Annual Report 2020 - CIBC

1 Annual Report 2020 Who we are CIBC is a leading North American fnancial institution and ended 2020 with a market capitalization of $44 billion and a Basel III Common Equity Tier 1 capital ratio of Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, our 44,000 employees provide a full range of fnancial products and services to 10 million personal banking, business, public sector and institutional clients in Canada, the and around the world. $ Reported net income Our purpose CIBC s purpose is to help make your ambition a reality. $ Adjusted net income Our strategy At CIBC, our goal is to deliver superior client experience and top-tier shareholder returns while maintaining our fnancial strength.

2 To achieve our ambition, we are executing on three strategic priorities: 1. Focusing on key client segments to accelerate our earnings growth 2. Simplifying and transforming to deliver a modern relationship-banking proposition 3. Advancing our purpose-driven culture $44B Market capitalization Creating value for our shareholders At CIBC, we are committed to delivering sustainable earnings growth to our shareholders. We are guided by our purpose to help make our clients ambition a reality as we reinvest in our business to accelerate revenue growth and reduce our structural cost base while keeping a keen focus on industry-leading fundamentals in capital, expenses and risk management. Basel III CET1 r atio 10M Clients Table of contents 2020 Performance at a glance Environmental, social and governance (ESG) scorecard i Our response to COVID-19 ii Message from the President and Chief Executive Ofcer iv Message from the Chair of the Board ix Enhanced Disclosure Task Force x Management s discussion and analysis 1 Consolidated fnancial statements 99 Notes to the consolidated fnancial statements 114 Quarterly review 191 Ten-year statistical review 193 Glossary 196 Shareholder information 2032020 performance at a glance Business mix % adjusted net income(1)

3 44% Canadian Personal and Business Banking 27% Canadian Commercial Banking and Wealth Management -6% Corporate and Other 25% Capital Markets 10% Commercial Banking and Wealth Management Client experience 2020 CIBC Enterprise Net Promoter Score Reported revenue ($ billions) 19 20 18 Reported earnings per share ($) 18 19 20 Adjusted earnings per share(1) ($) 18 19 20 Dividend ($/share) 18 19 20 (1) For additional information, see the Non-GAAP measures section of the MD&A. Financial highlights For the year ended October 31 (Canadian $ in billions, except as noted) 2020 2019 Financial results Revenue Provision for credit losses Expenses Reported/Adjusted net income(1) Financial measures (%) Reported/Adjusted efciency ratio(1) Reported/Adjusted return on common shareholders equity (ROE)(1) Net interest margin Total shareholder return ( ) Common share information Reported/Adjusted earnings per share(1) Market capitalization Dividends (%) Dividend yield Reported/Adjusted dividend payout ratio(1)

4 Net income by strategic business unit Canadian Personal and Business Banking Canadian Commercial Banking and Wealth Management Commercial Banking and Wealth Management Capital Markets (1) For additional information, see the Non-GAAP measures section of the MD&A. Financial scorecard Target 2020 reported results 2020 adjusted results(1) Earnings per share (EPS) growth (2) 5% 10% annually $ , down 27% from 2019 $ , down 19% from 2019 Return on equity (ROE)(2) 15%+ Efciency ratio 52% run rate in 2022 , increased 230 basis points from 2019 , increased 30 basis points from 2019 Basel III CET1 ratio Strong bufer to regulatory minimum Dividend payout ratio(2) 40% 50% Total shareholder return Outperform the S&P/TSX Composite Banks Index over a rolling fve-year period CIBC Banks Index (1) For additional information, see the Non-GAAP measures section of the MD&A.

5 (2) Through the cycle. Environmental, social and governance (ESG) scorecard Material topics Target 2020 performance Status Client experience Continuous improvement CIBC Enterprise Net Promoter Score was , a two point increase from 2019 Privacy and information security No priv acy fndings against CIBC by regulators 3 privacy fndings against CIBC by regulators(1) X(1) sustainable fnance $150 billion in suppor t for environmental and sustainable fnancing over 10 years (2018 2027) $15. 7 billion in environmental and sustainable fnancing 28%(2) achieved to date ($42 billion) Inclusive banking Eng age 200,000 clients in fnancial education seminars and events over threeyears (2019 2021) 20 20 performance will be updated in CIBC s 2020 Sustainability Report N /A P rovide $9 billion in new loans to SMEs over four years (2020 2023) $6.

