CIBC to appeal decision in Cerberus matter

CIBC announced that it intends to appeal the New York Court decision released after close of business on January 3, 2023 finding CIBC liable for damages in the lawsuit brought by a special purpose vehicle controlled by Cerberus Capital Management L.P., in the amount of $491M, plus pre-judgment interest that is currently being assessed by both parties. CIBC expects that the total amount of damages, inclusive of such pre-judgment interest, will be approximately $848M through to December 1, 2022. CIBC previously disclosed on December 2, 2022 that the Court issued a liability ruling in this matter against CIBC. CIBC strongly disagrees with the legal and factual basis for the Court’s decision. CIBC expects to record a pre-tax provision of approximately C$1.16B or C$850M after tax, including estimated pre-judgment interest through December 1, 2022, in its first quarter 2023 results. The application of the after tax charge is expected to result in an approximate 30 basis point reduction in CIBC’s CET1 capital ratio, which was 11.7% as at October 31, 2022.