National Bank of Canada, Annual General Meeting, Apr 21, 2023
Speaker 1: We are happy to announce that this is our first annual annual action in person since April 2019 and the first year in the world to be able to be brought together. I am accompanied by Laurent Ferreira, President and Chief of the direction, a
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Including more than 30 years as a senior partner of a major law firm and on his extensive knowledge of capital markets mergers and acquisitions legal affairs and corporate governance.
His leadership and extensive skills as a director of large public companies are also great assets to the bank.
And I'm fully confident that he will be able to fulfill his new responsibilities with flying colors.
I would now like to invite low ha, President and Chief Executive Officer to address you.
Yeah.
Thank you very much John good morning.
So not all of it.
I'm delighted to welcome you this morning to our annual meeting of shareholders. The members of the senior leadership team are also in attendance stay finisher Lucy Broche, William Banality, and Dubuque, Matti, Shawn third Shanghai, Indonesia wildly she did they actually live egg and cheese snap at all.
I'd like to begin by acknowledging the retirements of two members of the senior leadership team Maritime January snap at her who contributed greatly to the bank's performance and success for many years.
On behalf of the entire team I thank them.
I would also like to welcome Michael Denim.
Who will join the senior leadership team as of June the first as senior Executive Vice President corporate and private banking.
Finally, I would like to acknowledge the commitment and outstanding contribution of two <unk>.
Excellent members of the board Andre Savoie, Pierre <unk>, whom I sank very deeply for all their contribution and in particular I would like to take my hat off to John for his outstanding commitment and contribution. He has led the board of directors for the past nine years and has been a great help to me as I took on my new duties as CEO . Thank you so much John .
A final kind of thought about but.
We also would like to thank all for accepting the position of chairman of the board of National Bank as of today, taking over very ably from Rockwood.
In 2022, we continue to operate in an environment of uncertainty.
Which.
Will persist into 2023 inflation remains high.
And geopolitical risks persist.
The banking sector is also experiencing turbulent times.
As we've seen recently with the troubles experienced by some American and European financial institutions.
Canada's banking system is internationally renowned for its rigorous risk management. It is highly regulated strong and resilient.
National Bank also stands out internationally.
Because of its a sterling reputation in Canada and abroad.
We've pulled and excellent results in the past.
Financial year, Thanks to the performance driven by all business segments. The bank's net income increased by 8% over the previous fiscal year.
Once again this year, we maintained positive operating leverage.
Yeah.
Capital and liquidity levels are strong and credit loss provisioning remains prudent.
Our return on equity continues to lead the industry and we also continue to generate ongoing profitable growth for our shareholders.
Total shareholder returns over three 510, and 20 years is the best among the major Canadian banks.
Our sustained performance.
Demonstrates that we're making the right strategic choices in doing so year after year.
This success is due to all our employees, who embody the bank's values on a daily basis and to the trust placed in us by our clients.
We look to the future with confidence building on solid fundamentals these being our entrepreneurial culture that recognized as team performance, our strategic choices that are successful and sustainable over the long term and our disciplined approach to capital allocation as well as cost and risk management.
Listening to our clients remains a priority and we're continuing to invest in Arctic Fuji to support our clients in order to provide them with adapted tools and advice. We are a bank built on relationships our culture as an asset that allows us to go through a rough time.
In all of the services, we provide to our clients.
The bank is proud of its heritage, which gives it a unique cultural identity.
This bank was founded in Quebec City and is now the only systemically important bank headquartered in Montreal.
Okay.
Sure.
The bank continues to support the energy transition.
The decarbonization of our economy.
We believe that being pragmatic and committed to auction is the best path forward and we acknowledge that there is much to be done.
We are focusing on two areas within our reach first managing the effects of our activities on climate change and second supporting our client.
Clients and our transition.
In doing so the bank can't progress towards its goal of reaching net zero emissions for its operations and financing activities by 2050.
For many years, our loan portfolio and renewable energy has been growing faster than non renewables.
