The FSP is effective for CIBC beginning November 1,
    2007.

    For additional details, see page 130 of our 2006 Annual Accountability
    Report.

    Capital disclosures

    In December 2006, the CICA issued a new handbook section 1535, "Capital
    Disclosures," which requires an entity to disclose its objectives,
    policies and processes for managing capital. This new standard is
    effective for CIBC beginning November 1, 2007.

    Financial instruments

    In December 2006, the CICA issued two new handbook sections, 3862
    "Financial Instruments - Disclosures" and 3863 "Financial Instruments -
    Presentation." These new standards are effective for CIBC beginning
    November 1, 2007.

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

    %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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