TORONTO - CIBC announced a net loss of $51 million for the second quarter ended April 30, 2009, compared with a net loss of $1.1 billion for the same period last year. Diluted loss per share was $0.24, compared with a diluted loss per share of $3.00 a year ago. Cash diluted loss per share was $0.21(1), compared with a cash diluted loss per share of $2.98(1) a year ago.

CIBC's Tier 1 and Total capital ratios at April 30, 2009 remain strong, at 11.5% and 15.9%, respectively. During the quarter, CIBC strengthened its capital position with the issuance of $525 million of preferred shares and $1.6 billion of Tier 1 Notes through CIBC Capital Trust.

"Our core businesses performed well this quarter. Retail Markets continued to deliver solid results against a backdrop of a challenging market environment and Wholesale Banking generated good revenue momentum while making further progress in the area of risk and maintaining discipline around expenses," says Gerald T. McCaughey, President and Chief Executive Officer of CIBC. "We also continued to focus on balance sheet strength as evidenced by our Tier 1 capital ratio which is amongst the strongest of any bank in North America."

"Losses in structured credit did impact our results but the bulk of these losses occurred early in the quarter before market conditions improved," adds McCaughey. "The rate of deterioration in the broader economy appeared to slow and liquidity levels recovered during the quarter -- both of which are encouraging signs as we head into the last half of the year."

Results for the second quarter of 2009 were affected by the following items of note aggregating to a negative impact of $1.65 per share:

- $475 million ($324 million after-tax, or $0.85 per share) loss on structured credit run-off activities, driven primarily by a deterioration in the credit quality of financial guarantors, particularly early in the second quarter, as well as mark-to-market (MTM) losses on certain underlying positions within the structured credit run-off portfolios hedged by financial guarantors. These factors were mitigated by a decline in the fair value of the limited recourse note payable to a third party and MTM gains, net of credit valuation adjustments, on purchased credit derivatives that are unmatched or hedging Held-To-Maturity (HTM) securities;

- $168 million ($115 million after-tax, or $0.30 per share) negative impact of narrowing credit spreads on the MTM of credit derivatives in CIBC's corporate loan hedging programs. These MTM losses reversed previous gains and were incurred later in the second quarter as market conditions improved;

- $159 million foreign exchange gain ($3 million after-tax, or $0.01 per share) on repatriation activities;

- $100 million of valuation charges ($65 million after-tax, or $0.17 per share) related to certain trading and available for sale positions in exited and other run-off businesses;

- $65 million ($44 million after-tax, or $0.11 per share) provision for credit losses in the general allowance;

- $57 million ($0.15 per share) write off of future tax assets mainly due to lower future statutory tax rates;

- $49 million ($29 million after-tax, or $0.08 per share) of net losses/write-downs on CIBC's legacy merchant banking portfolio.

The net loss of $51 million for the second quarter of 2009 compared to net income of $147 million for the prior quarter. Diluted loss per share and cash diluted loss per share of $0.24 and $0.21(1), respectively, for the second quarter of 2009 compared to diluted earnings per share and cash diluted earnings per share of $0.29 and $0.31(1), respectively, for the prior quarter, which included items of note that aggregated to a negative impact on results of $1.36 per share.