Canadian Imperial Bank of Commerce

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The Canadian Imperial Bank of Commerce Template:Tsx Template:NYSE, better known to most customers as CIBC, is one of Canada's major banks. CIBC (as well as Amicus Bank and President's Choice Financial) is classified as a Domestic Chartered Bank (Schedule I). With its headquarters in Toronto, Ontario, it also operates in the United States, the Caribbean, Asia and the United Kingdom. It is currently Canada's fourth largest chartered bank.

Contents

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Current operations

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Company divisions

CIBC has three main operational divisions:

Within the divisions are functional divisions:

  • Treasury, Balance Sheet and Risk Management
  • Administration
  • Finance
  • Technology and Operations
  • Corporate Development

Units in CIBC included:

  • Amicus Bank
  • President's Choice Financial

Former Divisions of CIBC:

  • Canadian Eastern Finance
  • CIBC Trust Corporation - now under CIBC Wealth Management
  • CIBC Mortgage Corporation - now FirstLine Mortgages
  • CIBC Insurance - spun off as The Personal
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Operational facts

  • Total Employees (worldwide): 37,000
  • Total Branches (Canada): 1,100
  • Total ABM (Canada): 4,400
  • As of October 31, 2004, CIBC had assets of $278.8 billion
  • Market capitalization of $25.7 billion.
  • Net income for the year ended October 31, 2004 was $2.2 billion or $5.53 per share
  • CIBC is one of the largest corporate donors in Canada, contributing more than $44 million worldwide to charitable causes in 2004, including more than $23 million in Canada and over $5 million in community sponsorships
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Memberships

CIBC is a member of the Canadian Bankers Association (CBA) and registered member with the Canada Deposit Insurance Corporation (CDIC), a federal agency insuring deposits at all of Canada's chartered banks. It is also a member of:

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Current events

CIBC announced a US$2.4 billion payout agreement in principle to settle the Enron class action litigation on behalf of Enron security purchasers on August 2005, but this led to a drop in share prices and outcry from the bank's shareholders. Some demand former executive John S. Hunkin to pay back some of his bonuses and shares in light of this large fine payout. CBC News reported that Hunkin is on vacation in Chester, Nova Scotia and avoiding all questions relating to Enron.

CIBC participates in a number of local events across Canada and globally. One of their better known promotional programs is the CIBC Run for the Cure which raises money for breast cancer research.

Li Ka Shing, Hong Kong billionaire was the largest foreign shareholder in the bank for over two decades, but sold his portion (est. C$1.2 Billion) to establish a Canadian charity, the Li Ka Shing Foundation. CIBC was Mr. Li's choice for financing many of his Canadian ventures, like Husky Energy.

In March 2006, CIBC officials announced their intention of buying majority control of their Caribbean joint venture the FirstCaribbean International Bank. The deal expected to cost US$1billion would purchase the current 43.7% owned by Barclays Bank PLC and would raise CIBC's current ownership to 87.4%, from 43.7%. Upon closure of the deal, the top four Caribbean commercial banks would be consolidated merely to a top three, with those being Scotiabank, FirstCaribbean International Bank, and the Royal Bank of Canada with a possible distant fourth place bank varying in each territory. The head-office for FCI would continue to be located in Barbados which would report to Toronto. [1], [2], [3]

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History

In 1867 the Canadian Bank of Commerce opened in Toronto with a charter in 1866 (purchased from the defunct Bank of Canada, which folded in 1858. Imperial Bank of Canada opened a few years later in 1875, also in Toronto. In 1961 the two banks merged to form the Canadian Imperial Bank of Commerce and in 1962, opened a major new banking centre in Montreal, Quebec with the construction of the CIBC building.

CIBC was the first Canadian bank to introduce bank machines, with the Automated Cash Dispenser (aka Robot tellers) in 1969. In 1988 CIBC moved into the investment market by purchasing Wood Gundy Inc. In 1997 it moved to do the same in the United States by purchasing Oppenheimer & Co., Incorporated.

Besides its Canadian operations, CIBC has operations globally. CIBC National Bank was established in the U.S. in 1999, but opened an foreign exchange office in New York in 1875 (Canadian Bank of Commerce), London in 1901 and in Asia (Hong Kong) in 1970.

Along with Loblaws, CIBC helps operate President's Choice Financial started in 1996.

CIBC is currently one of Canada's chartered banks, also referred to as the Big Six banks.

