Extends CIBC's North American wealth management business and
platform
TORONTO and CHICAGO, Sept. 1,
2017 /PRNewswire/ - CIBC (TSX: CM) (NYSE: CM)
announced today that it has completed the acquisition of Geneva
Advisors, a Chicago-based private
wealth management firm. The acquisition was announced on
July 10.
"We are excited to have the Geneva Advisors team on board," said
Larry D. Richman, CIBC Group Head,
U.S. Region, and President & CEO, The PrivateBank. "The
combined strengths of our teams, shared client-first approach and
high-touch service will further strengthen and position us to grow
our private wealth management business in the U.S. and, in
particular, our Chicago market. We
welcome the Geneva team and
clients to the CIBC family."
Geneva Advisors, an independent private wealth management firm,
brings US$8.6 billion in assets under
management and approximately 100 employees to Atlanta-based CIBC Atlantic Trust Private
Wealth Management. The Geneva team
will report to Jack S. Markwalter
Jr., Chairman and CEO of CIBC Atlantic Trust.
This acquisition, in addition to the June acquisition of The
PrivateBank, expands CIBC's private wealth management client-base
and investment management capabilities in the U.S. CIBC now has
approximately $50 billion in assets
under administration in the U.S.
As previously announced, the total purchase price is up to
US$200 million, of which $135 million was paid on closing, with 25% paid
in cash and 75% paid in the form of CIBC common shares, contingent
on future performance conditions. The deal is expected to become
accretive to CIBC's earnings per share in fiscal 2019.
About CIBC
CIBC is a leading Canadian-based global financial institution with
11 million personal banking, business, public sector and
institutional clients. Across Personal and Small 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 www.cibc.com/ca/media-centre.
Forward-looking Statements
Certain statements contained in this communication may be deemed to
be forward-looking statements under certain securities laws. All
such statements are made pursuant to the "safe harbor" provisions
of, and are intended to be forward-looking statements under
applicable Canadian and U.S. securities legislation, including
the United States Private Securities Litigation Reform Act of
1995. These statements include, but are not limited to, any
statements about the expected effects of the acquisition Geneva
Advisors by CIBC including any expected impact on CIBC's earnings,
Common Equity Tier 1 ratio or other statements other than in
relation to historical facts, statements about the operations,
business lines, financial condition, risk management, priorities,
targets, ongoing objectives, strategies of Geneva Advisors and CIBC
and the regulatory environment in which they operate and outlook
for calendar year 2017 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 "Financial performance
overview – Outlook for calendar year 2017" section of our 2016
Annual Report, as updated by quarterly reports, and are subject to
inherent risks and uncertainties that may be general or specific. 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:
credit, market, liquidity, strategic, insurance, operational,
reputation and legal, regulatory and environmental risk; 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 Dodd-Frank Wall
Street Reform and Consumer Protection Act and the regulations
issued and to be issued thereunder, 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 the
war on terror; natural disasters, public health emergencies,
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 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; currency value and interest rate fluctuations,
including as a result of market and oil price volatility; general
business and economic conditions worldwide, as well as
in Canada, the U.S. and other countries where we and CIBC 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 synergies and benefits of the acquisition of Geneva
Advisors by CIBC 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.
Additional information about these factors can be found in the
"Management of risk" section starting on page 40 of our 2016 Annual
Report. Any forward-looking statements contained in this
communication represent the views of management only as of the date
hereof and are presented for the purpose of assisting our
stockholders 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
communication or in other communications except as required by
law.
SOURCE CIBC - Investor Relations