Laurentian Bank of Canada (LB) Earnings Call Transcript & Summary

[Interpreted] Good morning and welcome to all. Before handing over to our President and CEO, Eric Provost. I would like to reiterate how proud I am to be here today as Chairman of the Board. As I've mentioned earlier, I've been involved with the bank for over 30 years. And I've been a member of its Board of Directors for the past 10 years. I would say that this does indeed allow me to better understand this Noble Quebec Institution and to have a rather unique perspective on the Bank's past, present and future. When I think about 2023, my first reaction is, and I do assume this is the same for you, is one of disappointment. The year began strongly, and then due to various circumstances, that were both within and beyond our control, the year ended in turbulence. When we began the year, in many respects, the bank had made progress in closing the gap with its competitors in terms of technology, customer satisfaction, workplace culture and employee engagement. In Retail Banking, we have continued to make significant technological and digital investments in order to enhance functionality and customers' experiences. When it comes to business services, we maintained a Net Promoter Score above 50 and achieved excellent rates in real estate and equipment financing as well as a world-class rate in inventory financing places -- I'm sorry, plans are in place under Eric's leadership and direction in order to extend the same customer service best practices throughout the organization. In terms of environmental, social, governance initiatives, ESG, we made good progress by establishing the Bank's Scope 1 and Scope 2 greenhouse gas reduction targets as well as calculating and disclosing an estimate of Scope 3 financed emissions for real estate asset classes using the Partnership for Carbon Accounting Financials methodology. In terms of our employees, we have been very pleased to see a 3% -- a 3 percentage point increase in our employee engagement index to hit 80%. This means we reached our target a year ahead of schedule, reflecting the improvements in Laurentian Bank's workplace culture and practices. Unfortunately, as the months have gone by, the macroeconomic environment has become increasingly difficult with a combination of high interest rates and high inflation, the global financial sector has changed considerably, thus increasing the level of uncertainty. Despite these pressures, the Laurentian Bank remains well capitalized and continues to meet these challenges, thanks to its strong capital and liquid positions. These unprecedented conditions have prompted the Board of Directors and Management to exercise caution and undertake a thorough review of the Bank's strategic options to determine the best course of action to maximize shareholder value. Throughout the process, we examined various options, including an acquisition of the entire bank, the divestment of certain sectors and the acceleration of our current strategic plan in mid-September, the Board of Directors, along with support from senior management came to the conclusion that the best way to increase shareholder value was to accelerate the implementation of the bank's current strategic plan by placing greater emphasis on [ efficacy ], efficiency and simplification. Now unfortunately, at the end of September, an unsuccessful core system update led to a multi-day interruption in our banking services, including our online banking platform, causing significant inconvenience to our customers. It was also a trying time for our employees who worked around the clock to rectify the situation and serve our customers to the best of their ability. On behalf of the Board of Directors, I apologize to our customers for the inconvenience caused by the outage. We are committed to doing better, much better and restoring the trust of our distinguished customers. In October 2023, we announced changes to the Bank's Management team. We are very proud to appoint Eric Provost as our new President and CEO. Eric has been identified over the past few years as the successor to the position of President and CEO. He set to work immediately, working tirelessly to refocus the organization on its core activities, improve the customer experience, reenergize our teams and simplify the Bank. Eric has deep roots in the banking sector, both inside and outside of Quebec. He is fully supported by a seasoned team of senior executives. The Board of Directors and I are fully committed to supporting Eric and his team in renewing Laurentian Bank's strategic plan to be able to position it for future success. As you know, our Board of Directors also experienced certain changes over the past year, implementing succession plans, notably for the Chairman of the Board. These changes ensure that we retain the necessary skills to ensure that the bank be well placed to ensure and provide good governance and succession planning for the Board of Directors. This is done with emphasis on a wide range of skills and diversity. To this end, we thank Michael Mueller, my predecessor for his dedication to the bank over the past 5 years. We would also like to thank Susan Wolburgh Jenah for more than 9 years of service and Michelle Savoy for her 12 years of service on the Board. As I mentioned earlier, 2023 was described as tumultuous. But in the future, we will take advantage of lessons learned and insights gained so that we do better, much better. Our Board of Directors is committed to you, our stakeholders, and we are confident that Eric and his team will ensure that the Bank is well positioned for a stunningly bright future. Thank you to my fellow Board members for their partnership and wise counsel over the past year, to Johanne Brunet, Jamey Hubbs and Paul Stinis our newly elected Board candidates, welcome to the Laurentian Bank. I look forward to benefiting from your wise council and to work closely with you and our fellow directors. Big thank you to the employees of the Laurentian Bank family for your commitment and your dedication as you put customers first, and at the heart of everything that you do. Last but not least, I would like to thank our shareholders for their continued support, loyalty and confidence in the Laurentian Bank. We look forward to sharing our new strategic vision in a very near future. It is now my pleasure to invite Eric Provost, my colleague to take the floow. Eric?

