CIBC announced third quarter operating earnings of $525 million or $1.29 per share, diluted. Operating Return on Equity was 20.0%. Reported Earnings for the third quarter were $460 million or $1.12 per share, diluted. Adjusted Earnings were $459 million or $1.12 per share, diluted.

Operating Earnings for the nine months ended July 31, 2001, were $1,631 million, compared to $1,787 million for the same period last year. Operating Earnings per share, diluted, were $3.99, compared to $4.21 for the same period in 2000.

Reported Earnings for the first nine months of 2001 were $1,444 million or $3.51 per share, diluted, compared to $1,728 million or $4.06 per share, diluted, for the same period of 2000. Adjusted Earnings for the nine month period were $1,445 million or $3.51 per share, diluted compared to $1,698 million or $3.99 per share, diluted for the same period last year.

Year-to-date, CIBC’s Operating Return on Equity was 21.2%. Since November 1, 1999, CIBC’s total return to shareholders is up 69.5%, the best total return among the major Canadian banks.

“Our performance in a less than favourable business environment is a clear reflection of our ongoing effort to build a broad-based franchise that is capable of weathering downturns in the market,” says John S. Hunkin, Chairman and Chief Executive Officer. “We remain confident that — through the fundamental strength and diversity of our business portfolio — we are well-positioned for growth as market conditions improve.”

CIBC Investor Services Inc. introduced a new website, to enhance and simplify online investing for customers. At the end of June, CIBC Mutual Funds ranked second among the big six Canadian banks in year-to-date net sales and moved up to third among all Canadian mutual fund companies. CIBC continued to rank first in index fund net sales for fiscal 2001, as at June 30, 2001.

CIBC World Markets participated in a number of transactions during the quarter, including acting as the sole underwriter and lead arranger of a US$2.0 billion credit facility to finance George Weston Limited’s acquisition of Bestfoods Baking Company. CIBC World Markets was also joint arranger in the financing of Apax Partners & Co., and Hicks, Muse, Tate & Furst Inc.’s acquisition of Yell Directories, which include the U.K. Yellow Pages, from British Telecommunications plc for 2.14 billion pounds.

CIBC World Markets launched its research broadcast via its new internet webcast facility. CIBC eTV is a proprietary, web-based online television station that provides CIBC’s clients with research.

During the quarter, CIBC took additional steps to maximize the value of its franchise. First, the company announced the sale of its Guernsey private banking business to The Bank of N.T. Butterfield & Son Limited. The sale generated an after-tax gain of $22 million and is consistent with Wealth Management’s strategy to focus on supporting its North American client base and growing its Caribbean and Asian operations.

Second, CIBC announced it is in advanced discussions with Barclays PLC, one of the largest financial services groups in the United Kingdom, to combine the retail, corporate and offshore banking operations of both companies in the Caribbean into a new entity called FirstCaribbean International Bank(TM). Under the proposed transaction, which is expected to close early next year, CIBC and Barclays would each own approximately 45% of the new entity, with the remainder held publicly. CIBC believes the future earnings potential from its interest in FirstCaribbean will be greater than continuing with a controlling
interest of a smaller operation.