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CIBC and the Great Wars

During World War I and II, staff from the Canadian Bank of Commerce enlisted in the war effort:

Staff enlistment for:

  • World War I - 1,701
  • World War II - 2,300

A War Memorial at Commerce Court in Toronto, Ontario commemorates their sacrifice.

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Mergers

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Canadian Bank of Commerce

Halifax Banking Company - 1903 Established in 1825 by Enos Collins with Hon. Henry H Cogswell as President from 1825-1834:

  • Robie Uniacke - President 1882-1903
  • Horatio Newelham Wallace - Cashier 1892-1903

Gore Bank Formed in 1836 and merged with the Commerce in 1870:

  • Colonel James W Wythe - President 1836-1839
  • Colin C Ferrie - President 1839-1856
  • Andrew Steven - President 1856-1861; Cashier 1836-1856
  • Thomas Clark Street - President 1862-1868; later Bank of Commerce Director

Eastern Townships Bank Formed in 1859 and merged with the Commerce in 1912:

  • Colonel Benjamin Pomroy - President 1859-1874
  • Richard W Heneker - President 1874-1902
  • William Farnell - President 1902-1912
  • James MacKinnon - Cashier 1902-1912

Bank of British Columbia Established with a Royal Charter in 1862 and merged with the Commerce in 1901:

  • Thomas W.L. Mackean - Chairman 1862-1876
  • Sir Robert Gillespie - Chairman 1876-1901
  • Eden Colville - Director 1876-1893
  • James Anderson - 1862-1897, Manager 1862, General Manager 1867-1875, Director 1876-1890

Merchants Bank of Prince Edward Island Formed 1856 and merged with the Commerce in 1906:

  • W.A. Weekes 1864-1865
  • Robert Longsworth 1871-1882
  • Right Hon. Sir Louis Davies 1887-1897
  • Benjamin Heartz 1897-1904
  • W.A. Weekes 1904-1906

Bank of Hamilton

Merged with the Commerce in 1924.

The Standard Bank of Canada (changed to St Lawrence Bank 1872-1876) in 1876) Merged with the Commerce in 1928.

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Imperial Bank of Canada

  • Niagara District Bank 1875
  • Weyburn Security Bank 1931
  • Barclays Bank (Canada) 1956
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CIBC 1961

  • Wood Gundy Incorporated 1988 - forming CIBC Wood Gundy and renamed CIBC World Markets.
  • TAL Private Management 1994-2005 - formerly Timmins and Associates Ltd, merged with CIBC Investment Management Corporation in 1994, named changed to TAL Global Asset Management Incorporated in 1998 and finally full acquired by CIBC in 2001. Rename to CIBC Asset Management effective January 1, 2006.
  • Penfund 1998 - acquired mezzanine financing and investment firm founded in 1979.
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CIBC-TD Bank

There was an attempt by CIBC to merge with the Toronto-Dominion Bank in the late 1990s. However, the Government of Canada at the lead of then Finance Minister Paul Martin blocked the merger from occurring.

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Joint Ventures

  • CIBC Mellon Global Securities Services - formed by CIBC and Mellon Bank Corp of Pittsburgh PA 1996 and Canada Trust's (now TD Canada Trust) pension and custody business in 1997.
  • Canadian Eastern Finance Limited (CEF)- formed by CIBC and Hutchison Whampoa of Hong Kong; includes CEF Capital Limited, CEF Investment Management Limited.
  • President's Choice Financial - A joint venture between CIBC and Loblaw Companies Limited; PC Financial operates as a low cost 'virtual bank' serving nearly 3 million Canadians. Banking services such as deposit accounts, investments and credit products (excluding Mastercard) are provided by CIBC Direct Banking, formerly Amicus Bank. Other services, including credit cards, and PC points are issued/provided by a subsidiary of LCL, President's Choice Bank. In 2005 Amicus was dissolved as a separate legal entity and moved under retail markets as 'CIBC Direct Banking'.
  • Amicus FSB - A similar setup as President's Choice Financial, it was created in 1999 in the United States with Winn Dixie and Safeway Stores under the Marketplace Bank and Safeway Select Bank brands, but it has since been disbanded in 2002 and sold to E*Trade Bank.
  • Soltrus Inc 2001 - provider of digital trust services for businesses and consumers to communicate and transact over digital networks owned by CIBC, Telus Corp and VeriSign Inc.
  • Aplettix Inc 2000 - firm specializing in secure transaction systems in the banking sector. CIBC signed an agreement with the New York based firm in 2000, but the project was later abandoned for alternatives such as VeriSign.
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Sell Off/Restructuring/Outsourcing

