Market Newsdesk

December 3, 2020 6:01 am

CIBC Announces Appointment of Katharine Stevenson as Chair of the Board

Canada NewsWire

TORONTO, Dec. 3, 2020 /CNW/ – CIBC (TSX: CM) (NYSE: CM) announced today the appointment of Katharine B. Stevenson as Chair of the Board, effective upon her election as a director at CIBC’s Annual Meeting on April 8, 2021.

Ms. Stevenson has been an independent director of CIBC since 2011. She will succeed The Honourable John P. Manley, who will retire from the Board at the next annual meeting, after six years as Chair and 16 years as a CIBC director.

“I am deeply honoured to succeed Mr. Manley as Chair,” said Ms. Stevenson. “His guidance has helped CIBC successfully navigate a period of significant change in the financial services industry, and his efforts to champion inclusion have been instrumental in further strengthening the bank’s culture. I appreciate the Board’s confidence and look forward to working with my fellow directors and our talented management team to advance our strategic priorities and build on the progress that was made under John’s leadership.”

“Kate’s strong leadership skills, deep experience in the financial services industry, and forward thinking approach to emerging issues and opportunities will enable CIBC to continue to help clients achieve their ambitions and drive growth in the years ahead,” said Mr. Manley.

Ms. Stevenson has extensive corporate governance experience having served on numerous public company and not-for-profit boards in Canada and the U.S. over the past two decades, where she has consistently assumed leadership roles. Previously, she was a financial executive in the telecommunications and banking sectors. In addition to CIBC, Ms. Stevenson is currently a director of Open Text, Capital Power, and St. Michael’s Hospital Foundation. She holds a Bachelor of Arts degree from Harvard University. In 2018, Ms. Stevenson was recognized as one of Canada’s Top 100 Most Powerful Women.

About CIBC

CIBC is a leading North American financial institution with 10 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada with offices in the United States and around the world. Ongoing news releases and more information about CIBC can be found at https://cibc.mediaroom.com/.

SOURCE CIBC

December 3, 2020 5:59 am

CIBC Declares Dividends for the Quarter Ending January 31, 2021

Canada NewsWire

TORONTO, Dec. 3, 2020 /CNW/ – CIBC (TSX: CM) (NYSE: CM) announced today that its Board of Directors declared a dividend of $1.46 per share on common shares for the quarter ending January 31, 2021 payable on January 28, 2021 to shareholders of record at the close of business on December 29, 2020.

Class A Preferred Shares

The Board of Directors also declared the following dividends per share:

For the period ending January 31, 2021 payable on January 28, 2021 to shareholders of record at the close of business on December 29, 2020;

Series 39 – $0.232063
Series 41 – $0.244313
Series 43 – $0.196438
Series 45 – $0.275000
Series 47 – $0.281250
Series 49 – $0.325000
Series 51 – $0.321875

About CIBC

CIBC is a leading North American financial institution with 10 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at https://www.cibc.com/en/about-cibc/media-centre.html.

SOURCE CIBC

December 3, 2020 5:59 am

Quhuo Announces Third Quarter 2020 Unaudited Financial Results

BEIJING, Dec. 03, 2020 (GLOBE NEWSWIRE) — Quhuo Limited (NASDAQ: QH) (“Quhuo,” the “Company,” “we” or “our”), a leading tech-enabled workforce operational solution platform in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Key
Third Quarter 2020 Financial
Highlights

Revenues were RMB769.5 million (US$113.3 million), representing a 20.8% year-over-year increase and a 40.5% increase compared with the second quarter of 2020.
Gross profit was RMB80.9 million (US$11.9 million), representing a 70.4% year-over-year increase and a 34.1% increase compared with the second quarter of 2020. Gross profit margin was 10.5%, representing an increase from 7.5 % in the third quarter of 2019.
Adjusted EBITDA was RMB85.1 million (US$12.5 million), representing a 201.0% year-over-year increase and a 111.1% increase compared with the second quarter of 2020.
Adjusted net income was RMB61.3 million (US$9.0 million), representing a 447.5% year-over-year increase and a 192.5% increase compared with the second quarter of 2020. The adjusted net margin increased significantly to 8.0% from 3.8% in the second quarter of 2020 and 1.8% in the third quarter of 2019, respectively.

Third
Quarter 2020 Operating Highlights

Sustained growth of on-demand food delivery. The number of average monthly delivery orders was 33.6 million, representing a 17.4% year-over-year increase and a 38.6% increase from the second quarter of 2020.
Continuing
service
scope
and geographical
expansion
.
- The Company further expanded housekeeping solutions into 22 cities in China and provided services for over 1,900 B&Bs.
- For grocery and fresh food delivery, the Company fulfilled a total of 2.5 million orders, representing an 612.1% increase from the second quarter of 2020.

Comment
from
Leslie Yu,
C
hairman and Chief
Executive
Officer of QUHUO: “We are pleased with achieving growth for the third quarter, while the pandemic became more effectively controlled in China and our clients’ businesses continue to recover. Revenues increased by 21% year-over-year to RMB770 million. Notably, benefiting from operating leverage, adjusted net income reached RMB61 million, representing an increase of over 400% year-over-year. Despite ongoing market challenges, we continued to focus on strategically expanding the scope and coverage of our business. For example, for our food delivery business, we increased market penetration across more geographical regions and ramped up our efforts in grocery and fresh food delivery, further diversifying our service scope. We also made solid progress in the housekeeping business, expanding coverage to 22 cities across China by the end of the third quarter. We are proud of our growth trajectory and look forward to delivering sustainable growth and more robust results.”

Third
Quarter 2020 Financial Results

Revenues were RMB769.5 million (US$113.3 million), representing an increase of 20.8% year-over-year, primarily due to the increase in revenues generated from on-demand food delivery solutions.

Revenues from on-demand food delivery solutions were RMB758.8 million (US$111.7 million), representing an increase of 20.3% from RMB630.4 million in the third quarter of 2019, primarily due to the increase in delivery orders fulfilled as a result of the continuing expansion into new geographical markets and the rapid growth of grocery and fresh food delivery, which contributed revenues of RMB18.1 million (US$2.7 million) in this quarter.
Revenues from shared-bike solutions were RMB4.1 million (US$603,297), representing a decrease of 22.8% from RMB5.3 million in the third quarter of 2019, primarily due to the decline of business volume in some cities where we operated.
Revenues from ride-hailing solutions were RMB3.3 million (US$493,293), representing an increase of 171.2% from RMB1.2 million in the third quarter of 2019, primarily due to the increase in the number of vehicles we leased to ride-hailing drivers on our platform.
Revenues from housekeeping solutions and other services were RMB3.4 million (US$504,502), compared to nil in the third quarter of 2019 and representing an increase of 803.3% from the second quarter of 2020, primarily due to our expanded provision of housekeeping solutions to B&Bs.

Cost of revenues were RMB688.6 million (US$101.4 million), representing an increase of 16.8% year-over-year, primarily due to the increased cost of revenues from on-demand food delivery solutions, ride-hailing solutions and housekeeping solutions and other services

Cost of revenues related to on-demand food delivery solutions was RMB677.1 million (US$99.7 million), representing an increase of 16.4% from RMB581.7 million in the third quarter of 2019, primarily due to the increase in 1) service fees paid to riders in line with the increase in the delivery orders fulfilled, 2) insurance expenses for riders, and 3) rental fees paid to lease the workplace for additional service stations.
Cost of revenues related to shared-bike maintenance solutions was RMB3.4 million (US$507,002), representing a decrease of 8.3% from RMB3.8 million in the third quarter of 2019, which was generally in line with the decline of the business volume of shared-bike maintenance solutions.
Cost of revenues related to ride-hailing solutions was RMB4.7 million (US$686,437), representing an increase of 14.2% from RMB4.1 million in the third quarter of 2019, primarily due to the increase in the number of vehicles leased from third parties.
Cost of revenues related to housekeeping solutions and other services was RMB3.5 million (US$509,641), representing an increase of 653.4% from the second quarter of 2020, which was in line with the business growth.

Gross profit was RMB80.9 million (US$11.9 million), representing an increase of 70.4% year-over-year, primarily due to the increase in gross profit of on-demand food delivery solutions.

Gross profit margin was 10.5%, compared with 7.5% for the third quarter of 2019.

Gross profit margin of on-demand food delivery solutions was 10.8%, compared to 7.7% in the third quarter of 2019, primarily due to the decreases in service fees paid to riders and team leaders, hiring expenses, insurance expenses and rental fees as a percentage of revenues.
Gross profit margin of shared-bike maintenance solutions was 16.0%, compared with 29.2% in the third quarter of 2019.
Gross loss margin of ride-hailing solutions was 39.2%, compared with 230.6% in the third quarter of 2019, primarily because our revenue generated from the provision of ride-hailing solutions increased at a greater pace than the related cost of services.
Gross loss margin of house-keeping solutions and other services was 1.0%, compared with 21.1% in the second quarter of 2020, primarily because our revenue generated from the provision of house-keeping solutions and other services increased at a greater pace than the related cost of services.

Operating expenses were RMB104.9 million (US$15.5 million), representing an increase of 202.4% year-over-year. Excluding the share-based compensation, the increase would have been 8.7% year-over-year.

General and administrative expenses were RMB103.2 million (US$15.2 million) (including share-based compensation of RMB72.0 million), representing an increase of 211.4% from RMB33.1 million (including share-based compensation of RMB4.5 million) in the third quarter of 2019. The increase was primarily due to increases in 1) share-based compensation as the IPO performance conditions of our share incentive plan was satisfied upon the completion of our initial public offering, and 2) staff costs as a result of an increase in the number of operating staff. The general and administrative expenses would have increased by 8.6% from RMB28.7 million in the third quarter of 2019 after excluding the share-based compensation and, as a percentage of revenues, would have declined to 4.1% from 4.5% in the third quarter of 2019. As such, the Company achieved unit cost savings along with business growth.
Research and development expenses were RMB3.0 million (US$446,207), representing an increase of 40.6% from RMB2.2 million in the third quarter of 2019, primarily due to the increase in the headcount of our research and development personnel.

Income tax expense was RMB15.8 million (US$2.3 million), representing an increase of 39.0% from RMB11.4 million in the third quarter of 2019, primarily due to the increase in the taxable income generated from on-demand food delivery solutions.

Net loss attributable to Quhuo Limited was RMB9.6 million (US$1.4 million), compared with a net income of RMB6.6 million in the third quarter of 2019, primarily due to the increase of share-based compensation as discussed above.

Adjusted EBITDA was RMB85.1 million (US$12.5million), representing an increase of 201.0% from RMB28.3 million in the third quarter of 2019.⁽¹⁾

Adjusted net income was RMB61.3 million (US$9.0 million), representing an increase of 447.5% from RMB11.2 million in the third quarter of 2019.⁽¹⁾

_____________
(1) See “Use of Non-GAAP Financial Measures.”

Balance Sheet

As of September 30, 2020, the Company had cash and short-term investments of RMB413.6 million (US$60.9 million) and short-term debt of RMB137.4 million (US$20.2 million).

Recent Development

Harry Chi Hui has resigned from the Company’s board of directors, effective as of December 2, 2020. Mr. Hui’s resignation did not result from any disagreement with the Company on any matter relating to the Company’s operations, financial reporting, policies or practices.

CONFERENCE CALL

Quhuo will hold a conference call on Thursday, December 3, 2020 at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong time on the same day) to discuss the financial results.

