# Consolidated financial statements

## Consolidated financial statements

| Page | Topic |
|---|---|
| 102 | Financial reporting responsibility |
| 103 | Independent auditor's report - Canadian generally accepted auditing standards |
| 106 | Report of independent registered public accounting firm - Standards of the Public Company Accounting Oversight Board (United States) |
| 108 | Report of independent registered public accounting firm - Internal control over financial reporting |
| 109 | Consolidated balance sheet |
| 110 | Consolidated statement of income |
| 111 | Consolidated statement of comprehensive income |
| 112 | Consolidated statement of changes in equity |
| 113 | Consolidated statement of cash flows |
| 114 | Notes to the consolidated financial statements |

## Details of the notes to the consolidated financial statements

| Page | Note | Topic | Page | Note | Topic |
|---|---|---|---|---|---|
| 114 | Note 1 | Basis of preparation and summary of material accounting policies | 158 | Note 16 | Share-based payments |
| 125 | Note 2 | Fair value measurement | 160 | Note 17 | Post-employment benefits |
| 132 | Note 3 | Significant transactions | 165 | Note 18 | Income taxes |
| 133 | Note 4 | Securities | 167 | Note 19 | Earnings per share |
| 134 | Note 5 | Loans | 167 | Note 20 | Commitments, guarantees and pledged assets |
| 140 | Note 6 | Structured entities and derecognition of financial assets | 169 | Note 21 | Contingent liabilities and provisions |
| 143 | Note 7 | Property and equipment | 171 | Note 22 | Concentration of credit risk |
| 144 | Note 8 | Goodwill, software and other intangible assets | 172 | Note 23 | Related-party transactions |
| 145 | Note 9 | Other assets | 173 | Note 24 | Investments in equity-accounted associates and joint ventures |
| 146 | Note 10 | Deposits | 174 | Note 25 | Significant subsidiaries |
| 146 | Note 11 | Other liabilities | 175 | Note 26 | Financial instruments - disclosures |
| 146 | Note 12 | Derivative instruments | 176 | Note 27 | Offsetting financial assets and liabilities |
| 150 | Note 13 | Designated accounting hedges | 176 | Note 28 | Interest income and expense |
| 154 | Note 14 | Subordinated indebtedness | 177 | Note 29 | Segmented and geographic information |
| 155 | Note 15 | Common and preferred shares and other equity instruments | 179 | Note 30 | Future accounting policy changes |

## Financial reporting responsibility

Management of Canadian Imperial Bank of Commerce (CIBC) is responsible for the preparation, presentation, accuracy and reliability of the Annual Report, which includes the consolidated financial statements and management's discussion and analysis (MD&A). The consolidated financial statements have been prepared in accordance with Section 308(4) of the Bank Act (Canada), which requires that the financial statements be prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The MD&A has been prepared in accordance with the requirements of applicable securities laws.

The consolidated financial statements and MD&A contain items that reflect the best estimates and judgments of the expected effects of current events and transactions with appropriate consideration to materiality. Financial information appearing throughout the Annual Report is consistent with the consolidated financial statements.

Management has developed and maintained effective systems, controls and procedures to ensure that information used internally and disclosed externally is reliable and timely. CIBC's system of internal controls and supporting procedures are designed to provide reasonable assurance that transactions are authorized, assets are safeguarded and proper records are maintained. These internal controls and supporting procedures include the communication of policies and guidelines, the establishment of an organizational structure that provides appropriate and well-defined responsibilities and accountability, and the careful selection and training of qualified staff. Management has assessed the effectiveness of CIBC's internal control over financial reporting as at year-end using the Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based upon this assessment, we have determined that internal control over financial reporting is effective in all material respects and CIBC is in compliance with the requirements set by the U.S. Securities and Exchange Commission (SEC) under the U.S. Sarbanes-Oxley Act.

CIBC's Chief Executive Officer and Chief Financial Officer have certified CIBC's annual filings with the SEC under the U.S. Sarbanes-Oxley Act and with the Canadian Securities Administrators under Canadian securities laws.

The Internal Audit department reviews and reports on the effectiveness of CIBC's internal control, risk management and governance systems and processes, including accounting and financial controls, in accordance with the audit plan approved by the Audit Committee. Our Chief Auditor has unfettered access to the Audit Committee. The system of internal controls is further supported by the Compliance and Global Regulatory Affairs group, which is designed to manage and mitigate regulatory compliance risk.

The Board of Directors oversees management's responsibilities for financial reporting through the Audit Committee, which is composed of independent directors. The Audit Committee reviews CIBC's interim and annual consolidated financial statements and MD&A and recommends them for approval by the Board of Directors. Other key responsibilities of the Audit Committee include monitoring CIBC's system of internal control, and reviewing the qualifications, independence and service quality of the shareholders' auditor and the performance of CIBC's internal auditors.

Ernst & Young LLP, the shareholders' auditor, obtains an understanding of CIBC's internal controls and procedures for financial reporting to plan and conduct such tests and other audit procedures as they consider necessary in the circumstances to express their opinions in the reports that follow. Ernst & Young LLP has unrestricted access to the Audit Committee to discuss their audit and related matters.

The Office of the Superintendent of Financial Institutions (OSFI) Canada is mandated to protect the rights and interest of depositors and creditors of CIBC. Accordingly, OSFI examines and enquires into the business and affairs of CIBC, as deemed necessary, to ensure that the provisions of the Bank Act (Canada) are being complied with and that CIBC is in sound financial condition.

| | | |
|---|---|---|
| **Harry Culham** | **Robert Sedran** | |
| President and Chief Executive Officer | Chief Financial Officer | **December 3, 2025** |

## Independent auditor's report

### Opinion

We have audited the consolidated financial statements of Canadian Imperial Bank of Commerce (CIBC), which comprise the consolidated balance sheets as at October 31, 2025 and 2024, and the consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of changes in equity and the consolidated statements of cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements").

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of CIBC as at October 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

### Basis for opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report. We are independent of CIBC in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

### Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the year ended October 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements.

| Key audit matter | How our audit addressed the key audit matter |
|---|---|
| **Allowance for credit losses** | As described in Note 1 and Note 5 of the consolidated financial statements, CIBC has recognized \$4.7 billion in expected credit loss (ECL) allowances on its consolidated balance sheet. ECL allowances represent credit losses that reflect an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes and reasonable and supportable information about past events, current conditions, and forecasts of future economic conditions. ECL allowances are measured at amounts equal to either (i) 12-month ECL; or (ii) lifetime ECL for those financial instruments that have experienced a significant increase in credit risk (SICR) since initial recognition or when there is objective evidence of impairment. |
| | Auditing the allowance for credit losses was complex, involved significant auditor judgment, and required the involvement of specialists due to the inherent complexity of the models, the large volume of data used, assumptions, judgments, and the interrelationship of these variables in measuring the ECL. Significant assumptions and judgments with respect to the estimation of the allowance for credit losses include (i) the determination of when a loan has experienced a SICR; (ii) the forecast of forward-looking information (FLI) for multiple economic scenarios and the probability weighting of those scenarios; (iii) the models and methodologies used for the calculation of both 12-month and lifetime credit losses; and (iv) the application of expert credit judgment. Management has applied a heightened use of judgment in the areas noted above, when assessing the impact of the uncertain macroeconomic environment on the allowance for credit losses. |
| | We obtained an understanding, evaluated the design and tested the operating effectiveness of management's controls over the allowance for credit losses, with the assistance of our internal specialists. The controls we tested included, amongst others, controls over technology, model validation and monitoring, economic forecasting, data completeness and accuracy, the determination of internal risk ratings for non-retail loans, and the governance and oversight controls over the review of the overall ECL, including the application of expert credit judgment. |
| | To test the allowance for credit losses, amongst other procedures, we assessed, with the assistance of our credit risk specialists, whether the methodology and assumptions used in significant models that estimate ECL are consistent with the requirements of IFRS 9. For a sample of models, our credit risk specialists reperformed the model validation and monitoring tests performed by management. This included an assessment of the thresholds used to determine a SICR. For a sample of FLI variables, with the assistance of our economic specialists, we evaluated management's forecasting methodology and compared management's FLI to independently derived forecasts and publicly available information. We also evaluated the scenario probability weights used in the ECL models. With the assistance of our credit risk specialists, we also evaluated management's methodology and governance over the application of expert credit judgment by evaluating that the amounts recorded were reflective of underlying credit and/or economic conditions. We tested the completeness and accuracy of data used in the measurement of the ECL by agreeing to source documents and systems and evaluated a sample of non-retail borrower risk ratings against CIBC's risk rating scale. On a sample basis, we recalculated the ECL to test the mathematical accuracy of management's models. We also assessed the adequacy of the disclosures related to allowance for credit losses. |
| **Fair value measurement of derivatives** | As described in Note 2 and Note 12 of the consolidated financial statements, CIBC has recognized \$38.4 billion in derivative assets and \$41.4 billion in derivative liabilities. The portfolio of derivative instruments is presented by level within the fair value hierarchy, with the majority of the portfolio classified as Level 2. While derivative instruments classified as Level 1 have quoted market prices, those classified as Level 2 and 3 require valuation techniques that use observable and non-observable market inputs and involve the application of management judgment. |
| | Auditing the valuation of certain derivatives was complex and required the application of significant auditor judgment and involvement of valuation specialists where the fair value was determined based on complex models and/or significant non-observable market inputs. The inputs and modelling assumptions used to determine fair values that were subject to significant auditor judgment included, amongst others, correlations, volatilities and credit spreads. The valuation of derivatives is sensitive to these inputs as they are forward-looking and could be affected by future economic and market conditions. |
| | We obtained an understanding, evaluated the design and tested the operating effectiveness of management's controls over the valuation of CIBC's derivatives portfolio, with the assistance of our internal specialists. The controls we tested included, amongst others, controls over technology, the development and validation of models used to determine the fair value of derivatives, and controls over the independent price verification process, including the integrity of significant inputs described above. |
| | To test the valuation of these derivatives, our audit procedures included, amongst others, an evaluation of the methodologies and significant inputs used by CIBC. With the assistance of our valuation specialists, we performed an independent valuation for a sample of derivatives to assess the modelling assumptions and significant inputs used by CIBC to estimate the fair value. We independently obtained significant inputs and assumptions from external market data, where available, in performing our independent valuation. For a sample of models, and with the assistance of our valuation specialists, we assessed the valuation methodologies used by CIBC to determine fair values. We also assessed the adequacy of the disclosures related to the fair value measurement of derivatives. |
| **Measurement of uncertain tax provisions** | As described in Note 1 and Note 18 of the consolidated financial statements, CIBC has disclosed its material accounting policies, estimates and assumptions in relation to accounting for uncertainty in income taxes. CIBC operates in a tax environment with constantly evolving and complex tax legislation for financial institutions. Uncertainty in tax positions may arise as tax legislation is subject to interpretation. Estimating uncertain tax provisions requires management judgment to be applied in the interpretation of tax laws across the various jurisdictions in which CIBC operates. This includes significant judgment in the determination of whether it is probable that CIBC's tax filing positions will be sustained relating to certain complex tax positions and the measurement of such provisions when recognized. |
| | Auditing CIBC's uncertain tax provisions required the involvement of our tax professionals and the application of judgment, including the interpretation of applicable tax legislation and jurisprudence. |
| | With the assistance of our tax professionals, we obtained an understanding, evaluated the design and tested the operating effectiveness of management's controls over CIBC's uncertain tax provisions. This included, amongst others, controls over management's assessment of the technical merits of tax positions and the process related to the measurement of any related income tax provisions. |
| | With the assistance of our tax professionals, our audit procedures included, amongst others, an assessment of the technical merits of income tax positions taken by CIBC and the measurement of any related uncertain tax provisions recorded. We inspected and evaluated correspondence from the relevant income tax authorities, income tax advice obtained by CIBC from external advisors including income tax opinions, CIBC's interpretations of tax laws and the assessment thereof with respect to uncertain tax positions. We evaluated the reasonability of CIBC's treatment of any new information received during the year relating to these uncertain tax positions. We also assessed the adequacy of the disclosures related to uncertain tax positions. |

### Other information

Management is responsible for the other information. The other information comprises:

* Management's discussion and analysis; and
* The information, other than the consolidated financial statements and our auditor's report thereon, in the Annual Report.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

We obtained management's discussion and analysis and the Annual Report prior to the date of this auditor's report. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact in this auditor's report. We have nothing to report in this regard.

| | |
|---|---|
| **Ernst & Young LLP** | |
| Chartered Professional Accountants | |
| Licensed Public Accountants | |
| Toronto, Canada | |
| **December 3, 2025** | |

## Report of independent registered public accounting firm

### Opinion on the consolidated financial statements

We have audited the accompanying consolidated balance sheets of Canadian Imperial Bank of Commerce (CIBC) as of October 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the years then ended, and the related notes (collectively referred to as the "consolidated financial statements").

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of CIBC at October 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), CIBC's internal control over financial reporting as of October 31, 2025, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated December 3, 2025 expressed an unqualified opinion thereon.

### Basis for opinion

These consolidated financial statements are the responsibility of CIBC's management. Our responsibility is to express an opinion on CIBC's consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to CIBC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

### Critical audit matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

| Description of the matter | How we addressed the matter in our audit |
|---|---|
| **Allowance for credit losses** | As described in Note 1 and Note 5 of the consolidated financial statements, CIBC has recognized \$4.7 billion in expected credit loss (ECL) allowances on its consolidated balance sheet. ECL allowances represent credit losses that reflect an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes and reasonable and supportable information about past events, current conditions, and forecasts of future economic conditions. ECL allowances are measured at amounts equal to either (i) 12-month ECL; or (ii) lifetime ECL for those financial instruments that have experienced a significant increase in credit risk (SICR) since initial recognition or when there is objective evidence of impairment. |
| | Auditing the allowance for credit losses was complex, involved significant auditor judgment, and required the involvement of specialists due to the inherent complexity of the models, the large volume of data used, assumptions, judgments, and the interrelationship of these variables in measuring the ECL. Significant assumptions and judgments with respect to the estimation of the allowance for credit losses include (i) the determination of when a loan has experienced a SICR; (ii) the forecast of forward-looking information (FLI) for multiple economic scenarios and the probability weighting of those scenarios; (iii) the models and methodologies used for the calculation of both 12-month and lifetime credit losses; and (iv) the application of expert credit judgment. Management has applied a heightened use of judgment in the areas noted above, when assessing the impact of the uncertain macroeconomic environment on the allowance for credit losses. |
| | We obtained an understanding, evaluated the design and tested the operating effectiveness of management's controls over the allowance for credit losses, with the assistance of our internal specialists. The controls we tested included, amongst others, controls over technology, model validation and monitoring, economic forecasting, data completeness and accuracy, the determination of internal risk ratings for non-retail loans, and the governance and oversight controls over the review of the overall ECL, including the application of expert credit judgment. |
| | To test the allowance for credit losses, amongst other procedures, we assessed, with the assistance of our credit risk specialists, whether the methodology and assumptions used in significant models that estimate ECL are consistent with the requirements of IFRS 9. For a sample of models, our credit risk specialists reperformed the model validation and monitoring tests performed by management. This included an assessment of the thresholds used to determine a SICR. For a sample of FLI variables, with the assistance of our economic specialists, we evaluated management's forecasting methodology and compared management's FLI to independently derived forecasts and publicly available information. We also evaluated the scenario probability weights used in the ECL models. With the assistance of our credit risk specialists, we also evaluated management's methodology and governance over the application of expert credit judgment by evaluating that the amounts recorded were reflective of underlying credit and/or economic conditions. We tested the completeness and accuracy of data used in the measurement of the ECL by agreeing to source documents and systems and evaluated a sample of non-retail borrower risk ratings against CIBC's risk rating scale. On a sample basis, we recalculated the ECL to test the mathematical accuracy of management's models. We also assessed the adequacy of the disclosures related to allowance for credit losses. |
| **Fair value measurement of derivatives** | As described in Note 2 and Note 12 of the consolidated financial statements, CIBC has recognized \$38.4 billion in derivative assets and \$41.4 billion in derivative liabilities. The portfolio of derivative instruments is presented by level within the fair value hierarchy, with the majority of the portfolio classified as Level 2. While derivative instruments classified as Level 1 have quoted market prices, those classified as Level 2 and 3 require valuation techniques that use observable and non-observable market inputs and involve the application of management judgment. |
| | Auditing the valuation of certain derivatives was complex and required the application of significant auditor judgment and involvement of valuation specialists where the fair value was determined based on complex models and/or significant non-observable market inputs. The inputs and modelling assumptions used to determine fair values that were subject to significant auditor judgment included, amongst others, correlations, volatilities and credit spreads. The valuation of derivatives is sensitive to these inputs as they are forward-looking and could be affected by future economic and market conditions. |
| | We obtained an understanding, evaluated the design and tested the operating effectiveness of management's controls over the valuation of CIBC's derivatives portfolio, with the assistance of our internal specialists. The controls we tested included, amongst others, controls over technology, the development and validation of models used to determine the fair value of derivatives, and controls over the independent price verification process, including the integrity of significant inputs described above. |
| | To test the valuation of these derivatives, our audit procedures included, amongst others, an evaluation of the methodologies and significant inputs used by CIBC. With the assistance of our valuation specialists, we performed an independent valuation for a sample of derivatives to assess the modelling assumptions and significant inputs used by CIBC to estimate the fair value. We independently obtained significant inputs and assumptions from external market data, where available, in performing our independent valuation. For a sample of models, and with the assistance of our valuation specialists, we assessed the valuation methodologies used by CIBC to determine fair values. We also assessed the adequacy of the disclosures related to the fair value measurement of derivatives. |
| **Measurement of uncertain tax provisions** | As described in Note 1 and Note 18 of the consolidated financial statements, CIBC has disclosed its material accounting policies, estimates and assumptions in relation to accounting for uncertainty in income taxes. CIBC operates in a tax environment with constantly evolving and complex tax legislation for financial institutions. Uncertainty in tax positions may arise as tax legislation is subject to interpretation. Estimating uncertain tax provisions requires management judgment to be applied in the interpretation of tax laws across the various jurisdictions in which CIBC operates. This includes significant judgment in the determination of whether it is probable that CIBC's tax filing positions will be sustained relating to certain complex tax positions and the measurement of such provisions when recognized. |
| | Auditing CIBC's uncertain tax provisions required the involvement of our tax professionals and the application of judgment, including the interpretation of applicable tax legislation and jurisprudence. |
| | With the assistance of our tax professionals, we obtained an understanding, evaluated the design and tested the operating effectiveness of management's controls over CIBC's uncertain tax provisions. This included, amongst others, controls over management's assessment of the technical merits of tax positions and the process related to the measurement of any related income tax provisions. |
| | With the assistance of our tax professionals, our audit procedures included, amongst others, an assessment of the technical merits of income tax positions taken by CIBC and the measurement of any related uncertain tax provisions recorded. We inspected and evaluated correspondence from the relevant income tax authorities, income tax advice obtained by CIBC from external advisors including income tax opinions, CIBC's interpretations of tax laws and the assessment thereof with respect to uncertain tax positions. We evaluated the reasonability of CIBC's treatment of any new information received during the year relating to these uncertain tax positions. We also assessed the adequacy of the disclosures related to uncertain tax provisions. |

### Other information

Management is responsible for the other information. The other information comprises:

* Management's discussion and analysis; and
* The information, other than the consolidated financial statements and our auditor's report thereon, in the Annual Report.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

We obtained management's discussion and analysis and the Annual Report prior to the date of this auditor's report. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact in this auditor's report. We have nothing to report in this regard.

| | |
|---|---|
| **Ernst & Young LLP** | |
| Chartered Professional Accountants | |
| Licensed Public Accountants | |
| We have served as CIBC's auditor since 2002. | |
| Toronto, Canada | |
| **December 3, 2025** | |

## Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing CIBC's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate CIBC or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing CIBC's financial reporting process.

## Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

* Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
* Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of CIBC's internal control.
* Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
* Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on CIBC's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause CIBC to cease to continue as a going concern.
* Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
* Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within CIBC as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the work performed for the purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Humayun Jafrani.

| | |
|---|---|
| **Ernst & Young LLP** | |
| Chartered Professional Accountants | |
| Licensed Public Accountants | |
| Toronto, Canada | |
| **December 3, 2025** | |

## Consolidated balance sheet

**ASSETS**
Millions of Canadian dollars, as at October 31

| | 2025 | 2024 |
|---|---|---|
| Cash and non-interest-bearing deposits with banks | \$ 12,379 | \$ 8,565 |
| Interest-bearing deposits with banks | 31,624 | 39,499 |
| Securities (Note 4) | 283,235 | 254,345 |
| Cash collateral on securities borrowed | 21,697 | 17,028 |
| Securities purchased under resale agreements | 86,695 | 83,721 |
| Loans (Note 5) | 287,033 | 280,672 |
| Residential mortgages | 47,866 | 46,681 |
| Personal | 21,581 | 20,551 |
| Credit card | 237,416 | 214,305 |
| Business and government (1) | (4,392) | (3,917) |
| Allowance for credit losses | 589,504 | 558,292 |
| Other | 38,352 | 36,435 |
| Derivative instruments (Note 12) | 3,443 | 3,359 |
| Property and equipment (Note 7) | 5,475 | 5,443 |
| Goodwill (Note 8) | 2,894 | 2,830 |
| Software and other intangible assets (Note 8) | 808 | 785 |
| Investments in equity-accounted associates and joint ventures (Note 24) | 1,027 | 821 |
| Deferred tax assets (Note 18) | 39,805 | 30,862 |
| Other assets (Note 9) | **\$ 1,116,938** | **\$ 1,041,985** |
| **Total assets** | | |

**LIABILITIES AND EQUITY**

| | 2025 | 2024 |
|---|---|---|
| Deposits (Note 10) | \$ 258,139 | \$ 252,894 |
| Personal | 457,284 | 435,499 |
| Business and government | 26,723 | 20,009 |
| Bank | 65,978 | 56,455 |
| Secured borrowings | 808,124 | 764,857 |
| Obligations related to securities sold short | 24,244 | 21,642 |
| Cash collateral on securities lent | 6,031 | 7,997 |
| Obligations related to securities sold under repurchase agreements | 130,042 | 110,153 |
| Other | 41,411 | 40,654 |
| Derivative instruments (Note 12) | 47 | 49 |
| Deferred tax liabilities (Note 18) | 34,807 | 30,161 |
| Other liabilities (1) (Note 11) | 76,265 | 70,864 |
| Subordinated indebtedness (Note 14) | 7,819 | 7,465 |
| **Total liabilities** | **1,052,525** | **982,978** |
| **Equity** | | |
| Preferred shares and other equity instruments (Note 15) | 6,369 | 4,946 |
| Common shares (Note 15) | 16,845 | 17,011 |
| Contributed surplus | 226 | 159 |
| Retained earnings | 36,471 | 33,471 |
| Accumulated other comprehensive income (AOCI) | 4,218 | 3,148 |
| Total shareholders' equity | 64,129 | 58,735 |
| Non-controlling interests | 284 | 272 |
| **Total equity** | **64,413** | **59,007** |
| **Total liabilities and equity** | **\$ 1,116,938** | **\$ 1,041,985** |

(1) Includes customers' liability under acceptances of \$10 million (2024: \$6 million) in business and government loans and acceptances of \$10 million (2024: \$6 million) in other liabilities. Prior year amounts have been revised to conform to the presentation adopted in 2025.

The accompanying notes and shaded sections in "MD&A – Management of risk" are an integral part of these consolidated financial statements.

| **Harry Culham** | **Mary Lou Maher** |
|---|---|
| President and Chief Executive Officer | Director |

## Consolidated statement of income

Millions of Canadian dollars, except as noted, for the year ended October 31

| | 2025 | 2024 |
|---|---|---|
| **Interest income (Note 28) (1)** | | |
| Loans | \$ 32,074 | \$ 33,925 |
| Securities | 9,045 | 9,560 |
| Securities borrowed or purchased under resale agreements | 5,260 | 5,811 |
| Deposits with banks and other | 2,382 | 2,889 |
| | **48,761** | **52,185** |
| **Interest expense (Note 28)** | | |
| Deposits | 25,110 | 30,476 |
| Securities sold short | 565 | 625 |
| Securities lent or sold under repurchase agreements | 6,521 | 6,334 |
| Subordinated indebtedness | 407 | 510 |
| Other | 389 | 545 |
| | **32,992** | **38,490** |
| **Net interest income** | **15,769** | **13,695** |
| **Non-interest income** | | |
| Underwriting and advisory fees | 915 | 707 |
| Deposit and payment fees | 996 | 958 |
| Credit fees | 1,015 | 1,218 |
| Card fees | 402 | 414 |
| Investment management and custodial fees | 2,241 | 1,980 |
| Mutual fund fees | 2,019 | 1,796 |
| Income from insurance activities, net | 317 | 356 |
| Commissions on securities transactions | 554 | 431 |
| Gains (losses) from financial instruments measured/designated at fair value through profit or loss (FVTPL), net | 4,022 | 3,226 |
| Gains (losses) from debt securities measured at fair value through other comprehensive income (FVOCI) and amortized cost, net | (14) | 43 |
| Foreign exchange other than trading (FXOTT) | 369 | 386 |
| Income from equity-accounted associates and joint ventures (Note 24) | 117 | 79 |
| Other | 411 | 317 |
| | **13,364** | **11,911** |
| **Total revenue** | **29,133** | **25,606** |
| Provision for credit losses (Note 5) | **2,342** | **2,001** |
| **Non-interest expenses** | | |
| Employee compensation and benefits | 9,266 | 8,261 |
| Occupancy costs | 847 | 830 |
| Computer, software and office equipment | 2,946 | 2,719 |
| Communications | 395 | 362 |
| Advertising and business development | 398 | 344 |
| Professional fees | 284 | 257 |
| Business and capital taxes | 124 | 128 |
| Other (Notes 3 and 8) | 1,592 | 1,538 |
| | **15,852** | **14,439** |
| **Income before income taxes** | **10,939** | **9,166** |
| Income taxes (Note 18) | **2,485** | **2,012** |
| **Net income** | **\$ 8,454** | **\$ 7,154** |
| Net income attributable to non-controlling interests | \$ 25 | \$ 39 |
| Preferred shareholders and other equity instrument holders | 364 | 263 |
| Common shareholders | 8,065 | 6,852 |
| **Net income attributable to equity shareholders** | **\$ 8,429** | **\$ 7,115** |
| **Earnings per share (EPS) (in dollars) (Note 19)** | | |
| Basic | \$ 8.62 | \$ 7.29 |
| Diluted | 8.57 | 7.28 |
| Dividends per common share (in dollars) (Note 15) | 3.88 | 3.60 |

(1) Interest income included \$44.3 billion for the year ended October 31, 2025 (2024: \$48.5 billion) calculated based on the effective interest rate method.

