CEOs expect Trump will be a boost for U.S. operations

CEOs of some of Canada’s biggest banks say they’re expecting to see their U.S. businesses get a boost

TORONTO — The CEOs of some of Canada’s biggest banks say they’re expecting to see their U.S. businesses get a boost from stronger economic growth south of the border as the new Donald Trump administration takes over.

“The talk is that there’s going to be corporate tax reform, there’s going to be more infrastructure spending, there’s going to be less regulatory burden for industry in general, not just for banks,” TD Bank (TSX:TD) CEO Bharat Masrani said Tuesday at a conference in Toronto.

“All of that is stimulating for the economy.”

Dave McKay, the CEO of Royal Bank (TSX:RY), said the pro-growth policies that Trump is expected to implement could lead to higher interest rates, which would be positive for the bank’s operations in the U.S.

“We see strong opportunities in the U.S. market for our capital markets franchise, which has enormous momentum,” McKay said at the RBC 2017 Canadian Bank CEO Conference.

It isn’t just higher interest rates that could benefit the U.S. operations of Canada’s biggest banks. The stimulative effects of pro-growth policies on the U.S. economy would also boost business and consumer confidence and could lead to higher loan growth for the banks, according to several of the bank CEOs.

“Clearly, the new administration is creating an environment in which our clients are much more comfortable in talking about capital investment, about expanding their businesses,” said Bill Downe, CEO of the Bank of Montreal (TSX:BMO).

While rising rates in the U.S. would be a positive for TD, Masrani cautioned that too sharp of a rise could have the opposite effect.

“If the rates go so high so quick, then it’s going to be negative to the economy because we might get into a slowdown of some kind,” he said. “So you want to make sure this is within reason.”

Speaking at the same conference in Toronto, CIBC CEO Victor Dodig said it’s premature to speculate what policies Trump may implement.

“What’s happened with the new incoming administration is that they’ve telegraphed certain policies,” Dodig said.

“What actually gets implemented and how it will look and what kind of economic benefit that will deliver is yet to be seen.”

Dodig said there are some inconsistencies in the incoming administration’s messaging about protectionism, trade and tax policy.

“Speculating about administrations and politics is not what I’m paid to do,” Dodig said.

“What we’re paid to do is make sure that we can increase shareholder value with whoever runs any particular country that we choose to operate in.”

Just Posted

WATCH: From humble beginnings Red Deer-based wrestling promotion is growing

It wasn’t that long ago that Dylon Featherstone and the Canadian Wrestling… Continue reading

WATCH: Families make yo-yos and weaved yarn at Red Deer Museum and Art Gallery

It was all about making yo-yos and yarn bombing at Red Deer… Continue reading

Solve mysteries with Sherlock Holmes and Dr. Watson in Red Deer

At three sold-out one act Sherlock Holmes plays in Red Deer, theatre… Continue reading

Quebec man arrested in slaying of Alberta woman 16 years ago

AIRDRIE, Alta. — A Quebec man has been arrested in the slaying… Continue reading

Construction underway at Medicine River Wildlife Centre in Red Deer

The new building is twice the size of the old one

WATCH Replay Red Deer Feb. 18: Your weekly news highlights

Watch news from Red Deer and Central Alberta

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Liberals looking at creating use-it-or-lose-it leave for fathers, Trudeau says

OTTAWA — Prime Minister Justin Trudeau is raising the idea of creating… Continue reading

Trump gets angry about election meddling, but not at Russia

‘Weirdest thing’: Trump expresses anger, but not over Russian election-meddling

New doping charge could hurt Russia’s chance at reinstatement

Russia could lose its chance to be reinstated before the end of the Winter Olympics because of a doping charge against curling bronze medallist Alexander Krushelnitsky.

#Metoo movement causing confusion in many men, fear of missteps with women: experts

Being painted by the same sweeping brush as those alleged to have mistreated women has angered men

Virtue and Moir break their own world record

Virtue and Moir break short dance record to sit first in ice dance at Olympics

Calgary man dies in Mexico following sudden illness

Troy Black was with his wife, Lindsay, in Puerto Vallarta when he began vomiting blood on Thursday

Life or death main decision for school shooting suspect

FORT LAUDERDALE, Fla. — The evidence against the Florida school shooting suspect… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month