Goodwill impairment is a non-cash item and does not affect ongoing operations or capital ratios
May 15, 2014
(TSX: CM) (NYSE: CM) today announced that it has recorded a non-cash goodwill impairment charge of
after-tax) relating to its investment in CIBC FirstCaribbean International Bank Limited (CIBC FirstCaribbean) for the second quarter ending
April 30, 2014
In light of persistently challenging economic conditions in many
countries and our current expectations for conditions going forward, we have reduced the carrying value of the goodwill related to CIBC FirstCaribbean.
The goodwill impairment charge is a non-cash item and does not affect ongoing operations or capital ratios.
In addition to the goodwill impairment charge, CIBC also recorded
after-tax) of incremental loan losses for CIBC FirstCaribbean, reflecting revised expectations on the extent and timing of the anticipated economic recovery in the
The CET1 capital ratio as at
April 30, 2014
is expected to strengthen from 9.5% reported as at
January 31, 2014
Both of these items have been recorded in the Corporate and Other business segment and will be treated as an item of note in the Q2/14 financial release on
May 29, 2014
CIBC will be announcing its fiscal 2014 second quarter results on
Thursday, May 29, 2014.
Information relating to these results will be available at CIBC.com at approximately
6:00 a.m. (ET)
A NOTE ABOUT FORWARD-LOOKING STATEMENTS: From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this press release. These statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements in this press release include, but are not limited to, statements regarding our goodwill impairment charge, loan losses for CIBC FirstCaribbean International Bank, capital ratios and operations. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend", "estimate", "forecast", "target", "objective" and other similar expressions or future or conditional verbs such as "will", "should", "would" and "could". By their nature, these statements require us to make assumptions and are subject to inherent risks and uncertainties that may be general or specific. A variety of factors, many of which are beyond our control, affect our operations, performance and results, and could cause actual results to differ materially from the expectations expressed in any of our forward-looking statements.