The accompanying notes and shaded sections in "MD&A - Management of risk" are an integral part of these consolidated financial statements.

## Consolidated statement of comprehensive income

Millions of Canadian dollars, for the year ended October 31

| | 2025 | 2024 |
|---|---|---|
| Net income | \$ 8,454 | \$ 7,154 |
| **Other comprehensive income (loss) (OCI), net of income tax, that is subject to subsequent reclassification to net income** | | |
| Net foreign currency translation adjustments | 400 | 281 |
| Net gains (losses) on investments in foreign operations | (365) | (267) |
| Net gains (losses) on hedges of investments in foreign operations | 35 | 14 |
| **Net change in debt securities measured at FVOCI** | | |
| Net gains (losses) on debt securities measured at FVOCI | 368 | 127 |
| Net (gains) losses reclassified to net income | (14) | (27) |
| | 354 | 100 |
| **Net change in cash flow hedges** | | |
| Net gains (losses) on derivatives designated as cash flow hedges | 1,419 | 2,348 |
| Net (gains) losses reclassified to net income | (928) | (813) |
| | 491 | 1,535 |
| **OCI, net of income tax, that is not subject to subsequent reclassification to net income** | | |
| Net gains (losses) on post-employment defined benefit plans | 208 | 250 |
| Net gains (losses) due to fair value change of fair value option (FVO) liabilities attributable to changes in credit risk | (34) | (216) |
| Net gains (losses) on equity securities designated at FVOCI | 18 | (13) |
| | 192 | 21 |
| **Total other comprehensive income (loss) (1)** | **1,072** | **1,670** |
| **Comprehensive income** | **\$ 9,526** | **\$ 8,824** |
| Comprehensive income attributable to non-controlling interests | \$ 25 | \$ 39 |
| Preferred shareholders and other equity instrument holders | 364 | 263 |
| Common shareholders | 9,137 | 8,522 |
| **Comprehensive income attributable to equity shareholders** | **\$ 9,501** | **\$ 8,785** |

Millions of Canadian dollars, for the year ended October 31

| Income tax (expense) benefit allocated to each component of OCI | 2025 | 2024 |
|---|---|---|
| **Subject to subsequent reclassification to net income** | | |
| Net foreign currency translation adjustments | \$ (12) | \$ (5) |
| Net gains (losses) on investments in foreign operations | (68) | (5) |
| Net gains (losses) on hedges of investments in foreign operations | (80) | - |
| **Net change in debt securities measured at FVOCI** | | |
| Net gains (losses) on debt securities measured at FVOCI | (74) | (12) |
| Net (gains) losses reclassified to net income | 5 | 10 |
| | (69) | (2) |
| **Net change in cash flow hedges** | | |
| Net gains (losses) on derivatives designated as cash flow hedges | (546) | (903) |
| Net (gains) losses reclassified to net income | 357 | 313 |
| | (189) | (590) |
| **Not subject to subsequent reclassification to net income** | | |
| Net gains (losses) on post-employment defined benefit plans | (66) | (68) |
| Net gains (losses) due to fair value change of FVO liabilities attributable to changes in credit risk | (34) | (216) |
| Net gains (losses) on equity securities designated at FVOCI | (6) | 4 |
| | (59) | 19 |
| **Total income tax (expense) benefit allocated to each component of OCI** | **\$ (397)** | **\$ (578)** |

(1) Includes \$43 million of gains for 2025 (2024: \$113 million of gains) relating to our investments in equity-accounted associates and joint ventures.

The accompanying notes and shaded sections in "MD&A - Management of risk" are an integral part of these consolidated financial statements.

## Consolidated statement of changes in equity

Millions of Canadian dollars, for the year ended October 31

| | 2025 | 2024 |
|---|---|---|
| **Preferred shares and other equity instruments (Note 15)** | | |
| Balance at beginning of year | \$ 4,946 | \$ 4,925 |
| Issue of preferred shares and limited recourse capital notes (LRCNS) | 2,770 | 1,000 |
| Redemption of preferred shares and LRCNS | (1,350) | (975) |
| Treasury shares | 3 | (4) |
| **Balance at end of year** | **\$ 6,369** | **\$ 4,946** |
| **Common shares (Note 15)** | | |
| Balance at beginning of year | \$ 17,011 | \$ 16,082 |
| Issue of common shares | 168 | 1,019 |
| Purchase of common shares for cancellation | (335) | (90) |
| Treasury shares | 1 | - |
| **Balance at end of year** | **\$ 16,845** | **\$ 17,011** |
| **Contributed surplus** | | |
| Balance at beginning of year | \$ 159 | \$ 109 |
| Compensation expense arising from equity-settled share-based awards | 20 | 16 |
| Exercise of stock options and settlement of other equity-settled share-based awards | (10) | (9) |
| Other (1) | 57 | 43 |
| **Balance at end of year** | **\$ 226** | **\$ 159** |
| **Retained earnings** | | |
| Balance at beginning of year | \$ 33,471 | \$ 30,352 |
| Net income attributable to equity shareholders | 8,429 | 7,115 |
| Dividends and distributions (Note 15) | | |
| Preferred and other equity instruments | (364) | (263) |
| Common | (3,629) | (3,382) |
| Premium on purchase of common shares for cancellation | (1,396) | (329) |
| Realized gains (losses) on equity securities designated at FVOCI reclassified from AOCI | 2 | (15) |
| Other | (42) | (7) |
| **Balance at end of year** | **\$ 36,471** | **\$ 33,471** |
| **AOCI, net of income tax** | | |
| **AOCI, net of income tax, that is subject to subsequent reclassification to net income** | | |
| Net foreign currency translation adjustments | | |
| Balance at beginning of year | \$ 2,176 | \$ 2,162 |
| Net change in foreign currency translation adjustments | 35 | 14 |
| **Balance at end of year** | **\$ 2,211** | **\$ 2,176** |
| Net gains (losses) on debt securities measured at FVOCI | | |
| Balance at beginning of year | \$ (307) | \$ (407) |
| Net change in debt securities measured at FVOCI | 354 | 100 |
| **Balance at end of year** | **\$ 47** | **\$ (307)** |
| Net gains (losses) on cash flow hedges | | |
| Balance at beginning of year | \$ 509 | \$ (1,026) |
| Net change in cash flow hedges | 491 | 1,535 |
| **Balance at end of year** | **\$ 1,000** | **\$ 509** |
| **AOCI, net of income tax, that is not subject to subsequent reclassification to net income** | | |
| Net gains (losses) on post-employment defined benefit plans | | |
| Balance at beginning of year | \$ 842 | \$ 592 |
| Net change in post-employment defined benefit plans | 208 | 250 |
| **Balance at end of year** | **\$ 1,050** | **\$ 842** |
| Net gains (losses) due to fair value change of FVO liabilities attributable to changes in credit risk | | |
| Balance at beginning of year | \$ (88) | \$ 128 |
| Net change attributable to changes in credit risk | (34) | (216) |
| **Balance at end of year** | **\$ (122)** | **\$ (88)** |
| Net gains (losses) on equity securities designated at FVOCI | | |
| Balance at beginning of year | \$ 16 | \$ 14 |
| Net gains (losses) on equity securities designated at FVOCI | 18 | (13) |
| Realized (gains) losses on equity securities designated at FVOCI reclassified to retained earnings | (2) | 15 |
| **Balance at end of year** | **\$ 32** | **\$ 16** |
| **Total AOCI, net of income tax** | **\$ 4,218** | **\$ 3,148** |
| **Non-controlling interests** | | |
| Balance at beginning of year | \$ 272 | \$ 232 |
| Net income attributable to non-controlling interests | 25 | 39 |
| Dividends | (9) | (8) |
| Other | (4) | 9 |
| **Balance at end of year** | **\$ 284** | **\$ 272** |
| **Equity at end of year** | **\$ 64,413** | **\$ 59,007** |

(1) Includes the portion of the estimated tax benefit related to employee stock options that is incremental to the amount recognized in the consolidated statement of income.

The accompanying notes and shaded sections in "MD&A – Management of risk" are an integral part of these consolidated financial statements.

## Consolidated statement of cash flows

Millions of Canadian dollars, for the year ended October 31

| | 2025 | 2024 |
|---|---|---|
| **Cash flows provided by (used in) operating activities** | | |
| Net income | \$ 8,454 | \$ 7,154 |
| Adjustments to reconcile net income to cash flows provided by (used in) operating activities: | | |
| Provision for credit losses | 2,342 | 2,001 |
| Amortization and impairment (1) | 1,178 | 1,170 |
| Stock options and restricted shares expense | 20 | 16 |
| Deferred income taxes | (257) | (244) |
| Losses (gains) from debt securities measured at FVOCI and amortized cost | 14 | (43) |
| Net losses (gains) on disposal of property and equipment | (2) | (1) |
| Other non-cash items, net | (16) | (1,822) |
| Net changes in operating assets and liabilities | | |
| Interest-bearing deposits with banks | 7,875 | (4,597) |
| Loans, net of repayments | (33,381) | (28,930) |
| Deposits, net of withdrawals | 37,183 | 34,467 |
| Obligations related to securities sold short | 2,602 | 2,976 |
| Accrued interest receivable | 44 | (711) |
| Accrued interest payable | (983) | 452 |
| Derivative assets | (1,921) | (3,240) |
| Derivative liabilities | 328 | (813) |
| Securities measured at FVTPL | (22,817) | (23,319) |
| Other assets and liabilities measured/designated at FVTPL | 5,090 | 3,431 |
| Current income taxes | (489) | (257) |
| Cash collateral on securities lent | (1,966) | (84) |
| Obligations related to securities sold under repurchase agreements | 19,889 | 23,035 |
| Cash collateral on securities borrowed | (4,669) | (2,377) |
| Securities purchased under resale agreements | (2,974) | (3,537) |
| Other, net | (1,706) | 6,361 |
| **Net cash flows provided by (used in) operating activities** | **13,838** | **11,088** |
| **Cash flows provided by (used in) financing activities** | | |
| Issue of subordinated indebtedness | 1,250 | 2,250 |
| Redemption/repurchase/maturity of subordinated indebtedness | (1,069) | (1,536) |
| Issue of preferred shares and LRCNs, net of issuance cost | 2,757 | 996 |
| Redemption of preferred shares and LRCNS | (1,350) | (975) |
| Issue of common shares for cash | 158 | 312 |
| Purchase of common shares for cancellation | (1,731) | (419) |
| Net sale (purchase) of treasury shares | 4 | (4) |
| Dividends and distributions paid | (3,993) | (2,947) |
| Repayment of lease liabilities | (309) | (287) |
| Other, net | (29) | - |
| **Net cash flows provided by (used in) financing activities** | **(4,312)** | **(2,610)** |
| **Cash flows provided by (used in) investing activities** | | |
| Purchase of securities measured/designated at FVOCI and amortized cost | (98,369) | (76,528) |
| Proceeds from sale of securities measured/designated at FVOCI and amortized cost | 46,299 | 29,761 |
| Proceeds from maturity of debt securities measured at FVOCI and amortized cost | 47,404 | 27,105 |
| Net sale (purchase) of property, equipment, software and other intangible assets | (1,109) | (1,089) |
| **Net cash flows provided by (used in) investing activities** | **(5,775)** | **(20,751)** |
| Effect of exchange rate changes on cash and non-interest-bearing deposits with banks | 63 | 22 |
| **Net increase (decrease) in cash and non-interest-bearing deposits with banks during the year** | **3,814** | **(12,251)** |
| Cash and non-interest-bearing deposits with banks at beginning of year | 8,565 | 20,816 |
| **Cash and non-interest-bearing deposits with banks at end of year (2)** | **\$ 12,379** | **\$ 8,565** |
| Cash interest paid | \$ 33,975 | \$ 38,038 |
| Cash interest received | 46,993 | 49,761 |
| Cash dividends received | 1,812 | 1,713 |
| Cash income taxes paid | 3,231 | 2,513 |

(1) Comprises amortization and impairment of buildings, right-of-use assets, furniture, equipment, leasehold improvements, and software and other intangible assets.
(2) Includes restricted cash of \$579 million (2024: \$466 million) and interest-bearing demand deposits with Bank of Canada.

The accompanying notes and shaded sections in "MD&A - Management of risk" are an integral part of these consolidated financial statements.

## Notes to the consolidated financial statements

### Note 1 Basis of preparation and summary of material accounting policies

#### Basis of preparation

The consolidated financial statements of CIBC have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). These consolidated financial statements also comply with Section 308(4) of the Bank Act (Canada) and the requirements of the Office of the Superintendent of Financial Institutions (OSFI).

CIBC has consistently applied the same accounting policies throughout all periods presented.

These consolidated financial statements are presented in millions of Canadian dollars, unless otherwise indicated.

These consolidated financial statements were authorized for issue by the Board of Directors (the Board) on December 3, 2025.

#### Summary of material accounting policies

The following paragraphs describe our material accounting policies.

##### Use of estimates and assumptions

The preparation of the consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the recognized and measured amounts of assets, liabilities, net income, comprehensive income and related disclosures. Significant estimates and assumptions are made in the areas of the valuation of financial instruments, allowance for credit losses, the evaluation of whether to consolidate structured entities (SEs), leases, asset impairment, income taxes, provisions and contingent liabilities, post-employment and other long-term benefit plan assumptions and the valuation of self-managed loyalty points programs. Actual results could differ from these estimates and assumptions.

##### Basis of consolidation

We consolidate entities over which we have control. We have control over another entity when we have: (i) power to direct relevant activities of the entity; (ii) exposure, or rights, to variable returns from our involvement with the entity; and (iii) the ability to affect those returns through our power over the entity.

###### Subsidiaries

Subsidiaries are entities over which CIBC has control. Generally, CIBC has control of its subsidiaries through a shareholding of more than 50% of the voting rights, and has significant exposure to the subsidiaries based on its ownership interests of more than 50%. The effects of potential voting rights that CIBC has the practical ability to exercise are considered when assessing whether control exists. Subsidiaries are consolidated from the date control is obtained by CIBC and are deconsolidated from the date control is lost. Consistent accounting policies are applied for all consolidated subsidiaries. Details of our significant subsidiaries are provided in Note 25.

###### Structured entities

A SE is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the significant relevant activities are directed by contractual arrangements. SEs often have some or all of the following features or attributes: (i) restricted activities; (ii) a narrow and well-defined objective, such as to securitize our own financial assets or third-party financial assets to provide sources of funding or to provide investment opportunities for investors by passing on risks and rewards associated with the assets of the SE to investors; (iii) insufficient equity to permit the SE to finance its activities without subordinated financial support; or (iv) financing in the form of multiple contractually linked instruments to investors that create concentrations of credit or other risks. Examples of SEs include securitization vehicles, asset-backed financings, capital vehicles and investment funds.

When voting rights are not relevant in deciding whether CIBC has power over an entity, particularly for complex SEs, the assessment of control considers all facts and circumstances, including the purpose and design of the investee, its relationship with other parties and each party's ability to make decisions over significant activities, and whether CIBC is acting as a principal or as an agent.

We do not have control over an investee when we are acting as the agent for a third-party. In assessing whether we are an agent we determine: (i) the scope of our decision-making authority; (ii) the rights held by other parties; (iii) the remuneration to which we are entitled; and (iv) our exposure to variability of returns from other interests that we hold in the investee.

Consolidation conclusions are reassessed whenever there is a change in the specific facts and circumstances relevant to one or more of the three elements of control. Factors that trigger the reassessment include, but are not limited to, significant changes in ownership structure of the entities, changes in contractual or governance arrangements, provision of a liquidity facility beyond the original terms, the rare event of the draw of a liquidity facility for our multi-seller conduits, transactions with the entities that were not contemplated originally and changes in the financing structure of the entities.

##### Transactions eliminated on consolidation

All intercompany transactions, balances and unrealized gains and losses on transactions are eliminated on consolidation.

##### Non-controlling interests

Non-controlling interests are presented on the consolidated balance sheet as a separate component of equity that is distinct from CIBC's shareholders' equity. The net income attributable to non-controlling interests is presented separately in the consolidated statement of income.

### Associates and joint ventures

We classify investments in entities over which we have significant influence, and that are neither subsidiaries nor joint ventures, as associates. Significant influence is presumed to exist where we hold, either directly or indirectly, between 20% and 50% of the voting rights of an entity, or, in the case of a limited partnership, where CIBC is a co-general partner. Significant influence also may exist where we hold less than 20% of the voting rights of an entity, for example if we have influence over policy-making processes through representation on the entity's Board of Directors, or by other means. Where we are a party to a contractual arrangement whereby we undertake an economic activity that is subject to joint control together with one or more parties, we classify our interest in the venture as a joint venture.

Investments in associates and interests in joint ventures are accounted for using the equity method. Under the equity method, such investments are initially measured at cost, including attributable goodwill and intangible assets, and are adjusted thereafter for the post-acquisition change in our share of the net assets of the investment.

In applying the equity method for an investment that has a different reporting period from that of CIBC, adjustments are made for the effects of any significant events or transactions that occur between the reporting date of the investment and CIBC's reporting date.

### Foreign currency translation

Monetary assets and liabilities and non-monetary assets and liabilities measured at fair value that are denominated in foreign currencies are translated into the functional currencies of operations at prevailing exchange rates at the date of the consolidated balance sheet. Revenue and expenses are translated using average monthly exchange rates. Realized and unrealized gains and losses arising from translation into functional currencies are included in the consolidated statement of income, with the exception of unrealized foreign exchange gains and losses on FVOCI equity securities, which are included in AOCI.

Assets and liabilities of foreign operations with a functional currency other than the Canadian dollar, including goodwill and fair value adjustments arising on acquisition, are translated into Canadian dollars at the exchange rates prevailing as at the consolidated balance sheet date, while revenue and expenses of these foreign operations are translated into Canadian dollars at the average monthly exchange rates. Exchange gains and losses arising from the translation of these foreign operations and from the results of hedging the net investment in these foreign operations, net of applicable taxes, are included in Net foreign currency translation adjustments, in AOCI.

Any accumulated exchange gains and losses, including the impact of hedging, and any applicable taxes in AOCI are reclassified into the consolidated statement of income when there is a disposal of a foreign operation, including a partial disposal of a foreign operation that involves the loss of control. On partial disposal of a foreign operation that does not involve the loss of control, the proportionate share of the accumulated exchange gains and losses, including the impact of hedging, and any applicable taxes previously recognized in AOCI are reclassified into the consolidated statement of income.

### Classification and measurement of financial instruments

#### Classification and measurement of financial instruments

All financial assets must be classified at initial recognition as financial instruments mandatorily measured at FVTPL (trading and non-trading), financial instruments measured at amortized cost, debt financial instruments measured at FVOCI, equity financial instruments designated at FVOCI, or financial instruments designated at FVTPL (fair value option), based on the contractual cash flow characteristics of the financial assets and the business model under which the financial assets are managed. All financial assets and derivatives are required to be measured at fair value with the exception of financial assets measured at amortized cost. Financial assets are required to be reclassified when and only when the business model under which they are managed has changed. All reclassifications are to be applied prospectively from the reclassification date.

The classification and measurement model requires that all debt instrument financial assets that do not meet a "solely payment of principal and interest" (SPPI) test, including those that contain embedded derivatives, be classified at initial recognition as FVTPL. The SPPI test is conducted to identify whether the contractual cash flows of a financial instrument are "solely payments of principal and interest" such that any variability in the contractual cash flows is consistent with a "basic lending arrangement". "Principal" for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the life of the financial asset, for example, due to repayments of principal or amortization of the premium/discount. "Interest" for the purpose of this test is defined as the consideration for the time value of money and credit risk, which are the most significant elements of interest within a lending arrangement. Contractual terms that introduce a more than de minimis exposure to risks or volatility in the contractual cash flows that are unrelated to a basic lending arrangement do not give rise to contractual cash flows that are solely payments of principal and interest on the amount outstanding. The intent of the SPPI test is to ensure that debt instruments that contain non-basic lending features, such as equity conversion options and equity-linked payouts, are measured at FVTPL.

For debt instrument financial assets that meet the SPPI test, classification at initial recognition is determined based on the business model under which these instruments are managed. Debt instruments that are managed on a "held for trading" or "fair value" basis are classified as FVTPL. Debt instruments that are managed on a "hold to collect and for sale" basis are classified as FVOCI for debt. Debt instruments that are managed on a "hold to collect" basis are classified as amortized cost. We consider the following in our determination of the applicable business model for financial assets:

1) The business purpose of the portfolio;
II) The risks that are being managed and the type of business activities that are being carried out on a day-to-day basis to manage the risks;
III) The basis on which performance of the portfolio is being evaluated; and
IV) The frequency and significance of sales activity.

All equity instrument financial assets are classified at initial recognition as FVTPL unless they are not held with the intent for short-term profit-taking and an irrevocable designation is made to classify the instrument as FVOCI for equities.

Derivatives, obligations related to securities sold short and FVO financial liabilities are measured at fair value. Other financial liabilities are measured at amortized cost.

Derivatives are measured at FVTPL, except to the extent that they are designated in a hedging relationship, in which case the International Accounting Standard (IAS) 39 "Financial Instruments: Recognition and Measurement" (IAS 39) hedge accounting requirements continue to apply.

##### Financial instruments mandatorily measured at FVTPL (trading and non-trading)

Trading financial instruments are mandatorily measured at FVTPL as they are held for trading purposes or are part of a managed portfolio with a pattern of short-term profit-taking. Non-trading financial assets are also mandatorily measured at fair value if their contractual cash flow characteristics do not meet the SPPI test or if they are managed together with other financial instruments on a fair value basis.

Trading and non-trading financial instruments mandatorily measured at FVTPL are remeasured at fair value as at the consolidated balance sheet date. Gains and losses realized on disposition and unrealized gains and losses from changes in fair value are included in Non-interest income as Gains (losses) from financial instruments measured/designated at FVTPL, net. Interest income and dividends earned on trading and non-trading securities and dividends and interest expense incurred on securities sold short are included in net interest income.

##### Financial instruments designated at FVTPL (fair value option)

Financial instruments designated at FVTPL are those that we voluntarily designate at initial recognition as instruments that we will measure at fair value through the consolidated statement of income that would otherwise fall into a different accounting category. The FVO designation, once made, is irrevocable and can only be applied if reliable fair values are available, when doing so eliminates or significantly reduces the measurement inconsistency that would otherwise arise from measuring assets or liabilities on a different basis and if certain OSFI requirements pertaining to certain loans are met. Financial liabilities may also be designated at FVTPL when they are part of a portfolio which is managed on a fair value basis, in accordance with our investment strategy, and are reported internally on that basis. Designation at FVTPL may also be applied to financial liabilities that have one or more embedded derivatives that would otherwise require bifurcation. We apply the FVO to certain mortgage commitments.

Gains and losses realized on dispositions and unrealized gains and losses from changes in the fair value of FVO financial instruments are treated in the same manner as financial instruments which are mandatorily measured at FVTPL, except that changes in the fair value of FVO liabilities that are attributable to changes in own credit risk are recognized in OCI. Dividends and interest earned, and interest expense incurred on FVO assets and liabilities are included in Interest income and Interest expense, respectively.

##### Financial assets measured at amortized cost

Financial assets measured at amortized cost are debt financial instruments with contractual cash flows that meet the SPPI test and that are managed on a "hold to collect" basis. These financial assets are recognized initially at fair value plus direct and incremental transaction costs, and are subsequently measured at amortized cost, using the effective interest rate method, net of an allowance for expected credit losses (ECL).

Loans measured at amortized cost include residential mortgages, personal loans, credit cards and most business and government loans. Certain portfolios of treasury securities that are managed on a "hold to collect" basis are also classified as amortized cost.

Most deposits with banks, securities purchased under resale agreements, cash collateral on securities borrowed and certain other assets are accounted for at amortized cost.

##### Debt financial assets measured at FVOCI

Debt financial instruments measured at FVOCI are non-derivative financial assets with contractual cash flows that meet the SPPI test and are managed on a "hold to collect and for sale" basis.

FVOCI debt instruments are measured initially at fair value, plus direct and incremental transaction costs. Subsequent to initial recognition, FVOCI debt instruments are remeasured at fair value, with the exception that changes in ECL allowances and related foreign exchange gains or losses are recognized in the consolidated statement of income. Cumulative gains and losses previously recognized in OCI are transferred from AOCI to the consolidated statement of income when the debt instrument is sold. Realized gains and losses on sale, determined on an average cost basis, and changes in ECL allowances, are included in Gains (losses) from debt securities measured at FVOCI and amortized cost, net in the consolidated statement of income. Interest income from FVOCI debt instruments is included in Interest income. FVOCI debt instruments include our treasury securities which are managed on a "hold to collect and for sale" basis.

A debt financial instrument is classified as impaired (stage 3) when one or more events that have a detrimental impact on the estimated future cash flows of that financial instrument have occurred after its initial recognition. Evidence of impairment includes indications that the borrower is experiencing significant financial difficulty, or a default or delinquency has occurred.