[Interpreted] Thank you very much, Mike. Good morning, and thank you to all of you for attending Laurentian Bank's Annual Meeting of Shareholders. I'm honored to be here with you today at the helm of this organization that is a pillar of our society and has been for more than 150 -- 175 years. I'm very proud to be part of an institution that plays a leading role in helping Canadian families realize their dreams in reporting businesses to thrive and in helping our communities to flourish. It is a great privilege for me to lead this bank at this important time in its history. Looking ahead to fiscal 2023, -- the bank had a good start to the year, and we delivered several important initiatives for our customers. In Personal Banking, we continued to make good progress in launching new digital features to enhance the customer experience, including new [ interactive ] functionalities and improve the speed of deposits and offer customers more ways to receive funds. In Corporate Services, our team has continued their efforts to specialize in sectors with high added value for our customers. We also made good progress with our environmental, social and governance programs, ESG. And ESG remains a priority for us and for the bank. The second half of the year was more challenging. Our results were mainly influenced by 2 factors: the first one being the unstable macroeconomic environment; and secondly, our limited progress in reducing our cost structure. Macroeconomic conditions had an impact on business and consumer spending, which in turn affected our loan growth. During this period, the bank also decided to review its strategic options in order to maximize value for its shareholders and stakeholders. I sincerely believe that this was an important exercise because not only did it allow us to better understand the bank's positioning in the market, but it also provided us with key information that will help us better shape our future. In regards to our expenses, which included core capital expenditures, costs associated with the strategic review and unforeseen costs related to the breakdown of the bank's central system at the end of September, we have also failed as an organization to reduce our costs to an appropriate pace in recent years. This is why one of my top priorities as new CEO has been to redouble down our efforts to simplify our organization and achieve significant savings. Today, more than ever, every employee, manager and executive is committed to simplifying our organization and making better choices so that we can improve the bank's short-term performance while creating long-term value for all our shareholders. I would like to take a moment to talk about the central system failure. As you know now, the scheduled upgrade or a scheduled upgrade of our system was an upgrade. And for over 3 days, last September, the outage happened with LBCDirect and online banking platform. This outage had a significant impact on customers and caused totally unacceptable inconveniences. My first mandate as CEO was therefore to develop and implement a 3-part action plan to restore our customers' confidence. We quickly resolved all outstanding issues related to the outage. Secondly, we improved communications with our customers to ensure they receive timely updates on the full restoration of the bank's services. Thirdly, we have launched an exhaustive analysis of the factors that led to the breakdown and are adjusting internal processes in line with the lessons learned. Since becoming CEO, I have been pleased to announce organizational and leadership changes that will enable us to achieve our goals of being closer to our customers and more accountable to them. These changes include 4 internal promotions and the hiring of an external senior manager. I would also like to welcome our 3 new Board members. These appointments demonstrate the Board's commitment to the ongoing renewal of its membership, an essential element in improving its overall effectiveness, ensuring a balance of skills and experience and offering a diversity of viewpoints. As I said at the outset, this is an important moment in the Laurentian Bank's history. The decisions that we make today will pave the way for a better future. I firmly believe that we must understand the past knowledge order to shape the future. This refocusing of our core business is the best way to create maximum long-term value for you and all our stakeholders. In this end, at the start of fiscal 2024, we presented 3 strategic priorities to guide our organizational actions and decisions. First of all, becoming more customer-centric by developing an end-to-end vision of the customer experience and putting the customer at the center of everything that we do. Secondly, to simplify our organization by streamlining our products to focus on areas where we can win, investing -- number three, investing in technology. We will focus on managing the bank and investing in technology to improve our systems generate additional revenues and reduce costs. The process of renewing our strategic plan is well underway. This plan will enable us to place greater emphasis on areas where we can succeed to increase our competitiveness while maintaining our focus on improving the customer experience. As part of this renewal, we launched a review of all products and we are looking to do mapping of all end-to-end processes to help inform our decision-making as we seek to simplify our operating model. We have already taken steps to simplify our organization, such as when we announced a 2% reduction in our workforce at the start of fiscal 2024, a difficult but necessary decision. We need to make choices. I've pledged to all stakeholders that every decision that we will make will be thoughtful and focused on what's in the best interest of our customers and stakeholders. We also want to ensure the future of the bank's success. I'm looking forward to sharing details later this spring around the strategic plan. In closing, I'd like to sincerely thank the members of our Board of Directors for the confidence that you have placed in me and my team for your ongoing advice and support. Thank you as well to the extraordinary employees of the bank for your commitment, your continuous efforts to improve our operations and simplify our processes and thank you for your dedication to our customers. To our customers, thank you for your patience, your loyalty and your trust. You have my word that our teams are totally dedicated to your success and that we are looking forward to serving you every day. And to our shareholders, thank you for your continued support. The Laurentian Bank is built on solid foundations, and is in a strong capital and liquidity position. We are here for you, and we are more determined than ever to demonstrate our value and ensuring our long-term growth. Thank you. Have a nice day. I will now turn the floor over to Mike Boychuk.

