12:30 PM EST, 03/07/2024 (MT Newswires) -- Hratch Panossian (Chief Financial Officer, Canadian Imperial Bank of Commerce ( CM )) joined RBC's Global Financial Institutions

Conference.

Key takeaways:

CIBC maintains its mid-30 bps impaired provision for credit loss (PCL) ratio for 2024, as most of the "tougher" U.S. commercial real estate (CRE) portfolio loans has been worked out/renewed to reflect current underwriting assumptions.

While CIBC continued to see increases in unsecured lending (excluding credit card) delinquencies above pre-pandemic levels, it considers its credit card portfolio delinquencies to be in the normalized range and believes that there will not be material losses in its mortgage portfolio. CIBC guided to stable or slightly expanding net interest margins (NIMs) as loan growth remains slow, and expects mid-single-digit plus net interest income (NII) growth, low-single-digit loan growth in retail, and mid-single-digit loan growth for the rest of the loan book (slightly higher for capital markets).

CET 1 ratio expected to be stable around 13% in 2024 without the DRIP discount that is likely turned off this summer. The bank is committed to ROE improvement despite carrying higher capital (as required by the regulator) and provided a road map for how it might arrive there, RBC notes.

CIBC is rated Sector Perform, with a $68 target.

Price: 66.14, Change: -0.19, Percent Change: -0.29