CIBC has four SBUs – Canadian Personal and Business Banking, Canadian Commercial Banking and Wealth Management, U.S. Commercial Banking and Wealth Management, and Capital Markets. These SBUs are supported by Corporate and Other.

Canadian Personal and Business Banking provides personal and business clients across Canada with financial advice, services and solutions through banking centres, as well as mobile and online channels to help make their ambitions a reality.

Canadian Commercial Banking and Wealth Management provides high-touch, relationship-oriented banking and wealth management services to middle-market companies, entrepreneurs, high-net-worth individuals and families across Canada, as well as asset management services to institutional investors.

U.S. Commercial Banking and Wealth Management provides high-touch, relationship-oriented banking and wealth management services across the U.S., focused on middle-market and mid-corporate companies, entrepreneurs, high-net-worth individuals and families, as well as personal and small business banking services in four U.S. Midwestern markets.

Capital Markets provides integrated global markets products and services, investment banking advisory and execution, corporate banking solutions and top-ranked research to our clients around the world. It includes Direct Financial Services which focuses on expanding CIBC’s digital capabilities to provide a cohesive set of direct banking, direct investing and innovative multi-currency payment solutions for CIBC’s clients.

Corporate and Other includes the following functional groups – Technology, Infrastructure and Innovation, Risk Management, People, Culture and Brand, Finance and Enterprise Strategy, as well as other support groups. The expenses of these functional and support groups are generally allocated to the business lines within the SBUs. The majority of the functional and support costs of CIBC Bank USA are recognized directly in the U.S. Commercial Banking and Wealth Management SBU. Corporate and Other also includes the results of CIBC FirstCaribbean and other strategic investments, as well as other income statement and balance sheet items not directly attributable to the business lines.

Business unit allocations

Revenue, expenses, and other balance sheet resources related to certain activities are generally allocated to the lines of business within the SBUs.

Treasury activities impact the financial results of the SBUs. Each line of business within our SBUs is charged or credited with a market-based cost of funds on assets and liabilities, respectively, which impacts the revenue performance of the SBUs. This market-based cost of funds takes into account the cost of maintaining sufficient regulatory capital to support business requirements, including the cost of preferred shares. Once the interest and liquidity risks inherent in our client-driven assets and liabilities are transfer priced into Treasury, they are managed within CIBC’s risk framework and limits. Capital is attributed to the SBUs based on the estimated amount of regulatory capital required to support their businesses, which is intended to consistently measure and align the costs with the underlying benefits and risks associated with SBU activities. Earnings on unattributed capital remain in Corporate and Other.

We review our transfer pricing methodologies on an ongoing basis to ensure they reflect changing market environments and industry practices.

We use a Product Owner/Customer Segment/Distributor Channel allocation management model to measure and report the results of operations of various lines of business within our SBUs. The model uses certain estimates and methodologies to process internal transfers between the impacted lines of business for sales, renewals and trailer commissions as well as certain attributable costs. Periodically, the sales, renewals and trailer commission rates paid to customer segments for certain products/services are revised and applied prospectively.

The non-interest expenses of the functional and support groups are generally allocated to the business lines within the SBUs based on appropriate criteria and methodologies. The basis of allocation is reviewed periodically to reflect changes in support to business lines. Other costs not directly attributable to business lines remain in Corporate and Other.

We recognize provision for credit losses on both impaired (stage 3) and performing (stages 1 and 2) loans in the respective

SBUs.

