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Designated accounting hedges
 12 Months Ended
Oct. 31, 2025
Text Block [Abstract]  
Designated accounting hedges
Note 13
  
Designated accounting hedges
 
Hedge accounting
We apply hedge accounting as part of managing the market risk of certain non-trading portfolios arising from changes due to interest rates, foreign exchange rates, and equity market prices. See the shaded sections in “Non-trading activities” in the MD&A for further information on our risk management strategy for these risks. See Note 12 for further information on the derivatives used by CIBC.
Interest rate risk
The majority of our derivative contracts used to hedge certain exposures to benchmark interest rate risk are interest rate swaps. For fair value hedges, we convert our fixed interest rate exposures from the hedged financial instruments to floating interest rate exposures. For cash flow hedges, we convert certain exposures to cash flow variability from our variable rate instruments to fixed interest rate exposures.
Foreign currency risk
For our fair value hedges, we mainly use various combinations of cross-currency interest rate swaps and interest rate swaps to hedge our exposures to foreign currency risk together with interest rate risk, converting our fixed foreign currency rate exposures to floating functional currency rate exposures.
For our cash flow hedges, the majority of our derivative contracts are used to hedge our exposures to cash flow variability arising from fluctuations in foreign exchange rates, and mainly consist of cross-currency interest rate swaps.
For NIFO hedges, we use a combination of foreign denominated deposit liabilities and foreign exchange forwards to manage our foreign currency exposure of our NIFOs with a functional currency other than the Canadian dollar.
Equity price risk
We use cash-settled TRS in designated cash flow hedge relationships to hedge changes in CIBC’s share price in respect of certain cash-settled share-based compensation awards. Note 16 provides details on our cash-settled share-based compensation plans.
For the hedge relationships described above, hedge effectiveness is assessed at the inception of the hedge relationship and on an ongoing basis, primarily using the dollar offset method. The sources of hedge ineffectiveness are mainly attributed to the following:
•  
Utilization of hedging instruments that have a non-zero fair value at the inception of the hedge relationship;
•  
Differences in fixed rates, when contractual coupons of the fixed rate hedged items are designated;
•  
Differences in the discounting factors between the hedged item and the hedging instruments arising from different rate reset frequencies and timing of cash flows; and
•  
Differences in the discount curves to determine the basis adjustments of the hedged items and the fair value of the hedging derivatives, including from the application of CVA to the valuation of derivatives when they are applicable.
Designated hedging instruments
The following table provides a summary of financial instruments designated as hedging instruments:

 
 
 
Notional
amount of
the hedging
instrument
 (1)
 
  
Maturity range
 
 
Fair value of the
hedging derivatives
 
 
Gains (losses) on
changes in fair value
used for calculating
hedge ineffectiveness
 
$ millions, as at October 31
  
Less than
1 year
 
 
1-5
years
 
 
Over 5
years
 
 
Assets
 
 
Liabilities
 
2025
   
Cash flow hedges
               
  
Foreign exchange risk
               
  
Cross-currency interest rate swaps
  
$
40,826
 
   
$
21,322
 
  
$
19,504
 
  
$
–
 
  
$
1,383
 
  
$
419
 
  
$
686
 
  
Interest rate risk
               
  
Interest rate swaps
  
 
53,148
 
   
 
1,052
 
  
 
49,251
 
  
 
2,845
 
  
 
–
 
  
 
7
 
  
 
568
 
  
Equity share price risk
               
    
Equity swaps
  
 
2,836
 
   
 
2,836
 
  
 
–
 
  
 
–
 
  
 
150
 
  
 
2
 
  
 
713
 
        
$
96,810
 
   
$
25,210
 
  
$
68,755
 
  
$
2,845
 
  
$
1,533
 
  
$
428
 
  
$
1,967
 
  
NIFO hedges
               
  
Foreign exchange risk
               
  
Foreign exchange forwards
  
$
8,934
 
   
$
8,934
 
  
$
–
 
  
$
–
 
  
$
55
 
  
$
107
 
  
$
(64
)
    
Deposits
(2)
  
 
32,799
 
   
 
32,799
 
  
 
–
 
  
 
–
 
  
 
n/a
 
  
 
n/a
 
  
 
(233
)
        
$
41,733
 
   
$
41,733
 
  
$
–
 
  
$
–
 
  
$
55
 
  
$
107
 
  
$
(297
)
  
