Scotiabank, CIBC emphasize monetary stability at shareholder conferences

Scotiabank, CIBC emphasize monetary stability at shareholder conferences

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TORONTO — The heads of CIBC and Scotiabank kicked off this yr’s spherical of shareholder conferences Tuesday by emphasizing their sound monetary footing within the wake of a number of high-profile financial institution failures whereas additionally acknowledging they’ve extra work to do.

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“Our financial institution is a resilient establishment,” stated CIBC chief govt Victor Dodig. “We’ve got sturdy capital ranges and liquidity. We’re extremely diversified throughout sectors and geography. And we’ve a protracted historical past of managing our enterprise effectively via the total financial cycle.”

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Scott Thomson, talking at his first shareholder assembly as chief govt of Scotiabank, stated the financial institution’s monetary place equally stays sturdy together with with diversified sources of funding. He additionally famous the steadiness of the Canadian sector as an entire.

“We will all really feel assured that the Canadian banking system is widely known for its lending and threat administration practices, diligent authorities oversight and prudent regulation,” stated Thomson.

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The feedback come after California-based Silicon Valley Financial institution failed in March after depositors rushed to tug out money, inflicting a panic that additionally led to the downfall of New York-based Signature Financial institution and the collapse of Credit score Suisse.

Talking on the last Credit score Suisse shareholder assembly Tuesday, chairman Axel Lehmann stated the financial institution present process a run on property and a compelled sale to UBS is a scenario that “nobody might have anticipated.”

He cited rising rates of interest, inflation and market volatility as contributing components that had been amplified by social media-driven fears of worldwide contagion from the U.S. financial institution failures.

Canadian financial institution executives acknowledged the challenges to the worldwide economic system whereas specializing in their benefits and stability.

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Dodig additionally emphasised the necessity to enhance the prospects for immigrants, via extra reasonably priced housing and higher expertise matching, to make sure a sound economic system.

“We should make sure that Canada retains its status as a welcoming nation of alternative, in order that we will compete efficiently for the newcomers that we have to assist develop our economic system.”

Dodig additionally acknowledged the “stress on profitability” CIBC had within the second half of final yr, whereas Thomson stated the financial institution had not delivered the returns shareholders ought to anticipate, with each banks promising to do higher.

Scotiabank confronted two shareholder proposals at its assembly, one making an attempt to offer shareholders a say on the financial institution’s total environmental coverage that garnered about 18 per cent assist, whereas a second pushing for the financial institution to reveal extra particulars on the way it judges the local weather plans of its high-emitting shoppers acquired about 25 per cent assist.

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CIBC had three shareholder proposals, together with one pushing for the financial institution to publish the ratio of its median to govt pay that obtained about 10 per cent assist, together with the identical “say on environmental coverage” vote that Scotiabank confronted, which acquired some 17 per cent assist.

The third decision, calling for the financial institution to desert its internet zero emission targets and decide to funding the oil and gasoline trade, obtained lower than one per cent of shareholder assist.

Scotiabank’s slate of administrators acquired over 95 per cent shareholder assist whereas a say on govt pay vote returned about 91 per cent assist.

CIBC stated {that a} “substantial majority” of shareholders voted in favour of the administrators, whereas 96 per cent voted in favour of the manager compensation package deal.

This report by The Canadian Press was first revealed April 4, 2023.

Firms on this story: (TSX:BNS; TSX:CM)


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