##### Equity financial instruments designated at FVOCI

Equity financial instruments are measured at FVTPL unless an irrevocable designation is made to measure them at FVOCI. Gains or losses from changes in the fair value of equity instruments designated at FVOCI, including any related foreign exchange gains or losses, are recognized in OCI. Amounts recognized in OCI will not be subsequently recycled to profit or loss, with the exception of dividends that are not considered a return of capital, which are recognized as interest income when received in the consolidated statement of income. Instead, cumulative gains or losses upon derecognition of the equity instrument will be transferred within equity from AOCI to retained earnings and presented in Realized gains (losses) on equity securities designated at FVOCI in the consolidated statement of changes in equity. Financial assets designated as FVOCI include non-trading equity securities, primarily related to our investment in private companies and certain limited partnerships.

##### Impairment of financial assets

ECL allowances are recognized on all financial assets that are debt instruments classified either as amortized cost or FVOCI and for all loan commitments and financial guarantees that are not measured at FVTPL. ECL allowances represent credit losses that reflect an unbiased and probability-weighted amount which is determined by evaluating a range of possible outcomes, the time value of money and reasonable and supportable information about past events, current conditions and forecasts of future economic conditions. Forward-looking information is explicitly incorporated into the estimation of ECL allowances, which involves significant judgment (see Note 5 for additional details).

ECL allowances for loans are included in Allowance for credit losses on the consolidated balance sheet. ECL allowances for FVOCI debt securities are included as a component of the carrying value of the securities, which are measured at fair value. ECL allowances for other financial assets are included in the carrying value of the instrument. ECL allowances for guarantees and loan commitments are included in Other liabilities.

ECL allowances are measured at amounts equal to either: (i) 12-month ECL; or (ii) lifetime ECL for those financial instruments which have experienced a significant increase in credit risk (SICR) since initial recognition or when there is objective evidence of impairment.

The calculation of ECL allowances is based on the expected value of three probability-weighted scenarios to measure the expected cash shortfalls, discounted at the effective interest rate. A cash shortfall is the difference between the contractual cash flows that are due and the cash flows that we expect to receive. The key inputs in the measurement of ECL allowances are as follows:

* The probability of default (PD) is an estimate of the likelihood of default over a given time horizon;
* The loss given default (LGD) is an estimate of the loss arising in the case where a default occurs at a given time; and
* The exposure at default (EAD) is an estimate of the exposure at a future default date.

Lifetime ECL is the expected credit losses that result from all possible default events over the expected life of a financial instrument. 12-month ECL is the portion of lifetime expected credit losses that represent the expected credit losses that result from default events on the financial instrument that are possible within the 12 months after the reporting date.

##### Stage migration and significant increase in credit risk

As a result of the requirements above, financial instruments subject to ECL allowances are categorized into three stages.

Stage 1 is comprised of all performing financial instruments which have not experienced a SICR since initial recognition. We recognize 12 months of ECL for stage 1 financial instruments. In assessing whether credit risk has increased significantly, we compare the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of its initial recognition.

Stage 2 is comprised of all performing financial instruments which have experienced a SICR since initial recognition. We recognize lifetime ECL for stage 2 financial instruments. In subsequent reporting periods, if the credit risk of the financial instrument improves such that there is no longer a SICR since initial recognition, we then revert to recognizing 12 months of ECL as the financial instrument has migrated back to stage 1.

We determine whether a financial instrument has experienced a SICR since its initial recognition on an individual financial instrument basis. Changes in the required ECL allowance, including the impact of financial instruments migrating between stage 1 and stage 2, are recorded in Provision for credit losses in the consolidated statement of income. Significant judgment is required in the application of SICR (see Note 5 for additional details).

Stage 3 financial instruments are those that we have classified as impaired. We recognize lifetime ECL for all stage 3 financial instruments. We classify a financial instrument as impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial instrument have occurred after its initial recognition. Evidence of impairment includes indications that the borrower is experiencing significant financial difficulty, or a default or delinquency has occurred. Generally, financial instruments on which repayment of principal or payment of interest is contractually more than 90 days in arrears are considered impaired, except for credit card loans, which are classified as impaired and are fully written off when payments are contractually 180 days in arrears or at the earlier of the notice of bankruptcy, settlement proposal, or enlistment of credit counselling services.

A financial instrument is no longer considered impaired when it is determined that there is reasonable assurance that the principal and interest are fully collectable in accordance with the original contractual terms or revised market terms of the financial instrument with all criteria for the impaired classification having been remedied.

Financial instruments are written off, either partially or in full, against the related allowance for credit losses when we judge that there is no realistic prospect of future recovery in respect of those amounts. When financial instruments are secured, this is generally after all collateral has been realized or transferred to CIBC, or in certain circumstances, when the net realizable value of any collateral and other available information suggests that there is no reasonable expectation of further recovery. In subsequent periods, any recoveries of amounts previously written off are credited to the provision for credit losses.

##### Purchased loans

Both purchased performing and purchased credit-impaired loans are initially measured at their acquisition date fair values. As a result of recording these loans at fair value, no allowance for credit losses is recognized in the purchase equation at the acquisition date. Fair value is determined by estimating the principal and interest cash flows expected to be collected and discounting those cash flows at a market rate of interest. At the acquisition date, we classify a loan as performing where we expect timely collection of all amounts in accordance with the original contractual terms of the loan and as credit-impaired where it is probable that we will not be able to collect all contractually required payments.

For purchased performing loans, the acquisition date fair value adjustment on each loan is amortized to interest income over the expected remaining life of the loan using the effective interest rate method. The remaining unamortized amounts relating to those loans are recorded in income in the period that the loan is repaid. ECL allowances are established in Provision for credit losses in the consolidated statement of income immediately after the acquisition date based on classifying each loan in stage 1, since the acquisition date is established as the initial recognition date of purchased performing loans for the purpose of assessing whether a SICR has occurred. Subsequent to the acquisition date, ECL allowances are estimated in a manner consistent with our SICR and impairment policies that we apply to loans that we originate.

For purchased credit-impaired loans, the acquisition date fair value adjustment on each loan consists of management's estimate of the shortfall of principal and interest cash flows expected to be collected and the time value of money. The time value of money component of the fair value adjustment is amortized to interest income over the expected remaining life of the loan using the effective interest rate method. Subsequent to the acquisition date, we regularly re-estimate the expected cash flows for purchased credit-impaired loans. Decreases in the expected cash flows will result in an increase in our ECL allowance. Increases in the expected cash flows will result in a recovery of the ECL allowance. ECL allowances for purchased credit-impaired loans are reported in stage 3.

##### Originated credit-impaired financial assets

The accounting for originated credit-impaired financial assets operates in a similar manner to the accounting for purchased credit-impaired loans in that originated credit-impaired assets are initially recognized at fair value with no initial ECL allowance as concerns about the collection of future cash flows are instead reflected in the origination date discount. The time value of money component of the discount is amortized to interest income over the expected remaining life of the financial asset using the effective interest rate method. Changes in expectation regarding the contractual cash flows for loans are recognized immediately in Provision for credit losses and for securities are recognized in Gains (losses) from debt securities measured at FVOCI and amortized cost, net.

This accounting generally applies to financial assets that result from debt restructuring arrangements in which a previously impaired financial asset is exchanged for a new financial asset that is either recognized at a fair value that represents a deep discount to par or for which there are significant concerns over the ability to collect the contractual cash flows.

##### Determination of fair value

Fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in an orderly transaction in the principal market at the measurement date under current market conditions (i.e., the exit price). Fair value measurements are categorized into three levels within a fair value hierarchy (Level 1, 2 or 3) based upon the market observability of the valuation inputs used in measuring the fair value. See Note 2 for more details about fair value measurement subsequent to initial recognition by type of financial instrument.

##### Transaction costs

Transaction costs relating to financial instruments mandatorily measured or designated at FVTPL are expensed as incurred. Transaction costs are amortized over the expected life of the instrument using the effective interest rate method for instruments measured at amortized cost and debt instruments measured at FVOCI. For equity instruments designated at FVOCI, transaction costs are included in the instrument's carrying value.

##### Date of recognition of securities

We account for all securities transactions on our consolidated balance sheet using settlement date accounting.

### Effective interest rate

Interest income and expense for all financial instruments measured at amortized cost and for debt securities measured at FVOCI are recognized in Interest income and Interest expense using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument to the net carrying value of the financial asset or liability upon initial recognition. When calculating the effective interest rate, we estimate future cash flows considering all contractual terms of the financial instrument, but not future credit losses.

Fees relating to loan origination, including commitment, restructuring and renegotiation fees, are considered an integral part of the yield earned on the loan and are accounted for using the effective interest rate method. Fees received for commitments that are not expected to result in a loan are included in Non-interest income over the commitment period. Loan syndication fees are included in Non-interest income on completion of the syndication arrangement, provided that the yield on the portion of the loan we retain is at least equal to the average yield earned by the other lenders involved in the financing; otherwise, an appropriate portion of the fee is deferred and amortized to interest income using the effective interest rate method.

Interest income is recognized on stage 1 and stage 2 financial assets measured at amortized cost by applying the effective interest rate to the gross carrying amount of the financial instrument. For stage 3 financial instruments, interest income is recognized using the rate of interest used to discount the estimated future cash flows for the purpose of measuring the impairment loss and applied to the net carrying value of the financial instrument.

### Securitizations and derecognition of financial assets

Securitization of our own assets provides us with an additional source of liquidity. As we generally retain substantially all of the risks and rewards of the transferred assets, assets remain on the consolidated balance sheet and funding from these transactions is accounted for as Deposits – secured borrowings.

Securitizations to non-consolidated SEs are accounted for as sales, with the related assets being derecognized, only where:

* Our contractual right to receive cash flows from the assets has expired; or
* We transfer our contractual rights to receive the cash flows of the financial asset or where applicable the transfer also meets the criteria of a qualifying pass-through arrangement, and we have: (i) transferred substantially all the risks and rewards of ownership, or (ii) neither retained nor transferred substantially all the risks and rewards, but have not retained control.

### Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. If an existing financial liability is replaced by another liability from the same lender on substantially different terms, or the terms of the existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and a recognition of a new liability, and the difference in the respective carrying values is recognized in the consolidated statement of income. The repurchase of a debt instrument is considered an extinguishment of that debt instrument even if we intend to resell the instrument in the near term.

### Financial guarantees

Financial guarantees are financial contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.

Financial guarantee contracts issued by CIBC that are not classified as insurance contracts are initially recognized as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantees, which is generally the premium received or receivable on the date the guarantee was given. Subsequently, financial guarantee liabilities are measured at the higher of the initial fair value, less cumulative amortization, and the applicable ECL allowances. A financial guarantee that qualifies as a derivative is remeasured at fair value as at each reporting date and reported as Derivative instruments in assets or liabilities, as appropriate.

### Mortgage commitments

Mortgage interest rate commitments are extended to our retail clients in contemplation of borrowing to finance the purchase of homes under mortgages to be funded by CIBC in the future. These commitments are usually for periods of up to 120 days and generally entitle the borrower to receive funding at the lower of the interest rate at the time of the commitment and the rate applicable at the funding date. We use financial instruments, such as interest rate derivatives, to economically hedge our exposure to an increase in interest rates. Based on our estimate of the commitments expected to be exercised, a financial liability is recognized on our consolidated balance sheet for those commitments where we apply the FVO. We also carry the associated economic hedges at fair value on the consolidated balance sheet. Changes in the fair value of the FVO commitment liability and the associated economic hedges are included in Gains (losses) from financial instruments measured/designated at FVTPL, net. In addition, since the fair value of the commitments is priced into the mortgage, the difference between the mortgage amount funded through a commitment and its fair value at funding is recognized in the consolidated statement of income to offset the carrying value of the mortgage commitment that is released upon its expiry.

### Offsetting of financial assets and financial liabilities

Financial assets and financial liabilities are offset, and the amount presented net in the consolidated balance sheet, when we have a legally enforceable right to set off the recognized amounts and intend to settle on a net basis or to realize the asset and settle the liability simultaneously.

### Securities purchased under resale agreements and obligations related to securities sold under repurchase agreements

Securities purchased under resale agreements are treated as collateralized lending transactions as they represent the purchase of securities affected with a simultaneous agreement to sell them back at a future date at a fixed price, which is generally near term. Securities subject to these transactions include certain loans that are readily securitizable. The agreements include certain total return swap arrangements that are economically equivalent to resale agreements. These transactions meet the SPPI criteria and are generally classified and measured at amortized cost, as they are also managed under a hold to collect business model. Certain transactions are classified at FVTPL as they are managed on a held for sale basis. For Securities purchased under resale agreements that are classified at amortized cost, an ECL is applied. Interest income is accrued using the effective interest rate method and is included in Interest income - Securities borrowed or purchased under resale agreements in the consolidated statement of income. Similarly, securities sold under agreements to repurchase are treated as collateralized borrowing transactions at amortized cost with interest expense accrued using the effective interest rate method and are included in Interest expense - Securities lent or sold under repurchase agreements in the consolidated statement of income. Certain obligations related to securities sold under repurchase agreements are designated at FVTPL under the FVO.

### Cash collateral on securities borrowed and securities lent

The right to receive back cash collateral paid and the obligation to return cash collateral received on borrowing and lending of securities, which is generally near term, is recognized as cash collateral on securities borrowed and securities lent, respectively. These transactions are classified and measured at amortized cost as they meet the SPPI criteria and are managed under a hold to collect business model. Interest income on cash collateral paid and interest expense on cash collateral received together with the security borrowing fees and security lending income are included in Interest income - Securities borrowed or purchased under resale agreements and Interest expense - Securities lent or sold under repurchase agreements, respectively. For securities borrowing and lending transactions where securities are pledged or received as collateral, securities pledged by CIBC for which CIBC retains the risks and rewards remain on the consolidated balance sheet and securities received by CIBC are not recognized on the consolidated balance sheet.

### Derivatives

We use derivative instruments for both asset/liability management (ALM) and trading purposes. The derivatives used for ALM purposes allow us to manage financial risks, such as movements in interest and foreign exchange rates, while our derivative trading activities are primarily driven by client activities. We may also take proprietary trading positions within prescribed risk limits with the objective of earning income.

All derivative instruments are recognized initially, and are measured subsequently, at fair value and are reported as assets where they have a positive fair value and as liabilities where they have a negative fair value, in both cases as derivative instruments. Any realized and unrealized gains or losses on derivatives used for trading purposes are recognized immediately in Gains (losses) from financial instruments measured/designated at FVTPL, net. The accounting for derivatives used for ALM purposes depends on whether they qualify for hedge accounting as discussed below.

Fair values of exchange-traded derivatives are based on quoted market prices. Fair values of over-the-counter (OTC) derivatives, including OTC derivatives that are centrally cleared, are obtained using valuation techniques, including discounted cash flow models and option pricing models. See Note 12 for further information on the valuation of derivatives.

#### Derivatives used for ALM purposes that qualify for hedge accounting

As permitted at the time of transition to IFRS 9 "Financial Instruments" (IFRS 9), we elected to continue to apply the hedge accounting requirements of IAS 39.

We apply hedge accounting for derivatives held for ALM purposes that meet specified criteria. There are three types of hedges under IAS 39: fair value, cash flow and hedges of net investments in foreign operations (NIFOs). When hedge accounting is not applied, the change in the fair value of the derivative is recognized in the consolidated statement of income (see the "Derivatives used for ALM purposes that are not designated for hedge accounting" section below).

In order for derivatives to qualify for hedge accounting, the hedge relationship must be designated and formally documented at its inception in accordance with IAS 39. The particular risk management objective and strategy, the specific asset, liability or cash flow being hedged, as well as how hedge effectiveness is assessed, are documented. Hedge effectiveness requires a high correlation of changes in fair values or cash flows between the hedged and hedging items.

We assess the effectiveness of derivatives in hedging relationships, both at inception and on an ongoing basis. Ineffectiveness results to the extent that the change in the fair value of the hedging derivative differs from the change in the fair value of the hedged risk in the hedged item, or the cumulative change in the fair value of the hedging derivative exceeds the cumulative change in the fair value of expected future cash flows of the hedged item. The amount of ineffectiveness of hedging instruments is recognized immediately in the consolidated statement of income.

##### Fair value hedges

We designate fair value hedges primarily as part of interest rate risk management strategies that use derivatives to hedge changes in the fair value of financial instruments with fixed interest rates. Changes in fair value attributed to the hedged interest rate risk are accounted for as basis adjustments to the hedged financial instruments and are included in Net interest income. Changes in fair value from the hedging derivatives are also included in Net interest income. Any differences between the two represent hedge ineffectiveness that is included in Net interest income.

Similarly, for hedges of foreign exchange risk, changes in the fair value from the hedging derivatives are included in Foreign exchange other than trading (FXOTT). Changes in the fair value of the hedged item from the hedged foreign exchange risk are accounted for as basis adjustments and are also included in FXOTT. Any difference between the two represents hedge ineffectiveness.

If the hedging instrument expires or is sold, terminated or exercised, or where the hedge no longer meets the criteria for hedge accounting, the hedge relationship is terminated and the basis adjustment applied to the hedged item is amortized over the remaining term of the hedged item. If the hedged item is derecognized, the unamortized basis adjustment is recognized immediately in the consolidated statement of income.

##### Cash flow hedges

We designate cash flow hedges as part of interest rate risk management strategies that use derivatives to mitigate our risk from variable cash flows by effectively converting certain variable-rate financial instruments to fixed-rate financial instruments, and as part of foreign exchange rate risk management strategies to hedge forecasted foreign currency denominated cash flows. We also designate cash flow hedges to hedge changes in CIBC's share price in respect of certain cash-settled share-based payment awards.

The effective portion of the change in fair value of the derivative instrument is recognized in OCI until the variability in cash flows being hedged is recognized in the consolidated statement of income in future accounting periods, at which time an appropriate portion of the amount that was in AOCI is reclassified into the consolidated statement of income. The ineffective portion of the change in fair value of the hedging derivative is included in Net interest income, FXOTT, or Non-interest expenses immediately as it arises.

If the hedging instrument expires or is sold, terminated or exercised, or where the hedge no longer meets the criteria for hedge accounting, the hedge relationship is terminated. Upon termination of the hedge relationship, any remaining amount in AOCI remains therein until it is recognized in the consolidated statement of income when the variability in cash flows hedged or the hedged forecast transaction is ultimately recognized in the consolidated statement of income. When the forecasted transaction is no longer expected to occur, the related cumulative gain or loss in AOCI is recognized immediately in the consolidated statement of income.

##### Hedges of NIFOs with a functional currency other than the Canadian dollar

We may designate NIFO hedges to mitigate the foreign exchange risk on our NIFOs with a functional currency other than the Canadian dollar. These hedges are accounted for in a similar manner to cash flow hedges. The change in fair value of the hedging instrument relating to the effective portion is recognized in OCI. The change in fair value of the hedging instrument attributable to the forward points and relating to the ineffective portion is recognized immediately in FXOTT. Gains and losses in AOCI are reclassified to the consolidated statement of income upon the disposal or partial disposal of the investment in the foreign operation that involves the loss of control, as explained in the "Foreign currency translation" policy above.

#### Derivatives used for ALM purposes that are not designated for hedge accounting

The change in fair value of the derivatives not designated as accounting hedges but used to economically hedge FVO assets or liabilities is included in Gains (losses) from financial instruments measured/designated at FVTPL, net. The change in fair value of other derivatives not designated as accounting hedges but used for other economic hedging purposes is included in Non-interest income as FXOTT or Other, as appropriate, or in the case of economic hedges of cash-settled share-based payment obligations, in compensation expense.

##### Embedded derivatives

Derivatives embedded in financial liabilities are accounted for as separate derivatives when their economic characteristics and risks are not closely related to those of the host instrument and the terms of the embedded derivative represent those of a freestanding derivative in situations where the combined instrument is not classified as FVTPL or FVO. These embedded derivatives, which are classified together with the host instrument on the consolidated balance sheet, are measured at fair value, with subsequent changes in fair value included in the consolidated statement of income. The residual amount of the host liability is accreted to its maturity value through Interest income and Interest expense, respectively, using the effective interest rate method.

Gains at inception on derivatives embedded in financial instruments bifurcated for accounting purposes are not recognized at inception; instead they are recognized over the life of the residual host instrument. Where an embedded derivative is separable from the host instrument but the fair value, as at the acquisition or reporting date, cannot be reliably measured separately or is otherwise not bifurcated, the entire combined contract is measured at FVTPL.

Financial assets with embedded derivatives are classified in their entirety into the appropriate classification at initial recognition through an assessment of the contractual cash flow characteristics of the asset and the business model under which it is managed.

##### Accumulated other comprehensive income

AOCI is included on the consolidated balance sheet as a separate component of total equity, net of income tax. It includes net unrealized gains and losses on FVOCI debt and equity securities, the effective portion of gains and losses on derivative instruments designated within effective cash flow hedges under IAS 39, unrealized foreign currency translation gains and losses on foreign operations with a functional currency other than the Canadian dollar, net of gains or losses on related hedges, net gains (losses) related to fair value changes of FVO liabilities attributable to changes in own credit risk, and net gains (losses) on post-employment defined benefit plans.

##### Treasury shares

Where we repurchase our own equity instruments, these instruments are treated as treasury shares and are deducted from equity at their cost with any gain or loss recognized in Contributed surplus or Retained earnings as appropriate. No gain or loss is recognized in the consolidated statement of income on the purchase, sale, issue or cancellation of our own equity instruments. Any difference between the carrying value and the consideration, if reissued, is also included in Contributed surplus.

### Liabilities and equity

We classify financial instruments as a liability or equity based on the substance of the contractual arrangement. An instrument is classified as a liability if it is a contractual obligation to deliver cash or another financial asset, or to exchange financial assets or financial liabilities at potentially unfavourable terms. A contract is also classified as a liability if it is a non-derivative and could obligate us to deliver a variable number of our own shares or it is a derivative other than one that can be settled by the delivery of a fixed amount of cash or another financial asset for a fixed number of our own equity instruments. An instrument is classified as equity if it evidences a residual interest in our assets after deducting all liabilities. The components of a compound financial instrument are classified and accounted for separately as assets, liabilities, or equity as appropriate. Incremental costs directly attributable to the issuance of equity instruments are shown in equity, net of income tax.

### Property and equipment

Land is recognized initially at cost and is subsequently measured at cost less any accumulated impairment losses. Buildings, furniture, equipment and leasehold improvements are recognized initially at cost and are subsequently measured at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation commences when the assets are available for use and is recognized on a straight-line basis to depreciate the cost of these assets to their estimated residual value over their estimated useful lives. The estimated useful lives are as follows:

* Buildings - 40 years
* Computer equipment - 3 to 7 years
* Office furniture, equipment and other - 4 to 15 years
* Leasehold improvements - over the lesser of the estimated useful life of the asset and the lease term, including reasonably assured renewal periods

Depreciation methods, useful lives and residual values are reviewed at each annual reporting date and are adjusted if appropriate.

Gains and losses on disposal are included in Non-interest income - Other.

### Leases

As a lessee, we recognize a right-of-use asset and a corresponding lease liability based on the present value of future lease payments, less any lease incentives receivable, when the lessor makes the leased asset available for use to CIBC, based on the non-cancellable portion of the lease term, adjusted for any renewal or termination options that are reasonably certain to be exercised. Measurement of the right-of-use asset also includes any initial direct costs of procuring the lease, any lease payments made or lease incentives received prior to lease commencement, and the estimated cost of remediating the underlying asset at the end of the lease term. Discount rates are based on the rate implicit in the lease, if determinable, or on CIBC's incremental borrowing rate. Where a property lease contains both a lease and non-lease component, we have elected not to allocate the consideration in the contract to each of the components. Subsequent to initial measurement, CIBC measures the lease liability by increasing the carrying amount to reflect interest on the lease liability based on the discount rate at the time of recognition and reducing the carrying amount to reflect lease payments made during the period, net of any remeasurements for lease reassessment or modifications. The right-of-use asset is measured using the cost model, and is amortized on a straight-line basis over the lease term. Right-of-use assets and the corresponding lease liabilities, including asset retirement obligations, are recognized in Property and equipment and Other liabilities, respectively, on our consolidated balance sheet.

The right-of-use asset and the corresponding lease liability are remeasured when there is a change in lease term, a change in the assessment of an option to purchase a leased asset, a change in the expected residual value guarantee (if any), or a change in future lease payments due to a change in the index or rate applicable to the payment. Right-of-use assets are tested for impairment as required under IAS 36 "Impairment of Assets" (IAS 36).

Refer to the "Impairment of non-financial assets" policy below. In addition, the evaluation of the useful life for depreciation is assessed under IAS 16 "Property, Plant and Equipment".

Lease payments for low-value assets, short-term leases and variable leases are systematically recognized in Non-interest expenses based on the nature of the expense.

As an intermediate lessor, we classify a sublease as an operating or finance sublease based on whether substantially all of the risks and rewards related to the underlying right-of-use asset are transferred to the sub-lessee. If classified as a finance sublease, the related right-of-use asset is derecognized and an investment in sublease is recognized, with the difference recognized in the consolidated statement of income as a gain or loss. In measuring the investment in sublease, we apply the head lease discount rate unless the rate implicit in the sublease is determinable. Where a finance sublease includes lease and non-lease components, we allocate the total consideration in the contract to each component based on the stand-alone prices for each of these components. The investment in sublease is recognized in Other assets on our consolidated balance sheet, and is subsequently measured using the effective interest rate method, with interest income recognized over the term of the sublease. Rental income from operating subleases is recognized on a systematic basis over the lease term.

We are also lessors in both financing leases and operating leases related to client financing activities. Leases are classified as financing leases if they transfer substantially all the risks and rewards related to ownership of the leased asset to the lessee. Otherwise, they are classified as operating leases, as we retain substantially all the risks and rewards of asset ownership. In a financing lease, the leased asset is derecognized and a net investment in the lease is recognized, which is initially measured as the present value of the lease payments to be received from the lessee and any unguaranteed residual value we expect to recover at the end of the lease, discounted at the interest rate implicit in the lease. The net investment in the financing lease is presented as part of Business and government loans on our consolidated balance sheet. Finance lease income is recognized in Interest income - loans, in our consolidated statement of income.