Fair value hedges
               
  
Interest rate risk
               
  
Interest rate swaps
  
$
206,770
 
   
$
86,092
 
  
$
83,050
 
  
$
37,628
 
  
$
43
 
  
$
988
 
  
$
(158
)
  
Foreign exchange / interest rate risk
               
  
Cross-currency interest rate swaps
  
 
58,556
 
   
 
17,314
 
  
 
33,774
 
  
 
7,468
 
  
 
2,667
 
  
 
526
 
  
 
63
 
    
Interest rate swaps
  
 
29,331
 
   
 
8,146
 
  
 
18,720
 
  
 
2,465
 
  
 
–
 
  
 
1
 
  
 
315
 
        
$
294,657
 
   
$
111,552
 
  
$
135,544
 
  
$
47,561
 
  
$
2,710
 
  
$
1,515
 
  
$
220
 
    
Total
  
$
433,200
 
   
$
178,495
 
  
$
204,299
 
  
$
50,406
 
  
$
4,298
 
  
$
2,050
 
  
$
1,890
 
2024
   
Cash flow hedges
               
  
Foreign exchange risk
               
  
Cross-currency interest rate swaps
   $ 29,207      $ 14,559     $ 14,648     $ –     $ 1,008     $ 366     $ 713  
  
Interest rate risk
               
  
Interest rate swaps
     41,233        1,462       38,178       1,593       –       8       1,625  
  
Equity share price risk
               
    
Equity swaps
     2,087        1,810       277       –       156       3       920  
         $ 72,527      $ 17,831     $ 53,103     $ 1,593     $ 1,164     $ 377     $ 3,258  
  
NIFO hedges
               
  
Foreign exchange risk
               
  
Foreign exchange forwards
   $ 7,658      $ 7,658     $ –     $ –     $ 15     $ 106     $ (51 )
    
Deposits
(2)
     32,084        32,084       –       –       n/a       n/a       (216 )
         $ 39,742      $ 39,742     $ –     $ –     $ 15     $ 106     $ (267 )
  
Fair value hedges
               
  
Interest rate risk
               
  
Interest rate swaps
   $ 267,334      $ 118,011     $ 117,322     $ 32,001     $ 77     $ 926     $ (2,116 )
  
Foreign exchange / interest rate risk
               
  
Cross-currency interest rate swaps
     41,491        13,249       25,647       2,595       1,617       758       51  
    
Interest rate swaps
     21,336        6,591       14,257       488       –       15       694  
         $ 330,161      $ 137,851     $ 157,226     $ 35,084     $ 1,694     $ 1,699     $   (1,371 )
    
Total
   $   442,430      $   195,424     $   210,329     $   36,677     $   2,873     $   2,182     $ 1,620  
 
(1)
For some hedge relationships, we apply a combination of derivatives to hedge the underlying exposures; therefore, the notional amounts of the derivatives generally exceed the carrying amount of the hedged items.
(2)
Notional amount represents the principal amount of deposits as at October 31, 2025 and October 31, 2024.
n/a
Not applicable.
 
The following table provides the average rate or price of the hedging derivatives:

 
As at October 31
  
  
 
Average
exchange rate
 (1)
 
  
  
 
Average fixed
interest rate 
(1)
 
  
  
  
Average
share price
 
2025
   
Cash flow hedges
                
  
Foreign exchange risk
                
  
Cross-currency interest rate swaps
    AUD – CAD  
 
0.90
 
     
 
n/a
 
      
 
n/a
 
      EUR – CAD  
 
1.53
 
     
 
n/a
 
      
 
n/a
 
      GBP – CAD  
 
1.77
 
     
 
n/a
 
      
 
n/a
 
  
Interest rate risk
                
  
Interest rate swaps
     
 
n/a
 
    CAD  
 
2.83
 % 
      
 
n/a
 
       
 
n/a
 
    USD  
 
3.68
 % 
      
 
n/a
 
  
Equity share price risk
                
    
Equity swaps
       
 
n/a
 
       
 
n/a
 
        
$
89.81
 
  
NIFO hedges
                
  
Foreign exchange risk
                
  
Foreign exchange forwards
    AUD – CAD  
 
0.93
 
     
 
n/a
 
      
 
n/a
 
          HKD – CAD  
 
0.18
 
       
 
n/a
 
        
 
n/a
 
  
Fair value hedges
                
  
Interest rate risk
                
  
Interest rate swaps
     
 
n/a
 
    CAD  
 
2.90
 % 
      
 
n/a
 
  
Foreign exchange / interest rate risk
                
  
Cross-currency interest rate swaps
    EUR – CAD  
 
1.50
 
     
 