6 9 billion in new loans to small and medium-sized enterprises (SMEs) 77% achieved to date Gr ow our commercial banking Indigenous business by 10% in 2020 23% growth in commercial banking Indigenous business Belonging at work At least 30% women and at least 30% men on the CIBC Board of Directors 40% women on the CIBC Board of Directors At a minimum, between 35% and 40% women in board-approved executive roles by 2022 (Global) 33% women in board-approved executive roles (Global) A t least 22% visible minorities in board-approved executive roles by 2022 (Canada) 20% visible minorities in board-approved executive roles (Canada) 4% Black leaders in board-approved executive roles by 2023 (Canada) 3% leaders from the Black community in board-approved executive roles (Canada) 8% 9% of external hires in 2020 are persons with disabilities (Canada) 5% of external hires are persons with disabilities (Canada)(3) X(3) 2% of external hires in 2020 are Indigenous peoples (Canada) 3% of external hires are Indigenous peoples (Canada) At least 5% of student recruitment from the Black community Student recruitment from the Black community Starting in 2021 Employee engagement CIBC s employee engagement score >109% of the Willis Towers Watson global fnancial services norm CIBC s engagement score of 90% was 111% of the Willis Towers Watson global fnancial services norm V oluntary turnover < in 2020 (Canada)

7 Voluntary turnover (Canada) 100% of emplo yees will have performance reviews in 2020 100% of employees had performance reviews Community relationships $350 million in t otal corporate and employee giving over fve years (2019 2023) Invested $75 million in community organizations across Canada and the 44% achieved to date ($154 million) Business ethics 100% emplo yee completion rate for ethical training on our Code of Conduct 100% of emplo yees completed CIBC ethical training on our Code of Conduct (1) Cases against CIBC by the Ofce of the Privacy Commissioner of Canada. (2) Represents the cumulative results of 2018 through 2020. (3) The full picture of our hiring for persons with disabilities is likely not refected due to low self-disclosure in the survey utilized for data collection.

8 CIBC 2020 Annual Report i Our response to COVID-19 The COVID-19 pandemic triggered signifcant economic disruption and public health concerns around the world. From the largest corporations to families planning for their future, many clients faced a crisis that afected their immediate well-being and put their long-term ambitions at risk. Drawing on our 153-year history of being there for our clients in challenging times, everyone across our bank immediately understood the role we needed to play for our clients, for our communities, and for each other. And we did. From our teams in Asia and Europe who were frst to initiate business continuity plans to support our clients through the pandemic, to our teams across North America who were proactive in preparing for this disruption and stepped forward when called on, our global team delivered for all of our stakeholders and honoured our history.

9 CIBC 2020 Annual Report ii Our team Our global team of 44,000 was the driving force behind our strong, client-focused response to the pandemic. Protecting their health and well-being, along with that of our clients and our communities, has been our top priority. As public health measures were being enacted, an unprecedented 70% of our team members switched to working remotely. We stayed connected and focused on our clients thanks to our investments in technology and collaboration tools that facilitated a smooth transition. For team members in vital roles who needed to be on-site, we implemented enhanced safety protocols and provided additional fnancial compensation, as well as activating back-up work locations and adjusting hours in our banking centres to ensure we continued to serve our clients.

10 In addition, we provided employees with wellness resources and up to 10 additional paid days of to ensure they were taking care of themselves as they focused all of their eforts on supporting our clients through a challenging period. In our 2020 employee survey, 88% of our team members said CIBC helped them manage their well-being during the pandemic. This was an important source of pride for our team members. We also saw our employee engagement score increase to 90, an all-time high for CIBC. Our clients As the disruption caused by COVID-19 created pressure on the fnances of individuals, families and businesses alike, our entire bank leaned in with purpose as we leveraged the strength and commitment of our team to implement a range of support measures to help our clients during a challenging time.