[Interpreted] Thank you, Eric. Now I'll speak in some English for a little while. I would like to call the meeting to order. Good morning to everyone. Welcome to the 2024 Annual Meeting of the Shareholders of Laurentian Bank [indiscernible] satisfactory proof that the notice calling the meeting was duly publicized and sent to all shareholders of the bank. We've received proxies representing roughly 38% of the issued outstanding common shares. Accordingly, there is a quorum present, and I declare the meeting duly and properly constituted for the transaction of business. Accordingly, registered shareholders -- registered shareholders and proxy holders who have not already voted may vote their shares at this time. With the consent of the meeting, Ms. Martine Gauthier and Ms. Gale Demick of Computershare Trust Company of Canada will act as scrutineers and Ms. Bindu Cudjoe, our Executive Vice President and Chief Legal Officer and Corporate Secretary, will act as Secretary of the meeting today. First order, our first item in the presentation is the presentation rather of the bank's annual consolidated financial statements for the year ended October 31, 2023, and they're accompanying auditor's report. Unless there is an objection, I will dispense with the reading of the auditor's report. Are there any questions or comments regarding this resolution?

There are no questions or comments.

Great. Next, we will appoint the auditor. On the recommendation of the Board and its Audit Committee, I would like to recommend that Ernst & Young be appointed external auditors of the bank and to authorize the Board of Directors to fix the auditor's remuneration. [Interpreted] Can I have a motion for Ernst & Young as external auditors?

[Interpreted] Yes. I am a shareholder, and I propose that Ernst & Young be appointed until the next meeting of shareholders or until a successor being appointed and until we approve.