0.94
 % 
      
 
n/a
 
      CHF – CAD  
 
1.41
 
     
 
n/a
 
      
 
n/a
 
      USD – CAD  
 
1.42
 
     
 
2.56
 % 
      
 
n/a
 
  
Interest rate swaps
     
 
n/a
 
    CHF  
 
0.26
 % 
      
 
n/a
 
       
 
n/a
 
    EUR  
 
1.24
 % 
      
 
n/a
 
             
 
n/a
 
    GBP  
 
1.14
 % 
        
 
n/a
 
             
 
n/a
 
    USD  
 
3.82
 % 
        
 
n/a
 
2024
   
Cash flow hedges
                
  
Foreign exchange risk
                
  
Cross-currency interest rate swaps
    AUD – CAD     0.91          n/a           n/a  
      EUR – CAD     1.47          n/a           n/a  
      GBP – CAD     1.70          n/a           n/a  
  
Interest rate risk
                
  
Interest rate swaps
        n/a      CAD     3.44  %          n/a  
          n/a      USD     4.09  %          n/a  
  
Equity share price risk
                
    
Equity swaps
          n/a            n/a           $   72.68  
  
NIFO hedges
                
  
Foreign exchange risk
                
  
Foreign exchange forwards
    AUD – CAD     0.92          n/a           n/a  
          HKD – CAD     0.18            n/a             n/a  
  
Fair value hedges
                
  
Interest rate risk
                
  
Interest rate swaps
        n/a      CAD     3.71  %          n/a  
  
Foreign exchange / interest rate risk
                
  
Cross-currency interest rate swaps
    EUR – CAD     1.46          0.63  %          n/a  
      CHF – CAD     1.38          n/a           n/a  
      USD – CAD     1.32          2.06  %          n/a  
  
Interest rate swaps
        n/a      CHF     0.23  %          n/a  
          n/a      EUR     0.89  %          n/a  
                n/a      GBP     0.82  %            n/a  
 
(1)
Includes average foreign exchange rates and interest rates relating to significant hedging relationships.
n/a
Not applicable.
Designated hedged items
The following table provides information on designated hedged items:

 
 
  
 
  
Carrying amount of
the hedged item
 
  
Accumulated amount of
fair value hedge adjustments
on the hedged item
 
  
Gains (losses) on
change in fair
value used for
calculating hedge
ineffectiveness
 
$ millions, as at or for the year ended October 31
  
Assets
 
  
Liabilities
 
  
Assets
 
  
Liabilities
 
2025
   
Cash flow hedges
(1)
               
  
Foreign exchange risk
               
  
Deposits
   
$
–
 
   
$
22,807
 
   
 
n/a
 
   
 
n/a
 
   
$
(687
)
  
Interest rate risk
               
  
Loans
   
 
53,148
 
   
 
–
 
   
 
n/a
 
   
 
n/a
 
   
 
(565
)
  
Equity share price risk
               
    
Share-based payment
   
 
–
 
   
 
2,824
 
   
 
n/a
 
   
 
n/a
 
   
 
(713
)
         
$
53,148
 
   
$
25,631
 
   
 
n/a
 
   
 
n/a
 
   
$
(1,965
)
    
NIFO hedges
   
$
41,733
 
   
$
–
 
   
 
n/a
 
   
 
n/a
 
   
$
297
 
  
Fair value hedges
(2)
               
  
Interest rate risk
               
  
Securities
   
$
85,323
 
   
$
–
 
   
$
931
 
   
$
–
 
   
$
1,114
 
  
Loans
   
 
11,014
 
   
 
–
 
   
 
97
 
   
 
–
 
   
 
(186
)
  
Deposits
   
 
–
 
   
 
99,987
 
   
 
–
 
   
 
(664
)
   
 
(741
)
  
Subordinated indebtedness
   
 
–
 
   
 
5,530
 
   
 
–
 
   
 
142
 
   
 
(60
)
  
Foreign exchange / interest rate risk
               
  
Securities
   
 
14
 
   
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
    
Deposits
   
 
–
 
   
 
31,903
 
   
 
–
 
   
 
(375
)
   
 
(372
)
         
$
96,351
 
   
$
137,420
 
   
$
1,028
 
   
$
(897
)
   
$
(245
)
2024
   
Cash flow hedges
(1)
               
  
Foreign exchange risk
               
  
Deposits
    $ –      $ 16,524        n/a        n/a      $ (710 )
  
