May 2010
A message from our CEO
On April 1, 2010, the sale of our corporate trust business to BNY Mellon, our U.S. parent company, officially closed.
I believe that this is a strong step forward in strategically aligning CIBC Mellon around its asset servicing business, and I would like to highlight a few specifics about the transaction.
"Corporate trust" refers to our debt trusteeship offering and its related services provided through CIBC Mellon Trust Company. Overall, this part of our business was a small one (representing less than four per cent of our total revenue).
When the merger between Mellon Financial Corporation and The Bank of New York occurred in 2007, the only overlap between the two companies in Canada was the corporate trust businesses of CIBC Mellon and BNY Mellon. Since the merger it has been our intent to streamline these businesses under one provider. Given BNY Mellon’s position as the leading provider of corporate trust services in the world, and its long-term relationship as one of our parent companies, BNY Mellon’s acquisition of our debt trusteeship offering is the natural strategic move to streamline these services in Canada.
The CIBC Mellon joint venture between CIBC and BNY Mellon remains very strong. Bob Kelly, chairman and chief executive officer of BNY Mellon, reinforced its strengths in an interview with the Business News Network's Howard Green shortly after the corporate trust transaction took place. Gerry McCaughey, president and chief executive officer of CIBC, recently cited the CIBC Mellon joint venture as an example of how CIBC has been able to grow its business during his remarks to shareholders at CIBC’s annual general meeting.
The sale of our corporate trust services business allows us to further focus on delivering a market-leading asset servicing experience for our clients.
We are ramping up our asset servicing client information sessions and looking at new and innovative ways to provide you with the latest insights on industry trends and developments. We are exploring new products that can help increase your productivity. Delivering exceptional support remains the backbone of our client service approach and we are dedicated to continually strengthening our service levels to meet your evolving needs.
These are exciting times for CIBC Mellon and for you, our valued clients. We look forward to continuing to working closely with you to help you achieve your growth objectives.
Tom
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Trade Talk® is provided for general information purposes only and CIBC Mellon Global Securities Services Company, CIBC Mellon Trust Company, CIBC, The Bank of New York Mellon Corporation and their affiliates make no representations or warranties as to its accuracy or completeness. Readers should be aware the content of this publication should not be regarded as legal, tax, accounting, investment, financial or other professional advice nor is it intended for such use.
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