[Interpreted] Thank you, Mr. [indiscernible]. Can somebody second this motion?

[Interpreted] Yes, my name is [ Janessa Clark ], and I am a shareholder, and I support this proposal -- this motion.

Thank you, [ Janessa ]. Are there any questions or comments regarding this resolution?

There are no questions or comments.

Thank you, Bindu. [Interpreted] Please vote if it is not yet done. [Voting]

The next item of business is the number of directors to be elected at the meeting is 11. In accordance with the bank's bylaws and the recommendations of the Board and its Governance and Compliance Committee, all nominees are listed in the bank's management proxy circular and displayed on your screen for ease of reference. [Foreign Language]. [Interpreted] Can I have a motion, please? for the election.

[Interpreted] Yes, my name is [ Yanick Gagne ], I'm a shareholder, and I propose that each of the 11 candidates be appointed to the Board of Directors and continue their work until the next shareholders meeting or until the successors be appointed.

[Interpreted] Thank you, Mr. [ Gagne ]. Can somebody please support this motion.

[Interpreted] My name is [ Janessa Clark ]. I'm a shareholder. I support this motion.

[Interpreted] Thank you [ Janessa ]. Are there any questions or comments?

There are no questions or comments.

Thank you, Bindu. Next item is the vote on the non-binding advisory resolution concerning the bank's approach to executive officer compensation. The wording of this resolution is set out in the management proxy circular. [Foreign Language] [Interpreted] Can I have a motion with regards to compensation for the upper management?

[Interpreted] Yes, [ Yanick Gagne ]. I propose that this resolution with regards to the bank in terms of compensation, for members of upper management, the text is in the proxy circular. I propose that this be approved.

[Interpreted] Thank you, [ Mr. Gagne ]. Can somebody second this motion?

[Interpreted] My name is [ Janessa Clark ] and I am a shareholder, and I support this proposal, this motion.

[Interpreted] Thank you. Are there any questions or comments regarding this resolution?

There are no questions or comments.

Good. The next item is the shareholders' proposal. [indiscernible] will provide additional details.

[Interpreted] Yes. The bank received 8 proposals from the MEDAC. The proposal and supporting statements as well as the banks or responses are included in the appendix -- to the bank's management proxy circular. Following discussions with the MEDAC representatives, the MEDAC agreed not to put to a vote 5 of these proposals. Only 3 of them have been submitted to a shareholder vote. Before asking Mr. [indiscernible] to take the floor with regards to MEDAC proposals, I'd like to mention that we would like to express our most sincere condolences to the MEDAC following the death of their founder, Mr. [ Eve Misho ] last month. Mr. [ Savoy ]

[Interpreted] Yes. Thank you very much, Mr. Chair. Just a procedural question, do I present all of the proposals, even those that are not submitted to a vote in my comments.

[Interpreted] Well, that's your choice. Traditionally, it was mostly focused on the one's subject to a vote.