Participant can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/8088221. Once preregistration has been completed, participants will receive dial-in numbers, a direct event passcode, and a unique registrant ID.

To join the conference, please dial the number you receive, enter the direct event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.quhuo.cn/.

A replay will be accessible through 7:59 a.m. Eastern Time on December 11, 2020 by dialing the following numbers:

United States:	+1-646-254-3697
International:	+61-2-8199-0299
China Domestic:	400-6322-162
Hong Kong:	+852-3051-2780
Conference ID:	8088221#

USE OF NON-GAAP FINANCIAL MEASURES

Quhuo has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP).

Quhuo uses adjusted net income (loss) and adjusted EBITDA, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted net income (loss) represents net income (loss) before share-based compensation expenses. Adjusted EBITDA represents adjusted net income(loss) before income tax benefit(expense), amortization, depreciation and interest. Quhuo believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effect of share-based compensation expenses, income tax benefits or expenses, amortization, depreciation and interest. Quhuo believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other measure of performance or as an indicator of Quhuo’s operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Quhuo encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Quhuo mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The following table sets forth a reconciliation of our net income (loss) to adjusted net income and adjusted EBITDA, respectively.

Reconciliation of GAAP and Non-GAAP Results

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2019		September 30, 2020		September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2020
	(RMB‘000)		(RMB‘000)		(US$’000)		(RMB‘000)		(RMB‘000)		(US$’000)

Net income /(loss)	6,754		(10, 701	)	(1, 57 6	)	(13, 16 5	)	(12, 60 0	)	( 1,856	)
Less: Share-based Compensation	(4,451	)	(72,047	)	(10,611	)	(61,931	)	(74,627	)	(10,991	)

Adjusted net income/(loss)	11,205		61, 3 46		9, 0 35		48, 76 6		62, 02 7		9 , 135

Less: Income tax expense	(11,381	)	(15,822	)	(2,330	)	(20,392	)	(30,258	)	(4,457	)
Depreciation	(793	)	(1,809	)	(266	)	(2,118	)	(5,921	)	(871	)
Amortization	(3,026	)	(3,856	)	(568	)	(8,511	)	(9,889	)	(1,456	)
Interest	(1,879	)	(2,300	)	(339	)	(3,866	)	(6,963	)	(1,026	)

Adjusted EBITDA	28,284		85, 133		12, 53 8		83, 65 3		115, 05 8		16 , 945

EXCHANGE RATE INFORMATION

This press release contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.7896 to US$1.00, the rate in effect as of September 30, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

SAFE HARBOR STATEMENT

This press release contains ‘‘forward-looking statements’’ within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Quhuo’s business development, financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on Quhuo’s current expectations and involve risks and uncertainties. Quhuo’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to Quhuo’s abilities to (1) address any or all of the risks and challenges in the future in light of its limited operating history and evolving business portfolios, (2) remain its competitive position in the on-demand food delivery market or further diversify its solution offerings, (3) maintain relationships with major customers and to find replacement customers on commercially desirable terms or in a timely manner or at all, (4) maintain relationship with existing industry customers or attract new customers, (5) attract, retain and manage workers on its platform, and (6) maintain its market shares to competitors in existing markets and its success in expansion into new markets, as well as the length and severity of the recent COVID-19 outbreak and its impact on Quhuo’s business and industry. Other risks and uncertainties are included under the caption “Risk Factors” and elsewhere in the Company’s filings with the Securities and Exchange Commission, including, without limitation, the final prospectus related to the IPO filed with the SEC on July 10, 2020. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Quhuo undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

ABOUT QUHUO LIMITED

Quhuo Limited (NASDAQ: QH) was the largest workforce operational solution platform in China in 2019*. Quhuo provides tech-enabled, end-to-end operational solutions to blue-chip on-demand consumer service businesses in industries with significant e-commerce exposure, including food delivery, ride-hailing, housekeeping and bike-sharing. Quhuo’s platform helps its industry customers mobilize a large team of workers and utilizes a combination of training, performance monitoring and refinement, and incentives to transform them into skilled workers who can follow industry-specific, standardized and highly efficient service procedures. Within the on-demand consumer service ecosystem, the Company plays a unique and indispensable role as the link between consumer service businesses and the end consumers to enable the delivery of goods, services and experiences to consumers.

* According to an industry report prepared by Frost & Sullivan in 2019, as measured by the number of average monthly active workers in 2019.

For more information about Quhuo, please visit https://ir.quhuo.cn/.

CONTACTS:

Investor Relations

Quhuo Limited
Annia Sun
E-mail: [email protected]

Christensen
In China
Mr. Eric Yuan
Phone: +86-13801110739
E-mail: [email protected]

In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: [email protected]

QUHUO LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)

	As of December 31,2019	As of September 30,2020	As of September 30,2020
	(RMB)	(RMB)	(US$)
Assets
Current assets
Cash	126,779	138,674	20,425
Short-term investments	56,275	274,876	40,485
Accounts receivable	276,966	301,653	44,429
Prepayments and other current assets	43,058	47,823	7,043
Amounts due from related parties	18,392	225	33
Total current assets	521,470	763,251	112,415
Non-current assets
Property and equipment, net	25,632	27,520	4,053
Intangible assets, net	66,818	97,751	14,397
Long-term investments	1,715	1,065	157
Goodwill	26,231	30,824	4,540
Deferred tax assets	3,893	2,813	414
Other non-current assets	98,137	97,956	14,426
Total non-current assets	222,426	257,929	37, 987

T otal assets	743,896	1,021,180	150, 402

Liabilities, mezzanine equity and shareholders’ (deficit)/equity
Current liabilities
Accounts payables	232,276	195,573	28,805
Accrued expenses and other current liabilities	75,825	105,114	15,482
Short-term loans	143,979	137,445	20,243
Total current liabilities	452,080	438,132	64,530

Non-c urrent liabilities
Deferred tax liabilities	2,556	2,667	393
Long-term debt	11,942	6,993	1,030
Other non-current liabilities	22,766	22,239	3,275
Total non-current liabilities	37,264	31,899	4,698

Total liabilities	489,344	470, 031	69,228

Total mezzanine equity	1,031,001	–	–

QUHUO LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)

	As of December 31,2019		As of September 30,2020		As of September 30,2020
	(RMB)		(RMB)		(US$)

Shareholders’ (deficit)/equity
Ordinary shares	17		–		–
Class A ordinary shares	–		32		5
Class B ordinary shares	–		4		1
Additional paid-in capital	434,151		1,773,925		261,271
Accumulated deficit	(1,212,257	)	(1,220,805	)	(179,805	)
Accumulated other comprehensive loss	(1,231	)	(8,513	)	(1,255	)
Total Quhuo Limited shareholders’ (deficit)/equity	(779,320	)	544, 64 3		80,217
Non-controlling interests	2,871		6,506		957
Total shareholders’ ( deficit )/equity	(776,449	)	551, 1 49		81, 17 4

Total liabilities, mezzanine equity and shareholders’ (deficit)/equity	743,896		1,021,180		150, 40 2

QUHUO LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(LOSS)

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)

	For the Three Months Ended						For the Nine Months Ended
	September 30,2019		September 30,2020		September 30,2020		September 30,2019		September 30,2020		September 30, 2020
	(RMB)		(RMB)		(US$)		(RMB)		(RMB)		(US$)

Revenues	636,962		769,544		113,342		1,395,760		1,709,739		251,817
Cost of revenues	(589,488	)	(688,638	)	(101,426	)	(1,276,619	)	(1,557,338	)	(229,371	)
Gross profit	47,474		80, 906		11, 916		119,141		152, 401		22, 446

Operating expenses
General and administrative	(33,146	)	(103,201	)	(15,200	)	(127,053	)	(160,215	)	(23,597	)
Research and development	(2,154	)	(3,029	)	(446	)	(6,549	)	(8,346	)	(1,229	)
Gains on disposal of intangible assets, net	606		1,308		193		4,269		2,600		383
Total operating expenses	(34,694	)	(104,922	)	(15,453	)	(129,333	)	(165,961	)	(24,443	)

Operating income/(loss)	12,780		(24, 016	)	(3, 537	)	(10,192	)	(13, 560	)	( 1 , 997	)

Interest income	93		110		16		104		625		92
Interest expense	(1,879	)	(2,300	)	(339	)	(3,866	)	(6,963	)	(1,026	)
Other income, net	7,133		32,128		4,732		21,051		39,058		5,753
Share of net income from equity method investees	–		–		–		162		–		–
Foreign exchange gain/(loss)	8		(801	)	(118	)	(32	)	(1,502	)	(221	)
Income (loss) before income tax	18,135		5, 121		754		7, 227		17, 658		2, 601
Income tax expense	(11,381	)	(15,822	)	(2,330	)	(20,392	)	(30,258	)	(4,457	)
Net income (loss)	6,754		(10, 701	)	(1, 576	)	(13, 165	)	(12, 600	)	( 1,856	)

Net (gain)/loss attributable to non-controlling interests	(112	)	1,096		161		1,158		4,052		597
Net loss/(income) attributable to ordinary shareholders of the Quhuo limited	6,642		(9, 60 5	)	(1, 415	)	(12, 007	)	(8, 548	)	( 1,259	)

Non-GAAP Financial Data
Adjusted net income	11,205		61,346		9,035		48,766		62,027		9,135
Adjusted EBITDA	28,284		85,133		12,538		83,653		115,058		16,945

Income/(loss) per share for class A and class B ordinary shares
Ordinary shares – basic	0.17		–		–		(0.80	)	–		–
Ordinary shares – diluted	0.15		–		–		(0.80	)	–		–
Class A and Class B ordinary shares – basic and diluted	–		(0.24	)	(0.04	)	–		(0.37	)	(0.05	)

Net income / (loss) used in basic earnings (loss) per share calculation	2,543		(9,605	)	(1,415	)	(12,007	)	(8,548	)	(1,259	)

Net income / (loss) used in diluted earnings (loss) per share calculation	6,642		(9,605	)	(1,415	)	(12,007	)	(8,548	)	(1,259	)

Weighted average number of Class A and Class B ordinary shares used in Income/(loss) per share computation:
Ordinary shares – basic	14,972,760		–		–		14,972,760		–		–
Ordinary shares – diluted	44,525,074		–		–		14,972,760		–		–
Class A and Class B ordinary shares – basic and diluted	–		40,130,720		40,130,720		–		23,358,747		23,358,747

Other comprehensive income:
Foreign currency translation adjustment:	(53	)	(7,993	)	(1,177	)	(53	)	(7,282	)	(1,073	)
Comprehensive income (loss)	6,701		(18,694	)	(2,753	)	(13,218	)	(19,882	)	(2,929	)
Comprehensive (income)/loss attributable to non-controlling interests	(112	)	1,096		161		1,158		4,051		597
Comprehensive income/(loss) attributable to ordinary shareholders of Quhuo Limited	6,589		(17,598	)	(2,592	)	(12,060	)	(15,831	)	(2,332	)

December 3, 2020 5:58 am

Remcom Announces Radar Simulation Enhancements In WaveFarer, Providing Next Level Realism With Diffuse Scattering And Material Transmission

Remcom announces diffuse scattering from rough surfaces and transmission through materials in the latest release of WaveFarer®, its high fidelity radar simulation software for drive scenario modeling and indoor detection applications.

State College, PA, Dec. 03, 2020 (GLOBE NEWSWIRE) — Remcom announces diffuse scattering from rough surfaces and transmission through materials in the latest release of WaveFarer®, its high fidelity radar simulation software for drive scenario modeling and indoor detection applications. New features reveal backscatter from road surfaces and vehicle interiors, elevating realism of simulations by providing a more accurate representation of conditions in the real world.