Since 2019, we have provided more than 10 billion in financing for renewable energy projects in North America, as we continue to support the oil and gas industry and their transition.
And decarbonization efforts.
That being said the energy transition is going to need significant investments.
The cost for Canada, 2050 transition to net zero is estimated at two trillion dollars in public and private capital.
More than ever geopolitical risks are highlighting the importance of reducing our dependence on supply chains.
Especially in the energy sector, where Canada security must be prioritized.
So the Canadian Bank.
Our role is to.
First provide capital and funding to infrastructure projects and renewable energy.
Drive investment in clean technologies, such as carbon capture utilization sequestration.
Support transition fuels, such as natural gas and LNG projects.
And finally support our natural resource industry, and developing and growing the supply of critical minerals metals.
But are necessary for the transition.
To succeed our government's priority must be to foster an environment that is attractive to investors.
Our talent and capital are prioritized and incentivized.
Energy transition is a generational opportunity for Canada. It is also a wealth creation opportunity, but it's critical to secure the future of our social programs.
As for US, we will keep doing our part.
Our material.
When it comes to inclusion and diversity, We act with humility and determination more than 25% of our workforce is made up of talent from cultural communities, representing more than 140 countries and 65 languages spoken.
Additionally, the bank has a long standing relationship with indigenous peoples.
Whether as clients employees or community groups.
On the financial and entrepreneurial front, our bond program has enabled the first nations Finance authority to make $1.9 billion available for economic infrastructure development.
In 2022, we established an employee resource group the indigenous network.
It has close to 300 members, both indigenous and allies.
On the philanthropic front. The bank also supports several organizations on initiatives for example, the right to play program. The children's aid Foundation of Canada, and the Winnipeg Art Gallery for the promotion of Inuit Art.
More recently, we have undertaken a certification process to develop progressive relationships with indigenous peoples through the Canadian Council for Aboriginal business'.
This involvement is structured in four pillars, namely the role of management employee experienced business development and relations with indigenous communities.
We intend to continue learning to advance our relationships with the different nations.
It is in this spirit of respect and recognition that national Bank wishes to highlight the fact that today's meeting is taking place on territories that had been occupied by indigenous peoples for thousands of years.
The bank is proud to contribute to the development of communities.
The construction of our new headquarters, which will be named plus darkness, you're not.
It's a good example of our actions.
We did this because we believe in the importance of developing innovative structures to energize our cities.
National Bank will be playing an essential role in furthering the vitality of downtown Montreal over the next few months. It will gradually welcome its first employees and ultimately 12000 employees will occupy the building.
It will also be a gathering place and a hub, which will help to bring traffic to the downtown core and local businesses with this in mind I invite the entire business community to commit to bringing downtown Montreal to life. This is a shared responsibility and I urge you to live up to it.
The outlook remains challenging for the foreseeable future.
Despite the uncertainty the bank is well positioned to keep delivering strong performances and returns.
We continue to see opportunity and our priorities are to speed up our growth in Canada and increase our market share in targeted segments.
The model there to keep the direct song.
The members of the senior leadership team join me in recognizing once again the contribution and dedication of our 30000 colleagues. We also thank the members of the board of directors for their support and commitment throughout the year.
Dedication.
The directors for their support and our clients and shareholders for your trust.
Offer some work on it.
Lastly, we are grateful to our clients, whom we are privileged to serve and to our shareholders for their renewed confidence.
Thank you for joining us today.
Yes, you know I think.
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We have now reached the point in our meeting when we receive the financial statements. The bank's consolidated financial statements for fiscal 2022, and the independent Auditor's report were sent to shareholders who requested them.
These documents are also available online.
The financial statements have already been approved by the board of directors in accordance with the Bank Act.
To complete this agenda item I hereby declare that the consolidated financial statements and the independent Auditor's report for the year ended October 31st 2022 have been received.
Yes.
We are now entering the voting period.
Right.