[Interpreted] Okay. Thank you very much, Mr. Chair. I will begin by the proposals that are submitted to the vote as mentioned. There are 3 submitted to a vote, 5 that will not be subject to a vote. So, I would like to draw your attention to Motion 4, Proposal 4, that the Board takes the time to think about the creation of a social fund dedicated to giving a certain percentage of the bank's results to Society for ESG environment and in equalities.. Now the Laurentian Bank, if I'm not mistaken, does not have a minimal threshold in terms of percentages of profits that are given to a nonprofit organization -- nonprofit organizations, and they are not involved Imagine Canada initiatives. So we invite upper management to be inspired by the [Foreign Language] in France, which was very proactive. Now obviously, in terms of environmental issues, we can understand that the French are a little bit more proactive. Europe is heating quicker than other continents around the world. And -- but we need more than just magic thoughts, because climate change will catch up to us as well. And so that's why we requested the bank to show initiative, and we invite upper management to be bold. And we believe that this is a choice that could be profitable on the long term according to, in our opinion, because these criteria are more and more important for investors, institutional investors who invest their money. And so we have to be prudent and bold. And I believe that in the long term, this will be something that will be extremely profitable for the bank. Now proposal 5, reasonable certification of the ESG report. So it is proposed that the Board submit in the next 3 years, an ESG report with reasonable certification and not just the write-up. And so again, we are inviting upper management to be bold. And they say in the circular that the bank needs to communicate pertinent, specific, exhaustive, clear, balanced, understandable, reliable, verifiable and adapted information to its levels and that it be in line with the future. So congratulations. And we invite you, we notice, and we invite you again to vote in favor of this resolution because we completely agree with upper management. So why not commit officially? And again, we have to imitate certain companies, which have been bold and proven their boldness, synergy and Pricewaterhouse, amongst others. So I invite shareholders and upper management present to consider attentively this position. Now like I mentioned, once we've got the investment criteria, there are some criteria very important beyond profits. It's not just a question of profits, but it's also a question of risk. And so for investors, I believe that over the medium and long term, when we invest in companies, banks, financial institutions such as ours that respect these criteria you will be able to understand that there will be a [ factor ] profitability situation because you put yourselves out there. And then public disclosure of nonconfidential information, declarations country by country, I mean I can read some of these off. We propose that the bank had disclosed information, the nonconfidential that our declarations for -- to the public around compensation and other contributions that are made, especially when we fight safe havens. So we -- when we fight against safe havens for money, that is -- should be an institution priority for all. And we believe that country-by-country disclosure allows the end of a type of disparity in treatment according to countries. So it's disclosure, and it would allow the Laurentian Bank to be a major player in the fight against the financial safe havens. And that is why I invite shareholders to vote in favor of this resolution in favor of more transparency. Very quickly, I just want to review the proposals that are not going to be subject to a vote. There was a proposal around incentive compensation for all employees regarding ESG, we are satisfied with the upper management initiatives on this topic. And between now and 2024, all management staff will be subject to these criteria. So that is why we accepted to not submit this proposal to a vote. And we estimate, like I stated, we estimate that we are completely satisfied. Now very quickly as well, motion or proposal #2, which, like I saw this morning that investments and -- our investors and people in upper management are very happy to see each other in person. That's why we removed the proposal on in-person votes because management expressed its desire to have in-person meetings. And in that respect, -- it goes in the same direction as Metro and CIBC and Air Canada, who understood how important it was to do this in person. Proposal #3, when it comes to language of -- or yes, language of staff that was respected, you read the circular stating that this information was published. We congratulate management for that. And finally, proposal #7 with regards to the appointment of auditors, we are very satisfied. And so just to say, I am involved in a nonprofit organization, which is almost 200 years old, and it's part of our bylaws to have a certain rotation of auditors and it allows for more transparency. And it allows members of our association to have a different view on financial statements from time to time because at that point, if there's a connection between managers and auditors, we get good information. So finally, with regards to points around the environment, the bank has taken very satisfactory initiatives for the environment between now and 5 years, nonbinding votes will be made on that topic. And I end by inviting investors here to vote in favor of our proposals, not only because they are bold, but because they will be on the medium and long term profitable for our investment, and our goal here is to make money, of course, in some ways.

[Interpreted] So thank you very much, Mr. [ Savoy ] for your comments. I know that the bank has a very good relationship with the MEDAC and we take into consideration your proposals each year. So thank you once again. We'll close shortly. So I will allow some time for voting to continue. [Voting]

Okay. Voting period is now closed. [Foreign Language]

[Interpreted] Vote is now closed. While our scrutineers count and confirm your votes, we open the meeting to any questions from shareholders and authorized proxies. Those present in the room, only those having received a yellow lanyard when they registered at their arrival may speak. Please come to the microphone or if participating virtually select the messaging icon on your screen. [Interpreted] If you would like to ask a question, please to the microphone or if you are participating virtually, please select the messaging icon on your screen. You may ask your questions in French or English as you prefer. Please provide your name and indicate whether you are a shareholder or a proxy holder before asking your questions. I will respond to your questions directly or have them addressed by someone on the stage a member of our leadership team. Questions received via webcast will be read in the language used to submit them. Well questions? [Interpreted] I think we have a question. Yes, several questions. Are you a shareholder?