In addition, several new tools increase accuracy for target detection, including scripts for setting up simulations with chirp waveforms and post-processing utilities for predicting Doppler velocity and generating range-Doppler plots.

The Automotive Radar version of WaveFarer facilitates testing for sensor placement, signal processing, and target identification, enabling OEMs and Tier 1 suppliers to virtually test and refine sensors earlier in the design process. The new diffuse scattering model further increases fidelity by simulating how paths interact with rough surfaces on terrain and structures, revealing the impact on power, phase, and polarization of propagating waves. Key effects such as complex impulse response, delay spread, and increased cross-polarization of received signals can be visualized and incorporated into results. By taking into account surface variations that could be caused by common road phenomena like gravel or crumbling pavement, WaveFarer provides superior modeling of the real-world environment.

The update also adds the ability to calculate transmission through materials, including windows, walls, composites, and more. WaveFarer analyzes scattering effects that would naturally occur while a car is in motion, such as waves passing through glass and interacting with the vehicle’s interior or through a bumper and reflecting off the metal chassis. Another use case is indoor radar sensor testing, where insulated walls, doors, furniture, and other obstructions must be considered.

The new radar simulation enhancements are available in the Standard and Automotive Radar versions of WaveFarer. For more information on the latest release, please visit Remcom’s website or contact sales.

About Remcom: Remcom provides innovative electromagnetic simulation and wireless propagation software for commercial users and U.S. government sponsors. Remcom’s suite of complementary products work together to provide complete end-to-end design and analysis of complex devices in real world scenarios, simplifying EM analysis for a wide variety of applications including antenna design and placement, 5G MIMO, outdoor and indoor mmWave planning, mobile device design, biomedical, microwave, automotive radar, and more. Remcom is committed to its customers’ unique needs, offering flexible licensing options for installations of all sizes as well as custom engineered solutions.

Attachments

Stefanie Lucas
Remcom
814-861-1299
[email protected]

December 3, 2020 5:57 am

CIBC Announces Fourth Quarter and Fiscal 2020 Results

Canada NewsWire

CIBC’s 2020 audited annual consolidated financial statements and accompanying management’s discussion and analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information and supplementary regulatory capital reports which include fourth quarter financial information. All amounts are expressed in Canadian dollars, unless otherwise indicated.

TORONTO, Dec. 3, 2020 /CNW/ – CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2020.

“We delivered resilient financial performance in fiscal 2020 against the backdrop of a global pandemic and an evolving geopolitical environment. Throughout this period, our team was guided by our purpose as we responded, ensuring that we supported our clients, team members and communities through a uniquely challenging time,” said Victor G. Dodig, CIBC President and Chief Executive Officer. “At the same time, we took steps to position our bank for the future, including making strategic investments in our people, processes and platforms, and taking steps to enhance our efficiency. As we enter fiscal 2021, our strong financial position will enable us to continue executing our client-focused strategy to deliver growth and generate value for all our stakeholders.”

Fourth quarter highlights

	Q4/20	Q4/19	Q3/20	YoY Variance	QoQ Variance
Reported Net Income	$1,016 million	$1,193 million	$1,172 million	-15%	-13%
Adjusted Net Income ⁽¹⁾	$1,280 million	$1,309 million	$1,243 million	-2%	+3%
Reported Diluted Earnings Per Share (EPS)	$2.20	$2.58	$2.55	-15%	-14%
Adjusted Diluted EPS ⁽¹⁾	$2.79	$2.84	$2.71	-2%	+3%
Reported Return on Common Shareholders’ Equity (ROE)	10.7%	12.9%	12.1%
Adjusted ROE ⁽¹⁾	13.5%	14.2%	12.9%
Common Equity Tier 1 (CET1) Ratio	12.1%	11.6%	11.8%

(1) For additional information, see the “Non-GAAP measures” section.

CIBC’s results for the fourth quarter of 2020 were affected by the following items of note aggregating to a negative impact of $0.59 per share:

$220 million ($220 million after-tax) goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean;
$114 million ($84 million after-tax) charge related to the consolidation of our real estate portfolio;
$79 million ($58 million after-tax) gain as a result of plan amendments related to pension and other post-employment plans; and
$23 million ($18 million after-tax) amortization of acquisition-related intangible assets.

For the year ended October 31, 2020, CIBC reported net income of $3.8 billion and adjusted net income⁽¹⁾ of $4.4 billion, compared with reported net income of $5.1 billion and adjusted net income⁽¹⁾ of $5.4 billion for 2019.

The following table summarizes our performance in 2020 against our key financial measures and targets:

Financial Measure	Target	2020 Reported Results	2020 Adjusted Results ⁽¹⁾
Diluted EPS growth ⁽²⁾	5% to 10% annually	$8.22, down 27% from 2019	$9.69, down 19% from 2019
ROE ⁽²⁾	15% +	10.0%	11.7%
Efficiency ratio	52% run rate in 2022	60.6%, an increase of 230 basis points from 2019	55.8%, a decline of 30 basis points from 2019
CET1 ratio	Strong buffer to regulatory minimum	12.1%
Dividend payout ratio ⁽²⁾	40% to 50%	70.7%	60.0%
Total shareholder return	Outperform the S&P/TSX Composite Banks Index over a rolling five-year period	CIBC – 27.7% S&P/TSX Composite Banks Index – 35.3%

(1) For additional information, see the “Non-GAAP measures” section.

(2) Through the cycle.

Core business performance⁽¹⁾F2020 Financial Highlights

(C$ million)	F2020	F2019	YoY Variance
Canadian Personal and Business Banking
Reported Net Income	$1,962	$2,289	down 14%
Adjusted Net Income ⁽²⁾	$1,968	$2,463	down 20%

Canadian Commercial Banking and Wealth Management
Reported Net Income	$1,202	$1,287	down 7%
Adjusted Net Income ⁽²⁾	$1,203	$1,288	down 7%

U.S. Commercial Banking and Wealth Management
Reported Net Income	$380	$682	down 44%
Adjusted Net Income ⁽²⁾	$441	$722	down 39%

Capital Markets
Reported Net Income	$1,131	$954	up 19%
Adjusted Net Income ⁽²⁾	$1,131	$954	up 19%

(1)	Certain prior period information has been revised due to enhancements made to our transfer pricing methodology. See the “External reporting changes” section of our 2020 Annual Report to Shareholders for additional details.
(2)	For additional information, see the “Non-GAAP measures” section.

Strong fundamentals

While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2020, CIBC maintained its capital strength and sound risk management practices:

Capital ratios were strong, with a Basel III CET1 ratio of 12.1% as noted above, and Tier 1 and Total capital ratios of 13.6% and 16.1%, respectively, at October 31, 2020;
Market risk, as measured by average Value-at-Risk, was $8.5 million in 2020 compared with $5.7 million in 2019;
We continued to have solid credit performance, with a loan loss ratio of 26 basis points compared with 29 basis points in 2019;
Average Liquidity Coverage Ratio was 145% for the three months ended October 31, 2020; and
Leverage Ratio was 4.7% at October 31, 2020.

Credit quality

Provision for credit losses was $291 million for the fourth quarter, down $111 million or 28% from the same quarter last year. Provision for credit losses on performing loans was up $41 million, primarily due to an unfavourable impact of model parameter updates in Canadian Personal and Business Banking and negative credit migration in U.S. Commercial Banking and Wealth Management. Provision for credit losses on impaired loans was down $152 million, due to lower insolvencies and write-offs in credit cards and personal lending, reflecting the impact of the client relief programs and government support.

Making a difference in our Communities

Part of being a genuinely caring bank means supporting the organizations and charities that keep our communities strong. In aggregate, we invested $75 million in community organizations across Canada and the U.S. during 2020.
In the fourth quarter:

Team CIBC rallied around a reimagined Canadian Cancer Society CIBC Run for the Cure, raising $2 million to help change the future of breast cancer, bringing our total funds raised in support of this cause to a total of $56 million over the past 24 years.
We announced several key donations to community organizations, including a commitment of $750,000 to Ronald McDonald House Canada over the next three years as part of its National Mission Partnership and $500,000 over three years to support educational and employment opportunities for persons with disabilities at Holland Bloorview.
Towards an inclusive future, we committed an additional $275,000 for youth-focused organizations in Canada and the U.S. that support the Black community; sponsored the second annual Startup & Slay digital series, hosted by How She Hustles, a network for diverse women entrepreneurs and leaders; and supported Actua, an organization that engages young Indigenous peoples for the future of work through transformational STEM programming as we recognized Orange Shirt Day honouring the First Nations, Inuit and Métis children who were forcibly removed from their communities and sent to Residential Schools.

