Canadian Imperial Bank of Commerce (NYSE:CM) Q4 2022 Earnings Call Transcript

Victor Dodig: Yes. Good morning Mario and thank you for the question. So, as you said, well, PBB and the U.S. commercial and wealth, if you are asking about regions, that’s where the performing allowances are being built. And what I would say overall is, despite that performing allowance build, when we look at the underlying credit quality, we remain very, very positive, and we see strong performance in impairments, in delinquency, in early delinquencies as well. What’s driving that performing build is really our forward-looking indicators. So, Canadian GDP, DSR is coming down. And that is impacting €“ to your question that is impacting mostly our personal lending books and our credit card books in Canada. And then in the U.S., it’s really our U.S. GDP outlook coming down. And that of course, is then having an impact on our U.S. book, so in particular, the commercial books in the U.S.

Mario Mendonca: Okay. Yes. Sorry. Please go ahead.

Victor Dodig: Yes, we additionally saw smaller, but regular model adjustments and those had a small impact as well. But as I have said, overall, we continue to be very comfortable with our loans levels.

Mario Mendonca: So, in Canada cards, and when you say personal lending, you are referring to mortgages as well, is that right?

Victor Dodig: No. There is very limited in the mortgage space. When I say personal lending, it’s mostly our unsecured personal lending books.

Mario Mendonca: Got it. Thank you. That was helpful.

Victor Dodig: Thank you.

Operator: Thank you. The following question is from Sohrab Movahedi from BMO Capital Markets. Please go ahead.

Sohrab Movahedi: Thanks. Just first, Hratch, just for €“ sorry to be a stickler on this. When we talk about this mid-single digit expense growth next year, is it off your reported expenses or adjusted expenses?

Hratch Panossian: Good morning Sohrab. It would be adjusted.