I would like to ask Dominique about Heidi to give you. A brief reminder of the general rules that apply to the conduct of the vote.
Dominik.
The preliminary voting results will be released at the end of the meeting and the final detailed report on the voting results will be filed on the bank's website and on SEDAR later today.
We will proceed by secret ballot for each of the proposals shareholders, who have already voted by proxy do not need to vote again, unless they wish to revoke their proxy.
Shareholders and proxy holders will be asked to vote on each of the proposals and their ballots will be collected by the screws in use at the end of the voting period.
Your ballot must be signed to be violent.
If you have any questions about your right to vote or concerning the balance. Please speak to one of the scrutineers, who will be going around the room.
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For shareholders attending online shareholders, who have not yet voted in advance and proxy holidays will be able to use the 15 digit control number previously received from Computershare to vote online at the appropriate time.
Shareholders, who have already voted in advance do not need to vote again, unless they wish to change their vote.
Shareholders and proxy holders will be asked to vote on each of the proposals and their votes will be counted and transmitted to the scrutineer in a secure and confidential manner.
The voting platform will be open as of now for voting on all proposals and will close when the chairman of the meeting declares the vote closed after the conclusion of the final proposal.
To vote simply select your voting choice from the options displayed on your screen a confirmation message will appear to indicate that your vote has been received if the voting options do not appear on your screen. Please click on the ballot icon at the top of your screen.
Thank you Dominik.
We will now proceed with the consideration of the proposal submitted by the bank senior leadership team.
In order to facilitate this meeting.
We have asked an employee ahead of time.
Who.
He is also a shareholder of the bank to present management's proposals.
Sure.
The composition of the board is an essential element of our governance, we have a very capable and diverse board.
In all its forms including culture gender experience and geographic representation.
Yes.
Board succession is supported by an ongoing process that identifies potential directors, whose profiles match, the bank's values and mission.
As chairman of the board I would like to take this opportunity to sincerely. Thank my colleagues on the board.
Who bring their experience and knowledge to the bank.
To learn more about their respective backgrounds I invite you to consult their biographies.
Which are available in the circular on pages 19 to 32 as well as on N. B C. Dot C. A slashing investors in the governance section.
In accordance with the resolution adopted by the board of Directors, we will be electing 14 directors this year.
Their names and photographs will appear on the screen when the proposal is presented.
I now call on <unk>.
Linda chocolate to propose the election of the director nominees.
Linda Mr Chairman.
I move that each of the nominees set forth in the circular be elected as director of National Bank of Canada to hold office until the close of the next annual meeting.
Or until such office is vacated the nominees are Matt He's basketball PR Blue one P. M wasn't even shahi buttery, Jack you had alcohol low na and <unk>.
Yeah, Hi, Karen Kinsley, Lynn Lowen, Rebecca on the Killington Baja.
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Yes.
Thank you Linda.
But that galvan Xiang nobody is asking for the floor in the room.
He is.
Denis are there any questions with regard to this proposal.
From a people attending online no there are no online questions or comments Mr. Chairman.
No.
I now invite shareholders to elect the directors.
You pass on Aetna.
We now move on to the advisory vote on the board of directors approach to executive compensation.
By submitting its approach to executive compensation to an advisory vote. The board is demonstrating its commitment to the bank shareholders and acknowledges its responsibility for executive compensation decisions.
Yeah.
During fiscal 2020 to.
The board and the Human Resources Committee continues to review good governance practices with regards to compensation in an environment, where best practices are constantly evolving.
I invite Ms attachment to present this proposal Mr. Chairman I move that on an advisory basis and without diminishing the role and responsibilities of the board the holders of common shares accept the approach to executive compensation.
Disclosed in the National Bank of Canada's management proxy circular.
Thank you Linda.
I see that Mr. Daniel has asked for the floor with a question or comment.
You have the floor.
Good morning, Mr. Chairman I am really gone you interact on behalf of them move them or did you kind of show a distraction there.
Murdoch and.