Fourth quarter financial highlights
						As at or for the						As at or for the
						three months ended						twelve months ended
		2020			2020			2019			2020			2019
Unaudited		Oct. 31			Jul. 31			Oct. 31			Oct. 31			Oct. 31
Financial results ($ millions)
Net interest income		$	2,792		$	2,729		$	2,801		$	11,044		$	10,551
Non-interest income			1,808			1,979			1,971			7,697			8,060
Total revenue			4,600			4,708			4,772			18,741			18,611
Provision for credit losses			291			525			402			2,489			1,286
Non-interest expenses			2,891			2,702			2,838			11,362			10,856
Income before income taxes			1,418			1,481			1,532			4,890			6,469
Income taxes			402			309			339			1,098			1,348
Net income		$	1,016		$	1,172		$	1,193		$	3,792		$	5,121
Net income attributable to non-controlling interests			1			2			8			2			25
Preferred shareholders and other equity instrument holders			30			31			32			122			111
Common shareholders			985			1,139			1,153			3,668			4,985
Net income attributable to equity shareholders		$	1,015		$	1,170		$	1,185		$	3,790		$	5,096
Financial measures
Reported efficiency ratio			62.9	%		57.4	%		59.5	%		60.6	%		58.3	%
Loan loss ratio⁽¹⁾			0.17	%		0.29	%		0.33	%		0.26	%		0.29	%
Reported return on common shareholders’ equity⁽²⁾			10.7	%		12.1	%		12.9	%		10.0	%		14.5	%
Net interest margin			1.43	%		1.43	%		1.69	%		1.50	%		1.65	%
Net interest margin on average interest-earning assets⁽³⁾			1.60	%		1.61	%		1.90	%		1.69	%		1.84	%
Return on average assets⁽⁴⁾			0.52	%		0.62	%		0.72	%		0.52	%		0.80	%
Return on average interest-earning assets⁽³⁾⁽⁴⁾			0.58	%		0.69	%		0.81	%		0.58	%		0.89	%
Reported effective tax rate			28.3	%		20.9	%		22.1	%		22.5	%		20.8	%
Common share information
Per share ($)	– basic earnings	$	2.21		$	2.56		$	2.59		$	8.23		$	11.22
	– reported diluted earnings		2.20			2.55			2.58			8.22			11.19
	– dividends		1.46			1.46			1.44			5.82			5.60
	– book value		84.05			83.17			79.87			84.05			79.87
Closing share price ($)			99.38			92.73			112.31			99.38			112.31
Shares outstanding (thousands)	– weighted-average basic		446,321			445,416			445,357			445,435			444,324
	– weighted-average diluted		446,877			445,894			446,392			446,021			445,457
	– end of period		447,085			446,009			445,342			447,085			445,342
Market capitalization ($ millions)		$	44,431		$	41,358		$	50,016		$	44,431		$	50,016
Value measures
Total shareholder return			8.74	%		14.24	%		9.60	%		(5.90)	%		4.19	%
Dividend yield (based on closing share price)			5.8	%		6.3	%		5.1	%		5.9	%		5.0	%
Reported dividend payout ratio			66.2	%		57.1	%		55.6	%		70.7	%		49.9	%
Market value to book value ratio			1.18			1.11			1.41			1.18			1.41
Selected financial measures – adjusted ⁽⁵⁾
Adjusted efficiency ratio⁽⁶⁾			56.4	%		54.8	%		56.0	%		55.8	%		55.5	%
Adjusted return on common shareholders’ equity⁽²⁾			13.5	%		12.9	%		14.2	%		11.7	%		15.4	%
Adjusted effective tax rate			24.5	%		21.2	%		20.2	%		21.8	%		20.6	%
Adjusted diluted earnings per share		$	2.79		$	2.71		$	2.84		$	9.69		$	11.92
Adjusted dividend payout ratio			52.2	%		53.7	%		50.5	%		60.0	%		46.9	%
On- and off-balance sheet information ($ millions)
Cash, deposits with banks and securities		$	211,564		$	212,766		$	138,669		$	211,564		$	138,669
Loans and acceptances, net of allowance			416,388			414,457			398,108			416,388			398,108
Total assets			769,551			768,545			651,604			769,551			651,604
Deposits			570,740			566,135			485,712			570,740			485,712
Common shareholders’ equity			37,579			37,095			35,569			37,579			35,569
Average assets			778,933			757,589			655,971			735,492			639,716
Average interest-earning assets⁽³⁾			692,465			673,527			585,816			654,142			572,677
Average common shareholders’ equity			36,762			37,360			35,553			36,792			34,467
Assets under administration (AUA)⁽⁷⁾⁽⁸⁾			2,368,904			2,413,768			2,425,651			2,368,904			2,425,651
Assets under management (AUM)⁽⁸⁾			265,936			265,639			252,007			265,936			252,007
Balance sheet quality and liquidity measures
Risk-weighted assets (RWA) ($ millions)		$	254,871		$	256,683		$	239,863		$	254,871		$	239,863
CET1 ratio⁽⁹⁾			12.1	%		11.8	%		11.6	%		12.1	%		11.6	%
Tier 1 capital ratio⁽⁹⁾			13.6	%		13.0	%		12.9	%		13.6	%		12.9	%
Total capital ratio⁽⁹⁾			16.1	%		15.4	%		15.0	%		16.1	%		15.0	%
Leverage ratio			4.7	%		4.6	%		4.3	%		4.7	%		4.3	%
Liquidity coverage ratio (LCR)			145	%		150	%		125	%		n/a			n/a
Other information
Full-time equivalent employees			43,853			43,952			45,157			43,853			45,157

(1)	The ratio is calculated as the provision for credit losses on impaired loans to average loans and acceptances, net of allowance for credit losses.
(2)	Annualized.
(3)	Average interest-earning assets include interest-bearing deposits with banks, interest-bearing demand deposits with Bank of Canada, securities, cash collateral on securities borrowed, securities purchased under resale agreements, loans net of allowances, and certain sublease-related assets.
(4)	Net income expressed as a percentage of average assets or average interest-earning assets.
(5)	Adjusted measures are non-GAAP measures. Adjusted measures are calculated in the same manner as reported measures, except that financial information included in the calculation of adjusted measures is adjusted to exclude the impact of items of note. For additional information and a reconciliation of reported results to adjusted results, see the “Non-GAAP measures” section.
(6)	Calculated on a tax equivalent basis (TEB).
(7)	Includes the full contract amount of AUA or custody under a 50/50 joint venture between CIBC and The Bank of New York Mellon of $1,861.5 billion (July 31, 2020: $1,903.7 billion; October 31, 2019: $1,923.2 billion).
(8)	AUM amounts are included in the amounts reported under AUA.
(9)	Effective beginning in the second quarter of 2020, ratios reflect the expected credit loss transitional arrangement announced by OSFI on March 27, 2020.
n/a	Not applicable.

Review of Canadian Personal and Business Banking fourth quarter results

			2020 Oct. 31			2020 Jul. 31			2019 Oct. 31⁽¹⁾
$ millions, for the three months ended			2020 Oct. 31			2020 Jul. 31			2019 Oct. 31⁽¹⁾
Revenue		$	2,139		$	2,056		$	2,225
Provision for credit losses
	Impaired		89			151			218
	Performing		41			69			37
Total provision for credit losses			130			220			255
Non-interest expenses			1,149			1,146			1,156
Income before income taxes			860			690			814
Income taxes			226			182			213
Net income		$	634		$	508		$	601
Net income attributable to:
	Equity shareholders	$	634		$	508		$	601
Efficiency ratio			53.8	%		55.7	%		52.0	%
Return on equity⁽²⁾			37.5	%		29.7	%		36.8	%
Average allocated common equity⁽²⁾		$	6,728		$	6,790		$	6,472
Full-time equivalent employees			12,879			12,739			13,431

(1)	Certain prior period information has been revised. See the “External reporting changes” section of the 2020 Annual Report to Shareholders for additional details.
(2)	For additional information, see the “Non-GAAP measures” section.

Net income for the quarter was $634 million, up $33 million from the fourth quarter of 2019. Adjusted net income⁽²⁾ for the quarter was $635 million, up $32 million from the fourth quarter of 2019.

Revenue of $2,139 million was down $86 million from the fourth quarter of 2019, primarily due to narrower margins and lower fees largely driven by reduced client transaction activity as a result of the pandemic, partially offset by volume growth.

Provision for credit losses of $130 million was down $125 million from the fourth quarter of 2019, due to a lower provision for credit losses on impaired loans as a result of lower insolvencies and write-offs in credit cards and personal lending, reflecting the impact of the client relief programs and government support.

Non-interest expenses of $1,149 million were down $7 million from the fourth quarter of 2019.

Review of Canadian Commercial Banking and Wealth Management fourth quarter results

			2020 Oct. 31			2020 Jul. 31			2019 Oct. 31⁽¹⁾
$ millions, for the three months ended			2020 Oct. 31			2020 Jul. 31			2019 Oct. 31⁽¹⁾
Revenue
	Commercial banking	$	409		$	417		$	414
	Wealth management		619			596			612
Total revenue			1,028			1,013			1,026
Provision for (reversal of) credit losses
	Impaired		21			45			71
	Performing		4			12			9
Total provision for credit losses			25			57			80
Non-interest expenses			540			519			530
Income before income taxes			463			437			416
Income taxes			123			117			111
Net income		$	340		$	320		$	305
Net income attributable to:
	Equity shareholders	$	340		$	320		$	305
Efficiency ratio			52.5	%		51.2	%		51.7	%
Return on equity⁽²⁾			20.7	%		19.4	%		19.7	%
Average allocated common equity⁽²⁾		$	6,551		$	6,591		$	6,126
Full-time equivalent employees			4,984			4,981			5,048

(1)	Certain prior period information has been revised. See the “External reporting changes” section of the 2020 Annual Report to Shareholders for additional details.
(2)	For additional information, see the “Non-GAAP measures” section.

Net income for the quarter was $340 million, up $35 million from the fourth quarter of 2019. Adjusted net income⁽²⁾ for the quarter was $341 million, up $35 million from the fourth quarter of 2019.

Revenue of $1,028 million was up $2 million from the fourth quarter of 2019, driven mainly by volume growth and market appreciation in wealth management. Revenue declined in commercial banking due to changes in the interest rate environment and muted client lending activity, which more than offset volume growth in deposits.

Provision for credit losses of $25 million was down $55 million from the fourth quarter of 2019, due to lower provision for credit losses on impaired loans in the retail and wholesale sectors.

Non-interest expenses of $540 million were up $10 million from the fourth quarter of 2019, primarily due to higher employee-related compensation, partially offset by lower travel and business development activity.

Review of U.S. Commercial Banking and Wealth Management fourth quarter results

			2020			2020			2019
$ millions, for the three months ended			Oct. 31			Jul. 31			Oct. 31⁽¹⁾
Revenue
	Commercial banking⁽²⁾	$	358		$	364		$	343
	Wealth management		157			150			159
Total revenue⁽³⁾⁽⁴⁾			515			514			502
Provision for (reversal of) credit losses
	Impaired		55			42			13
	Performing		27			118			4
Total provision for credit losses			82			160			17
Non-interest expenses			270			271			286
Income before income taxes			163			83			199
Income taxes⁽³⁾			32			21			20
Net income		$	131		$	62		$	179
Net income attributable to:
	Equity shareholders	$	131		$	62		$	179
Efficiency ratio			52.4	%		52.7	%		57.0	%
Return on equity⁽⁵⁾			5.7	%		2.6	%		8.0	%
Average allocated common equity⁽⁵⁾		$	9,191		$	9,559		$	8,842
Full-time equivalent employees			2,101			2,105			2,113

(1)	Certain prior period information has been revised. See the “External reporting changes” section of the 2020 Annual Report to Shareholders for additional details.
(2)	Certain information has been reclassified to conform to the presentation adopted in the first quarter of 2020. Commercial banking now includes the Other line of business, which includes the treasury activities relating to CIBC Bank USA, as these activities primarily support the commercial banking line of business.
(3)	Revenue and income taxes are reported on a TEB. Accordingly, revenue and income taxes include a TEB adjustment of nil for the quarter ended October 31, 2020 (July 31, 2020: nil; October 31, 2019: nil). The equivalent amounts are offset in the revenue and income taxes of Corporate and Other.
(4)	Included $5 million of accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank, shown as an item of note, for the quarter ended October 31, 2020 (July 31, 2020: $5 million; October 31, 2019: $8 million).
(5)	For additional information, see the “Non-GAAP measures” section.

Net income for the quarter was $131 million, down $48 million from the fourth quarter of 2019. Adjusted net income⁽⁵⁾ for the quarter was $144 million, down $46 million from the fourth quarter of 2019.

Revenue of $515 million was up $13 million from the fourth quarter of 2019, primarily due to higher loan and deposit volumes and strong growth in asset management fees, partially offset by margin compression due to decline in interest rates and lower transactional loan-related fees.

Provision for credit losses of $82 million was up $65 million from the fourth quarter of 2019. The current quarter included a higher provision for credit losses on performing loans due to unfavourable credit migration. Provision for credit losses on impaired loans was up mainly due to impairments as a result of certain borrower-specific performance issues.

Non-interest expenses of $270 million were down $16 million from the fourth quarter of 2019, primarily due to lower business development and employee-related compensation.

Review of Capital Markets fourth quarter results

			2020 Oct. 31			2020 Jul. 31			2019 Oct. 31⁽¹⁾
$ millions, for the three months ended			2020 Oct. 31			2020 Jul. 31			2019 Oct. 31⁽¹⁾
Revenue
	Global markets	$	470		$	637		$	432
	Corporate and investment banking		322			363			308
Total revenue⁽²⁾			792			1,000			740
Provision for (reversal of) credit losses
	Impaired		19			56			24
	Performing		(11)			5			21
Total provision for credit losses			8			61			45
Non-interest expenses			384			413			386
Income before income taxes			400			526			309
Income taxes⁽²⁾			133			134			79
Net income		$	267		$	392		$	230
Net income attributable to:
	Equity shareholders	$	267		$	392		$	230
Efficiency ratio			48.5	%		41.3	%		52.0	%
Return on equity⁽³⁾			15.8	%		22.7	%		14.4	%
Average allocated common equity⁽³⁾		$	6,707		$	6,895		$	6,335
Full-time equivalent employees			1,470			1,476			1,449


(1)	Certain prior period information has been revised. See the “External reporting changes” section of the 2020 Annual Report to Shareholders for additional details.
(2)	Revenue and income taxes are reported on a TEB. Accordingly, revenue and income taxes include a TEB adjustment of $37 million for the quarter ended October 31, 2020 (July 31, 2020: $51 million; October 31, 2019: $48 million). The equivalent amounts are offset in the revenue and income taxes of Corporate and Other.
(3)	For additional information, see the “Non-GAAP measures” section.

