3/29/2010 National Bank Financial Canadian Financial Services Conference March 30, 2010 Gerry McCaughey CI BC President and Chief Executive Officer National Bank Financial Canadian Financial Services Conference March 3 0 , 2 0 1 0 A Note about Forw ard-Looking Statem ents From time to time, we make written or oral forward-looking statem ents within the m eaning of certain securities laws, including in this presentation, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Com mission and in other communications. These statem ents include, but are not limited to, statem ents about our operations, business lines, financial condition, risk managem ent, priorities, targets, ongoing objectives, strategies and outlook for 2010 and subsequent periods. Forward-looking statem ents 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 statem ents 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 statem ents. These factors include credit, market, liquidity, strategic, operational, reputation and legal, regulatory and environm ental risk; legislative or regulatory developm ents in the jurisdictions where we operate; amendm ents to, and interpretations of, risk- based capital guidelines and reporting instructions; the resolution of legal proceedings and related matters; the effect of changes to accounting standards, rules and interpretations; changes in our estimates of reserves and allowances; changes in tax laws; changes to our credit ratings; political conditions and developm ents; the possible effect on our business of international conflicts and the war on terror; natural disasters, public health em ergencies, disruptions to public infrastructure and other catastrophic events; reliance on third parties to provide components of our business infrastructure; the accuracy and completeness of information provided to us by clients and counterparties; the failure of third parties to comply with their obligations to us and our affiliates; intensifying competition from established competitors and new entrants in the financial services industry; technological change; global capital market activity; changes in m onetary and economic policy; currency value fluctuations; general business and economic conditions worldwide, as well as in Canada, the U.S. and other countries where we have operations; changes in market rates and prices which may adversely affect the value of financial products; our success in developing and introducing new products and services, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels; changes in client spending and saving habits; our ability to attract and retain key employees and executives; and our ability to anticipate and m anage the risks associated with these factors. This list is not exhaustive of the factors that may affect any of our forward-looking statem ents. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statem ents. We do not undertake to update any forward-looking statem ent that is contained in this presentation or in other comm unications except as required by law. Investor Relations contacts: John Ferren, Vice-President, CFA, CA (416) 980-2088 Jason Patchett, Director (416) 980-8691 Valentina Wong, Director (416) 980-8306 Visit us in the I nvestor Relations section at w w w .cibc.com 2 1
3/29/2010 National Bank Financial Canadian Financial Services Conference March 30, 2010 Solid First Quarter Results Revenue ($B) Diluted Cash EPS ($) (1) Net I ncom e ($MM) 3 .1 6 5 2 1 .6 0 2 .0 1 4 7 0 .3 1 Q1 0 9 Q1 1 0 Q1 0 9 Q1 1 0 Q1 0 9 Q1 1 0 Efficiency Ratio (% ) (2) Return on Equity (% ) Tier 1 Capital Ratio (% ) 1 3 .0 8 0 .6 2 1 .5 9.8 5 6 .6 4 .0 Q1 0 9 Q1 1 0 Q1 0 9 Q1 1 0 Q1 0 9 Q1 1 0 (1) Non-GAAP measure. See slide 18. (2) Cash basis, TEB. Non-GAAP measure. See slides 18 and 19. 3 I m proving Credit Quality Loan Losses ($MM) New I m paired Loans ($MM) 5 4 7 9 6 7 8 0 6 4 2 4 3 9 4 6 8 6 3 5 9 5 4 1 2 8 4 4 7 4 Q109 Q209 Q309 Q409 Q110 Q109 Q209 Q309 Q409 Q110 4 2
