Good morning. Welcome to the 2020 Annual Meeting of CIBC. [Foreign language] My name is John Manley. I am Chair of CIBC's Board of Directors. In these unprecedented times, the health and well-being of our clients, employees, and shareholders is our top priority. In support of public health efforts to manage COVID-19, we're holding this meeting virtually. However, it's important for us to meet in person with shareholders, and our intention is to resume our in-person Annual Meetings next year. [Foreign language] It's our entire team working together that enables us to be here for our clients.
Let me welcome our shareholders and guests who are joining our meeting today through our live webcast or listening on the telephone, and explain a little bit about how the meeting will proceed. Before doing that, though, let me, off the top, and with the support and approval of our CEO, mention with sadness the recent passing of the longtime Chair of one of our competitor banks, The Bank of Nova Scotia, Tom O'Neill. Tom was a champion of Canada. He was a great corporate director. He was a mentor and friend to many, both in his enterprises that he was directly involved with and outside. I was fortunate to count him a friend. He's a great loss to our community, and I'd be remiss in not mentioning him at the beginning of our meeting.
Remarks today will be made in both English and French, and simultaneous translation will be provided over both our English and French webcasts and phone lines. As is generally the case, the vast majority of shareholders have submitted their votes in advance of the meeting, and only a very small number of shareholders have decided to vote at the meeting. I want to thank all those shareholders who exercised their right to vote in advance. If you voted in advance and you do not wish to change your vote, no further action is required. Voting during this meeting can only be done through our virtual meeting platform. To vote, you will have logged into the webcast using your control number. You would have received that number with your meeting materials by mail or email.
Or you received it when you registered as a proxy holder with AST Trust Company, our transfer agent. Enter cibc2020, all lowercase, as your password. Once the voting has opened, the polling icon will appear in the navigation bar. After you vote, a message confirming your vote has been received will appear. The polls will remain open for all matters being voted on until the last item of formal business has concluded. If you wish to make a comment or ask a question, select the messaging icon at the top of your screen. Type your message in the text box at the bottom of the messaging screen. Please indicate whether you are a shareholder or a proxy holder. Your question may be about the motion being considered or more general in nature.
We'll address questions on a particular motion at the appropriate time in the meeting and save the general questions for the question period after the formal business. Once you have finished typing your question, click the submit button. Michelle Caturay, our Corporate Secretary, will read the question, and Victor or I will address it. If we receive a number of questions on the same topic, we will group the questions together and provide a comprehensive response. Unfortunately, we are unable to take questions from those of you participating solely by telephone. We will respond to as many questions as possible during the meeting. If we're not able to address your question here, we will respond to you directly after the meeting. The remarks you hear today may include forward-looking statements, and actual results could differ materially. Also, some of the matters discussed today may include reference to non-GAAP financial measures.
Details about forward-looking statements and non-GAAP financial measures are in our financial reports. I have received satisfactory proof that notice of this meeting was duly given and that a quorum is present. Therefore, I declare the Annual Meeting of Shareholders duly constituted, and I call the meeting to order. Welcome to the 153rd Annual Meeting of Shareholders of our bank. [Foreign language] We are pleased to be able to meet with you, our shareholders, in a virtual and safe environment this year. As I mentioned earlier, this meeting is being webcast in both English and French, and it will be available on CIBC's website at www.cibc.com for future reference. We also have captioning on our webcast. Conducting this meeting with me are Victor Dodig, President and Chief Executive Officer, and Michelle Caturay, Senior Vice President, Associate General Counsel, and Corporate Secretary.
Our executive management team and Board of Directors are also attending remotely. In the event of a technical disruption at my end, Kate Stevenson, Director and Chair of our Corporate Governance Committee, is at the ready to chair the meeting. Michelle Caturay will act as Secretary of the meeting. Both Kate and Michelle are shareholders. I will ask them to move and second motions put before the meeting. Jennifer Anderson and Pat Lee of AST Trust Company Canada will act as scrutineers. Our agenda for today's meeting will begin with the presentation of the 2019 annual financial statements, followed by remarks from our CEO, the election of directors, appointment of auditors, the advisory resolution on our executive compensation approach, and shareholder proposals. On completion of the formal business of the meeting, the Secretary will read the preliminary vote results and will move to questions.
First item, I'm pleased to present the annual financial statements and auditors report for the year ended October 31, 2019, which can be found in our annual report. CIBC's annual report, management proxy circular, and first quarter report are available on our website. Michelle, are there any comments or questions on the financial statements?
