CIBC expects strong third quarter earnings

    TORONTO, Aug. 13 /CNW/ - CIBC said today that its diluted earnings per
share for the third quarter ended July 31, 2007, which will be announced on
August 30, are expected to be approximately $2.30, compared with $1.86 for the
third quarter ended July 31, 2006. These expected results are above previous
analyst expectations.
    CIBC's expected third quarter results include good revenue, expense and
loan loss performance in most business groups, as well as higher than normal
gains on securities and credit derivative hedges, and reversals of litigation
and income tax accruals.
    CIBC's expected third quarter results include mark-to-market write-downs,
net of gains on related hedges, of approximately $290 million ($190 million
after tax) in CIBC's Structured Credit business, on collateralized debt
obligations (CDO) and residential mortgage-backed securities (RMBS) related to
the U.S. residential mortgage market.
    "With the exception of our Structured Credit business we are pleased with
our performance in the third quarter", said President and CEO, Gerry
McCaughey. "We had positive financial results in many areas which more than
offset the Structured Credit write-downs."
    CIBC's exposure to the U.S. residential mortgage market before
write-downs is approximately US$1.7 billion (excluding exposure directly
hedged with other counterparties). CIBC estimates that less than 60% of this
exposure relates to underlying subprime mortgages, while the remainder is
midprime and higher grade assets. The majority of the US$1.7 billion exposure
continues to be AAA-rated, the highest rating category. The exposure has been
mitigated by subprime index hedges of approximately US$300 million.
    CIBC will report final third quarter results on Thursday, August 30 and
hold a conference call on that day at 3:30 p.m.


    From time to time, we make written or oral forward-looking statements
within the meaning of certain securities laws, including in this press
release, 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 about certain
CDO and RMBS holdings referred to in this press release, the U.S. residential
mortgages market, as well as our earnings for the quarter ended July 31, 2007,
our operations, business lines, financial condition, risk management,
priorities, targets, ongoing objectives, strategies and outlook for our
quarter ended July 31, 2007, the 2007 fiscal year 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 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; creditworthiness of hedge counterparties; 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 press release or other communications.

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For further information:

For further information: Investor Relations: John Ferren, (416)
980-2088; Media Relations: Rob McLeod, (416) 980-3714

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