Expansion into U.S. remains ‘strategically important’ for CIBC: Victor Dodig

Expanding into the U.S. marketplace is “strategically important” for Canadian Imperial Bank of Commerce, but Canada’s fifth-largest bank will not be rushed, chief executive Victor Dodig told shareholders Tuesday.

“We know that our business banking and our corporate banking customers are expanding – in to the U.S.,” he said in the company’s annual meeting in Vancouver. “We want to be in a position to bank them, both from the lending and deposit standpoint.”

Dodig said executives happen to be “actively looking” at operations that would complement CIBC’s Atlantic Trust franchise, a U.S. private wealth manager for high value clients bought in 2013.

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“But, as we have demonstrated with previous acquisitions, we are patient and grow disciplined in our method of ensure they meet our acquisition criteria,” he told shareholders. Included in this are “a good cultural and strategic fit, as well as being in a position to deliver growth inside a target time period,” he said.

In December, CIBC announced plans to sell its minority stake in American Century investments to Nomura for US$1 billion, once it became clear the Canadian bank wouldn’t attain a controlling interest in the U.S. wealth manager.

Once the sale closes, the proceeds will raise the coffers for a future acquisition, Dodig said.