### Goodwill, software and other intangible assets

Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets, liabilities and contingent liabilities acquired in business combinations. Identifiable intangible assets are recognized separately from goodwill when they are separable or arise from contractual or other legal rights, and have fair values that can be reliably measured.

Goodwill is not amortized, but is subject to impairment review at least annually or more frequently if there are indicators that the goodwill may be impaired. Refer to the "Impairment of non-financial assets" policy below.

Intangible assets include software and customer relationships, core deposit intangibles and investment management contracts recognized as part of past acquisitions. Intangible assets with definite useful lives are measured at cost less accumulated amortization and accumulated impairment losses. Each intangible asset is assessed for legal, regulatory, contractual, competitive or other factors to determine if the useful life is definite. Intangible assets with definite useful lives are amortized over their estimated useful lives, which are as follows:

* Software - 5 to 10 years
* Contract-based intangibles - 8 to 15 years
* Core deposit and customer relationship intangibles - 3 to 16 years

Intangible assets with indefinite useful lives are measured at cost less any accumulated impairment losses. Indefinite-life intangible assets are tested for impairment at least annually and whenever there is an indication that the asset may be impaired. Refer to the "Impairment of non-financial assets" policy below.

### Impairment of non-financial assets

The carrying values of non-financial assets with definite useful lives, including right-of-use assets, buildings and equipment, and intangible assets with definite useful lives are reviewed to determine whether there is any indication of impairment. Goodwill and intangible assets with indefinite useful lives are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired. If any such indication of impairment exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.

For the purpose of reviewing non-financial assets with definite useful lives for impairment, asset groups are reviewed at their lowest level for which identifiable cash inflows are largely independent of cash inflows of other assets or groups of assets. This grouping is referred to as a cash-generating unit (CGU).

Corporate assets do not generate separate cash inflows. Corporate assets are tested for impairment at the minimum collection of CGUs to which the corporate asset can be allocated reasonably and consistently.

The recoverable amount is the greater of fair value less costs to sell and value in use. Value in use is the present value of the future cash flows expected to be derived from the asset or CGU. If the recoverable amount is less than its carrying value, an impairment loss is recognized in the consolidated statement of income in the period in which it occurs. If an impairment subsequently reverses, the carrying value of the asset is increased to the extent that the carrying value of the underlying assets does not exceed the carrying value that would have been determined, net of depreciation or amortization, if no impairment had been recognized. Any impairment reversal is recognized in the consolidated statement of income in the period in which it occurs.

Goodwill is assessed for impairment based on the group of CGUs expected to benefit from the synergies of the business combination, and the lowest level at which management monitors the goodwill. Any potential goodwill impairment is identified by comparing the recoverable amount of the CGU grouping to which the goodwill is allocated to its carrying value including the allocated goodwill. If the recoverable amount is less than its carrying value, an impairment loss is recognized in the consolidated statement of income in the period in which it occurs. Impairment losses on goodwill are not subsequently reversed if conditions change.

### Income taxes

Income tax includes current tax and deferred tax which is recognized in the consolidated statement of income, except to the extent that it relates to items recognized in OCI or directly in equity, in which case it is accordingly recognized therein.

Current tax is recognized as the tax calculated as payable on the taxable profit for the year, based on the applicable laws of each jurisdiction, using tax rates enacted or substantively enacted as at the reporting date, and any adjustment in respect of previous years. Current tax assets and liabilities are offset when CIBC intends to settle on a net basis and the legal right to offset exists.

Deferred tax is recognized on temporary differences between the carrying value of assets and liabilities on the consolidated balance sheet and the corresponding amounts attributed to such assets and liabilities for tax purposes.

Deferred tax is recognized using the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted as at the reporting date.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different taxable entities which intend to settle current tax liabilities and assets on a net basis or to realize the asset and settle the liability simultaneously.

Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which deductible temporary differences can be utilized.

Deferred tax is not recognized for taxable temporary differences arising from NIFOs if they are not expected to reverse in the foreseeable future and we expect to control the timing of reversal, deductible temporary differences arising from NIFOs if they are not expected to reverse in the foreseeable future or it is not probable future taxable profits will be available against which these deductible temporary differences can be utilized, taxable temporary differences arising from the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable income, or taxable temporary differences on the initial recognition of goodwill.

We are subject to income tax laws in the various jurisdictions where we operate, and the tax laws in those jurisdictions are potentially subject to different interpretations by us and the relevant taxation authority, which gives rise to uncertainty. For tax positions where there is uncertainty regarding the ultimate determination of the tax impact, including positions which are under audit, dispute or appeal, we recognize provisions to consider this uncertainty based on our best estimate of the amount expected to be paid based on an assessment of the relevant factors. Changes in our assessment of these factors could increase or decrease our provision for income taxes in future periods.

Pursuant to the IASB's issuance of "International Tax Reform - Pillar Two Model Rules", which amended IAS 12, we have applied the temporary exception from the recognition and disclosure of deferred taxes arising from the implementation of Pillar Two Model Rules. See Note 18 for additional details.

### Pension and other post-employment benefits

We are the sponsor of a number of employee benefit plans. These plans include both defined benefit and defined contribution pension plans, and various other post-employment benefit plans including post-retirement medical and dental benefits.

#### Defined benefit plans

The cost of pensions and other post-employment benefits earned by employees is actuarially determined separately for each plan using the projected unit credit method and our best estimate of salary escalation, retirement ages of employees, mortality and expected health-care costs. This represents CIBC's defined benefit obligation, which is measured as at the reporting date. The discount rate used to measure the defined benefit obligation is based on the yield of a portfolio of high-quality corporate bonds denominated in the same currency in which the benefits are expected to be paid and with terms to maturity that, on average, match the terms of the defined benefit obligation.

Plan assets are measured at fair value as at the reporting date.

The net defined benefit asset (liability) represents the present value of the defined benefit obligation less the fair value of plan assets. The net defined benefit asset (liability) is included in Other assets and Other liabilities, respectively.

Current service cost reflects the cost of providing post-employment benefits earned by employees in the current period. Current service cost is calculated as the present value of the benefits attributed to the current year of service and is recognized in the consolidated statement of income. The current service cost is calculated using a separate discount rate to reflect the longer duration of future benefit payments associated with the additional year of service to be earned by the plan's active participants.

Past service costs arising from plan amendments or curtailments are recognized in net income as part of the net defined benefit plan expense in the period in which they arise.

Net interest income or expense comprises interest income on plan assets and interest expense on the defined benefit obligation. Interest income is calculated by applying the discount rate to the plan assets, and interest expense is calculated by applying the discount rate to the defined benefit obligation. Net interest income or expense is recognized in the consolidated statement of income as part of the net defined benefit plan expense.

Actuarial gains and losses represent changes in the present value of the defined benefit obligation which result from changes in actuarial assumptions and differences between previous actuarial assumptions and actual experience, and from differences between the actual return on plan assets and assumed interest income on plan assets. Net actuarial gains and losses are recognized in OCI in the period in which they arise and are not subject to subsequent reclassification to net income. Cumulative net actuarial gains and losses are included in AOCI.

When the calculation results in a net defined benefit asset, the recognized asset is limited to the present value of economic benefits available in the form of future refunds from the plan or reductions in future contributions to the plan (the asset ceiling). For plans where we do not have an unconditional right to a refund of surplus, we determine the asset ceiling by reference to future economic benefits available in the form of reductions in future contributions to the plan, in which case the present value of economic benefits is calculated giving consideration to minimum funding requirements for future service that apply to the plan. Where a reduction in future contributions to the plan is not currently realizable at the reporting date, we estimate whether we will have the ability to reduce contributions for future service at some point during the life of the plan by taking into account, among other things, expected future returns on plan assets. If it is anticipated that we will not be able to recover the value of the net defined benefit asset, after considering minimum funding requirements for future service, the net defined benefit asset is reduced to the amount of the asset ceiling.

When the payment in the future of minimum funding requirements related to past service would result in a net defined benefit surplus, or an increase in a net defined benefit surplus, the minimum funding requirements are recognized as a liability to the extent that the surplus would not be fully available as a refund or a reduction in future contributions. Any funded status surplus is limited to the present value of future economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

#### Defined contribution plans

Costs for defined contribution plans are recognized during the year in which the service is provided.

#### Other long-term employee benefits

CIBC offers medical and dental benefits to employees while on long-term disability.

The amount of other long-term employee benefits is actuarially calculated using the projected unit credit method. Under this method, the benefit is discounted to determine its present value. The methodology used to determine the discount rate used to value the long-term employee benefit obligation is consistent with that for pension and other post-employment benefit plans. Actuarial gains and losses and past service costs are recognized in the consolidated statement of income in the period in which they arise.

### Share-based payments

We provide compensation to certain employees and directors in the form of share-based awards.

Compensation expense for share-based awards is recognized from the service commencement date to the earlier of the contractual vesting date or the employee's retirement eligible date. For grants regularly awarded in the annual incentive compensation cycle (annual incentive grant), the service commencement date is considered to be the start of the fiscal year that precedes the fiscal year in which the grant is made. The service commencement date in respect of special awards granted outside of the annual cycle is the grant date. The amount of compensation expense recognized is based on management's best estimate of the number of share-based awards expected to vest, including estimates of expected forfeitures, which are revised periodically as appropriate. For the annual incentive grant, compensation expense is recognized from the service commencement date based on the estimated fair value of the forthcoming grant with the estimated fair value adjusted to the actual fair value at the grant date.

Under the Restricted Share Award (RSA) plan, where grants are settled in the cash equivalent of common shares, changes in the obligation which arise from fluctuations in the market price of common shares, net of related hedges, are recognized in the consolidated statement of income as compensation expense in proportion to the award recognized.

Under the Performance Share Unit (PSU) plan, where grants are settled in the cash equivalent of common shares, changes in the obligation which arise from fluctuations in the market price of common shares, and revised estimates of the performance factor, net of related hedges, are recognized in the consolidated statement of income as compensation expense in proportion to the award recognized. The performance factor ranges from 75% to 125% of the initial number of units awarded based on CIBC's performance relative to the other major Canadian banks and to internal targets.

Compensation expense in respect of the Employee Stock Option Plan (ESOP) is based on the grant date fair value. Where the service commencement date precedes the grant date, compensation expense is recognized from the service commencement date based on the estimated fair value of the award at the grant date, with the estimated fair value adjusted to the actual fair value at the grant date. Compensation expense results in a corresponding increase to contributed surplus. If the ESOP award is exercised, the proceeds we receive, together with the amount recognized in Contributed surplus, are credited to common share capital. If the ESOP award expires unexercised, the related amounts remain in Contributed surplus.

Compensation in the form of Deferred Share Units (DSUs) issued pursuant to the Deferred Share Unit Plan, the Deferred Compensation Plan (DCP), and the Directors' Plan entitles the holder to receive the cash equivalent of a CIBC common share. At the time DSUs are granted, the related expense in respect of the cash compensation that an employee or director would otherwise receive would have been fully recognized. Changes in the obligations which arise from fluctuations in the market price of common shares, net of related hedges, are recognized in the consolidated statement of income as compensation expense for employee DSUs and as Non-interest expense - Other for Directors' DSUs.

Our contributions under the Employee Share Purchase Plan (ESPP) are expensed as incurred.

The impact due to our changes in common share price in respect of cash-settled share-based compensation under the RSA and PSU plans is hedged through the use of derivatives. We designate these derivatives within cash flow hedge accounting relationships. The effective portion of the change in fair value of these derivatives is recognized in OCI and is reclassified into compensation expense, within the consolidated statement of income, over the period that the hedged awards impact the consolidated statement of income. The ineffective portion of the change in fair value of the hedging derivatives is recognized in the consolidated statement of income immediately as it arises.

### Provisions and contingent liabilities

Provisions are liabilities of uncertain timing or amount. A provision is recognized when we have a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The provision is recognized as the best estimate of the amount required to settle the obligation at the reporting date, taking into account the risk and uncertainties related to the obligation. Where material, provisions are discounted to reflect the time value of money, and the increase in the obligation due to the passage of time is presented as Interest expense in the consolidated statement of income.

Contingent liabilities are possible obligations that arise from past events whose existence will be confirmed only by the occurrence, or non-occurrence, of one or more uncertain future events not wholly within the control of CIBC, or are present obligations that have arisen from past events but are not recognized because it is not probable that settlement will require the outflow of economic benefits.

Provisions and contingent liabilities are disclosed in the consolidated financial statements.

### Earnings per share

We present basic and diluted EPS for our common shares.

Basic EPS is computed by dividing net income for the period attributable to CIBC common shareholders by the weighted-average number of common shares outstanding during the period. The net income attributable to CIBC common shareholders is determined after deducting the after-tax amount of dividends on preferred shares and distributions on other equity instruments, which are accounted for in retained earnings, from the net income attributable to equity shareholders.

Diluted EPS is computed by dividing net income for the period attributable to CIBC common shareholders by the weighted-average number of diluted common shares outstanding for the period. Diluted common shares reflect the potential dilutive effect of the exercise of stock options based on the treasury stock method. For stock options, the treasury stock method determines the number of incremental common shares by assuming that outstanding stock options, whose exercise price is less than the average market price of common shares during the period, are exercised and then reduced by the number of common shares assumed to be repurchased with the exercise proceeds from the assumed exercise of the options. Instruments determined to have an antidilutive effect for the period are excluded from the calculation of diluted EPS.

### Fee and commission income

The recognition of fee and commission income is determined by the purpose of the fee or commission and the terms specified in the contract with the customer. Revenue is recognized when, or as, a performance obligation is satisfied by transferring control of the service to the customer, in the amount of the consideration to which we expect to be entitled. Revenue may therefore be recognized at a point in time upon completion of the service or over time as the services are provided. When revenue is recognized over time, we are generally required to provide the services each period, such that control of the services is transferred evenly to the customer, and we therefore measure our progress towards completion of the service based upon the time elapsed. For contracts where the transaction price includes variable consideration, revenue is only recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. When another party is involved in providing a service to a customer, we determine whether the nature of our performance obligation is that of a principal or an agent. If we control the service before it is transferred to the customer, we are acting as the principal and present revenue separately from the amount paid to the other party; otherwise, we are the agent and present revenue net of the amount paid to the other party. Consideration payable to a customer, including cash amounts payable to a customer, credits or other items that can be applied against amounts owing to us, is recognized as a reduction of revenue unless the payment to the customer is in exchange for a distinct good or service, in which case the purchase of the good or service is accounted for in the same way as for other purchases from suppliers. Our performance obligations typically have a term of one year or less, with payment received upon satisfaction of the performance obligation or shortly afterwards, and as a result there is no significant financing component and we do not typically capitalize the costs of obtaining contracts with our customers. Income which forms an integral part of the effective interest rate of a financial instrument is recognized as an adjustment to the effective interest rate.

In addition to these general principles, the following specific policies are also applied:

* Underwriting and advisory fees are earned on debt and equity securities placements and transaction-based advisory services. Underwriting fees are typically recognized at the point in time when the transaction is completed. Advisory fees are generally recognized as revenue over the period of the engagement as the related services are provided or at the point in time when the transaction is completed.
* Deposit and payment fees arise from personal and business deposit accounts and cash management services. Monthly and annual fees are recognized over the period that the related services are provided. Transactional fees are recognized at the point in time when the related services are provided.
* Credit fees consist of loan syndication fees, loan commitment fees, letter of credit fees, banker's acceptance stamping fees, and securitization fees. Credit fees are generally recognized over the period that the related services are provided, except for loan syndication fees, which are typically recognized at the point in time that the financing placement is completed.
* Card fees primarily include interchange income, overlimit fees, cash advance fees, and annual fees. Card fees are recognized at the point in time that the related services are provided, except for annual fees, which are recognized over the 12-month period to which they relate. The cost of credit card loyalty points is recognized as a reduction of interchange income when the loyalty points are issued for both self-managed and third-party loyalty points programs. Credit card loyalty point liabilities are recognized for self-managed loyalty point programs and are subject to periodic remeasurement to reflect the expected cost of redemption as this expectation changes over time.
* Commissions on securities transactions include brokerage commissions for transactions executed on behalf of clients, trailer fees and mutual fund sales commissions. Brokerage commissions and mutual fund sales commissions are generally recognized at the point in time that the related transaction is executed. Trailer fees are typically calculated based upon the average daily net asset value of the mutual fund units held by clients and are recognized over time as the related services are provided.
* Investment management fees are primarily based on the respective value of the assets under management (AUM) or assets under administration (AUA) and are recognized over the period that the related services are provided. Investment management fees relating to our asset management and private wealth management business are generally calculated based on point-in-time AUM balances, and investment management fees relating to our retail brokerage business are generally calculated based on point-in-time AUM or AUA balances. Custodial fees are recognized as revenue over the applicable service period, which is generally the contract term.
* Mutual fund fees include management fees and administration fees, which are earned on fund management services and are recognized over the period that the mutual funds are managed based upon a specified percentage of the daily net asset values of the respective mutual funds.

### Insurance Contracts

In accordance with IFRS 17, groups of insurance contracts are established and measured on the basis of fulfilment cash flows. Insurance contracts under the General Measurement Model (GMM) are measured based on the present value of fulfilment cash flows, a risk adjustment for non-financial risks, and a contractual service margin (CSM) representing our unearned profits on a portfolio basis, further disaggregated into profitability groups.

We have applied GMM to our insurance contracts with contract boundaries exceeding a year. Contracts under the Premium Allocation Approach (PAA) are measured on the basis of premiums received and related cash flows, which has been applied to our insurance contracts with contract boundaries shorter than one year. Under both measurement models, we have measured the liability for incurred claims on the basis of fulfilment cash flows relating to claims incurred. Insurance results are included in the consolidated statement of income under Income from insurance activities, net.

### Fair value measurement of derivatives

As described in Note 2 and Note 12 of the consolidated financial statements, CIBC has recognized \$38.4 billion in derivative assets and \$41.4 billion in derivative liabilities. The portfolio of derivative instruments is presented by level within the fair value hierarchy, with the majority of the portfolio classified as Level 2. While derivative instruments classified as Level 1 have quoted market prices, those classified as Level 2 and 3 require valuation techniques that use observable and non-observable market inputs and involve the application of management judgment.

Auditing the valuation of certain derivatives was complex and required the application of significant auditor judgment and involvement of valuation specialists where the fair value was determined based on complex models and/or significant non-observable market inputs. The inputs and modelling assumptions used to determine fair values that were subject to significant auditor judgment included, amongst others, correlations, volatilities and credit spreads. The valuation of derivatives is sensitive to these inputs as they are forward-looking and could be affected by future economic and market conditions.

We obtained an understanding, evaluated the design and tested the operating effectiveness of management's controls over the valuation of CIBC's derivatives portfolio, with the assistance of our internal specialists. The controls we tested included, amongst others, controls over technology, the development and validation of models used to determine the fair value of derivatives, and controls over the independent price verification process, including the integrity of significant inputs described above.

To test the valuation of these derivatives, our audit procedures included, amongst others, an evaluation of the methodologies and significant inputs used by CIBC. With the assistance of our valuation specialists, we performed an independent valuation for a sample of derivatives to assess the modelling assumptions and significant inputs used by CIBC to estimate the fair value. We independently obtained significant inputs and assumptions from external market data, where available, in performing our independent valuation. For a sample of models, and with the assistance of our valuation specialists, we assessed the valuation methodologies used by CIBC to determine fair values. We also assessed the adequacy of the disclosures related to the fair value measurement of derivatives.

### Measurement of uncertain tax provisions

As described in Note 1 and Note 18 of the consolidated financial statements, CIBC has disclosed its material accounting policies, estimates and assumptions in relation to accounting for uncertainty in income taxes. CIBC operates in a tax environment with constantly evolving and complex tax legislation for financial institutions. Uncertainty in tax positions may arise as tax legislation is subject to interpretation. Estimating uncertain tax provisions requires management judgment to be applied in the interpretation of tax laws across the various jurisdictions in which CIBC operates. This includes significant judgment in the determination of whether it is probable that CIBC's tax filing positions will be sustained relating to certain complex tax positions and the measurement of such provisions when recognized.

Auditing CIBC's uncertain tax provisions required the involvement of our tax professionals and the application of judgment, including the interpretation of applicable tax legislation and jurisprudence.

With the assistance of our tax professionals, we obtained an understanding, evaluated the design and tested the operating effectiveness of management's controls over CIBC's uncertain tax provisions. This included, amongst others, controls over management's assessment of the technical merits of tax positions and the process related to the measurement of any related income tax provisions.

With the assistance of our tax professionals, our audit procedures included, amongst others, an assessment of the technical merits of income tax positions taken by CIBC and the measurement of any related uncertain tax provisions recorded. We inspected and evaluated correspondence from the relevant income tax authorities, income tax advice obtained by CIBC from external advisors including income tax opinions, CIBC's interpretations of tax laws and the assessment thereof with respect to uncertain tax positions. We evaluated the reasonability of CIBC's treatment of any new information received during the year relating to these uncertain tax positions. We also assessed the adequacy of the disclosures related to uncertain tax positions.

| **Ernst & Young LLP** | |
|---|---|
| Chartered Professional Accountants | |
| Licensed Public Accountants | |
| We have served as CIBC's auditor since 2002. | |
| Toronto, Canada | |
| **December 3, 2025** | |

## Financial assets and liabilities not carried on the consolidated balance sheet at fair value

The table below presents the fair values by level within the fair value hierarchy for those financial instruments in which fair value is not assumed to equal the carrying value:

| | Level 1 | Level 2 | Level 3 | Total | Fair value | Fair value over (under) carrying value |
|---|---|---|---|---|---|---|
| **\$ millions, as at October 31** | **Quoted market price** | **Valuation technique - observable market inputs** | **Valuation technique - non-observable market inputs** | **Total** | **2025** | **2024** | **2025** | **2024** |
| **Financial assets** | | | | | | | | |
| **Amortized cost securities** | | | | | | | | |
| Loans | | | | | | | | |
| Residential mortgages | - | - | 287,325 | 279,802 | 287,325 | 279,802 | - | (908) |
| Personal | - | - | 46,774 | 45,750 | 46,774 | 45,750 | - | - |
| Credit card | - | - | 20,651 | 19,682 | 20,651 | 19,682 | - | - |
| Business and government | - | - | 235,232 | 212,523 | 235,232 | 212,523 | - | - |
| Financial liabilities | | | | | | | | |
| Deposits | | | | | | | | |
| Personal | - | - | 73,757 | 82,620 | 4,167 | 5,232 | 77,924 | 87,852 |
| Business and government | - | - | 193,978 | 191,616 | 3,596 | 4,681 | 197,574 | 196,297 |
| Bank | - | - | 8,737 | 9,420 | - | - | 8,737 | 9,420 |
| Secured borrowings | - | - | 62,356 | 50,546 | 3,027 | 4,872 | 65,383 | 55,418 |
| Subordinated indebtedness | - | - | 8,091 | 7,698 | - | - | 8,091 | 7,698 |

**Financial instruments carried on the consolidated balance sheet at fair value**
The table below presents the fair values of financial instruments by level within the fair value hierarchy:

| | Level 1 | Level 2 | Level 3 | Total | Fair value | Fair value over (under) carrying value |
|---|---|---|---|---|---|---|
| **\$ millions, as at October 31** | **Quoted market price** | **Valuation technique - observable market inputs** | **Valuation technique - non-observable market inputs** | **Total** | **2025** | **2024** | **2025** | **2024** |
| **Financial assets** | | | | | | | | |
| **Debt securities measured at FVTPL** | | | | | | | | |
| Government issued or guaranteed | 6,222 | 4,258 | 34,635 | 32,328 | - | - | 40,857 | 36,586 |
| Corporate and other debt | - | - | 4,537 | 4,385 | 103 | - | 4,640 | 4,385 |
| Mortgage- and asset-backed | - | - | 7,193 | 4,213 | 392 | 70 | 7,585 | 4,283 |
| | 6,222 | 4,258 | 46,365 | 40,926 | 495 | 70 | 53,082 | 45,254 |
| **Loans measured at FVTPL** | | | | | | | | |
| Business and government | - | - | 485 | 116 | 75 (1) | 105 (1) | 560 | 221 |
| Residential mortgages | - | - | 3 | 3 | - | - | 3 | 3 |
| | 488 | 119 | 75 | 105 | 563 | 224 |
| **Debt securities measured at FVOCI** | | | | | | | | |
| Government issued or guaranteed | 9,206 | 2,760 | 63,917 | 60,051 | - | - | 73,123 | 62,811 |
| Corporate and other debt | - | - | 10,106 | 9,083 | - | - | 10,106 | 9,083 |
| Mortgage- and asset-backed | - | - | 4,656 | 4,127 | - | - | 4,656 | 4,127 |
| | 9,206 | 2,760 | 78,679 | 73,261 | - | - | 87,885 | 76,021 |
| **Corporate equity mandatorily measured at FVTPL and designated at FVOCI** | 74,686 | 59,904 | 1,048 | 916 | 1,063 | 640 | 76,797 | 61,460 |
| **Securities purchased under resale agreements measured at FVTPL** | - | - | 17,651 | 24,977 | - | - | 17,651 | 24,977 |
| **Other assets** | - | - | 674 | 364 | - | - | 674 | 364 |
| **Derivative instruments** | | | | | | | | |
| Interest rate | 2 | 2 | 6,027 | 6,718 | 79 | 51 | 6,108 | 6,771 |
| Foreign exchange | - | - | 16,845 | 15,525 | - | - | 16,845 | 15,525 |
| Credit | - | - | 41 | 2 | 36 | 44 | 77 | 46 |
| Equity | 5,761 | 5,821 | 5,729 | 5,157 | 51 | 6 | 11,541 | 10,984 |
| Precious metal and other commodity | 55 | - | 32 | 3,726 | 3,077 | - | - | 3,781 | 3,109 |
| | 5,818 | 5,855 | 32,368 | 30,479 | 166 | 101 | 38,352 | 36,435 |
| **Total financial assets** | **\$ 95,932** | **\$ 72,777** | **\$ 177,273** | **\$ 171,042** | **\$ 1,799** | **\$ 916** | **\$ 275,004** | **\$ 244,735** |
| **Financial liabilities** | | | | | | | | |
| Deposits and other liabilities (2) | | | | | | | | |
| Deposits | - | - | (43,788) | (39,290) | (476) | (416) | (44,264) | (39,706) |
| Obligations related to securities sold short | (6,150) | (9,199) | (18,094) | (12,443) | - | - | (24,244) | (21,642) |
| Obligations related to securities sold under repurchase agreements | - | - | (8,135) | (9,746) | - | - | (8,135) | (9,746) |
| Derivative instruments | | | | | | | | |
| Interest rate | (3) | (2) | (6,215) | (6,718) | (1,055) | (1,028) | (7,273) | (7,746) |
| Foreign exchange | - | - | (14,977) | (16,065) | (18) | (4) | (14,995) | (16,069) |
| Credit | - | - | (41) | (2) | (36) | (44) | (81) | (55) |
| Equity | (5,212) | (4,712) | (9,213) | (6,404) | (29) | (1) | (14,454) | (11,117) |
| Precious metal and other commodity | (48) | (39) | (4,555) | (4,108) | - | - | (4,603) | (4,147) |
| | (5,263) | (4,753) | (35,005) | (34,818) | (1,143) | (1,083) | (41,411) | (40,654) |
| **Total financial liabilities** | **\$ (11,413)** | **\$ (13,952)** | **\$ (105,022)** | **\$ (96,297)** | **\$ (1,619)** | **\$ (1,499)** | **\$ (118,054)** | **\$ (111,748)** |

(1) Includes loans designated at FVTPL.
(2) Comprises deposits designated at FVTPL of \$43,723 million (2024: \$39,008 million), net bifurcated embedded derivative liabilities of \$313 million (2024: \$521 million), other liabilities designated at FVTPL of \$8 million (2024: \$19 million), and other financial liabilities measured at fair value of \$220 million (2024: \$158 million).