There are no comments or questions on this matter, John.
I'm now pleased to invite Victor Dodig, President and Chief Executive Officer, to address the meeting. Victor?
Thank you, John, and good morning, everyone. [Foreign language] They say life comes at you fast. A few weeks ago, we were planning to host our AGM in Edmonton, a great Canadian city with a warm heart, a diverse economy, and a city where our bank has a rich history. We were the first Canadian chartered bank to open there in 1891. In the days since, like every one of you, we were rapidly confronting the human, economic, and social impact of COVID-19. Today, we are hosting our first-ever virtual AGM in order to maintain social distance and do our part to help flatten the curve. [Foreign language]
They are dedicating the best of themselves to helping others under tough conditions. I also want to recognize the community heroes that are helping us get through this one day at a time: grocery clerks, pharmacists, sanitation workers, and good neighbors, all doing their part to help keep some normalcy in these unusual times. [Foreign language]
I would like to start by thanking our team because in this moment of truth for our bank and our clients, our team has risen to the challenge.
Exceptional period of acute change in our society, the over 40,000 members of team CIBC have stayed focused on our purpose, and that's to help make our clients' ambitions a reality. They are helping our clients by arranging payment deferrals to help alleviate financial stress. They are offering advice to major corporations who bank with us or to individuals and families to help them stay on course with their personal ambitions despite near-term uncertainty. They've been the face of our bank, empathetic, professional, and steadfast. We're proud of them. As they support our clients, we're supporting them with proactive measures to keep them safe and maintain safe physical distancing while serving our clients. To my team, to our team, I thank you. [Foreign language] Our bank has taken additional measures to ensure our clients feel supported through this time.
In Canada, we have implemented mortgage deferrals of up to six months for our clients and payment deferrals on other credit products. We've reduced interest rates on credit cards for clients experiencing financial hardship. We've created a dedicated contact center for business owners seeking payment relief. We're helping to protect our vulnerable communities by initiating special measures to ensure our seniors are served first in our banking centers when they call us to bank by phone. For our clients in the U.S., we are offering payment deferrals for both business and personal clients, as well as advice and counsel on how to manage through this challenging period. Our hope is that these measures will offer support to our clients today while we continue to plan for the long term. Having a long-term perspective in times like this is essential.
Today, I'll report on our 2019 and first quarter 2020 performance and highlight the strategic transformation of CIBC into a relationship-oriented bank for a modern world. Fiscal 2019 was a solid year for CIBC. We delivered pre-provision earnings of CAD 8.1 billion, an increase of 5% over the prior year. However, we also saw an increase in loan loss provisions in the second half of the year, primarily attributable to a small number of commercial and corporate accounts. Coupled with underperformance in our Canadian retail banking business, our bottom-line growth numbers were below our potential. For the full year, our earnings of CAD 5.4 billion and earnings per share of CAD 11.92 were both down 2% year- over- year. We maintained a return on equity of 15.4% for the year ahead of our 15% target. External factors weighed on our growth in 2019, including a continued low-interest rate environment.
We entered fiscal 2020 with opportunities within our control to accelerate our performance, and we made clear progress on these opportunities in the first quarter of 2020. Within personal and business banking, mortgage growth accelerated, long-term investment flows improved significantly, and we saw some improvements in our cards portfolio with higher purchase volumes. Within commercial banking and wealth management on both sides of the border, we continue to drive double-digit volume growth in funds managed. In capital markets, we continue to see the benefits of transforming our business, delivering record earnings in the first quarter. Taken together, we delivered a good first quarter in 2020 and demonstrated the growth potential of our bank. Clearly, the outlook across the economy has changed, which will affect our business in the near term. [Foreign language]
Our economists have revised their 2020 growth forecasts downwards in recent weeks as a result of the global economic impact of COVID-19.
Negative GDP growth of 3.9% in Canada for the full year in 2020 and negative GDP growth of - 3.3% in the U.S. The situation remains very fluid, and we may see further revisions to these forecasts as the year plays out. Clearly, these are uncertain times. In uncertain times, strength matters. CIBC is well positioned to support our clients through this challenging period. Our credit portfolio is strong. It's diversified and performing well. In the first quarter of 2020, we recorded a provision for credit loss ratio of 24 basis points, below our target of 30 basis points for the year. Our capital position is strong, with a CET1 ratio of 11.3%, giving us ample resilience, flexibility for investments in our business, and the financial strength to return capital to our shareholders.
