National Bank of Canada

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This article is about a commercial bank. For Canada's central bank, see Bank of Canada.
National Bank of Canada
Type Public company
Traded as TSXNA
Industry Bank
Founded 1859
Headquarters Montreal, Quebec, Canada
Key people Louis Vachon, (CEO)
Products Financial services
Revenue $5.313 billion CAD (2012)[1]
Net income Increase $1.634 billion CAD (2012)[1]
Employees 19,920 (Oct, 2012)[2]
Website www.nbc.ca

The National Bank of Canada (French: Banque Nationale du Canada) is the sixth largest commercial bank in Canada. It is headquartered in Montreal, and has branches in most Canadian provinces and 2.4 million personal clients.[3] National Bank is the largest bank in Quebec.

Based on 2012 information, National Bank had a network of 448 branches and 893 Automated Teller Machines in Canada.[3] It also had a number of representative offices, subsidiaries and partnerships in other countries, through which it could serve clients in the United States, Europe and other parts of the world.

In 2011, Bloomberg Markets ranked National Bank as the strongest bank in North America. National Bank also placed third in Bloomberg's list of the "The World’s Strongest Banks".[4]

History[edit]

The headquarters of the National Bank of Canada is located in Tour de la Banque Nationale.
National Bank of Canada Office in Toronto.

In 1859 francophone businessmen in Ontario and Quebec were keen to establish a bank under their local control, and persuade the provincial legislature to pass the act that created the Banque Nationale on May 4, 1859. Some members of the anglophone bourgeoisie participated in the Bank’s share capital, but francophones retained exclusive control and held all seats on the Board of Directors with Ulric-Joseph Tessier, lawyer and Member of the Legislative Assembly serving as Chairman of the bank.

The bank suffered losses during the banking crisis sparked by the financial panic of 1873 and panic of 1884 but managed to survive and continued to operate. In the 1930s, during the Great Depression, Banque Nationale again came under financial stress; this time a merger was arranged with Banque d’Hochelaga assisted by the province's legislature to strengthen the bank. The merged bank was renamed "Banque Canadienne Nationale", "Bank Canadian National" (BCN) in English.

In 1968 Bank Canadian National, in conjunction with a number of other banks, launched Chargex, the first credit card to be issued by a Canadian bank.

During the 1970s rival Provincial Bank expanded rapidly through a number of acquisitions. It merged with the People’s Bank in 1970, with the Toronto-based Unity Bank of Canada, and in 1979 it acquired Laurentide Financial Corporation of Vancouver. Both Provincial Bank and Bank Canadian National continued to expand but continued to have a large part of their operations concentrated in Quebec. In November 1979 these two banks decided to merge under the new name National Bank of Canada in what was at the time one of the largest bank mergers.

Through the 1980s the bank continued to grow and expand its businesses through a number of acquisitions, including the brokerage firm Lévesque Beaubien and a year later Geoffrion Leclerc, which became known as Lévesque Beaubien Geoffrion. In 1973 it sold its lease financing operations to GE Capital and acquired the assets of General Trust of Canada.

In 1994 it made a small step outside Canada when it opened two branches in the United States, one in Florida and one in California. In 1999 it concluded its purchase of First Marathon, a Toronto-based brokerage firm. First Marathon and the Bank's subsidiary Lévesque Beaubien Geoffrion Inc. merged their operations to form National Bank Financial (NBF), its investment banking subsidiary. In 2002 it acquired US-based investment bank Putnam Lovell and merged the operations with its NBF subsidiary which started operating through offices in New York, Toronto, and London.

In March 2006 it sold its shareholder management services to Computershare.[5]

Management structure[edit]

The management structure of the bank consists of an Office of the President and a Board of Directors. The membership of the two structures as at 2012 are:

Office of the President[6][edit]

  • Louis Vachon, President and Executive Officer
  • Stéphane Bilodeau, Executive Vice-President – Operations
  • William Bonnell, Executive Vice-President – Risk Management
  • John B. Cieslak, Executive Vice-President – Information Technology, Sourcing and Organizational Performance
  • Diane Giard, Executive Vice-President – Personal and Commercial Banking
  • Lynn Jeanniot, Executive Vice-President – Human Resources and Corporate Affairs
  • Karen Leggett, Executive Vice-President – Marketing
  • Luc Paiement, Executive Vice-President – Wealth Management and Co-President and Co-Chief Executive Officer, National Bank Financial
  • Ghislain Parent, Chief Financial Officer and Executive Vice-President – Finance and Treasury
  • Ricardo Pascoe, Executive Vice-President – Financial Markets and Co-President and Co-Chief Executive Officer, National Bank Financial
  • France Roy Maffeï, Executive Vice-President – Strategic Initiatives Office and Centre of Excellence

Board of Directors[7][edit]

  • Jean Douville, Chairman of the Board
  • Louis Vachon, President and Chief Executive Officer
  • Maryse Bertrand, Director
  • Lawrence S. Bloomberg, Director
  • André Caillé, Director
  • Gérard Coulombe, Director
  • Bernard Cyr, Director
  • Gillian H. Denham, Director
  • Paul Gobeil, Director
  • Jean Houde, Director
  • Louise Laflamme, Director
  • Roseann Runte, Director
  • Lino A. Saputo, Jr., Director
  • Pierre Thabet, Director

Subsidiaries[edit]

Subsidiaries as of October 31, 2011:[8]

Key subsidiaries[edit]

  • Innocap Investment Management Inc.
  • Natcan Investment Management Inc.
  • National Bank Direct Brokerage Inc.
  • National Bank Financial Inc.
  • National Bank Life Insurance Company
  • National Bank Securities Inc.
  • National Bank Trust Inc.

Other subsidiaries[edit]

  • CABN Investments Inc.
  • FBN Funding, LLC
  • Natbank, National Association
  • Natcan Trust Company
  • NBC Alternative Investments Inc.
  • NBCN Inc.
  • NCEJV, LLC
  • Wellington West Asset Management Inc.
  • Wellington West Financial Services Inc.
  • Wellington West Total Wealth Management Inc.

Credit agency ratings[edit]

On October 26, 2012, rating agency Moody’s Investors Service said it is reviewing the long-term ratings of the National Bank of Canada, because of concerns about consumer debt levels, housing prices, and more.[9]

References[edit]

  1. ^ a b "2012 Annual Report 2012". National Bank of Canada. October 31, 2012. 
  2. ^ "National Bank profile". National Bank of Canada. October 31, 2012. 
  3. ^ a b "In Brief", National Bank website
  4. ^ National Bank website
  5. ^ "National Bank History". National Bank of Canada. 2008. 
  6. ^ www.nbc.ca. "Governance - Executive Committee". Nbc.ca. Retrieved 2013-06-16. 
  7. ^ www.nbc.ca. "Governance - Board of Directors". Nbc.ca. Retrieved 2013-06-16. 
  8. ^ "Our social responsibility 2011". National Bank of Canada. October 31, 2011. 
  9. ^ Tim Kiladze (2012-10-26). "Moody’s reviews six Canadian banks, could downgrade". The Globe and Mail. Retrieved 2013-06-16. 

External links[edit]