Transfers between levels in the fair value hierarchy are deemed to have occurred at the beginning of the year in which the transfer occurred. Transfers between levels can occur as a result of additional or new information regarding valuation inputs and changes in their observability. During the year, we transferred \$285 million of securities measured at FVTPL or FVOCI (2024: \$922 million) from Level 1 to Level 2 and \$2,111 million of securities sold short (2024: \$2,068 million) from Level 1 to Level 2 due to changes in observability in the inputs used to value these securities. Transfers from Level 2 to Level 1 were not significant. In addition, transfers between Level 2 and Level 3 were made during 2025 and 2024, primarily due to changes in the assessment of the observability of certain correlation, market volatility and probability inputs that were used in measuring the fair value of our FVO liabilities and derivatives.

The following table presents the changes in fair value of financial assets and liabilities in Level 3. These instruments are measured at fair value utilizing non-observable market inputs. We often hedge positions with offsetting positions that may be classified in a different level. As a result, the gains and losses for assets and liabilities in the Level 3 category presented in the table below do not reflect the effect of offsetting gains and losses on the related hedging instruments that are classified in Level 1 and Level 2.

| | **Net gains (losses) included in income (1)** | **Net unrealized gains (losses) included in OCI (3)** | **Transfer in to Level 3** | **Transfer out of Level 3** | **Purchases/ Issuances** | **Sales/ Settlements** | **Closing balance** |
|---|---|---|---|---|---|---|---|
| **\$ millions, for the year ended October 31** | **Opening balance** | **Realized** | **Unrealized (2)** | | | | | **2025** |
| **2025** | | | | | | | | |
| **Debt securities measured at FVTPL** | | | | | | | | |
| Corporate and other debt | - | - | - | (78) | - | \$ 386 | \$ 183 | \$ 103 |
| Mortgage- and asset-backed | 70 | - | (1) | (2) | - | 106 | (169) | 392 |
| **Loans measured at FVTPL** | | | | | | | | |
| Business and government | 105 | - | 1 | - | - | 178 | (209) | 75 |
| Corporate equity mandatorily measured at FVTPL and designated at FVOCI | 640 | - | 69 | 15 | - | 400 | (61) | 1,063 |
| **Derivative instruments** | | | | | | | | |
| Interest rate | 51 | - | 45 | - | - | (17) | - | 79 |
| Foreign exchange | 44 | - | (8) | - | - | 40 | (11) | 36 |
| Credit | 6 | - | 5 | - | - | - | 11 | 51 |
| Equity | - | - | - | - | - | - | - | - |
| **Total assets** | **\$ 916** | **\$ -** | **\$ 33** | **\$ 426** | **\$ (28)** | **\$ 878** | **\$ (120)** | **\$ 1,799** |
| **Deposits and other liabilities (4)** | | | | | | | | |
| Derivative instruments | | | | | | | | |
| Interest rate | (416) | \$ 8 | (127) | - | \$ 190 | \$ 46 | \$ (1,055) | \$ (476) |
| Foreign exchange | (1,028) | - | (49) | - | 35 | (18) | (50) | (41) |
| Credit | (50) | - | (1) | - | 14 | (40) | (29) |
| Equity | (1) | - | 3 | - | - | - | - | 2 |
| **Total liabilities** | **\$ (1,499)** | **\$ 8** | **\$ (427)** | **\$ (9)** | **\$ 241** | **\$ (160)** | **\$ 227** | **\$ (1,619)** |
| **2024** | | | | | | | | |
| **Debt securities measured at FVTPL** | | | | | | | | |
| Corporate and other debt | - | - | - | - | - | - | - | - |
| Mortgage- and asset-backed | 151 | - | (3) | - | 84 | (162) | 70 |
| **Loans measured at FVTPL** | | | | | | | | |
| Business and government | 144 | - | 5 | - | - | (44) | 105 |
| Corporate equity mandatorily measured at FVTPL and designated at FVOCI | 587 | 7 | 26 | (17) | 113 | (76) | 640 |
| **Derivative instruments** | | | | | | | | |
| Interest rate | - | - | 21 | - | 97 | (67) | - | 51 |
| Foreign exchange | 46 | - | (6) | 2 | - | - | 44 |
| Credit | - | - | 4 | 2 | - | - | 6 | (1) |
| Equity | - | - | - | - | - | - | - | - |
| **Total assets** | **\$ 953** | **\$ 1** | **\$ 129** | **\$ (17)** | **\$ 2** | **\$ (73)** | **\$ 204** | **\$ (283)** | **\$ 916** |
| **Deposits and other liabilities (4)** | | | | | | | | |
| Derivative instruments | | | | | | | | |
| Interest rate | (242) | \$ (14) | (156) | - | \$ (3) | \$ 17 | \$ (120) | \$ 102 | \$ (416) |
| Foreign exchange | (1,817) | - | 297 | - | 425 | (8) | (1,028) |
| Credit | (52) | 1 | (31) | - | (8) | - | (4) | 27 |
| Equity | (5) | - | 1 | - | (3) | 4 | (4) | (2) |
| **Total liabilities** | **\$ (2,116)** | **\$ (13)** | **\$ 110** | **\$ (8)** | **\$ 473** | **\$ (128)** | **\$ 183** | **\$ (1,499)** |

(1) Cumulative AOCI gains or losses related to equity securities designated at FVOCI are reclassified from AOCI to retained earnings at the time of disposal or derecognition.
(2) Comprises unrealized gains and losses relating to the assets and liabilities held at the end of the reporting year.
(3) Foreign exchange translation on debt securities and loans measured at FVTPL held by foreign operations and denominated in the same currency as the foreign operations is included in OCI.
(4) Includes deposits designated at FVTPL of \$263 million (2024: \$211 million), net bifurcated embedded derivative liabilities of \$205 million (2024: \$186 million) and other liabilities designated at FVTPL of \$8 million (2024: \$19 million).

### Quantitative information about significant non-observable inputs

Valuation techniques using one or more non-observable inputs are used for a number of financial instruments. The following table discloses the valuation techniques and quantitative information about the significant non-observable inputs used in Level 3 financial instruments:

| | | Valuation techniques | Key non-observable inputs | Range of inputs |
|---|---|---|---|---|
| **\$ millions, as at October 31** | | | **Low** | **High** |
| **2025** | | | | |
| **Debt securities measured at FVTPL** | | | | |
| Corporate and other debt | 103 | Discounted cash flow | Recovery rate | 50.5% | 75.7% |
| Mortgage- and asset-backed | 392 | Discounted cash flow | Credit spread | 3.4% | 3.5% |
| **Corporate equity mandatorily measured at FVTPL and designated at FVOCI** | | | | |
| Limited partnerships and private companies | 1,063 | Adjusted net asset value (1) | Net asset value (2) | n/a | n/a |
| | | Valuation multiple | Earnings multiple | 14.9 x | 29.4 x |
| | | Proxy share price (2) | Proxy share price (2) | n/a | n/a |
| **Loans measured at FVTPL** | | | | |
| Business and government | 75 | Discounted cash flow | Credit spread | 2.1% | 2.1% |
| **Derivative instruments** | | | | |
| Interest rate | 79 | Proprietary model (3) | Market volatility | n/a | n/a |
| | | Option model | | 59.7% | 84.7% |
| Credit | 36 | Market proxy or direct broker quote | Probability of contingent settlement | 80.0% | 100.0% |
| Equity | 51 | Option model | Market proxy or direct broker quote | 36.2% | 36.2% |
| | | | Market correlation | 9.5% | 96.4% |
| **Total assets** | **\$ 1,799** | | | | |
| **Deposits and other liabilities** | | | | | |
| Deposits designated at FVTPL and net bifurcated embedded derivative liabilities | (468) | Option model | Market volatility | 8.3% | 84.7% |
| | | | Market correlation | 100.0% | 100.0% |
| | | | Funding ratio | 49.0% | 49.0% |
| Other liabilities designated at FVTPL | (8) | Option model | | n/a | n/a |
| **Derivative instruments** | | | | | |
| Interest rate | (1,055) | Proprietary model (3) | Market volatility | n/a | n/a |
| | | Option model | | 59.7% | 84.7% |
| Foreign exchange | (18) | Market proxy or direct broker quote | Probability of contingent settlement | 100.0% | 100.0% |
| Credit | (41) | | | 100.0% | 100.0% |
| Equity | (29) | Option model | Market proxy or direct broker quote | 36.2% | 36.2% |
| | | | Market correlation | 10.9% | 96.4% |
| **Total liabilities** | **\$ (1,619)** | | | | |

(1) Adjusted net asset value is determined using reported net asset values obtained from the fund manager or general partner of the limited partnership or the limited liability company and may be adjusted for current market levels where appropriate.
(2) The range of net asset value price or proxy share price has not been disclosed due to the wide range and diverse nature of the investments.
(3) Using valuation techniques that we consider to be non-observable.
n/a Not applicable.

#### Sensitivity of Level 3 financial assets and liabilities

The following section describes the significant non-observable inputs identified in the table above, the interrelationships between those inputs, where applicable, and the change in fair value if changing one or more of the non-observable inputs within a reasonably possible range would impact the fair value significantly.

The fair value of certain of our corporate and other debt instruments is determined based upon recovery assumptions. By adjusting the non-observable inputs by reasonably alternative amounts, the fair value of our corporate and other debt would increase by \$35 million or decrease by \$27 million (2024: increase or decrease by nil).

The fair value of our limited partnerships is determined based on the net asset value provided by the fund managers, adjusted as appropriate. The fair value of limited partnerships is sensitive to changes in the net asset value, and by adjusting the net asset value within a reasonably possible range, the aggregate fair value of our limited partnerships would increase or decrease by \$182 million (2024: \$145 million).

While our stand-alone derivatives are recorded as derivative assets or derivative liabilities, our derivatives embedded in our structured note deposit liabilities or deposit liabilities designated at FVTPL are recorded within deposits and other liabilities. The determination of the fair value of certain Level 3 embedded derivatives and certain stand-alone derivatives requires significant assumptions and judgment to be applied to both the inputs and the valuation techniques employed. These deposit liabilities designated at FVTPL and derivatives are sensitive to long-dated market volatility and correlation inputs, which we consider to be non-observable. Market volatility is a measure of the anticipated future variability of a market price and is an important input for pricing options, which are inherent in many of our Level 3 derivatives. A higher market volatility generally results in a higher option price, with all else held constant, due to the higher probability of obtaining a greater return from the option, and results in an increase in the fair value of our Level 3 derivatives. Correlation inputs are used to value those derivatives where the payout is dependent upon more than one market price. For example, the payout of an equity basket option is based upon the performance of a basket of stocks, and the interrelationships between the price movements of those stocks. A positive correlation implies that two inputs tend to change the fair value in the same direction, while a negative correlation implies that two inputs tend to change the fair value in the opposite direction. Changes in market volatility and market correlation could result in an increase or a decrease in the fair value of our Level 3 derivatives, embedded derivatives and deposit liabilities designated at FVTPL. By adjusting the non-observable inputs by reasonably alternative amounts, the fair value of our net Level 3 stand-alone derivatives, embedded derivatives and deposit liabilities designated at FVTPL would increase by \$143 million or decrease by \$122 million (2024: increase by \$149 million or decrease by \$142 million).

For certain interest rate and foreign exchange derivatives, the probability of contingent settlement not occurring was a significant Level 3 valuation input. By increasing the probability of contingent settlement not occurring by 10%, the fair value of those derivatives in an asset position would decrease by less than \$6 million, while the fair value of those derivatives in a liability position would decrease by up to \$8 million. If the probability of contingent settlement decreased by 100% for our largest derivative asset position, the fair value of the corresponding derivative would decrease by \$10 million.

### Methods and assumptions

#### Financial instruments with fair value equal to carrying value

For financial instruments that are not carried on the consolidated balance sheet at fair value and where we consider the carrying value to be a reasonable approximation of fair value due to their short-term nature and generally negligible credit risk, the fair values disclosed for these financial instruments are assumed to equal their carrying values. These financial instruments are: cash and non-interest-bearing deposits with banks; short-term interest-bearing deposits with banks; cash collateral on securities borrowed; certain shorter-dated securities purchased under resale agreements; customers' liability under acceptances; cash collateral on securities lent; obligations related to securities sold under repurchase agreements; acceptances; deposits with demand features; and certain other financial assets and liabilities.

#### Securities

The fair value of debt or equity securities and obligations related to securities sold short is based on quoted bid or ask market prices where available in an active market.

Securities for which quotes in an active market are not available are valued using all reasonably available market information as described below.

The fair value of government issued or guaranteed securities that are not traded in an active market is calculated by applying valuation techniques such as discounted cash flow models using implied yields derived from the prices of actively traded government securities and most recently observable spread differentials.

The fair value of corporate and other debt securities is determined using the most recently executed transaction prices, and where appropriate, adjusted to the price of these securities obtained from independent dealers, brokers, and third-party multi-contributor consensus pricing sources. When observable price quotations are not available, fair value is determined based on discounted cash flow models using observable discounting curves such as benchmark and government yield curves and spread differentials observed through independent dealers, brokers, and third-party multi-contributor consensus pricing sources.

Asset-backed securities (ABS) and mortgage-backed securities (MBS) not issued or guaranteed by a government are valued using discounted cash flow models making maximum use of market observable inputs, such as broker quotes on identical or similar securities and other pricing information obtained from third-party pricing sources adjusted for the characteristics and the performance of the underlying collateral. Other key inputs used include prepayment and liquidation rates, credit spreads, and discount rates commensurate with the risks involved. These assumptions factor in information that is derived from actual transactions, underlying reference asset performance, external market research, and market indices, where appropriate.

Privately issued debt and equity securities are valued using recent market transactions, where available. Otherwise, fair values are derived from valuation models using a market or income approach. These models consider various factors, including projected cash flows, earnings, revenue and recovery assumptions or other third-party evidence as available. The fair value of limited partnership investments is based upon net asset values published by third-party fund managers and is adjusted for more recent information where available and appropriate. The carrying value of Community Reinvestment Act equity investments, Federal Reserve Bank of Chicago and Federal Home Loan Bank (FHLB) stock approximates fair value.

#### Loans

The fair value of variable-rate loans and loans for which interest rates are repriced or reset frequently is assumed to be equal to their carrying value. The fair value for fixed-rate loans is estimated using a discounted cash flow calculation that uses market interest rates.

The ultimate fair value of loans disclosed is net of the associated allowance for credit losses. The fair value of loans is not adjusted for the value of any credit derivatives used to manage the credit risk associated with them. The fair value of these credit derivatives is disclosed separately.

#### Securities purchased under resale agreements or sold under repurchase agreements

The fair values of these contracts are determined using valuation techniques such as the discounted cash flow method using interest rate curves as inputs.

#### Other assets and other liabilities

Other assets and other liabilities mainly comprise accrued interest receivable or payable, brokers' client accounts receivable or payable, derivative collateral receivable or payable, precious metals, commodities and accounts receivable or payable.

The fair values of other assets and other liabilities are primarily assumed to be at cost or amortized cost as we consider the carrying value to be a reasonable approximation of fair value, except for the fair value of certain precious metals, other commodities and related receivables, which are based upon prices quoted in an active market. Other assets also include investment in bank-owned life insurance carried at the cash surrender value, which is assumed to be a reasonable approximation of fair value.

#### Deposits

The fair values of floating-rate deposits and demand deposits are assumed to be equal to their amortized cost. The fair value of fixed-rate deposits is determined by discounting the contractual cash flows using either current market interest rates with similar remaining terms or rates estimated using internal models and broker quotes. The fair value of deposit liabilities with embedded optionality includes the fair value of those options. The fair value of equity- and commodity-linked notes includes the fair value of embedded equity and commodity derivatives.

Certain deposits designated at FVTPL are structured notes that have coupons or repayment terms linked to the performance of commodities, debt or equity securities or specific market indices. The fair value of these structured notes is estimated using internally vetted valuation models for the debt and embedded derivative portions of the notes by incorporating market observable prices of the referenced securities or comparable securities, and other inputs such as interest rate yield curves, equity prices or indices, market volatility levels, foreign exchange rates and changes in our own credit risk, where appropriate. Where observable prices or inputs are not available, management judgment is required to determine fair values by assessing other relevant sources of information such as historical data, proxy information from similar transactions, and through extrapolation and interpolation techniques. Appropriate market risk valuation adjustments for such inputs are assessed in all such instances.

The fair value of secured borrowings, which comprises liabilities issued by or as a result of activities associated with the securitization of residential mortgages, the Covered Bond Programme, and consolidated securitization vehicles, is based on identical or proxy market observable quoted bond prices or determined by discounting the contractual cash flows using maximum market observable inputs, such as market interest rates, or credit spreads implied by debt instruments of similar credit quality, as appropriate.

#### Subordinated indebtedness

The fair value of subordinated indebtedness is determined by reference to market prices for the same or similar debt instruments.

#### Derivative instruments

The fair value of exchange-traded derivatives such as options and futures is based on quoted market prices. OTC derivatives primarily consist of interest rate swaps, foreign exchange forwards, equity and commodity derivatives, interest rate and currency derivatives, and credit derivatives. For such instruments, where quoted market prices or third-party consensus pricing information are not available, valuation techniques are employed to estimate fair value on the basis of pricing models. Such vetted pricing models incorporate current market measures for interest rates, foreign exchange rates, equity and commodity prices and indices, credit spreads, corresponding market volatility levels, and other market-based pricing factors.

In order to reflect the observed market practice of pricing collateralized and uncollateralized derivatives, our valuation approach uses overnight indexed swap (OIS) curves as the discount rate for valuing collateralized derivatives and uses an estimated market cost of funds curve as the discount rate for valuing uncollateralized derivatives. The use of an estimated market cost of funds curve reduces the fair value of uncollateralized derivative assets incremental to the reduction in fair value for credit risk already reflected through the credit valuation adjustment (CVA). In contrast, the use of a market cost of funds curve reduces the fair value of uncollateralized derivative liabilities in a manner that generally includes adjustments for our own credit. As market practices continue to evolve in regard to derivative valuation, further adjustments may be required in the future.

In addition to reflecting estimated market funding costs in our valuation of uncollateralized derivative receivables, we also consider whether a CVA is required to recognize the risk that any given derivative counterparty may not ultimately be able to fulfill its obligations. The CVA is driven off market-observed credit spreads or proxy credit spreads and our assessment of the net counterparty credit risk (CCR) exposure. In assessing this exposure, we also take into account credit mitigants such as collateral, master netting arrangements, and settlements through clearing houses. As noted above, the fair value of uncollateralized derivative liabilities based on market cost of funding generally includes adjustments for our own credit.

In determining the fair value of complex and customized derivatives, such as equity, credit, and commodity derivatives written in reference to indices or baskets of reference, we consider all reasonably available information including any relevant observable market inputs, third-party consensus pricing inputs, indicative dealer and broker quotations, and our own internal model-based estimates, which are vetted and approved in accordance with our model risk policy, and are regularly and periodically calibrated. The model calculates fair value based on inputs specific to the type of contract, which may include stock prices, correlation for multiple assets, interest rates, foreign exchange rates, yield curves, volatility surfaces, and the probability of early termination. Where observable prices or inputs are not available, management judgment is required to determine fair values by assessing other relevant sources of information such as historical data, proxy information from similar transactions, and through extrapolation and interpolation techniques. Appropriate parameter uncertainty and market risk valuation adjustments for such inputs and other model risk valuation adjustments are assessed in all such instances.

#### Mortgage commitments

The fair value of mortgage commitments designated at FVTPL is for fixed-rate residential mortgage commitments and is based on changes in market interest rates for the loans between the commitment and the consolidated balance sheet dates. The valuation model takes into account the expected probability that outstanding commitments will be exercised as well as the length of time the commitment is offered.

### Fair value of financial instruments

| Carrying value | | | | | Fair value | Fair value over (under) carrying value |
|---|---|---|---|---|---|---|
| **\$ millions, as at October 31** | **Amortized cost** | **Mandatorily measured at FVTPL** | **Designated at FVTPL** | **Fair value through OCI** | **Total** | **Fair value** | **2025** | **2024** |
| **2025 Financial assets** | | | | | | | | |
| Cash and deposits with banks | \$ 44,003 | \$ - | \$ - | \$ - | \$ 44,003 | \$ 44,003 | \$ - | (62) |
| Securities | 65,471 | 128,859 | - | 88,905 | 283,235 | 283,173 | |
| Cash collateral on securities borrowed | 21,697 | - | - | - | 21,697 | 21,697 | |
| Securities purchased under resale agreements | 69,044 | 17,651 | - | - | 86,695 | 86,695 | |
| Loans | | | | | | | | |
| Residential mortgages | 286,456 | 3 | - | - | 286,459 | 287,328 | 869 | - |
| Personal | 46,710 | - | - | - | 46,710 | 46,774 | 64 | - |
| Credit card | 20,639 | - | - | - | 20,639 | 20,651 | 12 | - |
| Business and government (1) | 235,136 | 485 | 75 | - | 235,696 | 235,802 | 106 | - |
| Derivative instruments | 38,352 | - | - | - | 38,352 | 38,352 | - | - |
| Other assets | 25,069 | 674 | - | - | 25,743 | 25,743 | - | - |
| **Financial liabilities** | | | | | | | | |
| Deposits | \$ 238,211 | \$ - | \$ 19,928 | \$ - | \$ 258,139 | \$ 258,629 | \$ 490 | \$ 1,037 |
| Business and government | 434,003 | - | 23,281 | - | 457,284 | 458,321 | |
| Bank | 26,723 | - | - | - | 26,723 | 26,723 | |
| Secured borrowings | 65,151 | 827 | - | - | 65,978 | 66,210 | 232 | - |
| Derivative instruments | 41,411 | - | - | - | 41,411 | 41,411 | |
| Obligations related to securities sold short | 24,244 | - | - | - | 24,244 | 24,244 | |
| Cash collateral on securities lent | 6,031 | - | - | - | 6,031 | 6,031 | |
| Obligations related to securities sold under repurchase agreements | 121,907 | - | 8,135 | - | 130,042 | 130,042 | |
| Other liabilities (1) | 22,357 | 220 | 8 | - | 22,585 | 22,585 | |
| Subordinated indebtedness | 7,819 | - | - | - | 7,819 | 8,091 | 272 | - |
| **2024 Financial assets** | | | | | | | | |
| Cash and deposits with banks | \$ 48,064 | \$ - | \$ - | \$ - | \$ 48,064 | \$ 48,064 | \$ - | (908) |
| Securities | 71,610 | 106,042 | - | 76,693 | 254,345 | 253,437 | |
| Cash collateral on securities borrowed | 17,028 | - | - | - | 17,028 | 17,028 | |
| Securities purchased under resale agreements | 58,744 | 24,977 | - | - | 83,721 | 83,721 | |
| Loans | | | | | | | | |
| Residential mortgages | 280,220 | 3 | - | - | 280,223 | 279,805 | (418) | - |
| Personal | 45,739 | - | - | - | 45,739 | 45,750 | 11 | - |
| Credit card | 19,649 | - | - | - | 19,649 | 19,682 | 33 | - |
| Business and government (1) | 212,460 | 116 | 105 | - | 212,681 | 212,750 | 69 | - |
| Derivative instruments | 36,435 | - | - | - | 36,435 | 36,435 | |
| Other assets | 20,121 | 364 | - | - | 20,485 | 20,485 | |
| **Financial liabilities** | | | | | | | | |
| Deposits | \$ 235,593 | \$ - | \$ 17,301 | \$ - | \$ 252,894 | \$ 253,378 | \$ 484 | \$ 1,029 |
| Business and government | 414,441 | - | 21,058 | - | 435,499 | 436,528 | |
| Bank | 20,009 | - | - | - | 20,009 | 20,009 | |
| Secured borrowings | 55,285 | 1,170 | - | - | 56,455 | 56,588 | 133 | - |
| Derivative instruments | 40,654 | - | - | - | 40,654 | 40,654 | |
| Obligations related to securities sold short | 21,642 | - | - | - | 21,642 | 21,642 | |
| Cash collateral on securities lent | 7,997 | - | - | - | 7,997 | 7,997 | |
| Obligations related to securities sold under repurchase agreements | 100,407 | - | 9,746 | - | 110,153 | 110,153 | |
| Other liabilities (1) | 20,657 | 158 | 19 | - | 20,834 | 20,834 | |
| Subordinated indebtedness | 7,465 | - | - | - | 7,465 | 7,698 | 233 | - |

(1) Includes customers' liability under acceptances of \$10 million (2024: \$6 million) in business and government loans and acceptances of \$10 million (2024: \$6 million) in other liabilities. Prior year amounts have been revised to conform to the presentation adopted in 2025.