The jurisdictions in which we operate, principally Canada and the United States, have strong, well-capitalized banking systems that are ready to meet the needs of our clients in this difficult period. Our bank's transformation has positioned us for growth. Simply put, over the last five years, we've become a different bank, with diversified revenue streams, strong client relationships, and greater opportunities for growth than we had just a few years ago. In uncertain times, history matters. We stand by our clients in challenging times. It's been true for us since inception in 1867, and it's true today in 2020. [Foreign language]
That brings us to today, as we deal with a significant disruption in the outside world. We're also in the midst of a significant transformation at CIBC, built around our clients.
Five years ago, we set out to build a relationship-oriented bank for a modern world, and we've made significant progress. A bank with a leading integrated commercial wealth platform to meet the needs of the private economy. A modern consumer and small business relationship-oriented bank in a differentiated capital markets business focused on relationships across our bank. Our strategy is working. We're increasingly the bank of choice for entrepreneurs in the mid-market to help manage their business and their personal wealth affairs. We've modernized our personal and business banking franchise by reshaping our physical presence with a focus on advice and maintaining our leadership in mobile banking functionality according to third-party research. We've modernized our business banking platform through SmartBanking for Business, allowing our clients to manage their banking, payroll, accounts payable, and other needs from a single platform.
We have transformed our capital markets business by better connecting our people, geographies, and capabilities to meet the needs of clients across our bank. One example of this is our Global Money Transfer service, which uses an innovative capital markets platform to provide foreign exchange and remittance services to our retail clients, generating recurring fee-based revenue. The foundation for our transformation is our focus in three key areas: repurposing our capital, our cost base, and our culture. Regarding our capital, we've made a series of strategic decisions in recent years to reallocate capital to our highest growth opportunities. The pending sale of our majority stake in CIBC FirstCaribbean is the most recent example. We expect to realize an incremental 40 basis points in tier 1 capital on closing. We have repurposed our cost base.
We're a more efficient bank today because we've simplified processes, leveraging new tools like artificial intelligence and more modern platforms to improve our efficiency ratio to 55% as of the first quarter of 2020. [Foreign language]
Our bank has an inclusive culture that enables our team to be their best for our clients.
Which have consistently improved in recent years. In the first quarter of this year, we achieved our highest-ever Ipsos Net Promoter Score in Canadian banking. It also shows in our employee survey results. In 2019, employee commitment at CIBC reached an all-time high for our bank after improving steadily over a number of years. It shows in our commitment to harnessing the strength of inclusion as an enabler of business growth. Diverse teams make better decisions and are better equipped to serve our clients by reflecting the communities where we live and work. We recently furthered our targets in this area, including committing to making 8%-9% of our 2020 hires persons with disabilities, making 2% of our 2020 hires from the Indigenous community, and we are targeting 35%-40% of our board or executive roles to be held by women by the year 2022.
[Foreign language]
As we've transformed our bank, we're also highly connected to changes in the external environment. Despite the crisis that faces us now, we also need to continue to make progress on long-term issues.
Central social and governance factors are influencing the flow of capital in key business decisions across almost every industry. Banks play a key role, both as an employer and a lender. In addition to the diversity targets I just mentioned, we made a commitment to CAD 150 billion in sustainable financing by 2027 to mobilize the capital necessary to create a more sustainable future. That leads me to my final comments about the impact our bank has on our communities. Our ties to the community are deep, both at a corporate level and right across our CIBC team. Nationally, our corporate donations and contributions from our team totaled CAD 79 million in 2019. Through our One for Change program, our team contributed 113,000 volunteer hours to charitable organizations last year, helping causes that are close to their heart. We're there at big events.
Over 15,000 team members took part in the Canadian Cancer Society CIBC Run for the Cure. Our team cycles, runs, walks, and gives their time to local clients, to local causes at various fundraising events all year long. We are also there in the everyday moments, helping at a shelter or at a food bank or in 100 other ways that strengthen our communities. In the wake of recent events and recognizing the disruption to the fundraising efforts of essential local charities, our bank made a CAD 750,000 contribution to charities and community organizations that provide vital services: food banks, blood services, and mental health support, as well as the World Health Organization. We continue to be there for local organizations that need help now more than ever. As a team, we are optimistic about the future. [Foreign language]
Today, CIBC is positioned to deliver continued growth to our shareholders over the long term, enable our team members to achieve their full potential, and to continue to help our communities thrive.
