CIBC announced on Thursday that its CEO Victor Dodig will retire in October and be succeeded by Harry Culham, the current head of the Canadian bank's capital markets division. Culham will assume the role of Chief Operating Officer starting April 1 and transition to CEO on November 1, as the fifth-largest lender in Canada revealed.
Following an executive reorganization last September, Culham's responsibilities expanded to include supervising the bank's global asset management business, enterprise strategy, and the Caribbean operations of CIBC.
The change in leadership comes at a challenging period for major Canadian banks dealing with economic uncertainties stemming from the U.S.-Canada trade war. Culham expressed confidence in managing risks, stating, "We can control the controls ... We went through COVID, we've been through other ups and downs."
With a background at CIBC since his early days as an intern in Vancouver, Culham has held key banking roles in Europe and Asia. He rejoined CIBC in 2008 and assumed leadership of the capital markets unit in 2015.
Some analysts, like Darko Mihelic from RBC Capital Markets, were surprised by Dodig's retirement timetable, noting Culham's strong capital markets experience. Although Culham's exposure in personal and commercial banking is limited, his expertise is seen as advantageous for the bank.
CIBC's shares experienced a 1.2% decline on the Toronto Stock Exchange following the announcement. Big five Canadian banks have been recording substantial profits from wealth and capital market segments, emphasizing fee-based and high-margin businesses, while expanding operations in the U.S.
CIBC's strategic focus remains on growing its affluent and private wealth sectors in Canada and the U.S., strengthening its digital presence in Canada, and expanding the capital markets division. Culham affirmed his commitment to the bank's strategy continuity.
During Dodig's tenure of over a decade, CIBC saw expansion into the U.S. market and an increase in Canadian clientele through the acquisition of Costco's Canadian credit card portfolio. Although the U.S. commercial lending segment faced challenges in 2023 due to exposure to troubled office spaces, measures have been taken to mitigate the impact.