Concentration of credit risk

12 Months Ended

Oct. 31, 2023


Note 23		Concentration of credit risk

Concentration of credit exposure may arise with a group of counterparties that have similar economic characteristics or are located in the same geographic region. The ability of such counterparties to meet contractual obligations would be similarly affected by changing economic, political or other conditions.

The amounts of credit exposure associated with our

on-

and

off-balance

sheet financial instruments are summarized in the following table:

Credit exposure by country of ultimate risk


$ millions, as at October 31							2023								2022
	Canada		U.S.		Other countries		Total		Canada		U.S.		Other countries		Total
On-balance sheet
Major assets (1)(2)(3)	$	604,145	$	239,201	$	91,951	$	935,297	$	603,210	$	209,824	$	82,937	$	895,971
Off-balance sheet
Credit-related arrangements
Financial institutions	$	63,541	$	28,379	$	14,978	$	106,898	$	59,480	$	22,201	$	12,797	$	94,478
Governments		12,444		82		8,415		20,941		11,354		24		6,280		17,658
Retail		189,006		1,072		511		190,589		178,863		997		492		180,352
Corporate		79,469		44,886		12,457		136,812		78,372		40,036		10,614		129,022
	$	344,460	$	74,419	$	36,361	$	455,240	$	328,069	$	63,258	$	30,183	$	421,510

(1)	Major assets consist of cash and deposits with banks, loans and acceptances net of allowance for credit losses, securities, securities borrowed or purchased under resale agreements, and derivative instruments.

(2)	Includes Canadian currency of $573.1 billion (2022: $572.3 billion) and foreign currencies of $362.2 billion (2022: $323.7 billion).

(3)

No industry or foreign jurisdiction accounted for 10% or more of loans and acceptances net of allowance for credit losses, with the exception of the U.S., which accounted for 15% as at October 31, 2023 (2022: 15%) and the real estate and construction industry, which across all jurisdictions accounted for 11% as at October 31, 2023 (2022: 10%). Canadian residential mortgages accounted for 50% as at October 31, 2023 (2022: 50%) of loans and acceptances net of allowance for credit losses.

See Note 12 for derivative instruments by country and counterparty type of ultimate risk. In addition, see Note 21 for details on the client securities lending of the joint ventures which CIBC has with The Bank of New York Mellon.

Also see the shaded sections in “MD&A – Management of risk” for a detailed discussion on our credit risk.