CIBC chief Victor Dodig defends banking sector after Trudeau tax proposal - CP24 Toronto's Breaking News | Canada News Media
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CIBC chief Victor Dodig defends banking sector after Trudeau tax proposal – CP24 Toronto's Breaking News

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TORONTO – CIBC’s chief executive offered an impassioned defence of Canada’s banking sector the day after Liberal Leader Justin Trudeau made a campaign pledge to raise the tax rate for the industry.

“Banks have always been in the crosshairs, but what you want is a healthy banking system,” Victor Dodig said during a conference call Thursday to discuss the bank’s quarterly earnings.

“A healthy banking system helps the economy grow,” .

Dodig said he would not comment on specific election promises but wanted to reminded investors of the work banks did during the early days of the outbreak, when they distributed pandemic stimulus funds and deferred on loans for clients. He also noted that most Canadians benefit either directly or indirectly from the dividends and economic growth of the banks.

It’s important that the government policies not discourage foreign investment, said Dodig.

“My great hope is that you don’t have intervention in any particular industry sector, because that doesn’t actually attract foreign capital. We need capital and we need people to come to Canada to make the country stronger and to make the country better.”

On Wednesday, Trudeau proposed raising the corporate income tax rate by three per cent on banks and insurance companies with earnings over $1 billion, which he said had come into “windfall” profits because of economic stimulus measures from the government.

The proposal also includes establishing an unspecified “recovery dividend” for the two industries that would last four years, which together with the tax increase would bring in at least $2.5 billion a year.

“This week, Canada’s biggest banks are posting their latest massive profits of billions of dollars … so as we rebuild, we’re going to ask big financial institutions to pay a little back,” Trudeau said.

CIBC reported earnings of $1.73 billion or $3.76 per diluted share for the quarter ended July 31, up from $1.17 billion or $2.55 per diluted share a year earlier.

The increase came as CIBC reported a $99-million reversal of credit losses for its latest quarter compared with a provision for credit losses of $525 million in the same quarter last year.

On an adjusted basis, CIBC says it earned $3.93 per diluted share, up from an adjusted profit of $2.71 per diluted share a year earlier. Analysts on average had expected the bank to earn $3.41 per share, according to financial market data firm Refinitiv.

On Thursday, CIBC also announced a commitment to reach net zero emissions associated with its operational and financing activities by 2050, and increased its sustainable finance target to $300 billion by 2030.

Dodig said the bank had already ramped up funding on renewable energy projects, now ranked third for North American renewable energy financing for the first half of this year, up from 26th place in 2016.

CIBC will also set up interim targets to reduce the emissions that it helps finance, and will begin reporting on their progress starting next fiscal year, said Dodig.

“The transition to a low-carbon global economy will take meaningful commitment and it’s going to take action from everyone,” he said.

CIBC said its Canadian personal and business banking earned $642 million for the third quarter, up from $457 million a year ago, helped by lower provisions for credit losses and higher revenue, partially offset by higher expenses.

Canadian commercial banking and wealth management reported a profit of $470 million for the quarter compared with $320 million in the same quarter last year, while CIBC’s U.S. commercial banking and wealth management operations earned $266 million, up from a profit of $60 million a year ago.

CIBC’s capital markets business reported net income of $491 million for the third quarter, up from $443 million in the same quarter last year.

This report by The Canadian Press was first published Aug. 26, 2021.

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Carry On Canadian Business. Carry On!

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7 hours ago

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October 22, 2024

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business to start in Canada

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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October 22, 2024

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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October 22, 2024

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

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