### Financial instruments carried on the consolidated balance sheet at fair value

The table below presents the fair values of financial instruments by level within the fair value hierarchy:

| | Level 1 | Level 2 | Level 3 | Total | Fair value | Fair value over (under) carrying value |
|---|---|---|---|---|---|---|
| **\$ millions, as at October 31** | **Quoted market price** | **Valuation technique - observable market inputs** | **Valuation technique - non-observable market inputs** | **Total** | **2025** | **2024** | **2025** | **2024** |
| **Financial assets** | | | | | | | | |
| **Debt securities measured at FVTPL** | | | | | | | | |
| Government issued or guaranteed | 6,222 | 4,258 | 34,635 | 32,328 | - | - | 40,857 | 36,586 |
| Corporate and other debt | - | - | 4,537 | 4,385 | 103 | - | 4,640 | 4,385 |
| Mortgage- and asset-backed | - | - | 7,193 | 4,213 | 392 | 70 | 7,585 | 4,283 |
| | 6,222 | 4,258 | 46,365 | 40,926 | 495 | 70 | 53,082 | 45,254 |
| **Loans measured at FVTPL** | | | | | | | | |
| Business and government | - | - | 485 | 116 | 75 (1) | 105 (1) | 560 | 221 |
| Residential mortgages | - | - | 3 | 3 | - | - | 3 | 3 |
| **Debt securities measured at FVOCI** | | | | | | | | |
| Government issued or guaranteed | 9,206 | 2,760 | 63,917 | 60,051 | - | - | 73,123 | 62,811 |
| Corporate and other debt | - | - | 10,106 | 9,083 | - | - | 10,106 | 9,083 |
| Mortgage- and asset-backed | - | - | 4,656 | 4,127 | - | - | 4,656 | 4,127 |
| | 9,206 | 2,760 | 78,679 | 73,261 | - | - | 87,885 | 76,021 |
| **Corporate equity mandatorily measured at FVTPL and designated at FVOCI** | 74,686 | 59,904 | 1,048 | 916 | 1,063 | 640 | 76,797 | 61,460 |
| **Securities purchased under resale agreements measured at FVTPL** | - | - | 17,651 | 24,977 | - | - | 17,651 | 24,977 |
| **Other assets** | - | - | 674 | 364 | - | - | 674 | 364 |
| **Derivative instruments** | | | | | | | | |
| Interest rate | 2 | 2 | 6,027 | 6,718 | 79 | 51 | 6,108 | 6,771 |
| Foreign exchange | - | - | 16,845 | 15,525 | - | - | 16,845 | 15,525 |
| Credit | - | - | 41 | 2 | 36 | 44 | 77 | 46 |
| Equity | 5,761 | 5,821 | 5,729 | 5,157 | 51 | 6 | 11,541 | 10,984 |
| Precious metal and other commodity | 55 | - | 32 | 3,726 | 3,077 | - | - | 3,781 | 3,109 |
| | 5,818 | 5,855 | 32,368 | 30,479 | 166 | 101 | 38,352 | 36,435 |
| **Total financial assets** | **\$ 95,932** | **\$ 72,777** | **\$ 177,273** | **\$ 171,042** | **\$ 1,799** | **\$ 916** | **\$ 275,004** | **\$ 244,735** |
| **Financial liabilities** | | | | | | | | |
| Deposits and other liabilities (2) | | | | | | | | |
| Deposits | - | - | (43,788) | (39,290) | (476) | (416) | (44,264) | (39,706) |
| Obligations related to securities sold short | (6,150) | (9,199) | (18,094) | (12,443) | - | - | (24,244) | (21,642) |
| Obligations related to securities sold under repurchase agreements | - | - | (8,135) | (9,746) | - | - | (8,135) | (9,746) |
| Derivative instruments | | | | | | | | |
| Interest rate | (3) | (2) | (6,215) | (6,718) | (1,055) | (1,028) | (7,273) | (7,746) |
| Foreign exchange | - | - | (14,977) | (16,065) | (18) | (4) | (14,995) | (16,069) |
| Credit | - | - | (41) | (2) | (36) | (44) | (81) | (55) |
| Equity | (5,212) | (4,712) | (9,213) | (6,404) | (29) | (1) | (14,454) | (11,117) |
| Precious metal and other commodity | (48) | (39) | (4,555) | (4,108) | - | - | (4,603) | (4,147) |
| | (5,263) | (4,753) | (35,005) | (34,818) | (1,143) | (1,083) | (41,411) | (40,654) |
| **Total financial liabilities** | **\$ (11,413)** | **\$ (13,952)** | **\$ (105,022)** | **\$ (96,297)** | **\$ (1,619)** | **\$ (1,499)** | **\$ (118,054)** | **\$ (111,748)** |

(1) Includes loans designated at FVTPL.
(2) Comprises deposits designated at FVTPL of \$43,723 million (2024: \$39,008 million), net bifurcated embedded derivative liabilities of \$313 million (2024: \$521 million), other liabilities designated at FVTPL of \$8 million (2024: \$19 million), and other financial liabilities measured at fair value of \$220 million (2024: \$158 million).

### Note 3 Significant transactions

#### Sale of certain banking assets in the Caribbean

On October 31, 2023, CIBC Caribbean Bank Limited (CIBC Caribbean) announced that it had entered into an agreement to sell its banking assets in Curaçao and Sint Maarten. The sale of banking assets in Curaçao was completed on May 24, 2024. The sale of banking assets in Sint Maarten was completed on February 7, 2025. The impact of these transactions was not material.

### Note 4 Securities

#### Securities

| \$ millions, as at October 31 | 2025 | 2024 |
|---|---|---|
| Securities measured and designated at FVOCI | 88,905 | 76,693 |
| Securities measured at amortized cost (1) | 65,471 | 71,610 |
| Securities mandatorily measured and designated at FVTPL | 128,859 | 106,042 |
| **Total securities** | **\$ 283,235** | **\$ 254,345** |

(1) During the year, less than \$1 million of amortized cost debt securities were disposed of, generally shortly before their maturity, resulting in a realized gain of nil (2024: a realized gain of nil).

#### Residual term to contractual maturity

| | Within 1 year | 1 to 5 years | 5 to 10 years | Over 10 years | No specific maturity | Total |
|---|---|---|---|---|---|---|
| **\$ millions, as at October 31** | **Carrying value Yield (1)** | **Carrying value Yield (1)** | **Carrying value Yield (1)** | **Carrying value Yield (1)** | **Carrying value Yield (1)** | **2025** | **2024** |
| **Debt securities measured at FVOCI** | | | | | | | |
| Securities issued or guaranteed by: | | | | | | | |
| Canadian federal government | 2,922 | 4.0% | 10,756 | 3.2% | 1,845 | 3.5% | - | - | 15,523 | 3.4% | 11,685 | 3.8% |
| Other Canadian governments | 487 | 2.4% | 1,757 | 2.8% | 14,009 | 3.1% | 240 | 3.4% | - | 16,493 | 3.1% | 16,414 | 3.2% |
| U.S. Treasury and agencies | 12,651 | 3.3% | 18,385 | 3.8% | 2,315 | 4.2% | - | - | 33,351 | 3.6% | 29,152 | 3.9% |
| Other foreign governments | 4,076 | 3.2% | 3,597 | 4.2% | 80 | 5.5% | 3 | 6.6% | - | 7,756 | 3.7% | 5,560 | 4.4% |
| Mortgage-backed securities (2) | 189 | 3.9% | 2,966 | 3.5% | 203 | 2.7% | 351 | 4.5% | - | 3,709 | 3.6% | 947 | 4.7% |
| Asset-backed securities | 516 | 4.6% | 6,580 | 4.4% | 41 | 4.9% | 16 | 4.4% | - | 10,106 | 4.3% | 9,083 | 4.7% |
| Corporate and other debt | - | - | - | - | 499 | 4.6% | - | - | - | - | - | - |
| | **\$ 23,852** | | **\$ 44,041** | | **\$ 18,992** | | | | **\$ 87,885** | | **\$ 76,021** |
| **Securities measured at amortized cost** | | | | | | | |
| Securities issued or guaranteed by: | | | | | | | |
| Canadian federal government | 431 | 0.8% | 2,469 | 3.2% | 1,561 | 3.5% | - | - | 3,493 | 2.9% | 2,904 | 2.5% |
| Other Canadian governments | 1,561 | 1.8% | 9,977 | 2.7% | 8,193 | 3.5% | 266 | 3.4% | - | 19,997 | 2.9% | 21,634 | 3.0% |
| U.S. Treasury and agencies | 8,261 | 1.6% | 19,291 | 3.3% | 1,538 | 4.0% | - | - | 29,090 | 2.8% | 33,727 | 2.5% |
| Other foreign governments | 369 | 3.0% | 557 | 3.3% | 158 | 2.6% | 147 | 5.7% | - | 1,556 | 2.7% | 1,527 | 2.5% |
| Mortgage-backed securities (3) | 472 | 1.7% | 3,106 | 2.7% | 639 | 2.4% | 346 | 4.4% | - | 4,533 | 2.7% | 5,297 | 3.3% |
| Asset-backed securities | 593 | 3.5% | 2,734 | 3.3% | 731 | 4.4% | 1,864 | 5.6% | - | 2,357 | 5.5% | 2,236 | 6.0% |
| Corporate and other debt | 980 | 1.9% | 2,734 | 3.3% | 731 | 4.4% | - | - | - | - | - | - |
| | **\$ 12,190** | | **\$ 38,480** | | **\$ 12,166** | | **\$ 2,635** | | **\$ 65,471** | | **\$ 71,610** |
| **Debt securities mandatorily measured and designated at FVTPL** | | | | | | | |
| Securities issued or guaranteed by: | | | | | | | |
| Canadian federal government | 2,409 | - | 10,040 | - | 3,202 | - | 1,154 | - | - | 16,805 | - | 17,799 |
| Other Canadian governments | 1,728 | - | 1,315 | - | 1,152 | - | 6,289 | - | - | 10,484 | - | 9,909 |
| U.S. Treasury and agencies | 698 | - | 6,934 | - | 1,530 | - | 3,336 | - | - | 12,498 | - | 6,750 |
| Other foreign governments | 212 | - | 810 | - | 48 | - | - | - | - | 1,070 | - | 2,128 |
| Mortgage-backed securities (4) | 572 | - | 4,391 | - | 646 | - | - | - | - | 5,609 | - | 3,980 |
| Asset-backed securities | 278 | - | 291 | - | 923 | - | 484 | - | - | 1,976 | - | 303 |
| Corporate and other debt | 759 | - | 2,400 | - | 706 | - | 775 | - | - | 4,640 | - | 4,385 |
| | **\$ 6,656** | | **\$ 26,181** | | **\$ 8,207** | | **\$ 12,038** | | **\$ 53,082** | | **\$ 45,254** |
| **Corporate equity mandatorily measured at FVTPL and designated at FVOCI** | - | - | - | - | - | - | 76,797 n/m | \$ 76,797 n/m | \$ 61,460 n/m |
| **Total securities (5)** | **\$ 42,698** | **-** | **\$ 108,702** | **-** | **\$ 39,365** | **-** | **\$ 15,673** | **\$ 76,797** | **\$ 283,235** | **\$ 254,345** |

(1) Represents the weighted-average yield, which is determined by applying the weighted average of the yields of individual fixed income securities.
(2) Includes securities backed by mortgages insured by the Canada Mortgage and Housing Corporation (CMHC), with amortized cost of \$3,177 million (2024: \$2,832 million) and fair value of \$3,180 million (2024: \$2,827 million); securities issued by Federal National Mortgage Association (Fannie Mae), with amortized cost of \$222 million (2024: \$284 million) and fair value of \$217 million (2024: \$275 million); securities issued by Federal Home Loan Mortgage Corporation (Freddie Mac), with amortized cost of \$78 million (2024: \$103 million) and fair value of \$76 million (2024: \$99 million); and securities issued by Government National Mortgage Association, a U.S. government corporation (Ginnie Mae), with amortized cost of \$239 million (2024: \$274 million) and fair value of \$236 million (2024: \$269 million).
(3) Includes securities backed by mortgages insured by the CMHC, with amortized cost of \$2,632 million (2024: \$2,585 million) and fair value of \$2,634 million (2024: \$2,582 million); securities issued by Fannie Mae, with amortized cost of \$198 million (2024: \$471 million) and fair value of \$189 million (2024: \$448 million); securities issued by Freddie Mac, with amortized cost of \$1,009 million (2024: \$1,536 million) and fair value of \$968 million (2024: \$1,450 million); and securities issued by Ginnie Mae, with amortized cost of \$156 million (2024: \$123 million) and fair value of \$155 million (2024: \$118 million).
(4) Includes securities backed by mortgages insured by the CMHC of \$5,608 million (2024: \$3,977 million).
(5) Includes securities denominated in U.S. dollars with carrying value of \$139.9 billion (2024: \$126.7 billion) and securities denominated in other foreign currencies with carrying value of \$17.3 billion (2024: \$12.4 billion).
n/m Not meaningful.

### Fair value of debt securities measured and equity securities designated at FVOCI

| \$ millions, as at October 31 | Cost/ Amortized cost (1) | Gross unrealized gains | Gross unrealized losses | Fair value | Cost/ Amortized cost (1) | Gross unrealized gains | Gross unrealized losses | Fair value |
|---|---|---|---|---|---|---|---|---|
| **2025** | | | | | | | | |
| **Securities issued or guaranteed by:** | | | | | | | | |
| Canadian federal government | 15,531 | \$ 9 | \$ (17) | 15,523 | 11,715 | \$ 1 | \$ (31) | 11,685 |
| Other Canadian governments | 16,484 | 50 | (41) | 16,493 | 16,506 | 9 | (101) | 16,414 |
| U.S. Treasury and agencies | 33,345 | 64 | (58) | 33,351 | 29,362 | 10 | (220) | 29,152 |
| Other foreign governments | 7,727 | 31 | (2) | 7,756 | 5,542 | 22 | (4) | 5,560 |
| Mortgage-backed securities | 3,716 | 5 | (12) | 3,709 | 3,493 | - | (23) | 3,470 |
| Asset-backed securities | 947 | - | - | 947 | 656 | 1 | - | 657 |
| Corporate and other debt | 10,092 | 17 | (3) | 10,106 | 9,085 | 7 | (9) | 9,083 |
| | 87,842 | 176 | (133) | 87,885 | 76,359 | 50 | (388) | 76,021 |
| **Corporate equity (2)** | 979 | 65 | (24) | 1,020 | 653 | 51 | (32) | 672 |
| **Total** | **\$ 88,821** | **\$ 241** | **\$ (157)** | **\$ 88,905** | **\$ 77,012** | **\$ 101** | **\$ (420)** | **\$ 76,693** |

Fair value of equity securities designated at FVOCI that were disposed of during the year was nil (2024: nil) at the time of disposal. Net realized cumulative after-tax gains of \$2 million for the year (2024: losses of \$15 million) were reclassified from AOCI to retained earnings, resulting from dispositions of equity securities designated at FVOCI and return on capital distributions from limited partnerships designated at FVOCI.

Dividend income recognized on equity securities designated at FVOCI that were still held as at October 31, 2025 was \$3 million (2024: \$3 million). Dividend income recognized on equity securities designated at FVOCI that were disposed of during the year was nil (2024: nil).

The table below presents profit or loss recognized on FVOCI debt securities:

| \$ millions, for the year ended October 31 | 2025 | 2024 |
|---|---|---|
| Realized gains | \$ 50 | \$ 64 |
| Realized losses | (27) | (26) |
| (Provision for) reversal of credit losses on debt securities | (3) | 3 |
| **Total** | **\$ 20** | **\$ 41** |

#### Allowance for credit losses

The following table provides a reconciliation of the opening balance to the closing balance of the ECL allowance for debt securities measured at FVOCI and amortized cost:

| \$ millions, as at or for the year ended October 31 | Stage 1 Collective provision 12-month ECL performing | Stage 2 Collective provision lifetime ECL performing | Stage 3 Collective and individual provision lifetime ECL credit-impaired (1) | Total | 2025 | 2024 |
|---|---|---|---|---|---|---|
| **Debt securities measured at FVOCI and amortized cost** | | | | | | |
| Balance at beginning of year | \$ 7 | \$ 17 | \$ 12 | \$ 36 | \$ 36 |
| Provision for (reversal of) credit losses (2) | - | - | - | - | 3 |
| Write-offs | (1) | - | - | - | - | - |
| Foreign exchange and other | - | 1 | 1 | 2 | 2 |
| **Balance at end of year** | **\$ 6** | **\$ 20** | **\$ 49** | **\$ 75** | **\$ 37** |
| **Comprises:** | | | | | | |
| Debt securities measured at FVOCI | 3 | 20 | 49 | 72 |
| Debt securities measured at amortized cost | - | - | - | - | 3 |
| **Debt securities measured at FVOCI and amortized cost** | | | | | | |
| Balance at beginning of year | \$ 8 | \$ 20 | \$ 14 | \$ 42 | \$ 52 |
| Reversal of credit losses (2) | (3) | - | - | (3) | (5) |
| Write-offs | - | - | (2) | (2) | (1) |
| Foreign exchange and other | (1) | - | - | (1) | - |
| **Balance at end of year** | **\$ 7** | **\$ 17** | **\$ 12** | **\$ 36** | **\$ 19** |

(1) Includes stage 3 ECL allowance on originated credit-impaired amortized cost debt securities.
(2) Included in gains (losses) from debt securities measured at FVOCI and amortized cost, net on our consolidated statement of income.

### Note 5 Loans(1)(2)

| \$ millions, as at October 31 | Stage 1 Stages 1 and 2 Allowances Gross amount allowance allowance | Stage 3 Allowances Total gross loans | Net as a % of total gross loans | Stage 1 Gross amount | Stage 2 Allowances allowance allowance | Stage 3 Allowances Total gross loans | Net as a % of total gross loans |
|---|---|---|---|---|---|---|---|---|
| **2025** | | | | | **2024** | | | | |
| **Residential mortgages (3)** | \$ 287,033 | \$ 306 | \$ 268 | \$ 574 | \$ 286,459 | 0.2% | \$ 280,672 | \$ 234 | \$ 215 | \$ 449 | \$ 280,223 | 0.2% |
| **Personal** | 47,866 | 185 | 971 | 1,156 | 46,710 | 2.4% | 46,681 | 190 | 752 | 942 | 45,739 | 2.0% |
| **Credit card** | 21,581 | 491 | 1,229 | 1,720 | 19,861 | 4.4% | 20,551 | 902 | 902 | 19,649 | 4.4% |
| **Business and government (3)(4)** | 237,416 | 491 | 1,229 | 1,720 | 235,696 | 0.7% | 214,305 | 392 | 1,232 | 1,624 | 212,681 | 0.8% |
| **Total** | **\$ 593,896** | **\$ 982** | **\$ 3,410** | **\$ 4,392** | **\$ 589,504** | **0.7%** | **\$ 562,209** | **\$ 816** | **\$ 3,101** | **\$ 3,917** | **\$ 558,292** | **0.7%** |

(1) Loans are net of unearned income of \$1,017 million (2024: \$815 million).
(2) Includes gross loans of \$136.5 billion (2024: \$120.4 billion) denominated in U.S. dollars and \$13.7 billion (2024: \$11.2 billion) denominated in other foreign currencies.
(3) Includes \$3 million of residential mortgages (2024: \$3 million) and \$560 million of business and government loans (2024: \$221 million) that are measured and designated at FVTPL.
(4) Includes customers' liability under acceptances of \$10 million (2024: \$6 million) in business and government loans. Prior year amounts have been revised to conform to the presentation adopted in 2025.

#### Allowance for credit losses

The following table provides a reconciliation of the opening balance to the closing balance of the ECL allowance:

| \$ millions, as at or for the year ended October 31 | Stage 1 Collective provision 12-month ECL performing | Stage 2 Collective provision lifetime ECL performing | Stage 3 Collective and individual provision lifetime ECL credit-impaired | Total | 2025 | 2024 |
|---|---|---|---|---|---|---|
| **Residential mortgages** | | | | | | |
| Balance at beginning of year | \$ 89 | \$ 126 | \$ 234 | \$ 449 | \$ 344 |
| Provision for (reversal of) credit losses | 15 | (23) | (73) | (81) | (55) |
| Originations net of repayments and other derecognitions (1) | (134) | 176 | 209 | 251 | 76 |
| Changes in model | 141 | (133) | (8) | (9) | 15 |
| Net remeasurement (2) | (10) | - | 31 | (21) | 76 |
| Transfers (2) | | | | | | |
| - to 12-month ECL | - | (107) | (2) | (9) | - |
| - to lifetime ECL performing | - | 109 | 19 | 128 | - |
| - to lifetime ECL credit-impaired | - | - | - | - | - |
| Total provision for (reversal of) credit losses (3) | 12 | 42 | 116 | 170 | 32 |
| Write-offs (4) | (12) | (12) | (6) | (30) | (18) |
| Recoveries | - | - | - | - | 7 |
| Interest income on impaired loans | - | - | - | - | (30) |
| Foreign exchange and other | (1) | (2) | (3) | (6) | (1) |
| **Balance at end of year** | **\$ 100** | **\$ 168** | **\$ 306** | **\$ 574** | **\$ 449** |
| **Personal** | | | | | | |
| Balance at beginning of year | \$ 247 | \$ 546 | \$ 190 | \$ 983 | \$ 772 |
| Provision for (reversal of) credit losses | 40 | (45) | (25) | (30) | (8) |
| Originations net of repayments and other derecognitions (1) | 15 | 97 | 82 | (575) | 795 | 484 | 704 |
| Changes in model | (15) | - | - | - | - | - |
| Net remeasurement (2) | 623 | (616) | (7) | - | - | - |
| Transfers (2) | | | | | | |
| - to 12-month ECL | (68) | 90 | (22) | (4) | - |
| - to lifetime ECL performing | - | 74 | 1 | 75 | - |
| - to lifetime ECL credit-impaired | - | - | 251 | 251 | - |
| Total provision for (reversal of) credit losses (3) | 70 | (164) | 504 | 410 | 406 |
| Write-offs (4) | - | - | (571) | (571) | (545) |
| Recoveries | - | - | - | - | 62 |
| Interest income on impaired loans | (8) | (8) | (7) |
| Foreign exchange and other | 6 | - | 1 | 7 | 3 |
| **Balance at end of year** | **\$ 247** | **\$ 803** | **\$ -** | **\$ 1,050** | **\$ 983** |
| **Credit card** | | | | | | |
| Balance at beginning of year | \$ 295 | \$ 660 | \$ - | \$ 955 | \$ 772 |
| Provision for (reversal of) credit losses | 36 | (33) | (3) | - | - |
| Originations net of repayments and other derecognitions (1) | (740) | 1,165 | 425 | 391 | 816 |
| Changes in model | (77) | 77 | - | - | - |
| Net remeasurement (2) | (338) | 341 | 3 | - | - |
| Transfers (2) | | | | | | |
| - to 12-month ECL | - | (846) | (846) | - | - |
| - to lifetime ECL performing | - | (58) | 58 | - | - |
| - to lifetime ECL credit-impaired | - | - | - | - | - |
| Total provision for (reversal of) credit losses (3) | 36 | 57 | 732 | 825 | 796 |
| Write-offs (4) | - | - | (884) | (884) | (739) |
| Recoveries | - | - | - | - | 126 |
| Interest income on impaired loans | - | - | - | - | (84) |
| Foreign exchange and other | 5 | 1 | (4) | (5) | 16 |
| **Balance at end of year** | **\$ 331** | **\$ 717** | **\$ -** | **\$ 1,048** | **\$ 955** |
| **Business and government** | | | | | | |
| Balance at beginning of year | \$ 265 | \$ 1,061 | \$ 401 | \$ 1,727 | \$ 1,825 |
| Provision for (reversal of) credit losses | 52 | (105) | (66) | (119) | (108) |
| Originations net of repayments and other derecognitions (1) | (28) | 79 | (81) | (4) | (6) | 18 |
| Changes in model | (194) | 340 | 439 | 716 | 857 |
| Net remeasurement (2) | (194) | 569 | 482 | 857 | - |
| Transfers (2) | | | | | | |
| - to 12-month ECL | 215 | (201) | (14) | - | - |
| - to lifetime ECL performing | (39) | 47 | (8) | - | - |
| - to lifetime ECL credit-impaired | - | - | 187 | 187 | - |
| Total provision for (reversal of) credit losses (3) | (24) | 192 | 599 | 767 | 767 |
| Write-offs (4) | - | - | (874) | (874) | (874) |
| Recoveries | - | - | 77 | 77 | 77 |
| Interest income on impaired loans | - | - | (84) | (84) | (84) |
| Foreign exchange and other | (5) | 5 | 16 | 16 | 16 |
| **Balance at end of year** | **\$ 265** | **\$ 1,061** | **\$ 401** | **\$ 1,727** | **\$ 1,882** |
| **Total ECL allowance (5)** | **\$ 1,130** | **\$ 2,620** | **\$ 989** | **\$ 4,739** | **\$ 3,917** |
| **Comprises:** | | | | | | |
| Loans | 983 | 2,427 | 982 | 4,392 | 3,540 |
| Undrawn credit facilities and other off-balance sheet exposures (6) | 147 | 193 | 7 | 347 | 377 |