Right now, our efforts are focused on helping our clients get through a challenging time. In the longer term, we are confident CIBC is well positioned to help our clients achieve their ambitions and, by doing so, grow our business as we see return to economic growth and prosperity. Anyone invested in our bank should be incredibly proud and grateful for the work our CIBC team has done and continues to do for our clients. Their resolve and their relentless focus on our clients gives me great confidence that we're going to get through this challenging period and great optimism in what our bank will accomplish when we do. Thank you, [Foreign language] .
Thank you, Victor. On behalf of our Board of Directors, I'd like to thank you and the senior management team for the incredible job that you've been doing supporting our employees and clients and making a meaningful contribution to Canadian society during this pandemic while continuing our bank for the future. At this point, I'd like to move to the formal business of the meeting. For shareholders and proxy holders who have registered to access our online voting platform, polls are open and will remain open until we complete the formal business of the meeting. If you've already voted or sent in a proxy, no further action is required unless you wish to change your vote. The meeting is now open for the nomination of directors for the coming year.
First, I'd like to acknowledge our retiring Director, Linda Hasenfratz, who has reached our maximum tenure of 15 years. We've been very fortunate to have had the benefit of Linda's experience for the past 15 years, and we wish her much continued success. I might point out that Linda and her company, Linamar, are busy as we speak, having designed and are now producing respirators for the Canadian healthcare system at Linamar's facilities here in Ontario. On behalf of our shareholders, the board, and all employees of CIBC, I want to thank Linda for her dedicated service and contributions to CIBC's board and to each of our board committees. This year, the number of directors to be elected is 15. You see their photographs on the screen.
Their names are Brent Belzberg, Charles Dallara, Nanci Caldwell , Michelle Collins, Pat Daniel, Luc Desjardins, Victor Dodig, Kevin Kelly, Christine Larsen, Nicholas Le Pan, John Manley, Jane Peverett, Kate Stevenson, Martine Turcotte, and Barry Zubro. I call on Michelle for a motion.
I am pleased to move and second the nomination for election of each of the 15 persons named in the 2020 management proxy circular as a Director of CIBC until the close of the next Annual Meeting of Shareholders or until their successors are elected or appointed, whichever is earlier.
Thank you, Michelle. Are there any comments or questions on the election of directors?
There are no comments or questions on this matter.
I declare the nominations closed. All the persons nominated are standing for election. If you are a shareholder or proxy holder and have used your control number to log into our webcast, you may record your vote on the election of directors now. Please remember that if you voted in advance of the meeting and you do not wish to change your vote, no further action is required. Just pause briefly so that anyone wishing to do so may register their votes. Thank you. The next item of business is the appointment of auditors, and I'll call on Kate for a motion.
I move and second that Ernst & Young LLP be appointed as auditors of CIBC until the close of the next Annual Meeting of Shareholders.
Thank you, Kate. Michelle, are there any comments or questions on the appointment of auditors?
John, there are no comments or questions on this matter.
Once again, please record your vote on the appointment of auditors, remembering that if you voted in advance of the meeting and you do not wish to change your vote, no further action is required. The next item of business is an advisory resolution on executive compensation approach. The board considers this vote to be an important part of our shareholder engagement process, and we review the results of the vote when considering future executive compensation decisions. I'll call on Michelle for a motion.
I move and second that the shareholders accept the approach to executive compensation disclosed in CIBC's management proxy circular for the 2020 Annual Meeting of Shareholders.
Thank you, Michelle. Are there any comments or questions on the advisory resolution on executive compensation approach?
There are no comments or questions on this matter, John.
Once again, please record your vote on the advisory resolution on our approach to executive compensation. If you voted in advance of the meeting and you do not wish to change your vote, no further action is required by you. I'll pause briefly. This year, there are three shareholder proposals to be voted on. Le mouvement d'éducation et de défense des actionnaires, also known as MÉDAC, submitted four shareholder proposals and, after discussion with CIBC, agreed to submit only three of their proposals to a vote at today's meeting. Given our virtual meeting format this year, MÉDAC has agreed that I will present these proposals on their behalf and read statements that MÉDAC has provided in advance of the meeting. Let me begin with MÉDAC's prepared statement, which I'm reading on behalf of Willie Gagnon of MÉDAC.