I'm sorry to have to intervene every single time I take the floor at every AGM to discuss.
Executive compensation now obviously, you understand why I have come to the microphone regardless of the outcome of today's vote, we assume that it will be very high.
We see that the compensation of the highest paid individuals at the bank.
Is such that the compensation ratio that is to say the ratio the comparative ratio between that compensation and the median salary as the bank's employees is very high and well exceeds the 20 to 30 times advocated by Mr. Claude below.
This ratio is still not disclosed it is still not published data that does publish its ratio and Scotia has also just published a ratio with regard to its employees in Canada.
This ratio must be disclosed in the United States. So I'd like to know what you're waiting for why do you not publish it this would allow the bank to adopt criteria to achieve a reasonable ratio.
We're very unhappy to see that.
Compensation seems to meet only two criteria I E.
Performance of the position on the size of the bank. When you look at the graph of the size of banks in Canada and you compare this with the compensation of executives of banks, we see that the largest PE there see he owes more as though it was more difficult to manage a bank twice the size I'm sure that yours.
E O works full time.
Be that as it may you understand the purpose of my intervention once again I'm sorry to have to keep repeating this message.
I go through the same dance every single year.
And in conclusion, I would like to say that.
If it were the general population voting for the approval of this compensation rather than just the shareholders.
So the vote would probably be different. Thank you. Thank you Mr. Gagnon for that statement.
You were very consistent indeed year over year.
Yes.
And I'd like to point out that all questions concerning compensation are studied very carefully by the board of directors of the bank.
Including the issue that you just raised.
We believe that the information, we provide about compensation as well as the justification for the compensation of our senior executives is entirely in accordance with best practices.
And more particularly is a compliant with the bank's performance.
Tony any questions no no online questions or comments have been submitted.
You.
I now ask shareholders to vote on this proposal.
Because I don't it's not worth it.
We will now deal with is the appointment of the independent Auditor of the bank proposes that the professional chartered accounting firm Deloitte be appointed I invite Ms. Chocolate to present. This proposal Mr. Chairman I move that the professional chartered accounting firm Deloitte to be approved be appointed rather as the independent auditor.
The bank for the fiscal year, beginning November one 2022, and ending October 31 2023.
Denise.
Denis are there any questions or comments no Mr. Chairman no questions or comments I invite shareholders to vote on this proposal.
Okay.
We will now proceed with the vote on the proposal of the move more did you guys try to default detection. There made duck I remind you that the text of the proposal and the bank's response can be found in section seven of the circular beginning on page 144.
I would now invite Mr. Willie Gagnon, a representative of Mad dog two present, the shareholder proposal submitted to a vote and to give a summary of the proposals not submitted to shareholder vote.
Mr Gagnon.
Once again, we began you on behalf of my dock and thank you Mr. Chairman I'd like to begin by.
Talking about the proposals that are not submitted to vote and then I'll conclude with the one that is submitted to a shareholder vote. This will make it easier I believe for you to call. The vote with your permission proposal number two was aimed at having a language has mastered by directors be disclosed in the circular you've done so I'm happy to see this.
All banks have done this the difference with you is that this disclosure is broken down by director.
You've demonstrated that there's no legal obstacles to disclosing this on a directed buy director basis, and we're going to use. Your example to ask this from the other banks, who have chosen to disclose languages spoken by directors without breaking this down on an individual basis.
However, you don't disclose any languages other than the official languages. It would be a nice idea to disclose any indigenous languages has mastered by directors or any foreign languages.
Languages in other words from parts of the World, where the bank has significant activities, but we're happy with the result of our discussions on this point.
Just give me a second.
I dealt with the proposals in the wrong order, we're also asking for increasing efforts towards energy and environmental transition we.
We see from your answer.
A lot of information that we were looking for we wanted this information to be gathered together in the same place in the circular and we believe that the scorecard that this crew.
Creates should be disclosed every year and we're happy to be able to file.
Find all this information in one same spot now.
