Canada|Banks CIBC CM2Q25FirstLook:(Positive)BetterThanExpectedProvisions RATINGHOLD FIRSTVIEW EquityResearch May29,2025 Conclusion CIBCcontinuedthetrendofitspeers,cominginaheadofexpectations.Againstconsensusforecasts,CMbeatonlowerprovisionsandhigherrevenues.However,wedonotethatunderlyinggrowthhasmoderated(notaCIBC-specificissue)andittookabitofastepbackonefficiency.Wewouldexpecttheheadlinebeattogarnersupportbut,givenonlyamodestbuildinperformingallowances,wewouldnotexpecttoseematerialoutperformance. Detail ExceptforU.S.CommercialandWealth,OperatingSegmentsBetterThanExpectedCMreportedadjustedearningsof$2.05pershare,aboveconsensusexpectationsof$1.87andourestimateof$1.68.WenotethateachofCIBC'soperatingsegmentscameinbetterthananticipated,withtheloneexception,itsU.S.segment. Grossimpairedloanswererelativelystableinthequarter,withaslightincreaseinprovisionsforbothperformingandimpairedloans.Higherprovisionsimpededtheearningsgrowthineachofthesegmentsbut,overall,provisionscameinbelowconsensusexpectations. CIBC'sregulatorycapitalratiodeclinedby10bpsto13.4%.Wenotethattradingrevenuesweredown8.1%whileadvisoryfeeswereup9.4%. PRICEC$93.99^ PRICETARGET|%TOPTC$89.00|-5%52WHIGH-LOWC$95.50-C$64.47FLOAT(%)|ADVMM(USD)94.5%|290.32MARKETCAPC$88.4B|$64.2B TICKERCMCN ^Priortradingday'sclosingpriceunlessotherwisenoted. RelatedResearch CanadianImperialBank:RebalancingthePortfolio-WeakerOutlookfromTariffs:DowngradeNA/CM April21,2025 JohnAiken,CFA*|EquityAnalyst (416)847-7376|jaiken@jefferies.com CanadianImperialBank:ChangingoftheGuardMarch13,2025 CanadianImperialBank:CM1Q25EarningsReview:MarchingRightAlongFebruary27,2025 JoeNg,CFA*|EquityAnalyst (416)847-7396|jng4@jefferies.com AriaSamarzadeh,CFA*|EquityAnalyst (416)847-7398|asamarzadeh@jefferies.com Pleaseseeanalystcertifications,importantdisclosureinformation,andinformationregardingthestatusofnon-USanalystsonpages3-8ofthisreport. *JefferiesSecurities,Inc. SegmentHighlights CanadianPersonalandBusinessBanking:Netinterestmarginsincreasedby3bpswhileaverageloansweredown0.2%sequentiallybutup1.7%fromayearago.Whileearningswereaheadofexpectations,thesegmentfacedheadwindsagainstthefirstquarterintheformoflowerrevenues,higherprovisionsandastepbackinefficiency. CanadianCommercialandWealth:Marginsgaveupasinglebasispointwhileaverageloanswereup1.4%againstthefirstquarterandwereup8.0%year-over-year.Thecontributionfromthesegmentwasdownsequentiallyonthebackofhigherprovisionsandlowerrevenues. U.S.CommercialandWealth:Marginsdeclinedby6bpswhileaverageloanswereup0.3%sequentiallyand3.9%fromayearago(up0.9%and3.9%,respectively,inUSD).Earningsweredownagainstthefirstquarterasrevenueseasedandthesegmenttookhigherprovisions. CapitalMarkets:Whilerevenuesheldinforthesegment,higherprovisionsandexpensesweighedontheresults,causingasequentialdeclineinearnings. CMwillholditsearningsconferencecallat7:30am.Dial-indetails:416-340-2217or1-800-806-5484(toll-free)andpasscode1073773#. CompanyDescription CIBC CIBCisadiversifiedNorthAmericanfinancialinstitutionprovidingpersonalandbusinessbanking,commercialbankingandwealthmanagement,capitalmarketsanddirectfinancialservicesbusinessesacrossCanadaandtheUnitedStates. CompanyValuation/Risks CIBC Ourbasecasepricetargetof$89forCMisbasedonan12.0xforwardP/EagainstFY25EEPSof$7.41. Riskstoourinvestmentthesisandvaluationinclude: •CIBC'soutsizedexposuretoCanadaresultsinamorelaggedgrowthvs.peersthathaveagreaterfootprintandcontributionfromamuchlarger U.S.market. •Onthecreditfront,aweaker-than-expectedeconomicoutlookcouldseethepotentialofincreasedprovisionsin2024,weighingonourearnings andestimates. •Whileamoredepressedeconomicslowdownputsgreaterpressureoncredit,lendingvolumes,andnon-interestrevenuelines,includingconsumer spendingandbankingactivity,andmarketsrelatedrevenueswouldalsobenegativelyimpacted. AnalystCertification: I,JohnAiken,CFA,certifythatalloftheviewsexpressedinthisresearchreportaccuratelyreflectmypersonalviewsaboutthesubjectsecurity(ies)andsubjectcompany(ies).Ialsocertifythatnopartofmycompensationwas,is,orwillbe,directlyorindirectly,relatedtothespecificrecommendationsorviewsexpressedinthisresearchreport. I,JoeNg,CFA,certifythatalloftheviewsexpressedinthisresearchreportaccuratelyreflectmypersonalviewsaboutthesubjectsecurity(ies)andsubjectcompany(ies).Ialsocertifythatnopartofmycompensationwas,is,orwillbe,directlyorindirectly,relatedtothespecificrecommendationsorviewsexpressedinthisresearchreport. I,AriaSamarzadeh,CFA,certifythatalloftheviewsexpressedinthisresearchreportaccuratelyreflectmypersonalviewsaboutthesubjectsecurity(ies)andsubjectcompany(ies).Ialsocertifythatnopartofmycompensationwas,is,orwillbe,directlyorindirectly,relatedtothespecificrecommendationsorviewsexpressedinthisresearchreport. Registrationofnon-USanalysts:JohnAiken,CFAisemployedbyJefferiesSecurities,Inc.,anon-USaffiliateofJefferiesLLCandisnotregistered/qualifiedasaresearchanalystwithFINRA.Thisanalyst(s)maynotbeanassociatedpersonofJefferiesLLC,aFINRAmemberfirm,andthereforemaynotbesubjecttotheFINRARule2241andrest