Good morning, everyone. My name is Willie Gagnon , and I'm acting on behalf of the mouvement d'éducation et de défense des actionnaires, MÉDAC, which is a shareholder of the bank. This year, MÉDAC submitted the same three shareholder proposals to the seven major banks. All of the banks have refused to engage in group discussions of the proposals, this despite the fact that these three proposals related to important topics that concern all of the banks, and these issues cannot be resolved on an individual basis. These three proposals related to the compensation ratio, the digital security of personal information, and the banks' target for the number of women sitting on the Board of Directors. The banks have all refused to participate in a group discussion of these shareholder proposals. That refusal is unacceptable.
With this in mind, we have submitted the following proposals to the Canadian Imperial Bank of Commerce. They can be read in the bank's circular starting on page five of the French version. Proposal number one deals with the disclosure of the equity ratio. It is proposed that the bank disclose the compensation ratio or equity ratio used by the compensation committee in its compensation setting exercise. This is a classic proposal that has been submitted to the bank in the past. Not only is it a simple and relatively inexpensive measure, but it is also mandatory in the United States. We have our own method of calculating the compensation ratio, which compares the compensation of the highest-paid person at the bank with the average employee compensation based on the number of full-time equivalent employees and the total payroll.
The compensation ratio calculated for this year shows that the compensation paid to the bank's CEO, totaling CAD 9,017,000, represents approximately 71 x the average employee compensation. That is too much. In addition, it would be appropriate not only for the bank to take that ratio into account in calculating executive compensation, but also to disclose the ratio and the method by which it was calculated every year, if only to encourage standardization among public companies in particular. As always, we urge all shareholders to vote in favor of this proposal.
[Foreign language]
Mr. Gagnon, I apologize for my French, but I've made an effort.
I move and second proposal number one on disclosure of equity ratio as read to the meeting and as set out in CIBC's 2020 management proxy circular.
Michelle, are there any comments or questions regarding proposal number one?
There are no comments or questions on this matter.
Your board and management are recommending their shareholders vote against this resolution for the reasons set out in the management proxy circular. Please record your vote on shareholder proposal number one and remember that if you voted in advance of the meeting and you do not wish to change your vote, there is no further action required.
Diversity target. It is proposed that the bank adopt a target of more than 40% for the composition of its Board of Directors for the next five years. As appears from the table contained in our proposal, as set out in the circular, the banks have all adopted targets for the number of women sitting on the Board of Directors. The targets are either 30% or 1/3. In addition, all of the banks have exceeded their own targets. We would like these target numbers to be raised to 40% for both sexes. The banks play an important role in Canada's financial ecosystem. They have to set an example. As always, we urge all shareholders to vote in favor of this proposal.
Kate, could I have a motion?
I move and second proposal number two on diversity target as read to the meeting and as set out in CIBC's 2020 management proxy circular.
Michelle, are there any comments or questions regarding proposal number two?
There are no comments or questions on this matter.
Your board and management are recommending shareholders vote against this resolution for the reasons set out in the management proxy circular. Please record your vote on shareholder proposal number two, remembering that if you voted in advance of the meeting and you do not wish to change your vote, there is no further action required. With that, we'll go to proposition number three.
Competitiveness and protection of personal information. It is proposed that the Board of Directors inform shareholders of the investments that the bank intends to make over the next five years in updating its computer systems to enhance its competitiveness while better protecting personal information. Very serious breaches of digital security occurred in Canada's financial world in 2019. It is important to take those breaches specifically into account and to incorporate the lessons learned into the bank's digital security policies. We have agreed with some other banks that this proposal will not be voted on, further to their written acknowledgment in their respective circulars that these breaches that occurred in 2019 had been scrupulously taken into consideration, that remedial measures had been taken, and that those banks' digital security policies had been amended to reflect this. Perhaps the chair of the meeting would be prepared to discuss this today.
We hope so. As always, we urge all shareholders to vote in favor of this proposal.
Kate, could I have a motion, please?
Yes, Mr. Chairman. I move and second proposal number three on competitiveness and protection of personal information as read to the meeting and as set out in CIBC's 2020 management proxy circular.
Michelle, are there any comments or questions regarding proposal number three?
There are no comments or questions on this matter.