Reported and adjusted⁽³⁾ net income for the quarter was $267 million, compared with reported and adjusted⁽³⁾ net income of $230 million for the fourth quarter of 2019.

Revenue of $792 million was up $52 million from the fourth quarter of 2019. In global markets, revenue increased driven by interest rate and commodities trading and global markets financing activities, partially offset by lower foreign exchange trading revenue. In corporate and investment banking, revenue increased driven by higher corporate banking and debt underwriting activity, partially offset by lower advisory and equity underwriting revenue.

Provision for credit losses of $8 million was down $37 million from the fourth quarter of 2019, mainly due to a decline in provision for credit losses on performing loans from accounts migrating to impaired, while the fourth quarter of 2019 reflected the impact of a worsening of our economic outlook.

Non-interest expenses of $384 million were down $2 million from the fourth quarter of 2019, primarily due to lower performance-related compensation, partially offset by higher spending on strategic initiatives.

Review of Corporate and Other fourth quarter results

		2020		2020		2019
$ millions, for the three months ended		Oct. 31		Jul. 31		Oct. 31⁽¹⁾
Revenue
	International banking	$	178	$	180	$	201
	Other		(52)		(55)		78
Total revenue⁽²⁾			126		125		279
Provision for (reversal of) credit losses
	Impaired		(6)		6		4
	Performing		52		21		1
Total provision for credit losses			46		27		5
Non-interest expenses			548		353		480
Loss before income taxes			(468)		(255)		(206)
Income taxes⁽²⁾			(112)		(145)		(84)
Net loss		$	(356)	$	(110)	$	(122)
Net income (loss) attributable to:
	Non-controlling interests	$	1	$	2	$	8
	Equity shareholders		(357)		(112)		(130)
Full-time equivalent employees			22,419		22,651		23,116

(1)	Certain prior period information has been revised. See the “External reporting changes” section of the 2020 Annual Report to Shareholders for additional details.
(2)	Revenue and income taxes of Capital Markets and U.S. Commercial Banking and Wealth Management are reported on a TEB. The equivalent amounts are offset in the revenue and income taxes of Corporate and Other. Accordingly, revenue and income taxes include a TEB adjustment of $37 million for the quarter ended October 31, 2020 (July 31, 2020: $51 million; October 31, 2019: $48 million).
(3)	For additional information, see the “Non-GAAP measures” section.

Net loss for the quarter was $356 million, compared with a net loss of $122 million for the fourth quarter of 2019. Adjusted net loss⁽³⁾ for the quarter was $107 million, compared with an adjusted net loss⁽³⁾ of $20 million for the fourth quarter of 2019.

Revenue of $126 million was down $153 million from the fourth quarter of 2019. International banking revenue was down primarily due to lower revenue in CIBC FirstCaribbean due to a decrease in margins and fee income, partially offset by higher loan volumes. Other revenue was down primarily due to lower Treasury revenue largely as a result of excess liquidity costs, interest income in the prior year related to the expected settlement of certain income tax matters, shown as an item of note, and the impact of changes relating to our adoption of IFRS 16 “Leases” in the current year that were largely offset in non-interest expenses.

Provision for credit losses was $46 million, up $41 million from the fourth quarter of 2019, due to a higher provision for credit losses on performing loans related to the COVID-19 pandemic in the Caribbean region, partially offset by a lower provision on impaired loans in CIBC FirstCaribbean.

Non-interest expenses of $548 million were up $68 million from the fourth quarter of 2019, primarily due to a charge related to the consolidation of our real estate portfolio and a higher goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean, partially offset by a gain in the current quarter as a result of plan amendments related to pension and other post-employment plans, and lower legal provisions, all shown as items of note. The current quarter was also impacted by changes relating to our adoption of IFRS 16, as noted above.

Income tax benefit was up $28 million from the fourth quarter of 2019, primarily due to higher losses. The goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean, shown as an item of note, is not deductible for tax purposes.

Consolidated balance sheet

$ millions, as at October 31		2020		2019
ASSETS
Cash and non-interest-bearing deposits with banks	$	43,531	$	3,840
Interest-bearing deposits with banks		18,987		13,519
Securities		149,046		121,310
Cash collateral on securities borrowed		8,547		3,664
Securities purchased under resale agreements		65,595		56,111
Loans
Residential mortgages		221,165		208,652
Personal		42,222		43,651
Credit card		11,389		12,755
Business and government		135,546		125,798
Allowance for credit losses		(3,540)		(1,915)
		406,782		388,941
Other
Derivative instruments		32,730		23,895
Customers’ liability under acceptances		9,606		9,167
Property and equipment		2,997		1,813
Goodwill		5,253		5,449
Software and other intangible assets		1,961		1,969
Investments in equity-accounted associates and joint ventures		658		586
Deferred tax assets		650		517
Other assets		23,208		20,823
		77,063		64,219
	$	769,551	$	651,604
LIABILITIES AND EQUITY
Deposits
Personal	$	202,152	$	178,091
Business and government		311,426		257,502
Bank		17,011		11,224
Secured borrowings		40,151		38,895
		570,740		485,712
Obligations related to securities sold short		15,963		15,635
Cash collateral on securities lent		1,824		1,822
Obligations related to securities sold under repurchase agreements		71,653		51,801
Other
Derivative instruments		30,508		25,113
Acceptances		9,649		9,188
Deferred tax liabilities		33		38
Other liabilities		22,134		19,031
		62,324		53,370
Subordinated indebtedness		5,712		4,684
Equity
Preferred shares and other equity instruments		3,575		2,825
Common shares		13,908		13,591
Contributed surplus		117		125
Retained earnings		22,119		20,972
Accumulated other comprehensive income (AOCI)		1,435		881
Total shareholders’ equity		41,154		38,394
Non-controlling interests		181		186
Total equity		41,335		38,580
	$	769,551	$	651,604

Consolidated statement of income

		For the three						For the twelve
		months ended						months ended
		2020		2020		2019		2020		2019
$ millions, except as noted		Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Interest income ⁽¹⁾
Loans		$	3,099	$	3,120	$	4,091	$	13,863	$	16,048
Securities			572		568		707		2,568		2,779
Securities borrowed or purchased under resale agreements			87		113		375		842		1,474
Deposits with banks			42		37		104		249		396
			3,800		3,838		5,277		17,522		20,697
Interest expense
Deposits			822		913		2,040		5,326		8,422
Securities sold short			59		57		64		254		291
Securities lent or sold under repurchase agreements			71		83		307		656		1,198
Subordinated indebtedness			36		33		56		159		198
Other			20		23		9		83		37
			1,008		1,109		2,476		6,478		10,146
Net interest income			2,792		2,729		2,801		11,044		10,551
Non-interest income
Underwriting and advisory fees			103		123		105		468		475
Deposit and payment fees			186		176		228		781		908
Credit fees			265		261		248		1,020		958
Card fees			105		98		110		410		458
Investment management and custodial fees			357		336		341		1,382		1,305
Mutual fund fees			402		391		403		1,586		1,595
Insurance fees, net of claims			95		94		107		386		430
Commissions on securities transactions			83		88		77		362		313
Gains (losses) from financial instruments measured/designated at
	fair value through profit or loss (FVTPL), net		86		270		168		694		761
Gains (losses) from debt securities measured at fair value through
	other comprehensive income (FVOCI) and amortized cost, net		4		10		6		9		34
Foreign exchange other than trading			45		63		59		234		304
Income from equity-accounted associates and joint ventures			12		25		22		79		92
Other			65		44		97		286		427
			1,808		1,979		1,971		7,697		8,060
Total revenue			4,600		4,708		4,772		18,741		18,611
Provision for credit losses			291		525		402		2,489		1,286
Non-interest expenses
Employee compensation and benefits			1,371		1,512		1,436		6,259		5,726
Occupancy costs			321		202		230		944		892
Computer, software and office equipment			516		474		493		1,939		1,874
Communications			72		79		71		308		303
Advertising and business development			71		51		95		271		359
Professional fees			53		51		67		203		226
Business and capital taxes			30		22		25		117		110
Other			457		311		421		1,321		1,366
			2,891		2,702		2,838		11,362		10,856
Income before income taxes			1,418		1,481		1,532		4,890		6,469
Income taxes			402		309		339		1,098		1,348
Net income		$	1,016	$	1,172	$	1,193	$	3,792	$	5,121
Net income attributable to non-controlling interests		$	1	$	2	$	8	$	2	$	25
	Preferred shareholders and other equity instrument holders	$	30	$	31	$	32	$	122	$	111
	Common shareholders		985		1,139		1,153		3,668		4,985
Net income attributable to equity shareholders		$	1,015	$	1,170	$	1,185	$	3,790	$	5,096
Earnings per share (in dollars)
	Basic	$	2.21	$	2.56	$	2.59	$	8.23	$	11.22
	Diluted		2.20		2.55		2.58		8.22		11.19
Dividends per common share (in dollars)			1.46		1.46		1.44		5.82		5.60

(1)

Interest income included $3.3 billion for the quarter ended October 31, 2020 (July 31, 2020: $3.5 billion; October 31, 2019: $4.8 billion) calculated based on the effective interest rate method.

Consolidated statement of comprehensive income

			For the three						For the twelve
			months ended						months ended
			2020			2020		2019		2020		2019
$ millions			Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Net income			$	1,016	$	1,172	$	1,193	$	3,792	$	5,121
Other comprehensive income (loss) (OCI), net of income tax, that is subject to subsequent
	reclassification to net income
	Net foreign currency translation adjustments
	Net gains (losses) on investments in foreign operations			(187)		(1,388)		(79)		382		(21)
	Net gains (losses) on hedges of investments in foreign operations			103		770		35		(202)		(10)
				(84)		(618)		(44)		180		(31)
	Net change in debt securities measured at FVOCI
	Net gains (losses) on securities measured at FVOCI			5		158		53		254		244
	Net (gains) losses reclassified to net income			(5)		(7)		(4)		(22)		(28)
				–		151		49		232		216
	Net change in cash flow hedges
	Net gains (losses) on derivatives designated as cash flow hedges			32		78		91		142		137
	Net (gains) losses reclassified to net income			(62)		(83)		(50)		19		(6)
				(30)		(5)		41		161		131
OCI, net of income tax, that is not subject to subsequent reclassification to net income
	Net gains (losses) on post-employment defined benefit plans			147		(210)		11		80		(220)
	Net gains (losses) due to fair value change of fair value option (FVO) liabilities
		attributable to changes in credit risk		(8)		(63)		13		(56)		28
	Net gains (losses) on equity securities designated at FVOCI			25		27		1		50		(2)
				164		(246)		25		74		(194)

Total OCI ⁽¹⁾				50		(718)		71		647		122
Comprehensive income			$	1,066	$	454	$	1,264	$	4,439	$	5,243
Comprehensive income attributable to non-controlling interests			$	1	$	2	$	8	$	2	$	25
	Preferred shareholders and other equity instrument holders		$	30	$	31	$	32	$	122	$	111
	Common shareholders			1,035		421		1,224		4,315		5,107
Comprehensive income attributable to equity shareholders			$	1,065	$	452	$	1,256	$	4,437	$	5,218

(1)	Includes $1 million of losses for the quarter ended October 31, 2020 (July 31, 2020: $21 million of gains; October 31, 2019: $2 million of gains), relating to our investments in equity-accounted associates and joint ventures.