No proposal number four deals with artificial intelligence.
And we were hoping that one of your committees that the mandates of one of your communities.
That artificial intelligence be included in the mandate of this committee and we see that the technology Committee was used to be a subcommittee became a fully fledged committee in 2022 and that the technology committee will be dealing with issues pertaining to artificial intelligence.
And then the proposal number five updating the role of the human resources and compensation Committee.
We've been able to see that every year. The report in a circular with regard to the work of that committee dealt only with the part of the committee's work concerning a compensation of the executives, but this committee has other responsibilities with regard to human resources for example.
And the content of this report has been enhanced to take this into account we're happy with this outcome as well, which brings us to the proposal that is submitted to shareholder vote.
It is the only proposals that we have submitted to shareholder vote with regard to all the Canadian banks. This is proposed to be sent to you last year.
With substantial results, we believe because the Canadian banks to act are about right about 20% among them which isn't.
Argument that can be invoked with regard to all our proposals by the way.
I'm talking about the advisory vote on environmentally pause on environmental policies. It is proposed that the bank adopt an annual advisory voting policy with respect to its environmental and climate action plans and objectives.
In your reply, we see that the <unk>.
The dialogue of mechanism is more effective than an advisory vote.
We are in no way, suggesting that you should backtrack from your dialogue practices.
First we wish to add to these practices by it.
Adding an advisory vote on environmental policies. If this argument where violent you would simply not be holding any a consultative advisory vote on compensation. For example, you also state that discussions should be focused on things other than climate related issues.
We agree with you on this.
This practice has already been implemented in a number of Canadian corporations.
Some voting advisers believe that only corporations with a major environmental impact should hold devote at that time, we believe that the banks have a significant environmental impact and therefore, we call on all shareholders of course to endorse this proposal, which last year obtained a 22% vote in favor.
I don't know what you feel about this but we continue to feel that this is a substantial result.
So Mr. Chairman I would very much like to hear from you about this issue before you call. The vote. If this were possible. Thank you.
I'm going to ask our chief Executive officer to reply or to give you. Some comments about this proposal.
Thank you.
Mr. Daniel.
Energy transition is a complicated issue, we're working very hard on this.
There's still a great deal of work to do with respect for example to data gathering.
As a financial institution, you are right to point out that we have a role to play and one of the things that we've done I mentioned. This in my presentation is that we have put a great deal of effort into energy transition and into initiatives related to energy transition, but I know I think that with that with the disclosure of our.
Targets are interim targets.
We've got one relating to oil and natural gas and we've disclosed two other targets.
One with respect to real estate construction and the other one.
Dealing with energy production, so I believe that with all of this we are moving forward to Mr. Daniel and I think we're doing a very good job.
And I think that we're disclosing these issues to all our stakeholders I'd like to add a couple of points with your permission.
I'd like to remind you and this is.
Public knowledge that Laurentian bank agreed to holding this.
Advisory vote, and what we're proposing here does not intend to say that the bank is performing badly from an environmental standpoint, we're fully aware of all the commitments you've made and all the things that you've promised and all the things that you're actually doing that is not the point that is not the topic. The topic is implementing an advisory vote on your environmental policies since they are good.
Or put it this way there better than those of the other banks. So you don't have anything to fear from the outcome of such a vote. If you were to allow it to go forward. So what we're asking shareholders is to approve the proposal that you adopt an annual advisory voting policy. This would simply add onto what you already do and it.
Has nothing to do with your current environmental behavior. It is not a Christmas schism thereof, all right. We will take that under review. Thank you Mr. Gagnon Denis.
Have any questions come in from the online voting platform related to this proposal no no questions and no comments Mr. Chairman.
Yes, I do apologize ma'am go ahead.
My name is angel bulk of it I'm a shareholder and I've also been a proud employee for 21 years with National Bank financial I would just like to switch to English because I want to get my words right.
So number five about a your revision of the human.