  • EDULINX Canada Corporation: Established in 1999, it was sold to Nelnet Canada Inc, the Canadian unit of Nelnet, Inc. of the U.S., in late 2004.
  • HP Intria Items (Intria Corp): Formed by CIBC with Hewlett Packard and Fiserv Canada in 1996. In 2005, CIBC acquired the remain shares from Fiserv and Intria becomes a unit of CIBC.
  • Toronto Blue Jays Baseball Club: Founding owners of the MLB team in 1977 and had a 10% stake with majority owner Labatt's Breweries (later acquired by InterBrew NV) and sold to Rogers Media in 2000.
  • TSYS In 2002 a 10 year agreement was signed with Total Systems Services Inc of Columbus GA to outsource credit card processing operations.
  • CIBC Leadership Centre: In 2001, the King City facility was sold to Benchmark Hospitality as the bank began to divest real estate or investment in areas outside of its business strategies.
  • Juniper Financial Corporation: The bank acquired the Wilmington DE credit card issuer 2001 and sold to Barclays Bank in 2004.
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Corporate governance

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Bank Executives

  • Gerald T. McCaughey - President and CEO 2005-; President and COO - CIBC 2004-2005; former Chairman and Chief Executive Officer - CIBC World Markets and Vice Chair, Wealth Management, CIBC
  • Brian Shaw - Chairman and Chief Executive Officer - CIBC World Markets and Vice Chair, Wealth Management, CIBC
  • Steven McGirr - President, CIBC World Markets - to become ESVP and Chief Risk Officer (CRO) Treasury, Balance Sheet and Risk Management, CIBC - September 2005
  • Sonia Baxendale - Vice Chair, Retail Markets, CIBC
  • Victor Dodig - EVP Wealth Management, CIBC
  • Steven McGirr - Senior Executive Vice-President and Chief Risk Officer, Treasury and Risk Management, CIBC
  • Ron Lalonde - Senior Executive Vice-President and Chief Administrative Officer, CIBC
  • Michael D. Woeller - Vice Chair and Chief Information Officer, CIBC
  • Richard E. Venn - Senior Executive Vice-President, Corporate Development, CIBC, Managing Director and Deputy Chairman, CIBC World Markets Inc.
  • Tom Woods - Senior Executive Vice-President and Chief Financial Officer, CIBC
  • Lachlan MacLachlan - Senior Vice-President and Ombudsman, CIBC

Current members of the board of directors of the company are:

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Past Presidents/CEO/Chairman

Canadian Bank of Commerce

Presidents

  • Hon. William McMaster 1867-1886 - founder of the Canadian Bank of Commerce, Liberal Senator 1867-1887 and founder of McMaster University, former Bank of Montreal director 1864-1867
  • Sir John Aird 1924-1929 - Chairman of the Royal Commission on Radio Broadcasting
  • Sir Byron Edmund Walker 1907-1924
  • James Stewart CBE
  • William M. Currie
  • Neil McKinnon - President 1956-1961

Imperial Bank of Canada

Presidents

  • Henry Stark Howland 1875-1889 - founder and former Bank of Commerce VP 1867-1875; former reeve and postmaster for the Village of Kleinburg 1859-1860, York County Warden .
  • George Albertus Cox 1890-1896 - Liberal Senator 1896-1914

Chairmen

  • Lindsay Stuart Mackersy MC 1961-? - First President of CIBC

Canadian Imperial Bank of Commerce

Presidents

  • Lindsay Stuart Mackersy MC 1961-? - Former Chairman of Imperial Bank of Canada
  • John S. Hunkin 1999-2004

Chairs

  • Russell Harrison
  • Neil MacKinnon
  • Donald S Fullerton
  • A.L. Flood CM - 1988-1998
  • John Hunkin - 1999-2003
  • Bill Etherington - 2003-present

CEOs

  • John S. Hunkin - Chief Executive Officer 2004-2005; President and CEO of CIBC 1999-2004; CEO and President of CIBC World Markets 1990-1992, President of Investment and Corporate Banking - CIBC Wood Gundy 1992-1997, President of Investment and Corporate Banking - CIBC World Markets 1997-1999.
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Who's Who

A list of famous and not so famous staff from the past:

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References

  • A History of the Canadian Bank of Commerce by Victor Ross (1920-1934)
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External links

Template:Canadian banksfr:Canadian Imperial Bank of Commerce fi:Canadian Imperial Bank of Commerce

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