			For the three						For the twelve
			months ended						months ended
				2020		2020		2019		2020		2019
$ millions			Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Income tax (expense) benefit allocated to each component of OCI
Subject to subsequent reclassification to net income
	Net foreign currency translation adjustments
	Net gains (losses) on investments in foreign operations		$	1	$	56	$	–	$	42	$	–
	Net gains (losses) on hedges of investments in foreign operations			(3)		(65)		(8)		(46)		(16)
				(2)		(9)		(8)		(4)		(16)
	Net change in debt securities measured at FVOCI
	Net gains (losses) on securities measured at FVOCI			(7)		(41)		(13)		(59)		(36)
	Net (gains) losses reclassified to net income			1		2		2		7		10
				(6)		(39)		(11)		(52)		(26)
	Net change in cash flow hedges
	Net gains (losses) on derivatives designated as cash flow hedges			(12)		(28)		(32)		(51)		(49)
	Net (gains) losses reclassified to net income			22		30		17		(7)		2
				10		2		(15)		(58)		(47)
Not subject to subsequent reclassification to net income
	Net gains (losses) on post-employment defined benefit plans			(42)		75		1		(19)		77
	Net gains (losses) due to fair value change of FVO liabilities attributable
		to changes in credit risk		4		22		(4)		20		(10)
	Net gains (losses) on equity securities designated at FVOCI			(9)		(8)		(1)		(17)		–
				(47)		89		(4)		(16)		67

			$	(45)	$	43	$	(38)	$	(130)	$	(22)

Consolidated statement of changes in equity

		For the three						For the twelve
		months ended						months ended
			2020		2020		2019		2020		2019
$ millions			Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Preferred shares and other equity instruments
Balance at beginning of period		$	2,825	$	2,825	$	2,825	$	2,825	$	2,250
Issue of preferred shares and limited recourse capital notes			750		–		–		750		575
Balance at end of period		$	3,575	$	2,825	$	2,825	$	3,575	$	2,825
Common shares
Balance at beginning of period		$	13,800	$	13,722	$	13,525	$	13,591	$	13,243
Issue of common shares			89		81		97		371		377
Purchase of common shares for cancellation			–		–		(30)		(68)		(30)
Treasury shares			19		(3)		(1)		14		1
Balance at end of period		$	13,908	$	13,800	$	13,591	$	13,908	$	13,591
Contributed surplus
Balance at beginning of period		$	122	$	119	$	128	$	125	$	136
Compensation expense arising from equity-settled share-based awards			3		4		2		14		16
Exercise of stock options and settlement of other equity-settled share-based awards			(8)		(1)		(4)		(20)		(27)
Other			–		–		(1)		(2)		–
Balance at end of period		$	117	$	122	$	125	$	117	$	125
Retained earnings
Balance at beginning of period before accounting policy changes			n/a		n/a		n/a	$	20,972	$	18,537
Impact of adopting IFRS 15 at November 1, 2018			n/a		n/a		n/a		n/a		6
Impact of adopting IFRS 16 at November 1, 2019			n/a		n/a		n/a		148		n/a
Balance at beginning of period after accounting policy changes		$	21,726	$	21,238	$	20,535		21,120		18,543
Net income attributable to equity shareholders			1,015		1,170		1,185		3,790		5,096
Dividends and distributions
	Preferred and other equity instruments		(30)		(31)		(32)		(122)		(111)
	Common		(652)		(650)		(641)		(2,592)		(2,488)
Premium on purchase of common shares for cancellation			–		–		(79)		(166)		(79)
Realized gains (losses) on equity securities designated at FVOCI reclassified from AOCI			62		–		5		93		18
Other			(2)		(1)		(1)		(4)		(7)
Balance at end of period		$	22,119	$	21,726	$	20,972	$	22,119	$	20,972
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 period	$	1,257	$	1,875	$	1,037	$	993	$	1,024
	Net change in foreign currency translation adjustments		(84)		(618)		(44)		180		(31)
	Balance at end of period	$	1,173	$	1,257	$	993	$	1,173	$	993
	Net gains (losses) on debt securities measured at FVOCI
	Balance at beginning of period	$	309	$	158	$	28	$	77	$	(139)
	Net change in securities measured at FVOCI		–		151		49		232		216
	Balance at end of period	$	309	$	309	$	77	$	309	$	77
	Net gains (losses) on cash flow hedges
	Balance at beginning of period	$	304	$	309	$	72	$	113	$	(18)
	Net change in cash flow hedges		(30)		(5)		41		161		131
	Balance at end of period	$	274	$	304	$	113	$	274	$	113
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 period	$	(430)	$	(220)	$	(374)	$	(363)	$	(143)
	Net change in post-employment defined benefit plans		147		(210)		11		80		(220)
	Balance at end of period	$	(283)	$	(430)	$	(363)	$	(283)	$	(363)
	Net gains (losses) due to fair value change of FVO liabilities attributable to changes in credit risk
	Balance at beginning of period	$	(32)	$	31	$	3	$	16	$	(12)
	Net change attributable to changes in credit risk		(8)		(63)		13		(56)		28
	Balance at end of period	$	(40)	$	(32)	$	16	$	(40)	$	16
	Net gains (losses) on equity securities designated at FVOCI
	Balance at beginning of period	$	39	$	12	$	49	$	45	$	65
	Net gains (losses) on equity securities designated at FVOCI		25		27		1		50		(2)
	Realized gains (losses) on equity securities designated at FVOCI reclassified to retained earnings		(62)		–		(5)		(93)		(18)
	Balance at end of period	$	2	$	39	$	45	$	2	$	45
Total AOCI, net of income tax		$	1,435	$	1,447	$	881	$	1,435	$	881
Non-controlling interests
Balance at beginning of period		$	179	$	184	$	182	$	186	$	173
Net income attributable to non-controlling interests			1		2		8		2		25
Dividends			(2)		(2)		(2)		(15)		(11)
Other			3		(5)		(2)		8		(1)
Balance at end of period		$	181	$	179	$	186	$	181	$	186
Equity at end of period		$	41,335	$	40,099	$	38,580	$	41,335	$	38,580
n/a	Not applicable.

Consolidated statement of cash flows

			For the three						For the twelve
			months ended						months ended
				2020		2020		2019		2020		2019
$ millions				Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Cash flows provided by (used in) operating activities
Net income			$	1,016	$	1,172	$	1,193	$	3,792	$	5,121
Adjustments to reconcile net income to cash flows provided by (used in) operating activities:
	Provision for credit losses			291		525		402		2,489		1,286
	Amortization and impairment ⁽¹⁾			536		249		312		1,311		838
	Stock options and restricted shares expense			3		4		2		14		16
	Deferred income taxes			(16)		(52)		18		(228)		108
	Losses (gains) from debt securities measured at FVOCI and amortized cost			(4)		(10)		(6)		(9)		(34)
	Net losses (gains) on disposal of land, buildings and equipment			–		–		–		4		(7)
	Other non-cash items, net			14		(89)		(39)		(767)		(229)
	Net changes in operating assets and liabilities
		Interest-bearing deposits with banks		64		(1,348)		(761)		(5,468)		(208)
		Loans, net of repayments		(2,256)		6,334		(3,550)		(18,891)		(17,653)
		Deposits, net of withdrawals		3,775		22,072		3,187		82,120		19,838
		Obligations related to securities sold short		(263)		1,287		2,092		328		1,853
		Accrued interest receivable		(179)		223		(93)		97		(122)
		Accrued interest payable		109		(238)		120		(238)		138
		Derivative assets		10,715		(3,107)		667		(8,832)		(2,484)
		Derivative liabilities		(12,386)		1,643		(884)		5,184		4,037
		Securities measured at FVTPL		(1,868)		(3,278)		2,704		(8,296)		(1,826)
		Other assets and liabilities measured/designated at FVTPL		975		759		(417)		1,563		1,222
		Current income taxes		(221)		292		13		1,287		(309)
		Cash collateral on securities lent		260		(8)		(95)		2		(909)
		Obligations related to securities sold under repurchase agreements		6,678		(14,802)		1,704		19,852		20,961
		Cash collateral on securities borrowed		(1,335)		(1,480)		1,235		(4,883)		1,824
		Securities purchased under resale agreements		(10,747)		10,574		(3,597)		(9,394)		(10,785)
		Other, net		1,845		(2,147)		1,765		(742)		(4,041)
				(2,994)		18,575		5,972		60,295		18,635
Cash flows provided by (used in) financing activities
Issue of subordinated indebtedness				–		1,000		–		1,000		1,500
Redemption/repurchase/maturity of subordinated indebtedness				(33)		–		(1,000)		(33)		(1,001)
Issue of preferred shares and limited recourse capital notes, net of issuance cost				747		–		–		747		568
Issue of common shares for cash				4		41		43		163		157
Purchase of common shares for cancellation				–		–		(109)		(234)		(109)
Net sale (purchase) of treasury shares				19		(3)		(1)		14		1
Dividends and distributions paid				(650)		(642)		(623)		(2,571)		(2,406)
Repayment of lease liabilities				(78)		(77)		–		(307)		–
				9		319		(1,690)		(1,221)		(1,290)
Cash flows provided by (used in) investing activities
Purchase of securities measured/designated at FVOCI and amortized cost				(10,056)		(16,201)		(12,619)		(54,075)		(42,304)
Proceeds from sale of securities measured/designated at FVOCI and amortized cost				2,346		4,159		2,640		11,883		13,764
Proceeds from maturity of debt securities measured at FVOCI and amortized cost				4,968		4,952		5,730		23,093		10,948
Cash used in acquisitions, net of cash acquired				–		–		(25)		–		(25)
Net sale (purchase) of property and equipment				(100)		(98)		(106)		(309)		(272)
				(2,842)		(7,188)		(4,380)		(19,408)		(17,889)
Effect of exchange rate changes on cash and non-interest-bearing deposits with banks				(13)		(103)		(3)		25		4
Net increase (decrease) in cash and non-interest-bearing deposits with banks
	during the period			(5,840)		11,603		(101)		39,691		(540)
Cash and non-interest-bearing deposits with banks at beginning of period				49,371		37,768		3,941		3,840		4,380
Cash and non-interest-bearing deposits with banks at end of period ⁽²⁾			$	43,531	$	49,371	$	3,840	$	43,531	$	3,840
Cash interest paid			$	899	$	1,347	$	2,356	$	6,716	$	10,008
Cash interest received				3,401		3,850		4,978		16,774		19,840
Cash dividends received				220		211		206		845		735
Cash income taxes paid				639		69		308		39		1,549

(1)

Comprises amortization and impairment of buildings, right-of-use assets, furniture, equipment, leasehold improvements, software and other intangible assets, and goodwill.

(2)

Includes restricted cash of $463 million (July 31, 2020: $468 million; October 31, 2019: $479 million) and interest-bearing demand deposits with Bank of Canada.