Each arm and just make a tiny request number one I want to comment on the wellness. The bank has done an exceptional job during COVID-19 and during the whole transition. So I want to applaud the bank as an employee of someone who has received incredible feedback from the institution. It's been an incredible transition. So if you're going to continue on.
Please continue it's been very well received the second thing is a diversity and inclusion when it comes to the numbers I feel the numbers are increasing slowly but please take a look at the whole picture.
I've seen the numbers internally at National Bank financial is that a lot of women are increasing and growing but front facing <unk>.
Not as many I'd like to see that sort of mixture increase as well.
So when you look at the diversity of women in the business considered the front facing as well not just the back so I'd like to just highlight that so please when you do the revision. So it's just a comment thank you.
Thank you Madam.
She might.
Being perfectly in line with your common so.
That's the goal of the human resources.
So.
<unk>.
Thanks for your comment.
Do the guests young.
Any further questions no Mr. Chairman no further questions or comments have come in.
Very well.
I invite shareholders to vote on <unk> proposal.
So as you conclude.
This concludes the voting period.
For shareholders and proxy holders online the voting platform will be closed as of now for shareholders in the room. Please raise your hand, so that the Scrutineers representatives can collect your ballot.
If you Havent you had hinted at in.
The following are the results of the preliminary votes.
As reported to me by the Scrutineers Representatives shareholders holding common shares of the bank representing at least 55% of the issued and outstanding shares voted by proxy.
And through voting instruction forms.
All nominees for election as directors were elected and received at least 97% of the votes cast in favor of their election.
The advisory resolution to accept the board's approach to executive compensation.
Was passed with over 95% of votes in favor.
Okay.
Deloitte was appointed independent auditor for the fiscal year, ending October 31st 2023 with over 88% of votes in favor.
What was it.
The proposal from the dock was not approved receiving approximately 18% of votes in favor.
The final detailed report on the voting results will be posted on the bank's website and on the SEDAR website. Later today. The bank will also issue a press release announcing the election of directors.
This completes the review of the various items on the agenda for the 2023 annual meeting of shareholders.
We will now open the floor to questions.
Questions should be of interest to all shareholders. It only matters relating to the operations of the bank or its subsidiaries may be addressed.
If your question is of a personal nature are representative of the bank make contact you after the meeting.
In the event that we do not have time to answer all questions.
And.
If you have identified yourself, we will undertake to contact you to answer your question.
I would like to remind shareholders and proxy holders registered on the lumi global virtual platform that they can submit questions online.
You may participate in the question period, either by chart using the ask a question dialogue box.
We're a bank representative will then read the question out loud.
Or you can do it by submitting your question your telephone number via the ask a question dialogue box so that lumi global can reach you by telephone.
Please be sure to indicate whether you are a shareholder or a proxy holder as well as the subject of your question.
I would also invite any shareholders or proxy holders in the room, who wish to speak to step forward to one of the microphones in the aisles.
And to identify themselves.
I would now like to invite our president and Chief Executive Officer, Mr failure to the microphone to lead the question period law.
As usual.
Questions.
My name is.
William was before I'm, a shareholder and also a client.
Just have a question or a comment about environmental issues, along the proposals and discussion is going on.
On an institutional basis would be consider.
Okay.
Providing some incentive for individual consumers.
Through their branches or was Stablish Foundation Order award.
To encourage the local population because 10 or 11% of Z.
Environmental global warming come from garbage consumer garbage.
I think that there is a lot of things.
Visual consumers can do.
On a daily basis like everybody can do something I don't know if that's what the United Nations is saying and the time for action is now so it's only a suggestion I don't know maybe you would say everybody can do something I don't know.
Okay, sorry for using the same plastic jars since 2002, I took public transportation here.
There's a lot of things that individuals can do.
I think that's it.
I think putting the owners.
The institution and the bank is one approach, but theres another approach so that would be my.
Michael It's a great success suggestion and we will definitely take into consideration absolutely right. It's about all members of the society. So yes, I think just to try to empower everybody everybody has to do something it's not good enough to download.