Your board and management are recommending shareholders vote against this resolution for the reasons set out in the management proxy circular. Please record your vote on shareholder proposal number three, remembering that if you voted in advance of the meeting and you do not wish to change your vote, there is no further action required. That completes the matters to be voted on. I'll pause for a further moment so that shareholders can finish voting. The polls are now closed. I will now read a statement submitted by MÉDAC regarding their shareholder proposition, which was withdrawn. Again, apologies, Mr. Gagnon. [Foreign language]
Proposal number four, dissatisfaction with a director. It is proposed that the Board of Directors inform the shareholders of the efforts it has made over the past year with regard to the significantly large abstention votes obtained by one of its directors.
We are satisfied with the bank's response to this proposal, and we suggest that shareholders read that response at page eight of the circular. Thank you, Mr. Gagnon, for your continuing engagement with CIBC on governance matters.
I have been advised that the scrutineers have their preliminary report ready. Michelle, would you please read the scrutineers' report?
The scrutineers report that 46% of eligible shares have been voted at this meeting. The shareholders present in person or represented by proxy have voted as follows. On the election of directors, a substantial majority of the votes cast at the meeting were voted in favor of each of the 15 nominees named in the management proxy circular. On the appointment of auditors, 98% for, 2% withheld. On the advisory resolution on executive compensation approach, 95% for, 5% against. On proposal one, disclosure of equity ratio, 8% for, 92% against. On proposal number two, diversity target, 9% for, 91% against. On proposal number three, competitiveness and protection of personal information, 3% for, 97% against. Of the three shareholder proposals, less than 550,000 shares abstained from voting. John, that concludes the report.
Thank you, Michelle. Based on the vote results, I declare that each of the 15 nominees named in the 2020 management proxy circular is elected as a Director of CIBC until the close of the next Annual Meeting of Shareholders or until their successors are elected or appointed, whichever is earlier. I declare that Ernst & Young LLP is appointed as auditor of CIBC, that the advisory resolution on our executive compensation approach is approved, and that the shareholder proposals are not approved. The vote results will be available after the meeting. At this time, we enter the comment period, and I invite shareholders and proxy holders with a question or comment about CIBC and its business to send your question online by selecting the messaging icon at the top of your screen. Type your message within the text box at the bottom of the messaging screen.
Once you've finished typing your question, click the submit button. Some shareholders sent questions in advance, and I will present those questions. The first one is from MÉDAC, again represented by Mr. Willie Gagnon , and I will read his question. [Foreign language]
It has been our practice for more than 20 years, as we have every right to do as a shareholder, to speak during the meeting in support of the shareholder proposals that we submit to the bank every year and at various other points during the meeting. It is not possible for us to speak this year, and we would therefore make the following comments. We are perfectly well aware of the reasons and the very unusual situation that the entire world is facing today with the global 2019 coronavirus disease pandemic. Under the circumstances, we understand the reasons, including government directives, why this annual general meeting of the bank's shareholders is being held in virtual form.
We also understand very well the reasons why some of the measures put in place to ensure that this meeting can be held are restrictive and that decisions regarding those measures had to be made very quickly. However, we share the opinion of the Canadian securities administrators and those of ISS and Glass Lewis in this respect. Virtual meetings should scrupulously preserve shareholder rights as guaranteed by custom, by legal authorities and jurisprudence, and by case law, as well as pursuant to the act and its regulations in both spirit and letter, starting with the right to speak. The very large number of annual shareholders' meetings that will exceptionally be held virtually this year must not become the norm for this purpose.
Obviously, the consideration that must prevail in choosing what should be made possible in the context of a virtual meeting is what it is possible to do at a regular meeting in person. No other consideration, especially not mere technical or cost considerations, should factor into that choice. In all cases, the essential justification for the current measures is the exceptional nature of the ongoing health crisis. Under normal circumstances, the situation would be quite different, and today's events cannot in any way serve as a precedent to justify things that will be done in future. We will be paying close attention to this in the interests of all shareholders and of society in general. Question: What would be different in the organization of our virtual Annual Meeting if the bank had prepared it in the normal course of business in the absence of any health crisis and emergency?
Thank you, Mr. Gagnon. We've organized a virtual Annual Meeting because of the COVID-19 crisis. Had that not been the case, our Annual Meeting would have taken place in person in Edmonton, as Victor Dodig has just said. We intend to hold our Annual Meeting in person in the normal course next year.
Michelle, do we have another questions?