Non-GAAP measures
We use a number of financial measures to assess the performance of our business lines. Some measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP), while other measures do not have a standardized meaning under GAAP, and accordingly, these measures may not be comparable to similar measures used by other companies. Investors may find these non-GAAP measures useful in understanding how management views underlying business performance.

Management assesses results on a reported and adjusted basis and considers both as useful measures of performance. Adjusted results remove items of note from reported results and are used to calculate our adjusted measures. Adjusted measures represent non-GAAP measures.

For a more detailed discussion on our non-GAAP measures, see the “Non-GAAP measures” section of CIBC’s 2020 Annual Report. To reflect the changes that we made in the first quarter of 2020 (see the “External reporting changes” section of CIBC’s 2020 Annual Report for additional details regarding these changes).

The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results.

					For the three				For the twelve
					months ended				months ended
			2020		2020		2019		2020		2019
$ millions			Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Operating results – reported
Total revenue		$	4,600	$	4,708	$	4,772	$	18,741	$	18,611
Provision for credit losses			291		525		402		2,489		1,286
Non-interest expenses			2,891		2,702		2,838		11,362		10,856
Income before income taxes			1,418		1,481		1,532		4,890		6,469
Income taxes			402		309		339		1,098		1,348
Net income			1,016		1,172		1,193		3,792		5,121
	Net income attributable to non-controlling interests		1		2		8		2		25
	Net income attributable to equity shareholders		1,015		1,170		1,185		3,790		5,096
Diluted EPS ($)		$	2.20	$	2.55	$	2.58	$	8.22	$	11.19
Impact of items of note ⁽¹⁾⁽²⁾
Revenue
	Settlement of certain income tax matters⁽³⁾	$	–	$	–	$	(67)	$	–	$	(67)
	Purchase accounting adjustments⁽⁴⁾		–		–		(7)		–		(34)
Impact of items of note on revenue			–		–		(74)		–		(101)
Expenses
	Amortization of acquisition-related intangible assets⁽⁵⁾		(23)		(26)		(28)		(105)		(109)
	Transaction and integration-related costs as well as purchase accounting adjustments⁽⁶⁾		–		–		9		–		11
	Charge related to the consolidation of our real estate portfolio		(114)		–		–		(114)		–
	Gain as a result of plan amendments related to pension and other post-employment plans		79		–		–		79		–
	Restructuring charge⁽⁷⁾		–		–		–		(339)		–
	Goodwill impairment⁽⁸⁾		(220)		–		(135)		(248)		(135)
	Increase in legal provisions⁽³⁾		–		(70)		(28)		(70)		(28)
	Charge for payment made to Air Canada⁽⁹⁾		–		–		–		–		(227)
Impact of items of note on expenses			(278)		(96)		(182)		(797)		(488)
Total pre-tax impact of items of note on net income			278		96		108		797		387
	Settlement of certain income tax matters⁽³⁾		–		–		(18)		–		(18)
	Transaction and integration-related costs as well as purchase accounting adjustments⁽⁴⁾⁽⁶⁾		–		–		(5)		–		(12)
	Amortization of acquisition-related intangible assets⁽⁵⁾		5		6		8		25		27
	Charge related to the consolidation of our real estate portfolio		30		–		–		30		–
	Gain as a result of plan amendments related to pension and other post-employment plans		(21)		–		–		(21)		–
	Restructuring charge⁽⁷⁾		–		–		–		89		–
	Increase in legal provisions⁽³⁾		–		19		7		19		7
	Charge for payment made to Air Canada⁽⁹⁾		–		–		–		–		60
Impact of items of note on income taxes			14		25		(8)		142		64
Total after-tax impact of items of note on net income			264		71		116		655		323
Impact of items of note on diluted EPS ($)		$	0.59	$	0.16	$	0.26	$	1.47	$	0.73
Operating results – adjusted ⁽¹⁰⁾
Total revenue⁽¹¹⁾		$	4,600	$	4,708	$	4,698	$	18,741	$	18,510
Provision for credit losses			291		525		402		2,489		1,286
Non-interest expenses			2,613		2,606		2,656		10,565		10,368
Income before income taxes			1,696		1,577		1,640		5,687		6,856
Income taxes			416		334		331		1,240		1,412
Net income			1,280		1,243		1,309		4,447		5,444
	Net income attributable to non-controlling interests		1		2		8		2		25
	Net income attributable to equity shareholders		1,279		1,241		1,301		4,445		5,419
Adjusted diluted EPS ($)		$	2.79	$	2.71	$	2.84	$	9.69	$	11.92

(1)	Certain information has been reclassified to conform to the presentation adopted in the current quarter.
(2)	Reflects the impact of items of note on our adjusted results as compared with our reported results.
(3)	Recognized in Corporate and Other.
(4)	Includes the accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank, shown as an item of note from the fourth quarter of 2017 to the fourth quarter of 2019, recognized in U.S. Commercial Banking and Wealth Management.
(5)	Amortization of acquisition-related intangible assets is recognized in the SBU of the acquired business or Corporate and Other. A summary is provided in the table below.

	Canadian Personal and Business Banking (pre-tax)	$	(2)	$	(2)	$	(3)	$	(8)	$	(9)
	Canadian Personal and Business Banking (after-tax)		(1)		(2)		(2)		(6)		(7)
	Canadian Commercial Banking and Wealth Management (pre-tax)		(1)		–		(1)		(1)		(1)
	Canadian Commercial Banking and Wealth Management (after-tax)		(1)		–		(1)		(1)		(1)
	U.S. Commercial Banking and Wealth Management (pre-tax)		(17)		(21)		(22)		(83)		(88)
	U.S. Commercial Banking and Wealth Management (after-tax)		(13)		(15)		(16)		(61)		(65)
	Corporate and Other (pre-tax)		(3)		(3)		(2)		(13)		(11)
	Corporate and Other (after-tax)		(3)		(3)		(1)		(12)		(9)

(6)	Transaction costs include legal and other advisory fees and interest adjustments relating to the obligation payable to dissenting shareholders. Integration costs are comprised of direct and incremental costs incurred as part of planning for and executing the integration of the businesses of The PrivateBank (subsequently rebranded as CIBC Bank USA) and Geneva Advisors with CIBC, including enabling cross-sell opportunities and expansion of services in the U.S. market, the upgrade and conversion of systems and processes, project management, integration-related travel, severance, consulting fees and marketing costs related to rebranding activities. Purchase accounting adjustments, shown as an item of note from the fourth quarter of 2017 to the fourth quarter of 2019, include changes in the fair value of contingent consideration relating to the Geneva Advisors and Wellington Financial acquisitions. These items are recognized in Corporate and Other.
(7)	Restructuring charge associated with ongoing efforts to transform our cost structure and simplify our bank. This charge consists primarily of employee severance and related costs and was recognized in Corporate and Other.
(8)	Goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean recognized in Corporate and Other.
(9)	Charge for a payment made to Air Canada, including related sales tax and transaction costs, to secure our participation in its new loyalty program recognized in Canadian Personal and Business Banking.
(10)	Adjusted to exclude the impact of items of note.
(11)	Excludes TEB adjustments of $37 million (July 31, 2020: $51 million; October 31, 2019: $48 million). Our adjusted efficiency ratio is calculated on a TEB.


					Canadian		U.S.
			Canadian		Commercial		Commercial
			Personal		Banking and		Banking and
			and Business		Wealth		Wealth		Capital		Corporate		CIBC
$ millions, for the three months ended			Banking		Management		Management		Markets		and Other		Total
2020		Reported net income (loss)	$	634	$	340	$	131	$	267	$	(356)	$	1,016
Oct. 31		After-tax impact of items of note ⁽¹⁾		1		1		13		–		249		264
		Adjusted net income (loss) ⁽²⁾	$	635	$	341	$	144	$	267	$	(107)	$	1,280
2020		Reported net income (loss)	$	508	$	320	$	62	$	392	$	(110)	$	1,172
Jul. 31		After-tax impact of items of note⁽¹⁾		2		–		15		–		54		71
		Adjusted net income (loss)⁽²⁾	$	510	$	320	$	77	$	392	$	(56)	$	1,243
2019		Reported net income (loss)	$	601	$	305	$	179	$	230	$	(122)	$	1,193
Oct. 31⁽³⁾		After-tax impact of items of note⁽¹⁾		2		1		11		–		102		116
		Adjusted net income (loss)⁽²⁾	$	603	$	306	$	190	$	230	$	(20)	$	1,309

$ millions, for the twelve months ended
2020		Reported net income (loss)	$	1,962	$	1,202	$	380	$	1,131	$	(883)	$	3,792
Oct. 31		After-tax impact of items of note ⁽¹⁾		6		1		61		–		587		655
		Adjusted net income (loss) ⁽²⁾	$	1,968	$	1,203	$	441	$	1,131	$	(296)	$	4,447
2019		Reported net income (loss)	$	2,289	$	1,287	$	682	$	954	$	(91)	$	5,121
Oct. 31⁽³⁾		After-tax impact of items of note⁽¹⁾		174		1		40		–		108		323
		Adjusted net income (loss)⁽²⁾	$	2,463	$	1,288	$	722	$	954	$	17	$	5,444

(1)	Reflects impact of items of note under the “2020 Financial results review” section of the 2020 Annual Report.
(2)	Non-GAAP measure.
(3)	Certain prior period information has been revised. See the “External reporting changes” section of the 2020 Annual Report to Shareholders for additional details.

Basis of presentation

The interim consolidated financial information in this news release is prepared in accordance with IFRS and is unaudited whereas the annual consolidated financial information is derived from audited financial statements. These interim consolidated financial statements follow the same accounting policies and methods of application as CIBC’s consolidated financial statements as at and for the year ended October 31, 2020.

Conference Call/Webcast
The conference call will be held at 8:00 a.m. (ET) and is available in English (416-340-2217, or toll-free 1-800-806-5484, passcode 1028175#) and French (514-392-1587, or toll-free 1-800-898-3989, passcode 7008374#). Participants are asked to dial in 10 minutes before the call. Immediately following the formal presentations, CIBC executives will be available to answer questions.

A live audio webcast of the conference call will also be available in English and French at www.cibc.com/en/about-cibc/investor-relations/quarterly-results.html.

Details of CIBC’s 2020 fourth quarter and fiscal year results, as well as a presentation to investors, will be available in English and French at www.cibc.com, Investor Relations section, prior to the conference call/webcast. We are not incorporating information contained on the website in this news release.

A telephone replay will be available in English (905-694-9451 or 1-800-408-3053, passcode 2796615#) and French (514-861-2272 or 1-800-408-3053, passcode 7602633#) until 11:59 p.m. (ET)January 3, 2021. The audio webcast will be archived at www.cibc.com/en/about-cibc/investor-relations/quarterly-results.html.

About CIBC

CIBC is a leading North American financial institution with 10 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at https://www.cibc.com/en/about-cibc/media-centre.html.

The information below forms a part of this news release.

Nothing in CIBC’s corporate website (www.cibc.com) should be considered incorporated herein by reference.

The Board of Directors of CIBC reviewed this news release prior to it being issued.