Or outsource the problem.
It's the leading banks and screw the rest the other comment I could say is that it's refreshing to come to a meeting that's not assumed.
Thank you.
Sure.
<unk> gone through.
My name is probably been until I'm, a shareholder and a client of National Bank.
Yeah.
I have a rather technical question in your sources of financing currently there's national Bank financial.
Great.
But that is growing in importance.
And it's through N b F that banks issue deposits certificates.
Many clients to invest their money there.
Because they perceive it to be a secure auction rightly or wrongly and the current stock market. So this fund is growing enormously.
Generally speaking the rates are higher.
Then those are given to individual clients.
Probably for reasons of administrative expense.
It's easier to issue.
400, 500 million and N B S funds. So my question is as follows.
Yeah.
Does national Bank issue.
Certificates to these <unk>.
Exchange traded funds, rather not national Bank financial that Etf's, among your fund portfolio and third part of my question.
On the assumption that the investors' perception is that they now all want to move back massively into the stock market and cashin on their funds.
On their Etfs, what would be the impact on for example, National Bank is it has issued such as E. T S.
Yeah.
Is there any obligation too.
To cancel or two cashin.
Or to redeem I can't quite to find the right word it's redemption in English, yes. So is there any obligation on your part to redeem such ETF.
Yes, that's an excellent question, yes. Thank you.
We are involved in the exchange traded funds market.
What's important to understand is that we're a diversified bank.
We have.
All kinds of clients and institutional corporate small business and individual.
Our funding sources, therefore come from a number of sources and industries.
If all of a sudden.
There were a drop.
In the amount of deposits in the form of Etfs. It wouldn't have an impact on national bank, because we're so well diversified across the board and sources of funding. So yes, we do take part in those products not simply in Cassia Etf's, but also.
<unk>.
Participatory etf's.
But I can reassure you shouldn't be worried whatsoever. So the bank does issue deposits certificates with in these Etfs is that right. Yes. It is what is the percentage I don't have the number readily to hand, but we can give it to you later on.
Thank you very much you are welcome.
Yeah.
Are there any further questions from the floor.
Yeah.
Good morning, Matt price it.
I'm with.
Organization.
And for the defense of shareholders.
Which it tracks commitments by a Canadian.
Companies.
Where.
Founded by a B C D U N D C.
I haven't spoken French for the past 20 years I do apologize, but your French is excellent, but I will now switch to English.
Yeah.
Policies of the Canadian banks, and you have a very unique policy and that you said that youre going to grow.
The renewable loans faster and your nonaccrual loans.
We're looking forward to your adding also underwriting to that in the future.
But the.
The commitment doesn't actually say that youre going to.
Bring down your funding of fossil fuels over time, even though you're.
Our disclosure suggests you are already doing that but it leaves the door open to actually that going back up again.
It also doesn't sort of tackle the ratio issue.
We need the ratio to be about four to one in terms of renewables to non rubles to have a safe climate. So my question is whether a national bank will consider strengthening that that commitment to be more in line with climate science.
Thank you for your question and thank you for pointing out the strategy that we've put in place.
For several years a this is not perfect right we don't have.
Data on everything, but we know that investing and supporting renewable energies as is as you know on the right track.
So we're going to keep that commitment.
We get more refined data.
You know if there is a possibility for us to get a little bit more precise we will for sure and in terms of our exposure.
Exposure in the oil and gas sector. What we have done is we kept supporting the players that are actors.
In the transition and that's what we're going to keep doing because we think it's an important part of the transition as well.
But as we get you know as.
As we move along we learn.
I think this is the right path for it and you know any time, we can be a little bit more precise.
<unk> will go into the restaurant for sure, but we do look forward to engaging with you on this in the future and congratulations I should say on this on this commitment because as we evaluate the other banks nobody else has made this commitment Sony nationals, So youre actually leading the way by tying this to our financial target, which we don't see with any of that back. So congratulations on that thank you very much.