[Interpreted] Yes, sir. My name is Paul Benito. I'm a shareholder. I'm watching the evolution of the Laurentian Bank. And I have to say that the average cost is a little higher than it currently -- well, was a little higher than what it is currently. The Laurentian Bank, at the time had a culture -- this was when they had a whole lot of heritage buildings, they had access to a fund at a relatively low cost. And with the spread and they could lend that money and get a good profit. All those branches were then sold. The Laurentian Bank existed during the '40s and the 60s when there was a lot of immigration. Immigrants went to Laurentian Bank. Now those immigrants are now much older, obviously. And you've got huge funds accumulated. So do the immigrants who worked very, very hard. But then you turn around and close the branches even though people went to them, immigrants specifically. And so what I heard was that people used to going to the counter have now gone to a bank and not Laurentian, because there is no more branch. And now you've got deposit certificates at 5%, 5.5% that you announce periodically. But the question is, is it more profitable for you to get funds through these deposit certificates or is it more profitable -- is there a real cost savings when you don't manage a branch anymore, do you pick up those funds and you replace them? Is that what happens? That's the first. That's my first question. That's my first question. And I just want to make sure -- like I have a couple of questions, so perhaps you want to take note of that one. Thank you for your patience, sir. Okay. So that's the first question. Second one is, it seems like you've stopped doing wealth management. You sold it. I don't -- you sold your wealth management department to Industrial Alliance. But the trend in banking these days is to hold on to that. You are a bank. And currently, in other brokerage firms, lots of brokers if they're not under management of they're are $250, 000 or $200, 000, where they don't generate a certain amount, for example, $500,000 in gross commission. If it's less than that, those people end up with net or a growth of 20%. In other words, it's better for them to go and work for the city of Montreal at $100,000 something, then risking the stress and the management that would come from a brokerage firm. So those brokers are currently available, and there are a few of them who are leaving these brokerage firms, the CIBC, RBC, et cetera, the requirements for productivity when it comes to assets under management are higher and higher. So the Laurentian Bank as being a bank, because it was a bank for investors, it was an element of security when it came to wealth management, wealth protection. And you have a department that you could have grown and you could have gone to pick up those brokers because currently, it's [ Deja Holdings ] and Industrial Alliance, we pick them up. And those people have assets of $50,000, $60,000, $100,000, $100 million. And often, these people are around retirement age. They don't want to be subject to any pressures that the big brokerage firms put them through. And so at the end of their career, they go to Industrial Alliance or D&D -- and eventually, when they retire, those assets are transferred to a younger broker, but there's an accumulation of wealth which is there and whether things go well or not, the money comes into the bank. Money comes in from wealth management. But it seems like you've taken that off your priority list. And clients from other banks refer clients and refer them to brokers. That's additional revenues in wealth management. It's a constant source of revenue. And you could have developed that market, so I don't understand why you did it. That's the second question. Now currently, you've got a BLC discount with an administrative structure in place, a back office, so to speak. Now by selling those brokers to Industrial Alliance, are you eliminating the critical mass that then justifies the expenses that come out of your back office because that's a structure in place, where there's enough revenue in place to maintain -- is there enough revenue in place to maintain those employees? Or are we expecting layoffs in the back office on the bond market. So you have a structure to develop, and you've not done that either. I know that you've got B2B in Toronto. These are just questions that are coming from my mind. And so -- when it comes to the internal structures, when people move money around, will there be layoffs? Have you rationalized that -- in other words, I get the impression -- I'm sorry, I get the impression that we're managing a lack of growth and not managing growth. That's my impression.