A NOTE ABOUT FORWARD-LOOKING STATEMENTS:

From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this news release, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communications. All such statements are made pursuant to the “safe harbour” provisions of, and are intended to be forward-looking statements under applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements made in the “Core business performance”, “Strong fundamentals”, and “Making a difference in our Communities” sections of this news release, and the Management’s Discussion and Analysis in our 2020 Annual Report under the heading “Economic and market environment – Outlook for calendar year 2021” and other statements about our operations, business lines, financial condition, risk management, priorities, targets, ongoing objectives, strategies, the regulatory environment in which we operate and outlook for calendar year 2021 and subsequent periods. Forward-looking statements are typically identified by the words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “forecast”, “target”, “objective” and other similar expressions or future or conditional verbs such as “will”, “should”, “would” and “could”. By their nature, these statements require us to make assumptions, including the economic assumptions set out in the “Economic and market environment – Outlook for calendar year 2021” section of our 2020 Annual Report, as updated by quarterly reports, and are subject to inherent risks and uncertainties that may be general or specific. Given the continuing impact of the coronavirus (COVID-19) pandemic on the global economy, financial markets, and our business, results of operations, reputation and financial condition and the expectation that oil prices will remain well below year-ago levels, there is inherently more uncertainty associated with our assumptions as compared to prior periods. A variety of factors, many of which are beyond our control, affect our operations, performance and results, and could cause actual results to differ materially from the expectations expressed in any of our forward-looking statements. These factors include: the occurrence, continuance or intensification of public health emergencies, such as the COVID-19 pandemic, and any related government policies and actions; credit, market, liquidity, strategic, insurance, operational, reputation, legal, conduct, regulatory and environmental and related social risk; currency value and interest rate fluctuations, including as a result of market and oil price volatility; the effectiveness and adequacy of our risk management and valuation models and processes; legislative or regulatory developments in the jurisdictions where we operate, including the Organisation for Economic Co-operation and Development Common Reporting Standard, and regulatory reforms in the United Kingdom and Europe, the Basel Committee on Banking Supervision’s global standards for capital and liquidity reform, and those relating to bank recapitalization legislation and the payments system in Canada; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions, and interest rate and liquidity regulatory guidance; the resolution of legal and regulatory proceedings and related matters; the effect of changes to accounting standards, rules and interpretations; changes in our estimates of reserves and allowances; changes in tax laws; changes to our credit ratings; political conditions and developments, including changes relating to economic or trade matters; the possible effect on our business of international conflicts and terrorism; natural disasters, disruptions to public infrastructure and other catastrophic events; reliance on third parties to provide components of our business infrastructure; potential disruptions to our information technology systems and services; increasing cyber security risks which may include theft or disclosure of assets, unauthorized access to sensitive information, or operational disruption; social media risk; losses incurred as a result of internal or external fraud; anti-money laundering; the accuracy and completeness of information provided to us concerning clients and counterparties; the failure of third parties to comply with their obligations to us and our affiliates or associates; intensifying competition from established competitors and new entrants in the financial services industry including through internet and mobile banking; technological change; global capital market activity; changes in monetary and economic policy; general business and economic conditions worldwide, as well as in Canada, the U.S. and other countries where we have operations, including increasing Canadian household debt levels and global credit risks; our success in developing and introducing new products and services, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels; changes in client spending and saving habits; our ability to attract and retain key employees and executives; our ability to successfully execute our strategies and complete and integrate acquisitions and joint ventures; the risk that expected benefits of an acquisition, merger or divestiture will not be realized within the expected time frame or at all; and our ability to anticipate and manage the risks associated with these factors. This list is not exhaustive of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements. Any forward-looking statements contained in this news release represent the views of management only as of the date hereof and are presented for the purpose of assisting our shareholders and financial analysts in understanding our financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statement that is contained in this news release or in other communications except as required by law.

SOURCE CIBC

December 3, 2020 5:35 am

Array Technologies, Inc. Announces Pricing of Upsized Secondary Offering of 31,875,000 Shares

ALBUQUERQUE, N.M., Dec. 03, 2020 (GLOBE NEWSWIRE) — Array Technologies, Inc. (NASDAQ: ARRY) (the “Company”) today announced the pricing of an upsized secondary offering by a parent entity of the Company controlled by Oaktree Capital (the “Selling Stockholder”) of 31,875,000 shares of common stock of the Company at a price to the public of $35.00 per share. In addition, the Selling Stockholder granted the underwriters a 30-day option to purchase up to an additional 4,781,250 shares at the public offering price, less underwriting discounts and commissions. The Company will not receive any proceeds from the sale of shares by the Selling Stockholder. The Company’s common stock is listed on the Nasdaq Global Market under the symbol “ARRY.” The offering is expected to close on December 7, 2020, subject to customary closing conditions.

Goldman Sachs & Co. LLC and J.P. Morgan are acting as joint book-running managers and representatives of the underwriters for the offering. Guggenheim Securities is also acting as a joint book-running manager and Credit Suisse, Morgan Stanley, Barclays and UBS Investment Bank are acting as book-runners. Cowen and Oppenheimer & Co. Inc. are acting as co-managers.

A registration statement relating to this offering was declared effective by the Securities and Exchange Commission on December 2, 2020. This offering is being made only by means of a prospectus, copies of which may be obtained, when available, from:

Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282 (telephone: (866) 471-2526 or email: [email protected]); J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (telephone: 1-866-803-9204), or by email at [email protected]; and Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison, 8th Floor, New York, NY 10017, by telephone at (212) 518-9658, or by email at [email protected].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Array Technologies, Inc.

Array Technologies is a leading global technology company providing tracker solutions and services for utility-scale solar energy projects as one of the world’s largest manufacturers of ground-mounting systems. With efficient installation and terrain flexibility coupled with high reliability, durability, and performance, Array delivers a lower levelized cost of energy. The Company’s focus on innovation, combined with its customer-centric approach, has helped achieve some of the industry’s best returns. Array Technologies is headquartered in the United States with offices in Europe, Central America, and Australia.

Forward Looking Statements

This press release contains forward looking statements, including statements regarding the secondary offering. These statements are not historical facts but rather are based on the Company’s current expectations and projections regarding its business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual results may differ materially from those in the forward looking statements as a result of a number of factors, including those in the Company’s registration statement filed with the Securities and Exchange Commission.

Media Contact:
James McCusker, 203-585-4750
[email protected]

Investor Relations Contact:
505-437-0010
[email protected]

December 3, 2020 5:28 am

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Raytheon Technologies Corporation – RTX

PR Newswire

NEW YORK, Dec. 3, 2020 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Raytheon Technologies Corporation (“Raytheon or the “Company”) (NYSE: RTX). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.

The investigation concerns whether Raytheon and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

[Click here for information about joining the class action]

On October 27, 2020, Raytheon filed its quarterly report for the third fiscal quarter with the U.S. Securities and Exchange Commission, in which the Company disclosed receipt of a criminal subpoena from the U.S. Department of Justice seeking information and documents in connection with an investigation relating to financial accounting, internal controls over financial reporting, and cost reporting regarding Raytheon’s Missiles & Defense business since 2009.

On this news, Raytheon’s stock price fell $4.19 per share, or 7.4%, to close at $52.34 per share on October 28, 2020.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT:

Robert S. Willoughby

Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

View original content:http://www.prnewswire.com/news-releases/shareholder-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-raytheon-technologies-corporation—rtx-301185448.html

SOURCE Pomerantz LLP

December 3, 2020 5:23 am

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Citigroup Inc. – C

PR Newswire

NEW YORK, Dec. 3, 2020 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Citigroup Inc. (“Citigroup” or the “Company”) (NYSE: C). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.

The investigation concerns whether Citigroup and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

[Click here for information about joining the class action]

On September 14, 2020, reports surfaced that regulators were preparing to reprimand Citi for failing to improve its risk-management systems. On this news, Citi’s stock price fell $2.85 per share, or 5.59%, to close at $48.15 per share on September 14, 2020.

Then, on September 14, 2020, post-market, an internal memo sent to Citi employees revealed for the first time the Company’s disregard for adequate internal controls and regulatory compliance. On this news, Citi’s stock price fell an additional $3.34 per share, or 3.94%, to close $44.81 per share on September 15, 2020.

Finally, on October 13, 2020, Citi reported earnings for the third quarter of 2020, and disclosed that the Company’s expenses increased during the third quarter by 5%, to $11 billion, due to an increase in costs including a $400 million fine, investments in infrastructure, and other remediation costs related to control deficiencies. On this news, Citi’s stock price fell another $2.20 per share, or 4.8%, to close at $43.68 per share on October 13, 2020.

CONTACT:

Robert S. Willoughby

Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

View original content:http://www.prnewswire.com/news-releases/shareholder-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-citigroup-inc—c-301185451.html

SOURCE Pomerantz LLP

December 3, 2020 5:18 am

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of HP Inc. – HPQ

PR Newswire

NEW YORK, Dec. 3, 2020 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of HP Inc. (“HP” or the “Company”) (NYSE: HPQ). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.

The investigation concerns whether HP and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

[Click here for information about joining the class action]

On June 21, 2016, HP announced an overhaul to its Printing sales model and revealed that it would reduce the Supplies channel inventory by $450 million in Supplies revenue over the remainder of 2016. On this news, HP’s stock price fell $0.72 per share, or 5.4%, to close at $12.61 per share on June 22, 2016.

More than four years later, on September 30, 2020, the U.S. Securities and Exchange Commission (“SEC”) issued a press release, announcing charges against HP “for misleading investors by failing to disclose the impact of sales practices undertaken to meet quarterly sales and earnings targets.” Specifically, the SEC stated that “from early 2015 through the middle of 2016, in an effort to meet quarterly sales targets, regional managers at HP used a variety of incentives to accelerate, or ‘pull-in’ to the current quarter, sales of printing supplies that they otherwise expected to materialize in later quarters.” The press release further stated that “HP has agreed to pay $6 million to settle the charges.” The SEC’s charges against HP revealed that while the Company’s June 21, 2016 announcement had attributed its channel inventory issues and revenue and margin reductions to unfavorable currency impacts, competitive pricing pressure, and a change in inventory modeling, HP had in reality engaged in improper channel inventory management and sales practices.

CONTACT:

Robert S. Willoughby

Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

View original content:http://www.prnewswire.com/news-releases/shareholder-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-hp-inc—hpq-301185452.html

SOURCE Pomerantz LLP

December 3, 2020 5:13 am

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Alibaba Group Holding Limited – BABA

PR Newswire

NEW YORK, Dec. 3, 2020 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Alibaba Group Holding Limited (“Alibaba” or the “Company”) (NYSE: BABA). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.

The investigation concerns whether Alibaba and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

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Alibaba owns a 33% equity interest in Ant Small and Micro Financial Services Group Co., Ltd. (“Ant Group”), a financial technology company that operates Alipay, a mobile and online payment platform. On July 20, 2020, Ant Group announced that it had begun the process of a concurrent initial public offering (“IPO”) on the Shanghai and Hong Kong stock exchanges. On October 26, 2020, Ant Group priced its IPO and was set to raise $34.5 billion, making the IPO the largest public offering in history. Then, on November 2, 2020, the Financial Times reported that Chinese regulators had met with Ant Group’s controller Jack Ma, executive chairman Eric Jing, and Chief Executive Officer Simon Hu. The article stated that, though regulators did not provide details, “the Chinese word used to describe the interview—yuetan—generally indicates a dressing down by authorities.” The article also included a statement from Ant Group that it will “implement the meeting opinions in depth.” Finally, on November 3, 2020, the IPO was suspended because Ant Group “may not meet listing qualifications or disclosure requirements due to material matters” related to the meeting with regulators the previous day and “the recent changes in the Fintech regulatory environment.”

On this news, Alibaba’s American depositary receipt (“ADR”) price fell $25.27 per ADR, or 8%, to close at $285.57 per ADR on November 3, 2020.

CONTACT:

Robert S. Willoughby

Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

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SOURCE Pomerantz LLP