Results by reporting segments and geographic areas


$ millions, for the year ended October 31		Canadian Personal and Business Banking		Canadian Commercial Banking and Wealth Management			U.S. Commercial Banking and Wealth Management			Capital Markets			Corporate and Other			CIBC Total		Canada (1)		U.S. (1)			Caribbean (1)		Other countries (1)
2022	Net interest income (2)	$	6,657	$	1,672		$	1,655		$	2,814		$	(157	)	$	12,641	$	9,870	$	1,732		$	873	$	166
	Non-interest income (3)(4)		2,252		3,582			802			2,187			369			9,192		6,467		1,551			718		456
	Total revenue		8,909		5,254			2,457			5,001			212			21,833		16,337		3,283			1,591		622
	Provision for (reversal of) credit losses		876		23			218			(62	)		2			1,057		864		191			1		1
	Amortization and impairment (5)		226		2			113			6			700			1,047		824		136			67		20
	Other non-interest expenses		4,749		2,654			1,215			2,431			707			11,756		9,299		1,690			535		232
	Income (loss) before income taxes		3,058		2,575			911			2,626			(1,197	)		7,973		5,350		1,266			988		369
	Income taxes (2)		809		680			151			718			(628	)		1,730		1,195		320			116		99
	Net income (loss)	$	2,249	$	1,895		$	760		$	1,908		$	(569	)	$	6,243	$	4,155	$	946		$	872	$	270
	Net income (loss) attributable to:
	Non-controlling interests	$	–	$	–		$	–		$	–		$	23		$	23	$	–	$	–		$	23	$	–
	Equity shareholders		2,249		1,895			760			1,908			(592	)		6,220		4,155		946			849		270
	Average assets (6)(7)	$	305,070	$	84,693		$	53,983		$	284,259		$	172,208		$	900,213	$	685,956	$	147,723		$	43,123	$	23,411
2021	Net interest income (2)	$	5,954	$	1,291		$	1,449		$	2,701		$	64		$	11,459	$	9,159	$	1,470		$	672	$	158
	Non-interest income (3)(4)		2,196		3,379			745			1,819			417			8,556		6,230		1,365			622		339
	Total revenue		8,150		4,670			2,194			4,520			481			20,015		15,389		2,835			1,294		497
	Provision for (reversal of) credit losses		350		(39	)		(75	)		(100	)		22			158		320		(165	)		21		(18	)
	Amortization and impairment (5)		213		27			109			11			657			1,017		812		128			60		17
	Other non-interest expenses		4,201		2,416			1,012			2,106			783			10,518		8,423		1,382			504		209
	Income (loss) before income taxes		3,386		2,266			1,148			2,503			(981	)		8,322		5,834		1,490			709		289
	Income taxes (2)		892		601			222			646			(485	)		1,876		1,320		381			101		74
	Net income (loss)	$	2,494	$	1,665		$	926		$	1,857		$	(496	)	$	6,446	$	4,514	$	1,109		$	608	$	215
	Net income (loss) attributable to:
	Non-controlling interests	$	–	$	–		$	–		$	–		$	17		$	17	$	–	$	–		$	17	$	–
	Equity shareholders		2,494		1,665			926			1,857			(513	)		6,429		4,514		1,109			591		215
	Average assets (6)(7)	$	272,645	$	70,070		$	46,733		$	255,063		$	165,110		$	809,621	$	624,791	$	130,302		$	36,777	$	17,751

(1)	Net income and average assets are allocated based on the geographic location where they are recorded.

(2)	Capital Markets net interest income and income taxes include taxable equivalent basis (TEB) adjustments of $211 million (2021: $204 million) with an equivalent offset in Corporate and Other.

(3)

The fee and commission income within non-interest income consists primarily of underwriting and advisory fees, deposit and payment fees, credit fees, card fees, investment management and custodial fees, mutual fund fees and commissions on securities transactions. Underwriting and advisory fees are earned primarily in Capital Markets with the remainder earned in Canadian Commercial Banking and Wealth Management. Deposit and payment fees are earned primarily in Canadian Personal and Business Banking, with the remainder earned mainly in Canadian Commercial Banking and Wealth Management, Capital Markets and Corporate and Other. Credit fees are earned primarily in Canadian Commercial Banking and Wealth Management, Capital Markets, and U.S. Commercial Banking and Wealth Management. Card fees are earned primarily in Canadian Personal and Business Banking, with the remainder earned mainly in Corporate and Other. Investment management and custodial fees are earned primarily in Canadian Commercial Banking and Wealth Management and U.S. Commercial Banking and Wealth Management, with the remainder earned mainly in Corporate and Other. Mutual fund fees are earned primarily in Canadian Commercial Banking and Wealth Management and U.S. Commercial Banking and Wealth Management. Commissions on securities transactions are earned primarily in Capital Markets and Canadian Commercial Banking and Wealth Management.

(4)	Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model.

(5)	Comprises amortization and impairment of buildings, right-of-use assets, furniture, equipment, leasehold improvements, software and other intangible assets, and goodwill.

(6)	Assets are disclosed on an average basis as this measure is most relevant to a financial institution and is the measure reviewed by management.

(7)	Average balances are calculated as a weighted average of daily closing balances.

The following table provides a breakdown of revenue from our reporting segments:


$ millions, for the year ended October 31	2022			2021
Canadian Personal and Business Banking	$	8,909		$	8,150
Canadian Commercial Banking and Wealth Management
Commercial banking	$	2,278		$	1,827
Wealth management		2,976			2,843
	$	5,254		$	4,670
U.S. Commercial Banking and Wealth Management
Commercial banking	$	1,613		$	1,444
Wealth management (1)		844			750
	$	2,457		$	2,194
Capital Markets (2)
Global markets	$	2,322		$	2,076
Corporate and investment banking		1,700			1,616
Direct financial services		979			828
	$	5,001		$	4,520
Corporate and Other (2)
International banking	$	778		$	687
Other		(566	)		(206	)
	$	212		$	481

(1)	Includes revenue related to the U.S. Paycheck Protection Program.

(2)	Capital Markets revenue includes a TEB adjustment of $211 million (2021: $204 million) with an equivalent offset in Corporate and Other.