CANADIAN IMPERIAL BANK OF COMMERCE /CAN/
For the period ended Oct 31, 2025. Filed Dec 4, 2025.
View on SEC.govAbout this filing
The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2025 · Filed Dec 4, 2025
Use the contents to explore the available documents and sections.
Contents
EX-99.B3(C) · Performance against objectives
Performance against objectives
CIBC reports a scorecard of financial measures that we use to evaluate and report on our progress to external stakeholders. These measures can be categorized into four key areas – earnings growth, operating leverage, shareholder profitability and return, and balance sheet strength. We have set through the cycle targets for each of these measures, which we currently define as three to five years, assuming a normal business environment and credit cycle. Our ability to achieve these objectives may be adversely affected by extraordinary developments and disruptions.
Fiscal 2025 saw decelerating Canadian economic growth with higher unemployment, elevated tariffs in some sectors, and geopolitical pressures. This was offset by strong but volatile financial markets and stimulative monetary policy. In spite of these challenges, we delivered strong performance across all of our SBUs.
| Earnings growthTo assess our earnings growth, we monitor our earnings per share (EPS). In 2025, our reported and adjusted(1) EPS was $8.57 and $8.61, respectively, compared with $7.28 and $7.40, respectively, in 2024. Against a backdrop of a challenging economic environment, our year-over-year reported and adjusted(1) diluted EPS was up by 18% and 16%, respectively. Going forward, we will continue to target an adjusted(1) diluted EPS growth rate of 7% to 10% through the cycle. | Reported diluted EPS($) | Adjusted diluted EPS($) |
|---|---|---|
| Operating leverageOperating leverage, defined as the difference between the year-over-year percentage change in revenue and year-over-year percentage change in non-interest expenses, is a measure of the relative growth rates of revenue and expenses. In 2025, our reported and adjusted(1) operating leverage was 4.0% and 3.1%, respectively, compared with 9.1% and 1.2%, respectively, in 2024. Going forward, we will continue to target positive adjusted(1) operating leverage through the cycle. | Reported operatingleverage(%) | Adjusted operatingleverage(%) |
| (1) | Adjusted measures are non-GAAP measures. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the “Non-GAAP measures” section. |
Management’s discussion and analysis
| Shareholder profitability and returnWe have three metrics to measure shareholder profitability and return: 1. Return on common shareholders’ equity (ROE) ROE, defined as the ratio of net income to average(2) common shareholders’ equity, is a key measure of profitability. In 2025, our reported and adjusted(1) ROE were at 14.3% and 14.4%, respectively, compared with 13.4% and 13.7% in 2024, respectively, and below our through the cycle target of 15%+, driven mainly by higher regulatory capital requirements. Going forward, we will continue to target an adjusted(1) ROE of 15%+ through the cycle. | ROE (%) | Adjusted ROE (%) |
|---|---|---|
| 2. Dividend payout ratio Dividend payout ratio is defined as the ratio of common share dividends paid as a percentage of net income after preferred share dividends, premiums on preferred share redemptions, and distributions on other equity instruments. Key criteria for considering dividend increases are our current level of payout relative to our target and our view on the sustainability of our current earnings level. In 2025, our reported and adjusted(1) dividend payout ratios were 45.0% and 44.8%, respectively, compared with 49.4% and 48.5% in 2024, respectively. Going forward, we will continue to target an adjusted(1) dividend payout ratio of 40% to 50% through the cycle. | Reported dividendpayout ratio (%) | Adjusted dividendpayout ratio (%) |
| 3. Total shareholder return (TSR) TSR is the ultimate measure of shareholder value, and the output of delivering against the financial targets within our control. We continue to have an objective to deliver a TSR that exceeds the industry average, which we have defined as the Standard & Poor’s (S&P)/Toronto Stock Exchange (TSX) Composite Banks Index, over rolling three- and five-year periods. For the three years ended October 31, 2025, our TSR was 119.5% (2024: 36.4%), which was above the S&P/TSX Composite Banks Index of 73.7%. For the five years ended October 31, 2025, our TSR was 199.8% (2024: 102.9%), which was above the S&P/TSX Composite Banks Index return over the same period of 159.1%. | Rolling three-year TSR (%) | Rolling five-year TSR (%) |
| Balance sheet strengthMaintaining a strong balance sheet is foundational to our long-term success. Our goal is to maintain strong capital and liquidity positions. We look to constantly balance our objectives of holding a prudent amount of excess capital for unexpected events and environmental uncertainties, investing in our core businesses, growing through acquisitions and returning capital to our shareholders. 1. Common Equity Tier 1 (CET1) ratio We actively manage our capital to maintain a strong and efficient capital base while supporting our business growth and returning capital to our shareholders. For the year ended October 31, 2025, our CET1(3) ratio was 13.3%, compared with 13.3% in 2024, well above the current regulatory requirement set by the Office of the Superintendent of Financial Institutions (OSFI). Going forward, we will continue to maintain a strong buffer to regulatory requirements. 2. Liquidity coverage ratio (LCR) Our ability to meet our near-term financial obligations is measured through the LCR. It measures unencumbered high-quality liquid assets (HQLA) that can be converted into cash to meet liquidity needs in a 30-calendar-day liquidity stress scenario. The LCR standard requires that, absent a situation of financial stress, the value of the ratio be no lower than 100%. For the quarter ended October 31, 2025, our three-month daily average LCR(3) was 132% compared to 129% for the same period last year. | CET1 ratio(%) | |
|---|---|---|
| LCR (%) |
| (1) | Adjusted measures are non-GAAP measures. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the “Non-GAAP measures” section. |
| (2) | Average balances are calculated as a weighted average of daily closing balances. |
| (3) | Our capital ratios are calculated pursuant to OSFI’s Capital Adequacy Requirements (CAR) Guideline and the LCR is calculated pursuant to OSFI’s Liquidity Adequacy Requirements (LAR) Guideline, which are both based on Basel Committee on Banking Supervision (BCBS) standards. For additional information, see the “Capital management” and “Liquidity risk” sections. |
Management’s discussion and analysis
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.