[Interpreted] Do you have a whole lot of more questions because there are other people who'd like to take the floor.

Okay. Okay. So where do you see profitability in branches? Where are you going now? What's the added value to the Laurentian Bank? What market will it dominate? Where do you see your growth?

[Interpreted] Thank you. Thank you for your questions. I will turn the floor over to Eric in just a minute, but I would like to confirm that I also have varying results in shares, share [ work ], and so we're going to work to change that. I'm also the product of immigration that you mentioned. My parents had bank accounts with different entities that became the Laurentian Bank. So we have things in common. For the rest of your questions, I will turn the floor over to Eric, and he will answer questions around the business, your pertinent questions.

[Interpreted] Thank you Mike, and thank you, Mr. Benito for your questions and your interest in being a partner with the bank. These questions are fundamental and management team is working on this within the context of our strategic plan. Now the first question that you asked with regards to our deposit, I think that diversification of deposits is the key to a good basis for a bank like ours. Now we have looked to -- we've looked toward deposits in growth for strategic plan, we know what we want to put into place. We want to ensure good diversification. And we want to have resources that will allow us to optimize our funds. In terms of now wealth management, as you mentioned, that's a strategic decision that we made. And from the get-go, when I began managing the bank, I clearly identified that we were going to work to maximize our customer experience and simplify the organization and ensure that we were going to pursue technological studies to be able to ensure our future, I must tell you that the decision made by or with wealth management is part of the strategy. I also agree with my management team that we were going to revisit our products and our processes and ongoing projects to ensure that we managed to provide the proper return on investment at the right value for our shareholders, and that is what we expect to do presently. In terms of strategic review that we will present later on in the spring. So to answer your second question, there will be more details to come when the strategic plan is disclosed in the spring. Now in terms of growth markets, we said that we wanted to emphasize the places where we feel that we will be able to win. And what we've done in the last years is that we have built specializations, and we're very proud. And we believe that with management -- the management team will be able to pursue this profitable growth and in targeted markets. And again, when the strategic plan will be unveiled, we'll be able to provide you with more and more details. Thank you for your questions, sir.

[Interpreted] Do we have any other questions from the room? Okay. I don't see questions on the monitor. I don't see any from the screen. No other questions? Okay. Thank you. Can we continue Madam Secretary?

Yes, indeed.

Okay. The vote of the counting report of the scrutineers has been delivered to the bank. [Foreign Language] [Interpreted] The resolutions and the consultative nonbinding vote with regards to the approach of the bank with regards to compensation for upper management have been duly adopted. Remuneration and the approval of the nonbinding advisory resolution concerning the bank's approach to executive officers' compensation have been duly adopted. [Foreign Language] [Interpreted] The following people are elected as Directors of the bank. The following persons are elected as directors of the bank. Sonia Baxendale, Andrea Bolger, Johanne Brunet, Laurent Desmangles, Suzanne Gouin, Jamey Hubbs, David Mowat, Éric Provost, Paul Stinis, Nick Zelenczuk and myself The shareholders proposals were not adopted as they did not receive a majority of the votes cast at the meeting were not adopted as they did not receive the requisite majority of votes cast at this meeting. [Interpreted] Ladies and gentlemen, thank you for attending the meeting today. This concludes the official agenda for the meeting. Can I get a motion to terminate the meeting, please.

[Interpreted] My name is [ Yanick Gagne ], I'm a shareholder, and I move to close the meeting.

[Interpreted] Thank you, Mr. [ Gagne ]. Would anybody like to second this motion?

[Interpreted] My name is [ Janessa Clark ], I am a shareholder, and I support this proposal.

Thank you. Ms. [ Clark ]. I declare this meeting to be terminated. Thank you for your attendance today. [Foreign Language]. Thank you to all, and see you next year. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]