(1) Excludes the disposal and write-off of impaired loans.
(2) Transfers represent stage movements of ECL allowances before net measurement. Net remeasurement represents the current period change in ECL allowances for transfers, net write-offs, changes in forecasts of forward-looking information, parameter updates, and partial repayments in the year.
(3) Provision for (reversal of) credit losses for loans, and undrawn credit facilities and other off-balance sheet exposures is presented as Provision for (reversal of) credit losses on our consolidated statement of income.
(4) We generally continue to pursue collection on the amounts that were written off. The degree of collection efforts varies from one jurisdiction to another, depending on the local regulations and original agreements with customers.
(5) See Note 4 for the ECL allowance on debt securities measured at FVOCI and amortized cost. The ECL allowances for other financial assets classified at amortized cost were immaterial as at October 31, 2025 and October 31, 2024 and were excluded from the table above. Financial assets other than loans that are classified at amortized cost are presented on our consolidated balance sheet net of ECL allowances.
(6) Included in Other liabilities on our consolidated balance sheet.

| | Stage 1 Collective provision 12-month ECL performing | Stage 2 Collective provision lifetime ECL performing | Stage 3 Collective and individual provision lifetime ECL credit-impaired | Total | 2024 |
|---|---|---|---|---|---|
| **Residential mortgages** | | | | | |
| Balance at beginning of year | \$ 90 | \$ 15 | \$ 142 | \$ 224 | \$ 456 |
| Provision for (reversal of) credit losses | - | (19) | (55) | (55) |
| Originations net of repayments and other derecognitions (1) | (115) | 96 | 95 | 76 |
| Changes in model | - | - | 11 | 11 |
| Net remeasurement (2) | (10) | (107) | (2) | (9) | - |
| Transfers (2) | - | 109 | 19 | 128 | - |
| - to 12-month ECL | - | - | - | - | - |
| - to lifetime ECL performing | - | - | - | - | - |
| - to lifetime ECL credit-impaired | - | - | - | - | - |
| Total provision for (reversal of) credit losses (3) | (1) | (15) | 48 | 32 | 32 |
| Write-offs (4) | - | (18) | (18) |
| Recoveries | - | - | 7 |
| Interest income on impaired loans | - | - | (30) | (30) |
| Foreign exchange and other | - | - | (1) | (1) |
| **Balance at end of year** | **\$ 89** | **\$ 126** | **\$ 234** | **\$ 449** |
| **Personal** | | | | | |
| Balance at beginning of year | \$ 174 | \$ 709 | \$ 181 | \$ 1,064 |
| Provision for (reversal of) credit losses | - | (58) | (42) | (6) | (79) |
| Originations net of repayments and other derecognitions (1) | 32 | (127) | (6) | (68) | 553 |
| Changes in model | 54 | 631 | 466 | 553 |
| Net remeasurement (2) | (544) | | | | |
| Transfers (2) | | | | | |
| - to 12-month ECL | 591 | (588) | (3) | - | - |
| - to lifetime ECL performing | (63) | 74 | - | (11) | - |
| - to lifetime ECL credit-impaired | - | - | 96 | 96 | - |
| Total provision for (reversal of) credit losses (3) | 70 | (164) | 500 | 406 |
| Write-offs (4) | - | - | (545) | (545) |
| Recoveries | - | - | - | - | 62 |
| Interest income on impaired loans | - | - | (7) | (7) |
| Foreign exchange and other | 3 | 1 | (1) | 3 |
| **Balance at end of year** | **\$ 247** | **\$ 546** | **\$ 190** | **\$ 983** |
| **Credit card** | | | | | |
| Balance at beginning of year | \$ 181 | \$ 591 | \$ - | \$ 772 |
| Provision for (reversal of) credit losses | - | (30) | (8) | (8) |
| Originations net of repayments and other derecognitions (1) | 22 | (34) | 52 |
| Changes in model | 86 | 771 | 394 | 752 |
| Net remeasurement (2) | (413) | | | | |
| Transfers (2) | | | | | |
| - to 12-month ECL | 491 | (491) | - | - | - |
| - to lifetime ECL performing | (72) | 72 | - | - | - |
| - to lifetime ECL credit-impaired | (219) | 219 | - | - | - |
| Total provision for (reversal of) credit losses (3) | 114 | 69 | 613 | 796 |
| Write-offs (4) | - | - | (739) | (739) |
| Recoveries | - | - | 126 | 126 |
| Interest income on impaired loans | - | - | - | - |
| Foreign exchange and other | - | - | - | - |
| **Balance at end of year** | **\$ 295** | **\$ 660** | **\$ -** | **\$ 955** |
| **Business and government** | | | | | |
| Balance at beginning of year | \$ 294 | \$ 864 | \$ 667 | \$ 1,825 |
| Provision for (reversal of) credit losses | 22 | (82) | (48) | (108) |
| Originations net of repayments and other derecognitions (1) | (28) | 46 | (48) | 18 |
| Changes in model | (194) | 569 | 482 | 857 |
| Net remeasurement (2) | (194) | | | | |
| Transfers (2) | | | | | |
| - to 12-month ECL | 215 | (201) | (14) | - | - |
| - to lifetime ECL performing | (39) | 47 | (8) | - | - |
| - to lifetime ECL credit-impaired | - | - | 187 | 187 | - |
| Total provision for (reversal of) credit losses (3) | (24) | 192 | 599 | 767 |
| Write-offs (4) | - | - | (874) | (874) |
| Recoveries | - | - | 77 | 77 |
| Interest income on impaired loans | - | - | (84) | (84) |
| Foreign exchange and other | (5) | 5 | 16 | 16 |
| **Balance at end of year** | **\$ 265** | **\$ 1,061** | **\$ 401** | **\$ 1,727** |
| **Total ECL allowance (5)** | **\$ 896** | **\$ 2,393** | **\$ 825** | **\$ 4,114** |
| **Comprises:** | | | | | |
| Loans | 800 | 2,301 | 816 | 3,917 |
| Undrawn credit facilities and other off-balance sheet exposures (6) | 96 | 92 | 9 | 197 |

See previous page for footnote references.

### Note 5 Loans(1)(2)

| \$ millions, as at or for the year ended October 31 | Stage 1 Collective provision 12-month ECL performing | Stage 2 Collective provision lifetime ECL performing | Stage 3 Collective and individual provision lifetime ECL credit-impaired | Total | 2025 | 2024 |
|---|---|---|---|---|---|---|
| **Residential mortgages** | | | | | | |
| Balance at beginning of year | \$ 90 | \$ 15 | \$ 142 | \$ 224 | \$ 456 |
| Provision for (reversal of) credit losses | - | (19) | (55) | (55) |
| Originations net of repayments and other derecognitions (1) | (115) | 96 | 95 | 76 |
| Changes in model | - | - | 11 | 11 |
| Net remeasurement (2) | (10) | (107) | (2) | (9) | - |
| Transfers (2) | - | 109 | 19 | 128 | - |
| - to 12-month ECL | - | - | - | - | - |
| - to lifetime ECL performing | - | - | - | - | - |
| - to lifetime ECL credit-impaired | - | - | - | - | - |
| Total provision for (reversal of) credit losses (3) | (1) | (15) | 48 | 32 | 32 |
| Write-offs (4) | - | (18) | (18) |
| Recoveries | - | - | 7 |
| Interest income on impaired loans | - | - | (30) | (30) |
| Foreign exchange and other | - | - | (1) | (1) |
| **Balance at end of year** | **\$ 89** | **\$ 126** | **\$ 234** | **\$ 449** |
| **Personal** | | | | | |
| Balance at beginning of year | \$ 174 | \$ 709 | \$ 181 | \$ 1,064 |
| Provision for (reversal of) credit losses | - | (58) | (42) | (6) | (79) |
| Originations net of repayments and other derecognitions (1) | 32 | (127) | (6) | (68) | 553 |
| Changes in model | 54 | 631 | 466 | 553 |
| Net remeasurement (2) | (544) | | | | |
| Transfers (2) | | | | | |
| - to 12-month ECL | 591 | (588) | (3) | - | - |
| - to lifetime ECL performing | (63) | 74 | - | (11) | - |
| - to lifetime ECL credit-impaired | - | - | 96 | 96 | - |
| Total provision for (reversal of) credit losses (3) | 70 | (164) | 500 | 406 |
| Write-offs (4) | - | - | (545) | (545) |
| Recoveries | - | - | - | - | 62 |
| Interest income on impaired loans | - | - | (7) | (7) |
| Foreign exchange and other | 3 | 1 | (1) | 3 |
| **Balance at end of year** | **\$ 247** | **\$ 546** | **\$ 190** | **\$ 983** |
| **Credit card** | | | | | |
| Balance at beginning of year | \$ 181 | \$ 591 | \$ - | \$ 772 |
| Provision for (reversal of) credit losses | - | (30) | (8) | (8) |
| Originations net of repayments and other derecognitions (1) | 22 | (34) | 52 |
| Changes in model | 86 | 771 | 394 | 752 |
| Net remeasurement (2) | (413) | | | | |
| Transfers (2) | | | | | |
| - to 12-month ECL | 491 | (491) | - | - | - |
| - to lifetime ECL performing | (72) | 72 | - | - | - |
| - to lifetime ECL credit-impaired | (219) | 219 | - | - | - |
| Total provision for (reversal of) credit losses (3) | 114 | 69 | 613 | 796 |
| Write-offs (4) | - | - | (739) | (739) |
| Recoveries | - | - | 126 | 126 |
| Interest income on impaired loans | - | - | - | - |
| Foreign exchange and other | - | - | - | - |
| **Balance at end of year** | **\$ 295** | **\$ 660** | **\$ -** | **\$ 955** |
| **Business and government** | | | | | |
| Balance at beginning of year | \$ 294 | \$ 864 | \$ 667 | \$ 1,825 |
| Provision for (reversal of) credit losses | 22 | (82) | (48) | (108) |
| Originations net of repayments and other derecognitions (1) | (28) | 46 | (48) | 18 |
| Changes in model | (194) | 569 | 482 | 857 |
| Net remeasurement (2) | (194) | | | | |
| Transfers (2) | | | | | |
| - to 12-month ECL | 215 | (201) | (14) | - | - |
| - to lifetime ECL performing | (39) | 47 | (8) | - | - |
| - to lifetime ECL credit-impaired | - | - | 187 | 187 | - |
| Total provision for (reversal of) credit losses (3) | (24) | 192 | 599 | 767 |
| Write-offs (4) | - | - | (874) | (874) |
| Recoveries | - | - | 77 | 77 |
| Interest income on impaired loans | - | - | (84) | (84) |
| Foreign exchange and other | (5) | 5 | 16 | 16 |
| **Balance at end of year** | **\$ 265** | **\$ 1,061** | **\$ 401** | **\$ 1,727** |
| **Total ECL allowance (5)** | **\$ 896** | **\$ 2,393** | **\$ 825** | **\$ 4,114** |
| **Comprises:** | | | | | |
| Loans | 800 | 2,301 | 816 | 3,917 |
| Undrawn credit facilities and other off-balance sheet exposures (6) | 96 | 92 | 9 | 197 |

(1) Excludes the disposal and write-off of impaired loans.
(2) Transfers represent stage movements of ECL allowances before net measurement. Net remeasurement represents the current period change in ECL allowances for transfers, net write-offs, changes in forecasts of forward-looking information, parameter updates, and partial repayments in the year.
(3) Provision for (reversal of) credit losses for loans, and undrawn credit facilities and other off-balance sheet exposures is presented as Provision for (reversal of) credit losses on our consolidated statement of income.
(4) We generally continue to pursue collection on the amounts that were written off. The degree of collection efforts varies from one jurisdiction to another, depending on the local regulations and original agreements with customers.
(5) See Note 4 for the ECL allowance on debt securities measured at FVOCI and amortized cost. The ECL allowances for other financial assets classified at amortized cost were immaterial as at October 31, 2025 and October 31, 2024 and were excluded from the table above. Financial assets other than loans that are classified at amortized cost are presented on our consolidated balance sheet net of ECL allowances.
(6) Included in Other liabilities on our consolidated balance sheet.

| | Stage 1 Collective provision 12-month ECL performing | Stage 2 Collective provision lifetime ECL performing | Stage 3 Collective and individual provision lifetime ECL credit-impaired | Total | 2024 |
|---|---|---|---|---|---|
| **Residential mortgages** | | | | | |
| Balance at beginning of year | \$ 90 | \$ 15 | \$ 142 | \$ 224 | \$ 456 |
| Provision for (reversal of) credit losses | - | (19) | (55) | (55) |
| Originations net of repayments and other derecognitions (1) | (115) | 96 | 95 | 76 |
| Changes in model | - | - | 11 | 11 |
| Net remeasurement (2) | (10) | (107) | (2) | (9) | - |
| Transfers (2) | - | 109 | 19 | 128 | - |
| - to 12-month ECL | - | - | - | - | - |
| - to lifetime ECL performing | - | - | - | - | - |
| - to lifetime ECL credit-impaired | - | - | - | - | - |
| Total provision for (reversal of) credit losses (3) | (1) | (15) | 48 | 32 | 32 |
| Write-offs (4) | - | (18) | (18) |
| Recoveries | - | - | 7 |
| Interest income on impaired loans | - | - | (30) | (30) |
| Foreign exchange and other | - | - | (1) | (1) |
| **Balance at end of year** | **\$ 89** | **\$ 126** | **\$ 234** | **\$ 449** |
| **Personal** | | | | | |
| Balance at beginning of year | \$ 174 | \$ 709 | \$ 181 | \$ 1,064 |
| Provision for (reversal of) credit losses | - | (58) | (42) | (6) | (79) |
| Originations net of repayments and other derecognitions (1) | 32 | (127) | (6) | (68) | 553 |
| Changes in model | 54 | 631 | 466 | 553 |
| Net remeasurement (2) | (544) | | | | |
| Transfers (2) | | | | | |
| - to 12-month ECL | 591 | (588) | (3) | - | - |
| - to lifetime ECL performing | (63) | 74 | - | (11) | - |
| - to lifetime ECL credit-impaired | - | - | 96 | 96 | - |
| Total provision for (reversal of) credit losses (3) | 70 | (164) | 500 | 406 |
| Write-offs (4) | - | - | (545) | (545) |
| Recoveries | - | - | - | - | 62 |
| Interest income on impaired loans | - | - | (7) | (7) |
| Foreign exchange and other | 3 | 1 | (1) | 3 |
| **Balance at end of year** | **\$ 247** | **\$ 546** | **\$ 190** | **\$ 983** |
| **Credit card** | | | | | |
| Balance at beginning of year | \$ 181 | \$ 591 | \$ - | \$ 772 |
| Provision for (reversal of) credit losses | - | (30) | (8) | (8) |
| Originations net of repayments and other derecognitions (1) | 22 | (34) | 52 |
| Changes in model | 86 | 771 | 394 | 752 |
| Net remeasurement (2) | (413) | | | | |
| Transfers (2) | | | | | |
| - to 12-month ECL | 491 | (491) | - | - | - |
| - to lifetime ECL performing | (72) | 72 | - | - | - |
| - to lifetime ECL credit-impaired | (219) | 219 | - | - | - |
| Total provision for (reversal of) credit losses (3) | 114 | 69 | 613 | 796 |
| Write-offs (4) | - | - | (739) | (739) |
| Recoveries | - | - | 126 | 126 |
| Interest income on impaired loans | - | - | - | - |
| Foreign exchange and other | - | - | - | - |
| **Balance at end of year** | **\$ 295** | **\$ 660** | **\$ -** | **\$ 955** |
| **Business and government** | | | | | |
| Balance at beginning of year | \$ 294 | \$ 864 | \$ 667 | \$ 1,825 |
| Provision for (reversal of) credit losses | 22 | (82) | (48) | (108) |
| Originations net of repayments and other derecognitions (1) | (28) | 46 | (48) | 18 |
| Changes in model | (194) | 569 | 482 | 857 |
| Net remeasurement (2) | (194) | | | | |
| Transfers (2) | | | | | |
| - to 12-month ECL | 215 | (201) | (14) | - | - |
| - to lifetime ECL performing | (39) | 47 | (8) | - | - |
| - to lifetime ECL credit-impaired | - | - | 187 | 187 | - |
| Total provision for (reversal of) credit losses (3) | (24) | 192 | 599 | 767 |
| Write-offs (4) | - | - | (874) | (874) |
| Recoveries | - | - | 77 | 77 |
| Interest income on impaired loans | - | - | (84) | (84) |
| Foreign exchange and other | (5) | 5 | 16 | 16 |
| **Balance at end of year** | **\$ 265** | **\$ 1,061** | **\$ 401** | **\$ 1,727** |
| **Total ECL allowance (5)** | **\$ 896** | **\$ 2,393** | **\$ 825** | **\$ 4,114** |
| **Comprises:** | | | | | |
| Loans | 800 | 2,301 | 816 | 3,917 |
| Undrawn credit facilities and other off-balance sheet exposures (6) | 96 | 92 | 9 | 197 |

### Note 6 Structured entities and derecognition of financial assets

#### Structured entities

SEs are entities that have been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. SEs are entities that are created to accomplish a narrow and well-defined objective. CIBC is involved with various types of SEs for which the business activities include securitization of financial assets, asset-backed financings, and asset management.

We consolidate a SE when the substance of the relationship indicates that we control the SE.

#### Consolidated structured entities

We consolidate the following SEs:

##### Credit card securitization trust

We sell ownership interests in a revolving pool of credit card receivables generated under certain credit card accounts to Cards II Trust (Cards II), which purchases a proportionate share of credit card receivables on certain credit card accounts, with the proceeds received from the issuance of notes. We consolidate this trust because we have the power to direct the relevant activities and have exposure to substantially all the variability of returns from the excess spread (the deferred purchase price) that we receive over time.

Our credit card securitizations are revolving securitizations, with credit card receivable balances fluctuating from month to month as credit card clients repay their balances and new receivables are generated, or additional credit cards are added to the pool.

The notes are presented as Secured borrowings within Deposits on the consolidated balance sheet.

As at October 31, 2025, Cards II held \$5.4 billion of credit card receivable assets and other eligible assets of \$1.1 billion with an aggregated fair value of \$6.5 billion (2024: \$7.3 billion with a fair value of \$7.3 billion), which supported \$2.5 billion of associated funding liabilities with a fair value of \$2.5 billion (2024: \$4.3 billion with a fair value of \$4.4 billion).

##### HELOC securitization trust

We sell co-ownership interests in a pool of home equity line of credit and loans (HELOC) to HELOCS Trust, which purchases the co-ownership interests in these receivables using proceeds received from issuance of notes. The noteholders have recourse limited to the co-ownership interests in the underlying pool of receivables.

We consolidate this trust as we have the power to direct the relevant activities and retain substantially all the variability of returns through our retained interest.

The balances may fluctuate as clients repay their balances, draw upon their HELOC, or additional HELOCs are added to the pool.

The notes are presented as Secured borrowings within Deposits on the consolidated balance sheet. As at October 31, 2025, HELOCS Trust held \$3.3 billion of HELOCs included in Personal loans with an aggregated fair value of \$3.3 billion (2024: \$520 million with a fair value of \$520 million), which supported \$500 million of associated funding liabilities with a fair value of \$514 million (2024: \$500 million with a fair value of \$512 million).

##### Covered bond guarantor

Under the Legislative Covered Bond Programme, we transfer a pool of conventional uninsured mortgages to the CIBC Covered Bond (Legislative) Guarantor Limited Partnership (the Guarantor LP). The Guarantor LP holds interest and title to these transferred mortgages and serves to guarantee payment of principal and interest to bondholders. The covered bond liabilities are on-balance sheet obligations that are fully collateralized by the mortgage assets over which bondholders enjoy a priority claim in the event of CIBC's insolvency. We consolidate this entity because we have the ability to direct the relevant activities and retain substantially all of the variability of returns on the underlying mortgages. As at October 31, 2025, our Legislative Covered Bond Programme had outstanding covered bond liabilities of \$48.3 billion with a fair value of \$48.5 billion (2024: \$36.7 billion with a fair value of \$36.8 billion).

##### Multi-seller conduit

We sponsor a consolidated multi-seller conduit in Canada that acquires direct or indirect ownership or security interests in pools of financial assets from clients and finance the acquisitions by issuing ABS and asset-backed commercial paper (ABCP). The sellers to the conduit continue to service the assets and are exposed to credit losses realized on these assets through the provision of credit enhancements. We hold all of the outstanding ABS and ABCP. As at October 31, 2025, \$836 million of financial assets held by the conduit were included in Securities (2024: \$894 million), of which \$392 million are measured at FVTPL (2024: \$84 million) and \$444 million at amortized cost (2024: \$810 million), and \$1,224 million were included in Loans (2024: \$677 million) on our consolidated balance sheet. These financial assets are related to third-party SEs and are included in the non-consolidated SEs table below.

##### CIBC-managed investment funds

We establish and manage investment funds such as mutual funds and pooled funds. We act as an investment manager and earn market-based management fees and, for certain pooled funds, performance fees which are generally based on the performance of the funds. Seed capital is provided from time to time to CIBC-managed investment funds for initial launch. We consolidate those investment funds in which we have power to direct the relevant activities of the funds and in which our seed capital, or our units held, is significant relative to the total variability of returns of the funds such that we are deemed to be a principal rather than an agent. As at October 31, 2025, the total assets and non-controlling interests in consolidated CIBC-managed investment funds were \$149 million and \$69 million, respectively (2024: \$141 million and \$44 million, respectively). Non-controlling interests in consolidated CIBC-managed investment funds are included in Other liabilities as the investment fund units are mandatorily redeemable at the option of the investor.

##### Community-based tax-advantaged investments

We sponsor certain SEs that invest in community development projects in the U.S. through the issuance of below-market loans that generate a return primarily through the realization of tax credits. As at October 31, 2025, the program had outstanding loans of \$147 million (2024: \$132 million). We consolidate these entities because we have the ability to direct the relevant activities and retain substantially all of the variability of returns on the underlying loans.

#### Non-consolidated structured entities

The following SEs are not consolidated by CIBC because we do not have control over these SEs:

##### Single-seller and multi-seller conduits

We manage and administer a single-seller conduit and several CIBC-sponsored multi-seller conduits in Canada and the U.S. The multi-seller conduits acquire direct or indirect ownership or security interests in pools of financial assets from our clients and finance the acquisitions by issuing ABCP to investors. The single-seller conduit acquires financial assets and finances these acquisitions through a credit facility provided by a syndicate of financial institutions. The sellers to the conduits may continue to service the assets. The sellers and/or third-party providers are exposed to credit losses realized on these assets, through the provision of over-collateralization or another form of credit enhancement. As at October 31, 2025, the total assets in the single-seller conduit and multi-seller conduits amounted to \$0.7 billion and \$22.8 billion, respectively (2024: \$0.6 billion and \$16.9 billion, respectively).

We provide the multi-seller conduits with commercial paper backstop liquidity facilities. We may also provide securities distribution to multi-seller conduits, and to both the single and multi-seller conduits with accounting, cash management, and operations services. The liquidity facilities for the managed and administered multi-seller conduits require us to provide funding for ABCP not placed with external investors. We also may purchase ABCP issued by the multi-seller conduits for market-making purposes and, in respect of our U.S. ABCP conduits, hold some of the ABCP for voluntary risk retention purposes.

We are required to maintain certain short-term and/or long-term debt ratings with respect to the liquidity facilities that we provide to the sponsored multi-seller conduits in Canada. If we are downgraded below the level specified under the terms of those facilities, we must provide alternative satisfactory liquidity arrangements, such as procuring an alternative liquidity provider that meets the minimum rating requirements.

We may also act as the counterparty to derivative contracts entered into by a multi-seller conduit in order to mitigate the interest rate, basis, and currency risk within the conduit.

All fees earned in respect of activities with the conduits are on a market basis.

##### Third-party structured vehicles

We have investments in and provide loans, liquidity and credit facilities to third-party SEs. We also have investments in limited partnerships in which we generally are a passive investor of the limited partnerships as a limited partner, and in some cases, we are the co-general partner and have significant influence over the limited partnerships. Similar to other limited partners, we are obligated to provide funding up to our commitment level to these limited partnerships.

##### Loan financing

We provide interim financing for the purpose of future securitization and term senior financing to third-party SEs. The SE is established by a third-party investor, who provides the initial investment into the SE (the equity investors). The senior financing enables the SE to purchase a loan portfolio at the direction of a collateral manager during the warehousing phase of the securitization. The senior lenders are repaid by proceeds from the issuance of debt securities to investors when the deal closes or by the cash flows from the repayment of the underlying assets held by the SE or alternative financing obtained by the investor from third-party lenders.

### Community Reinvestment Act investments

We hold debt and equity investments in limited liability entities to further our U.S. Community Reinvestment Act initiatives with a carrying value of \$762 million (2024: \$715 million). These entities invest in qualifying community development projects, including affordable housing projects that generate a return primarily by the realization of tax credits. Similar to other limited investors in these entities, we are obligated to provide funding up to our commitment level to these limited liability entities. As at October 31, 2025, the total assets of these limited liability entities were \$11.2 billion (2024: \$10.1 billion).

### CIBC-managed investment funds

As indicated above, we establish investment funds, including mutual funds and pooled funds, to provide clients with investment opportunities and we may receive management fees and performance fees. We may hold insignificant amounts of fund units in these CIBC-managed funds. We do not consolidate these funds if we do not have significant variability of returns from our interests in these funds such that we are deemed to be an agent through our capacity as the investment manager, rather than a principal. We do not guarantee the performance of CIBC-managed investment funds.