Interest rate risk
               
  
Loans
      41,233        –        n/a        n/a        (1,622 )
  
Equity share price risk
               
    
Share-based payment
      –        2,074        n/a        n/a        (920 )
          $ 41,233      $ 18,598        n/a        n/a      $ (3,252 )
    
NIFO hedges
    $ 39,742      $ –        n/a        n/a      $ 267  
  
Fair value hedges
(2)
               
  
Interest rate risk
               
  
Securities
    $ 72,816      $ –      $   (115 )    $ –      $ 3,446  
  
Loans
      51,302        –        770        –        1,057  
  
Deposits
      –        133,104        –        (1,142 )      (2,135 )
  
Subordinated indebtedness
      –        6,189        –        96        (207 )
  
Foreign exchange / interest rate risk
               
    
Deposits
      –        21,531        –        (733 )      (741 )
          $   124,118      $   160,824      $ 655      $   (1,779 )    $    1,420  
 
(1)
As at October 31, 2025, the amount remaining in AOCI related to discontinued cash flow hedges was a net gain of $544 million (2024: net loss of $198 million).
(2)
As at October 31, 2025, the accumulated fair value hedge net asset adjustment remaining on the consolidated balance sheet related to discontinued fair value hedges was $126 million (2024: net liability adjustment of $286 million).
n/a
Not applicable.
Hedge accounting gains (losses) in the consolidated statement of comprehensive income

 
$ millions, for the year ended October 31
 
Beginning
balance of
AOCI – hedge
reserve (after-tax)
 
 
Change in
the value of the
hedging instrument
recognized in
OCI (before-tax)
 
 
Amount
reclassified from
accumulated
OCI to income
(before-tax) 
(1)
 
 
Tax
benefit
(expense)
 
 
Ending balance
of AOCI
hedge reserve
(after-tax)
 
 
Hedge
ineffectiveness
gains (losses)
recognized
in income
 
2025
  
Cash flow hedges
            
 
Foreign exchange risk
  
$
(20
) 
  
$
687
 
  
$
(672
)
  
$
(4
)
  
$
(9
)
  
$
(1
)
 
Interest rate risk
  
 
396
 
  
 
565
 
  
 
79
 
  
 
(179
)
  
 
861
 
  
 
3
 
   
Equity share price risk
  
 
133
 
  
 
713
 
  
 
(692
)
  
 
(6
)
  
 
148
 
  
 
–
 
       
$
509
 
  
$
1,965
 
  
$
(1,285
)
  
$
(189
)
  
$
1,000
 
  
$
2
 
 
NIFO hedges – foreign exchange risk
            
   
Hedges of net investment in foreign operations
  
$
(3,215
) 
  
$
(297
)
  
$
–
 
  
$
(68
)
  
$
(3,580
)
  
$
–
 
2024
  
Cash flow hedges
            
 
Foreign exchange risk
   $ (27 )    $ 710     $ (701 )    $ (2 )    $ (20 )    $ 3  
 
Interest rate risk
     (970 )      1,622       270       (526 )      396       3  
   
Equity share price risk
     (29 )      920       (696 )      (62 )      133       –  
        $ (1,026 )    $   3,252     $   (1,127 )    $   (590 )    $ 509     $ 6  
 
NIFO hedges – foreign exchange risk
            
   
Hedges of net investment in foreign operations
   $   (2,948 )    $   (267 )    $ –     $ –     $   (3,215 )    $   –  
 
(1)
During the year ended October 31, 2025, the amount reclassified from AOCI to net income for cash flow hedges of forecasted transactions that were no longer expected to occur was nil (2024: nil).
 
Hedge accounting gains (losses) in the consolidated statement of income

 
$ millions, for the year ended October 31
  
Gains (losses)
on the hedging
instruments
 
  
Gains (losses) on
the hedged items
attributable
to hedged risk
 
  
Hedge
ineffectiveness
gains (losses)
recognized in income
 
2025
   
Fair value hedges
         
  
Interest rate risk
   
$
(158
)
   
$
127
 
   
$
(31
)
    
Foreign exchange / interest rate risk
   
 
378
 
   
 
(372
)
   
 
6
 
         
$
220
 
   
$
(245
)
   
$
(25
)
2024
   
Fair value hedges
         
  
Interest rate risk
    $ (2,116 )     $ 2,161      $ 45  
    
Foreign exchange / interest rate risk
      745        (741 )       4  
          $   (1,371 )     $   1,420      $      49