3/29/2010 National Bank Financial Canadian Financial Services Conference March 30, 2010 I ndustry Leading Capital Strength Tier 1 Capital Ratio (% ) � Invested in existing core businesses � 1 3 .0 % 40-50% dividend payout 1 2 .0 % based on sustainable earnings 8 .5 % 7 .0 % � Grow core businesses through minority investments � Maintain prudent cushion for economic and regulatory Reg. CI BC CI BC Q1 Peer uncertainty Minimum Historical 2010 Average Target Q1 2010 (1) Average of BMO, TD, RY and BNS. 5 Canadian Market Leadership CI BC Retail Markets W holesale Banking # 1 # 1 � Mergers & acquisitions � Credit cards � Equities trading � Client website � Government debt new issues # 2 # 2 � Mortgages � ABM network � Equity new issues � AUA (Wood Gundy) # 3 # 3 � Branch network � Deposits � Corporate debt new issues � Mutual funds (1) � Creditor insurance (1) Among the Big 6 Banks. 6 3
3/29/2010 National Bank Financial Canadian Financial Services Conference March 30, 2010 Extending our Leadership in Advice � A leader in net worth client advice � CIBC Wood Gundy manages over $100B of assets � CIBC Private Wealth Management and I mperial Service offer complex credit, investment, retirement and other financial needs � Extending strength in advice to personal banking � CIBC Financial HealthCheck � Investing in our brand � Television advertising campaign launched in October 2009 featuring CI BC advisors telling Canadians “Who I am here for” 7 I nvesting in Access and Choice for Clients � 50 branch openings/ relocations/ expansions over last 2 years and another 35 planned for 2010 � Over 400 branches with evening/ Saturday hours and 47 branches with Sunday hours � Upgraded ABM network with new technology, accessibility and security features � Continued investments in industry- leading internet banking � First Canadian bank to offer a mobile banking application for iPhone 8 4
3/29/2010 National Bank Financial Canadian Financial Services Conference March 30, 2010 Balancing Risk and Return Through the Cycle Jan 3 1 , 2 0 1 0 Y/ Y Market Balances ( 1 ) Grow th Share Trend ($B) (% ) Cards, outstandings (2) 14.0 0.8 Stable Mortgages & Personal 161.1 5.9 Stable Lending (2) Deposits 104.1 17.8 Increasing (incl. GICs) Mutual Funds 44.7 9.3 Stable (1) Spot balances; excluding FirstCaribbean. (2) Administered assets. Non-GAAP measure. See slide 18. 9 Targeting Grow th in Business Banking � Improve market position from # 5 to at least # 3 over next Funds Managed ($B) 3-5 years � Launched market-leading 7 0 6 7 Unlimited Business Operating Account � Realigned leadership � Supporting advisors with training and technology � Focusing strategy on defined sectors and industries (ex. Asset-Backed Lending) � Streamlining operational processes Q1 0 9 Q1 1 0 10 5
3/29/2010 National Bank Financial Canadian Financial Services Conference March 30, 2010 Retail Markets Revenue and Profitability Core Business Revenue ($MM) (1) Net I ncom e ($MM) 2 ,2 7 8 2 ,2 3 3 2 ,1 6 8 2 ,0 9 2 1 ,9 9 6 5 7 7 5 2 9 4 6 8 4 3 4 4 1 6 Q109 Q209 Q309 Q409 Q110 Q109 Q209 Q309 Q409 Q110 (1) Personal Banking, Business Banking and Wealth Management lines of business. 11 W holesale Banking Strategy and Priorities Bring Canadian Capital Markets products to Canada and the rest of the Mission world, and bring the world to Canada Be the premier client-focused wholesale bank based in Canada with a reputation for being a consistently Goal profitable and well-managed firm known for excellence in everything we do � Market leadership in core businesses � Client-focused strategy Strategic Priorities � Grow with CI BC 12 6
3/29/2010 National Bank Financial Canadian Financial Services Conference March 30, 2010 W holesale Banking Revenue and Profitability Core Business Revenue ($MM) (1) Net I ncom e, Adjusted ($MM) (2) 2 0 9 5 6 8 5 4 7 1 8 3 1 7 9 5 0 3 4 8 9 4 2 2 1 4 5 1 3 0 Q109 Q209 Q309 Q409 Q110 Q109 Q209 Q309 Q409 Q110 (1) Capital Markets and Corporate & Investment Banking lines of business. (2) Non-GAAP measure. See slides 18 and 19. 13 Opportunities to Extend Canadian Leadership � Corporate Lending & Securitization W holesale Banking Average Loans & Acceptances ($B) � Improve market position from # 5 in corporate lending and # 4 in 2 2 .3 securitization to at least # 3 over 1 9 .5 next 3-5 years � Retail solutions � Expand the sale of capital markets products to retail clients Q109 Q110 Asset-backed Com m ercial � Foreign exchange Paper Conduits ($B) � Technology investments to support 1 7 .0 broader risk-controlled sales and trading capabilities 4 .0 Q307 Q110 14 7
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