The CEO of the National Bank, Laurent Ferreira, received yesterday The newspaper in the future head office of the institution, still under construction in Montreal.
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How important is this new $500 million tower for National Bank?
It will be more than the head office of the National Bank. We want it to be a symbol for Montreal and for Quebec. There are five major banks in Toronto and we have one in Montreal.
With teleworking, will you have to sublet part of the 40 floors?
No. We’re going to keep the whole tower for the National Bank. When we designed it, in 2018, we had in mind 7,000 employees, or 70% of those working in Montreal. We have reached 12,000 employees in Montreal, so we need the tower. We’ll take care of it.
You recommend that your employees be in the office 40% of the time. For what ?
In September, we announced that we wanted a better balance between home and office. This morning, at our annual meeting, I mentioned that the business community has a responsibility towards the ecosystem of Montreal, that is to say the merchants. I think we need a better balance, which means going a little more towards the office.
Do you still see interest rates going up?
I think we’re in the cap right now. Rate cuts, I don’t see that until the middle of next year. The Bank of Canada has implemented a pause, which is a very good thing because we have not yet felt the full impact of the rate hikes. But it is still too early to think of declines. Inflation is still above 4%.
Have you had to accommodate clients who were having difficulty paying their mortgage?
Until now, no. A third of our clients have variable rates. For the moment, we do not see any impact on payment defaults. Generally, what we get as a message from our clients is that everything is fine and that they are able to manage this rate increase.
How is the Quebec economy doing?
We feel resilient. We are seeing a slowdown, but we are still seeing resilience at the business level. Savings remain high; employment as well, which is a very good sign. I’m still surprised. You gradually learn to live with higher levels.
How has the US regional banking crisis affected banking?
When there is a crisis of confidence in the banking sector, it scares everyone. We still fear a contagion. But we are a systemically important bank in Canada. We have a business model that is more like that of the largest banks in Canada and the United States. We have stricter rules for capital and stress tests.
What are you doing to avoid falling victim to a cyberattack, as Hydro-Québec and Investissement Québec recently did?
We are constantly investing in technology. The person in charge at the National Bank, Julie Lévesque, does not need to ask my permission to spend money to protect the bank and the financial data of our customers. Corporate culture is also very important. We must repeat, we must continue to explain that there are always threats. I personally receive at least two, if not three emails a day that are phishing attempts!
Will traditional banks still be able to turn their backs on the world of cryptocurrencies?
Personally, I don’t think it’s a real world. We will come back to earth! It is a speculative tool. There are clients who want to trade these products. They can do this with funds or other products. But we will not acquire cryptos or cryptocurrency platforms. We will not keep cryptos for our customers. I have no interest in that.