As at October 31, 2025, the total AUM in the non-consolidated CIBC-managed investment funds amounted to \$191.5 billion (2024: \$165.1 billion).

### Capital vehicles

We purchase credit protection from capital vehicles on certain referenced loan assets, which issue guarantee-linked notes held only by third-party investors. We do not consolidate the capital vehicles and the underlying loan assets remain on the consolidated balance sheet.

Our on-balance sheet amounts and maximum exposure to loss related to SEs that are not consolidated are set out in the table below. The maximum exposure comprises the carrying value of unhedged investments, the notional amounts for liquidity and credit facilities, and the notional amounts less accumulated fair value losses for unhedged written credit derivatives on SE reference assets. The impact of CVA is not considered in the table below.

| \$ millions, as at October 31, 2025 | Single-seller and multi-seller conduits | Third-party structured vehicles | Loan financing | Other (1) | Total |
|---|---|---|---|---|---|
| **On-balance sheet assets at carrying value (2)** | | | | | |
| Cash and non-interest-bearing deposits with banks | 592 | 6,022 | - | 943 | 7,557 |
| Securities | 135 | 1,676 | 19,341 | 303 | 21,455 |
| Loans | - | - | - | 51 | 51 |
| Investments in equity-accounted associates and joint ventures | - | - | - | - | - |
| **Total** | **\$ 727** | **\$ 7,749** | **\$ 19,341** | **\$ 2,038** | **\$ 29,848** |
| **October 31, 2024** | **\$ 377** | **\$ 4,977** | **\$ 10,640** | **\$ 1,795** | **\$ 17,799** |
| **On-balance sheet liabilities at carrying value (2)** | | | | | |
| Deposits | - | - | - | 948 | 948 |
| Derivatives (3) | - | - | - | 41 | 41 |
| Other | - | - | - | 267 | 267 |
| **Total** | **\$ -** | **\$ -** | **\$ -** | **\$ 1,256** | **\$ 1,256** |
| **October 31, 2024** | **\$ -** | **\$ -** | **\$ -** | **\$ 1,050** | **\$ 1,050** |
| **Maximum exposure to loss, net of hedges** | | | | | |
| Investments and loans | 727 | 7,749 | 19,341 | 1,095 | 28,912 |
| Notional of written derivatives, less fair value losses | 18 | - | - | - | 18 |
| Liquidity, credit facilities and commitments | 22,197 (4) | 2,065 | 10,428 | 201 | 34,891 |
| Less: hedges of investments, loans and written derivatives exposure | (22,924) | (9,814) | (29,769) | (1,296) | (63,791) |
| **Total** | **\$ 17,014** | **\$ 6,630** | **\$ 19,166** | **\$ 1,323** | **\$ 44,133** |
| **October 31, 2024** | **\$ 17,014** | **\$ 6,630** | **\$ 19,166** | **\$ 1,323** | **\$ 44,133** |

(1) Includes Community Reinvestment Act-related investment vehicles, CIBC-managed investment funds, capital vehicles and third-party structured vehicles related to structured credit run-off.
(2) Excludes SEs established by CMHC, Fannie Mae, Freddie Mac, Ginnie Mae, FHLB, Federal Farm Credit Bank, and Student Loan Marketing Association.
(3) Comprises written credit default swaps (CDS) and total return swaps (TRS) under which we assume exposures. Excludes foreign exchange derivatives, interest rate derivatives and other derivatives provided as part of normal client facilitation.
(4) Excludes an additional \$8.4 billion (2024: \$6.2 billion) relating to our backstop liquidity facilities provided to the multi-seller conduits as part of their commitment to fund purchases of additional assets. Also excludes \$592 million (2024: \$276 million) of our direct investments in the multi-seller conduits which we consider investment exposure.

We also hold investments in a variety of third-party investment funds, which include, but are not limited to, exchange-traded funds, mutual funds, and investment trusts. We buy and sell units of these investment funds as part of trading activities or client facilitation businesses that are managed as part of larger portfolios. We generally are a passive investor and are not the investment manager in any of these investment funds. We are not the sponsor of any third-party investment funds, nor do we have the power over key decision-making activities of the funds. Our maximum exposure to loss from our investments is limited to the carrying amounts of our investments and any unutilized commitment we have provided to these funds. In addition, we issue certain structured notes and enter into equity derivatives that are referenced to the return of certain investment funds. Accordingly, we do not include our interests in these third-party investment funds in the table above.

### Financial support provided to structured entities

During the years ended October 31, 2025 and 2024, we have not provided any financial or non-financial support to any consolidated or unconsolidated structured entities when we were not contractually obligated to do so. Furthermore, we have no intention to provide such support in the future.

### Derecognition of financial assets

We enter into transactions in the normal course of business in which we transfer recognized financial assets directly to third parties, but retain substantially all of the risks and rewards of those assets. The risks include credit, interest rate, foreign exchange, prepayment and other price risks whereas the rewards include income streams associated with the assets. Due to the retention of risks, the transferred financial assets are not derecognized and such transfers are accounted for as secured borrowing transactions.

The majority of our financial assets transferred to non-consolidated entities that do not qualify for derecognition are: (i) residential mortgage loans under securitization transactions; (ii) securities held by counterparties as collateral under repurchase agreements, and (iii) securities lent under securities lending agreements.

| \$ millions, as at October 31 | Carrying amount | 2025 | 2024 |
|---|---|---|---|
| **Residential mortgage securitizations (1)** | | Fair value | Carrying amount | Fair value |
| Securities held by counterparties as collateral under repurchase agreements (2) | 14,368 | 14,426 | 14,612 | 14,598 |
| Securities lent for cash collateral (2) | 104,799 | 104,799 | 72,433 | 72,433 |
| Securities lent for securities collateral (2) | 1,507 | 1,507 | 2,637 | 2,637 |
| **Transferred financial assets** | 21,420 | 21,420 | 21,712 | 21,712 |
| **Associated liabilities (3)** | **\$ 142,094** | **\$ 142,152** | **\$ 111,394** | **\$ 111,380** |
| | **\$ 142,478** | **\$ 142,443** | **\$ 111,704** | **\$ 111,655** |

(1) Consists mainly of Canadian residential mortgage loans transferred to Canada Housing Trust. Certain cash in transit balances related to the securitization process amounting to \$470 million (2024: \$410 million) have been applied to reduce these balances.
(2) Does not include over-collateralization of assets pledged. Repurchase and securities lending arrangements are conducted with both CIBC-owned and third-party assets on a pooled basis. The carrying amounts represent an estimated allocation related to the transfer of our own financial assets.
(3) Includes the obligation to return off-balance sheet securities collateral on securities lent and fair value hedge basis adjustments.

### Note 7 Property and equipment

| \$ millions, as at or for the year ended October 31 | Right-of-use assets | Land and buildings (1) | Computer equipment | Office furniture, equipment and other (1) | Leasehold improvements (1) | Total |
|---|---|---|---|---|---|---|
| **2025** | | | | | | |
| **Cost** | | | | | | |
| Balance at beginning of year | \$ 2,933 | \$ 831 | \$ 1,087 | \$ 956 | \$ 1,670 | \$ 7,477 |
| Additions (2) | 236 | 46 | 68 | 134 | 200 | 684 |
| Disposals (3) | (120) | (14) | (231) | (83) | (47) | (495) |
| Adjustments (4) | 5 | 5 | 2 | 1 | 2 | 15 |
| **Balance at end of year** | **\$ 3,054** | **\$ 864** | **\$ 926** | **\$ 1,010** | **\$ 1,825** | **\$ 7,679** |
| **2024** | | | | | | |
| Balance at end of year | \$ 2,933 | \$ 831 | \$ 1,087 | \$ 956 | \$ 1,670 | \$ 7,477 |
| **2025** | | | | | | |
| **Accumulated depreciation** | | | | | | |
| Balance at beginning of year | \$ 1,290 | \$ 359 | \$ 897 | \$ 547 | \$ 1,025 | \$ 4,118 |
| Depreciation and impairment | 269 | 19 | 85 | 60 | 85 | 518 |
| Disposals (3) | (90) | (7) | (230) | (35) | (44) | (406) |
| Adjustments (4) | 2 | 1 | 1 | 1 | 1 | 6 |
| **Balance at end of year** | **\$ 1,471** | **\$ 372** | **\$ 753** | **\$ 573** | **\$ 1,067** | **\$ 4,236** |
| **2024** | | | | | | |
| Balance at end of year | \$ 1,290 | \$ 359 | \$ 897 | \$ 547 | \$ 1,025 | \$ 4,118 |
| **Net book value** | | | | | | |
| **As at October 31, 2025** | \$ 1,583 | \$ 492 | \$ 173 | \$ 437 | \$ 758 | \$ 3,443 |
| **As at October 31, 2024** | \$ 1,643 | \$ 472 | \$ 190 | \$ 409 | \$ 645 | \$ 3,359 |

(1) Includes \$427 million (2024: \$196 million) of work-in-progress not subject to depreciation.
(2) Includes impact of lease modifications.
(3) Includes write-offs of fully depreciated assets.
(4) Includes foreign currency translation adjustments.

Cost of net additions and disposals during the year was: Canadian Personal and Business Banking net additions of \$218 million (2024: net additions of \$246 million); Canadian Commercial Banking and Wealth Management net additions of nil (2024: net disposals of \$1 million); U.S. Commercial Banking and Wealth Management net disposals of \$23 million (2024: net additions of \$64 million); Capital Markets net additions of \$20 million (2024: net additions of \$30 million); and Corporate and Other net disposals of \$27 million (2024: net additions of \$107 million).

### Note 9 Other assets

| \$ millions, as at October 31 | 2025 | 2024 |
|---|---|---|
| Accrued interest receivable | \$ 4,169 | \$ 4,213 |
| Defined benefit asset (Note 17) | 1,678 | 1,378 |
| Precious metals (1) | 6,492 | 4,195 |
| Brokers' client accounts | 11,745 | 7,967 |
| Current tax receivable | 2,912 | 2,611 |
| Other prepayments | 595 | 588 |
| Derivative collateral receivable | 8,132 | 7,067 |
| Accounts receivable | 1,698 | 1,238 |
| Carbon emission allowances (2) | 649 | 11 |
| Other (2)(3) | 1,735 | 1,594 |
| **Total other assets** | **\$ 39,805** | **\$ 30,862** |

(1) Includes gold and silver bullion that are measured at fair value using unadjusted market prices quoted in active markets.
(2) Carbon emission allowances were previously presented within Other. Prior year amounts have been revised to conform to the presentation adopted in 2025.
(3) Includes investments in subleases of \$619 million as at October 31, 2025 (2024: \$625 million). For the year ended October 31, 2025, finance income related to our investments in subleases was \$42 million (2024: \$43 million). Future lease payments receivable are \$546 million over the next five years, and \$329 million thereafter until expiry of the subleases.

### Note 10 Deposits(1)(2)

| \$ millions, as at October 31 | Payable on demand (3) | Payable after notice (4) | Payable on a fixed date (5)(6) | 2025 Total | 2024 Total |
|---|---|---|---|---|---|
| Personal | \$ 15,185 | \$ 145,592 | \$ 97,362 | \$ 258,139 | \$ 252,894 |
| Business and government (7) | 109,376 | 128,092 | 219,816 | 457,284 | 435,499 |
| Bank | 17,649 | 337 | 8,737 | 26,723 | 20,009 |
| Secured borrowings (8) | - | - | 65,978 | 65,978 | 56,455 |
| **Total deposits** | **\$ 142,210** | **\$ 274,021** | **\$ 391,893** | **\$ 808,124** | **\$ 764,857** |
| **Comprises:** | | | | | |
| Held at amortized cost | | | | 764,401 | 725,849 |
| Designated at fair value | | | | 43,723 | 39,008 |
| **Total deposits** | | | | **\$ 808,124** | **\$ 764,857** |
| **Deposits include: (9)** | | | | | |
| Non-interest-bearing deposits | | | | | |
| Canada | 91,074 | | | 91,074 | 84,460 |
| U.S. | 12,894 | | | 12,894 | 12,927 |
| Other international | 5,963 | | | 5,963 | 5,691 |
| Interest-bearing deposits | | | | | |
| Canada | 549,270 | | | 549,270 | 526,186 |
| U.S. | 107,607 | | | 107,607 | 101,141 |
| Other international | 41,316 | | | 41,316 | 34,452 |
| **Total deposits** | | | | **\$ 808,124** | **\$ 764,857** |

(1) Includes deposits of \$298.3 billion (2024: \$288.4 billion) denominated in U.S. dollars and deposits of \$70 billion (2024: \$52.9 billion) denominated in other foreign currencies.
(2) Net of purchased notes of \$0.5 billion (2024: \$0.6 billion).
(3) Includes all deposits for which we do not have the right to require notice of withdrawal. These deposits are generally chequing accounts.
(4) Includes all deposits for which we can legally require notice of withdrawal. These deposits are generally savings accounts.
(5) Includes all deposits that mature on a specified date. These deposits are generally term deposits, guaranteed investment certificates, and similar instruments.
(6) Includes \$67.0 billion (2024: \$61.1 billion) of deposits which are subject to the bank recapitalization (bail-in) conversion regulations issued by the Department of Finance Canada. These regulations provide certain statutory powers to the Canada Deposit Insurance Corporation, including the ability to convert specified eligible shares and liabilities of CIBC into common shares in the event that CIBC is determined to be non-viable.
(7) Includes \$17.3 billion (2024: \$15.5 billion) of structured note liabilities that were sold upon issuance to third-party financial intermediaries, who may resell the notes to retail investors in foreign jurisdictions.
(8) Comprises liabilities issued by or as a result of activities associated with the securitization of residential mortgages, Covered Bond Programme, and consolidated securitization vehicles.
(9) Classification is based on geographical location of the CIBC office.

### Note 11 Other liabilities

| \$ millions, as at October 31 | 2025 | 2024 |
|---|---|---|
| Accrued interest payable | \$ 3,999 | \$ 4,982 |
| Defined benefit liability (Note 17) | 457 | 460 |
| Gold and silver certificates | 220 | 158 |
| Brokers' client accounts | 6,566 | 5,951 |
| Derivative collateral payable | 5,799 | 4,459 |
| Negotiable instruments | 970 | 1,079 |
| Accrued employee compensation and benefits | 5,073 | 3,899 |
| Accounts payable and accrued expenses | 3,461 | 3,202 |
| Other (1)(2) | 8,262 | 5,971 |
| **Total other liabilities** | **\$ 34,807** | **\$ 30,161** |

(1) Includes the carrying value of our lease liabilities, which was \$1,981 million as at October 31, 2025 (2024: \$2,028 million). The undiscounted cash flows related to the contractual maturity of our lease liabilities are \$336 million for the period less than 1 year, \$1,076 million between years 1-5, and \$997 million thereafter until expiry of the leases. During the year ended October 31, 2025, interest expense on lease liabilities was \$71 million (2024: \$72 million).
(2) Includes customers' liability under acceptances of \$10 million (2024: \$6 million). Prior year amounts have been revised to conform to the presentation adopted in 2025.

### Note 12 Derivative instruments

As described in Note 1, in the normal course of business, we use various derivative instruments for both trading and ALM purposes. These derivatives limit, modify or give rise to varying degrees and types of risk.

| \$ millions, as at October 31 | Assets | Liabilities | Assets | Liabilities |
|---|---|---|---|---|
| **2025** | | | | |
| Trading (Note 2) | 34,032 | 39,237 | 33,485 | 39,847 |
| ALM (Note 2) (1) | 4,320 | 2,174 | 2,950 | 807 |
| **Total** | **\$ 38,352** | **\$ 41,411** | **\$ 36,435** | **\$ 40,654** |

(1) Comprised of derivatives that qualify for hedge accounting under IAS 39 and derivatives used for economic hedges.

### Derivatives used by CIBC

The majority of our derivative contracts are OTC transactions, which consist of: (i) contracts that are bilaterally negotiated and settled between CIBC and the counterparty to the contract; and (ii) contracts that are bilaterally negotiated and then cleared through a central counterparty (CCP).

Bilaterally negotiated and settled contracts are usually traded under a standardized International Swaps and Derivatives Association (ISDA) agreement with collateral posting arrangements between CIBC and its counterparties. Terms are negotiated directly with counterparties and the contracts have industry-standard settlement mechanisms prescribed by ISDA. Centrally cleared contracts are generally bilaterally negotiated and then novated to, and cleared through, a CCP. The industry promotes the use of CCPs to clear OTC trades. The central clearing of derivative contracts generally facilitates the reduction of credit exposures due to the ability to net settle offsetting positions. Consequently, derivative contracts cleared through CCPs generally attract less capital relative to those settled with non-CCPs.

The remainder of our derivative contracts are exchange-traded derivatives, which are standardized in terms of their amounts and settlement dates, and are bought and sold on organized and regulated exchanges. These exchange-traded derivative contracts consist primarily of options and futures.

#### Interest rate derivatives

Forward rate agreements are OTC contracts that effectively fix a future interest rate for a period of time. A typical forward rate agreement provides that at a pre-determined future date, a cash settlement will be made between the counterparties based upon the difference between a contracted rate and a market rate to be determined in the future, calculated on a specified notional principal amount. No exchange of principal amount takes place. Certain forward rate agreements are bilaterally transacted and then novated and settled through a clearing house which acts as a CCP.

Interest rate swaps are OTC contracts in which two counterparties agree to exchange cash flows over a period of time based on rates applied to a specified notional principal amount. A typical interest rate swap would require one counterparty to pay a fixed market interest rate in exchange for a variable market interest rate determined from time to time, with both calculated on a specified notional principal amount. No exchange of principal amount takes place. Certain interest rate swaps are bilaterally transacted and then novated and settled through a clearing house which acts as a CCP.

Interest rate options are contracts in which one party (the purchaser of an option) acquires from another party (the writer of an option), in exchange for a premium, the right, but not the obligation, to either buy or sell, on a specified future date or within a specified time, a specified financial instrument at a contracted price. The underlying financial instrument has a market price which varies in response to changes in interest rates. Options are transacted in both OTC and exchange-traded markets.

Interest rate futures are standardized contracts transacted on an exchange. They are based upon an agreement to buy or sell a specified quantity of a financial instrument on a specified future date, at a contracted price. These contracts differ from forward rate agreements in that they are in standard amounts with standard settlement dates and are transacted through an exchange.

#### Foreign exchange derivatives

Foreign exchange forwards are OTC contracts in which one counterparty contracts with another to exchange a specified amount of one currency for a specified amount of a second currency, at a future date or range of dates.

Foreign exchange futures contracts are similar in mechanics to foreign exchange forward contracts except that they are in standard currency amounts with standard settlement dates and are transacted through an exchange.

Foreign exchange swap contracts comprise foreign exchange swaps and cross-currency interest rate swaps. Foreign exchange swaps are transactions in which a currency is simultaneously purchased in the spot market and sold for a different currency in the forward market, or vice versa. Cross-currency interest rate swaps are transactions in which counterparties exchange principal and interest flows in different currencies over a period of time. These contracts are used to manage both currency and interest rate exposures.

#### Credit derivatives

Credit derivatives are OTC contracts designed to transfer the credit risk in an underlying financial instrument (usually termed as a reference asset) from one counterparty to another. The most common credit derivatives are CDS and certain TRS.

CDS contracts provide protection against the decline in value of a reference asset as a result of specified credit events such as default or bankruptcy. These derivatives are similar in structure to an option whereby the purchaser pays a premium to the seller of the CDS contract in return for payment contingent on the occurrence of a credit event. The protection purchaser has recourse to the protection seller for the difference between the face value of the CDS contract and the fair value of the reference asset at the time of settlement. Neither the purchaser nor the seller under the CDS contract has recourse to the entity that issued the reference asset. Certain CDS contracts are cleared through a CCP.

In credit derivative TRS contracts, one counterparty agrees to pay or receive cash amounts based on the returns of a reference asset, including interest earned on these assets in exchange for amounts that are based on prevailing market funding rates. These cash settlements are made regardless of whether there is a credit event. Upon the occurrence of a credit event, the parties may either exchange cash payments according to the value of the defaulted assets or exchange cash based on the notional amount for physical delivery of the defaulted assets.

#### Equity derivatives

Equity swaps are OTC contracts in which one counterparty agrees to pay, or receive from the other, cash amounts based on changes in the value of a stock index, a basket of stocks or a single stock in exchange for amounts that are based either on prevailing market funding rates or changes in the value of a different stock index, basket of stocks or a single stock. These contracts generally include payments in respect of dividends.

Equity options give the purchaser of the option, for a premium, the right, but not the obligation, to buy from or sell to the writer of an option, an underlying stock index, basket of stocks, or a single stock at a contracted price. Options are transacted in both OTC and exchange markets.

Equity index futures are standardized contracts transacted on an exchange. They are based on an agreement to pay or receive a cash amount based on the difference between the contracted price level of an underlying stock index and its corresponding market price level at a specified future date. There is generally no actual delivery of stocks that comprise the underlying index. These contracts are in standard amounts with standard settlement dates.

#### Precious metal and other commodity derivatives

We also transact in other derivative products, including commodity forwards, futures, swaps and options, such as precious metal and energy-related products in both OTC and exchange markets.

### Derivatives used for ALM purposes that are not designated for hedge accounting

The change in fair value of the derivatives not designated as accounting hedges but used to economically hedge FVO assets or liabilities is included in Gains (losses) from financial instruments measured/designated at FVTPL, net. The change in fair value of other derivatives not designated as accounting hedges but used for other economic hedging purposes is included in Non-interest income as FXOTT or Other, as appropriate, or in the case of economic hedges of cash-settled share-based payment obligations, in compensation expense.

### Embedded derivatives

Derivatives embedded in financial liabilities are accounted for as separate derivatives when their economic characteristics and risks are not closely related to those of the host instrument and the terms of the embedded derivative represent those of a freestanding derivative in situations where the combined instrument is not classified as FVTPL or FVO. These embedded derivatives, which are classified together with the host instrument on the consolidated balance sheet, are measured at fair value, with subsequent changes in fair value included in the consolidated statement of income. The residual amount of the host liability is accreted to its maturity value through Interest income and Interest expense, respectively, using the effective interest rate method.

Gains at inception on derivatives embedded in financial instruments bifurcated for accounting purposes are not recognized at inception; instead they are recognized over the life of the residual host instrument. Where an embedded derivative is separable from the host instrument but the fair value, as at the acquisition or reporting date, cannot be reliably measured separately or is otherwise not bifurcated, the entire combined contract is measured at FVTPL.

Financial assets with embedded derivatives are classified in their entirety into the appropriate classification at initial recognition through an assessment of the contractual cash flow characteristics of the asset and the business model under which it is managed.

### Accumulated other comprehensive income

AOCI is included on the consolidated balance sheet as a separate component of total equity, net of income tax. It includes net unrealized gains and losses on FVOCI debt and equity securities, the effective portion of gains and losses on derivative instruments designated within effective cash flow hedges under IAS 39, unrealized foreign currency translation gains and losses on foreign operations with a functional currency other than the Canadian dollar, net of gains or losses on related hedges, net gains (losses) related to fair value changes of FVO liabilities attributable to changes in own credit risk, and net gains (losses) on post-employment defined benefit plans.

### Treasury shares

Where we repurchase our own equity instruments, these instruments are treated as treasury shares and are deducted from equity at their cost with any gain or loss recognized in Contributed surplus or Retained earnings as appropriate. No gain or loss is recognized in the consolidated statement of income on the purchase, sale, issue or cancellation of our own equity instruments. Any difference between the carrying value and the consideration, if reissued, is also included in Contributed surplus.

### Liabilities and equity

We classify financial instruments as a liability or equity based on the substance of the contractual arrangement. An instrument is classified as a liability if it is a contractual obligation to deliver cash or another financial asset, or to exchange financial assets or financial liabilities at potentially unfavourable terms. A contract is also classified as a liability if it is a non-derivative and could obligate us to deliver a variable number of our own shares or it is a derivative other than one that can be settled by the delivery of a fixed amount of cash or another financial asset for a fixed number of our own equity instruments. An instrument is classified as equity if it evidences a residual interest in our assets after deducting all liabilities. The components of a compound financial instrument are classified and accounted for separately as assets, liabilities, or equity as appropriate. Incremental costs directly attributable to the issuance of equity instruments are shown in equity, net of income tax.

### Property and equipment

Land is recognized initially at cost and is subsequently measured at cost less any accumulated impairment losses. Buildings, furniture, equipment and leasehold improvements are recognized initially at cost and are subsequently measured at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation commences when the assets are available for use and is recognized on a straight-line basis to depreciate the cost of these assets to their estimated residual value over their estimated useful lives. The estimated useful lives are as follows:

* Buildings - 40 years
* Computer equipment - 3 to 7 years
* Office furniture, equipment and other - 4 to 15 years
* Leasehold improvements - over the lesser of the estimated useful life of the asset and the lease term, including reasonably assured renewal periods

Depreciation methods, useful lives and residual values are reviewed at each annual reporting date and are adjusted if appropriate.

Gains and losses on disposal are included in Non-interest income - Other.

### Leases

As a lessee, we recognize a right-of-use asset and a corresponding lease liability based on the present value of future lease payments, less any lease incentives receivable, when the lessor makes the leased asset available for use to CIBC, based on the non-cancellable portion of the lease term, adjusted for any renewal or termination options that are reasonably certain to be exercised. Measurement of the right-of-use asset also includes any initial direct costs of procuring the lease, any lease payments made or lease incentives received prior to lease commencement, and the estimated cost of remediating the underlying asset at the end of the lease term. Discount rates are based on the rate implicit in the lease, if determinable, or on CIBC's incremental borrowing rate. Where a property lease contains both a lease and non-lease component, we have elected not to allocate the consideration in the contract to each of the components. Subsequent to initial measurement, CIBC measures the lease liability by increasing the carrying amount to reflect