So Daniel most you Liberals down with your U S.
Mr Chairman Mr. President We began you on behalf of me that I'd like to put a generic question, which I've put to most of the bank you're the ones holding the last AGM. This year I think that you always come in that position.
But everybody is very well aware of how much inflation is underway I don't even buy any more cheese nowadays.
It's tough I can tell you.
Yeah.
Yeah.
You should do something about your prices.
You know a simple round evoke is 20 bucks.
Anyway.
We would like to know what is the bank's exposure to the risks caused by increase in interest rates.
Particularly with regard to mortgages what is the weight of the banks mortgage portfolio. What does this represent for you I'm absolutely convinced that you have examined these issues.
But this is a very significant question. It seems to me in the current situation can you report on this.
The bank's balance sheet has about 400 billion 100 billion is in the form of mortgages.
And a little bit more than a third of that of our clients have variable rate mortgages.
So we've been tracking all these clients ever since we saw the interest rates climb they'd.
They've been able to deal with these increases so for the time being.
Now of course, this is going to have an impact in the longer term.
And we're also of course, keeping a close eye on the.
Six to rate mortgages portfolio what.
What we do is that we're beginning to contact our clients as soon as the renewal dates come closer.
We're doing a lot more reaching out to our clients, we devise impact scenarios and those who are going to have more of a difficulty throughout these difficult times, our people that were going to be working together with to find solutions.
Are you worried about any of this about what well about the whole mortgage issue.
Not in Canada, not where counters are concerned no.
I think that obviously it will be a period of adjustment interest rates in the past were very low and then they searched forward quite steeply. So yes, there is going to be an adjustment period, but in Canada, we have full employment there.
Theres going to be a drug in the growth of the economy in 'twenty to 'twenty three 'twenty 'twenty four of course with rising interest rates, but.
I would say that as a country and in particular with regard to Quebec. We're in a good position and we are fairly resilient currently.
So I'm not really worried about side. Thank you.
Are there any further questions from the floor.
The changing demographics.
Huge immigration from Ukraine, and from Syria from other really difficult countries is the bank.
Mickey fruit to try to retain people that could help these people in these circumstances and some of them are really quite difficult, but I think.
It would be a worthwhile gesture absolutely no. We do we are or supporting for sure people, who are arriving to our country and.
With with financial aid, obviously in workforce account payments.
Payments credit cards, so we are definitely supporting them.
Yes.
Thank you.
Yeah.
Okay.
Cool.
So thank you very much for those questions.
Yeah.
Thank you Laura.
Okay.
I would like to thank all our clients and shareholders for their confidence in the bank.
The board is proud to support the bank's business strategy, which remains sound and whose long term value creation continues to be at the heart of it the decisions of the board of directors and the senior leadership team.
Once again it has been an honor for me to serve on the bank's board and to chair and for all these years and I'm very proud of having done so.
I think the current and past directors for their confidence and I'm convinced that whole basketball. He will do a sterling job as chair of this board.
And I would now like to invite him to say a few words to you are there.
Yeah.
Well.
Good morning.
I would like to greet our shareholders our clients I see a number of them in the room, our guests our employees officers as well as my fellow directors.
On behalf of you all I would first like to express my sincere thanks to John Wood.
Who through his master their contribution during his years on the board.
Has guided the bank with tireless dedication to the highest standards of governance governance in the broadest sense of the term. Thank you very much for having been so faithful and having contributed so greatly.
Yeah.
Okay.
Twice now.
Well you would deserve many rounds of applause.
For my part I think the board of directors for its confidence in me and for it support as I take on my new role.
It will be a privilege a true privilege for me to continue the efforts all of you undertake to further the priorities of your bank.
In order to foster its long term growth once again, Sean Okay third time once again, John Thank you very much for everything.
Yeah.
Well with that I.
I declare this meeting closed.
Once again my sincere thanks to each and every one of you for having being present and please continue to support our wonderful organization Goodbye.
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