Note 9. Share capital

$ millions, except number of shares, for the three months ended

Balance at beginning of period

Issuance pursuant to:

Equity-settled share-based
compensation plans

(2)

Shareholder investment plan

(3)

Employee share purchase plan

Purchase of common shares for
cancellation

Balance at end of period

On April 7, 2022, CIBC shareholders approved a

two-for-one

share split (Share Split) of CIBC’s issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022.

Includes the settlement of contingent consideration related to prior acquisitions.

Commencing with the dividends paid on January 27, 2023, the participants in the Dividend Reinvestment Option and Stock Dividend Option of the Shareholder Investment Plan received a 2% discount from average market price on dividends reinvested in additional common shares issued from Treasury.

Normal course issuer bid

Our normal course issuer bid expired on December 12, 2022. Under this bid, we purchased and cancelled 1,800,000 common shares (on a post share basis) at an average price of $74.43 for a total amount of $134

million during the first quarter of 2022.

Preferred shares and other equity instruments

Non-cumulative Rate Reset Class A Preferred Shares Series 47 (NVCC)

Holders of the Non-cumulative Rate Reset Class A Preferred Shares Series 47 (NVCC) (Series 47 shares) had the option to convert their shares into Non-cumulative Floating Rate Class A Preferred Shares Series 48 (NVCC) (Series 48 shares) on a one-for-one basis on January 31, 2023. As the conditions for conversion were not met, no Series 48 shares were issued, and all of the Series 47 shares remain outstanding. The dividend on the Series 47 shares was reset to 5.878%, payable quarterly as and when declared by the

Board of Directors

, effective for the five-year period commencing January 31, 2023.

Regulatory capital, leverage and total loss absorbing capacity ratios

Our capital, leverage and total loss absorbing capacity (TLAC) ratios are presented in the table below:


$ millions, as at		2023 Jan. 31			2022 Oct. 31
Common Equity Tier 1 (CET1) capital (1)		$	36,649		$	37,005
Tier 1 capital (1)	A		41,592			41,946
Total capital (1)			49,045			48,263
Total risk-weighted assets (RWA)	B		315,038			315,634
CET1 ratio			11.6	%		11.7	%
Tier 1 capital ratio			13.2	%		13.3	%
Total capital ratio			15.6	%		15.3	%
Leverage ratio exposure (2)	C	$	967,199		$	961,791
Leverage ratio	A/C		4.3	%		4.4	%
TLAC available	D	$	91,961		$	95,136
TLAC ratio	D/B		29.2	%		30.1	%
TLAC leverage ratio	D/C		9.5	%		9.9	%

(1)

The

2022 results included the impact of the ECL transitional arrangement announced by OSFI on March 27, 2020. The transitional arrangement resulted in a portion of ECL allowances that would otherwise be included in Tier 2 capital qualifying for inclusion in CET1 capital. Starting November 1, 2022, the ECL transitional arrangement was no longer applicable.

(2)	The temporary exclusion of Central bank reserves from the leverage ratio exposure measure in response to the onset of the COVID-19 pandemic remains applicable until April 1, 2023.

Our regulatory capital ratios are determined in accordance with the Capital Adequacy Requirements Guideline issued by OSFI, which are based on the capital standards developed by the Basel Committee on Banking Supervision. CIBC has been designated by OSFI as a domestic systemically important bank

(D-SIB)

in Canada, and is subject to a CET1 surcharge equal to 1.0

% of RWA. OSFI also expects

D-SIBs

to hold a Domestic Stability Buffer (DSB) of 2.5%, which was increased to

3.0

% effective February 1, 2023. The resulting targets established by OSFI for

D-SIBs,

including all buffer requirements, for the CET1, Tier 1, and Total capital ratios

are 10.5%, 12.0%, and 14.0%, respectively as at January 31, 2023. These targets may be higher for certain institutions at OSFI’s discretion.

To supplement risk-based capital requirements, OSFI expects federally regulated deposit-taking institutions to have a leverage ratio, which is a

non-risk-based

capital metric, that meets or exceeds 3.0%. This minimum may be higher for certain institutions at OSFI’s discretion.

OSFI also requires

D-SIBs

to maintain a supervisory target TLAC ratio (which builds on the risk-based capital ratios) and a minimum TLAC leverage ratio (which builds on the leverage ratio). OSFI expects

D-SIBs

to have a minimum risk-based TLAC ratio of 21.5% plus the then applicable DSB requirement (2.5% as noted above), and a minimum TLAC leverage ratio of 6.75%.

During the quarter ended January 31, 2023, we have complied with OSFI’s regulatory capital, leverage ratio, and TLAC

requirements.