Yes, I do. Linda Schway, a shareholder, submitted a question in advance of our meeting. Ms. Schway writes, "The governments federal, provincial, and municipal are helping a great deal, and I think that the bank should also do their part. The federal government has suggested that the banks give a six-month moratorium to people who cannot pay their mortgages at the moment for obvious reasons. To me, that sounds like a reasonable request. No one is saying that the mortgage should be forgiven, just a six-month mortgage break. The six months could be added to the length of the existing mortgage. I must say, I was so disappointed when I heard that one bank refused the moratorium for one client by saying that according to the rules, the client in question hadn't had the mortgage long enough to qualify for a moratorium.
That rule might make sense in normal times, but we are not in normal times. The bank originally approved them for a mortgage, and the moratorium was due to extraordinary circumstances completely beyond the control of these clients. Another bank has stated that they would not grant a moratorium to clients who aren't in good standing. For these people, the moratorium may be their last chance to improve their standing. I believe these people should be granted a moratorium. If their situation doesn't improve, the banks can always foreclose as a last measure. I may be a shareholder, but I'm also a Canadian. We're CIBC. We should be able to extend a six-month moratorium to our mortgage clients. Doing less would not allow us to call ourselves Canadian.
Would it not be possible for CIBC to grant moratoriums to all clients, regardless of how long they've had the mortgage and regardless of their standing at the moment?" That's Ms. Schway's question.
Good morning, Ms. Schway, and thank you for the question. We recognize that the current situation is presenting financial challenges for individuals, for families, and for business owners. To help offer relief to Canadians impacted by the economic consequences of COVID-19, our bank has introduced measures to provide assistance, including mortgage deferrals of up to six months. To date, we have received over 250,000 requests for payment deferrals on over CAD 30 million of outstandings across all our credit products, many of them for mortgages. In the vast majority of cases, these deferrals are approved. In unique situations where a deferral is not the best option, we will work with our clients on a specific approach that best meets their needs.
For our personal and business banking clients facing difficulties, we are committed to providing flexible solutions to help them manage through the challenges such as pay disruption, childcare disruption due to school closures, or those facing illness from COVID-19. CIBC has a long history of standing by our clients through challenging times, and this commitment will continue throughout this crisis and beyond. We appreciate your feedback.
Thanks, Victor. Michelle, any other questions?
Yes, John. We have a question from shareholder Chris. He writes, "While I understand that some stakeholders are adverse to the bank's financing of pipelines and other hydrocarbon companies, I believe that the bank, such as CIBC, should support Canada's energy companies, especially during the market downturn as energy is needed more than ever and the resilience of our country depends on energy. Canadian companies that are in the natural gas and oil sectors are conducting their businesses under highest human rights, environment, and regulatory standards. I would strongly encourage CIBC to continue its support of the energy industry. Please confirm your plan to do so."
Good morning, Chris, and thank you for your question. As a Canadian bank, the resource sector is an important contributor to our economy, and it will play an important part in ensuring an orderly transition to a low-carbon economy. I've often referred to it as part of our family business. Addressing climate change will require a balanced approach, one where CIBC will continue to support traditional energy sources and pipeline companies and their efforts to reduce emissions, as well as developing new opportunities around innovative products and services to address climate change. As I mentioned earlier in my remarks, we've also focused on renewable energy sources, where we launched a CAD 150 billion commitment through 2027.
Our bank is also at the forefront of financing these new and innovative projects that contribute to cleaner, alternative, or renewable energy supplies, including biogas, district energy systems, hydroelectric, solar, and onshore and offshore wind. We also have a meaningful business related to advising and financing sustainable infrastructure and green bond issuance, which we will continue to grow. Thank you for your question.
Thank you, Victor. Michelle.
John, we have a question from John Doe, Canada, shareholder. "Since CIBC has aggressively pursued the retail mortgage market with cracks in the CMBS market, have you revised your risk and bad debt expenses for this exposure?"
Good morning, John. I'm going to pass on the question for our CFO to answer, but I will say that we've pursued a very responsible growth of the retail mortgage market in Canada, and we pursue a very responsible approach to dealing with our clients during this difficult period. Hratch Panossian is our CFO, and he may want to address the question that you put forward.
Good morning, everybody. Bonjour to all. I think, as Victor said, we believe that our growth in the mortgage market in Canada has been responsible, and we will continue to be focused to responsibly manage that business going forward. Now, I should point out that the mortgage-backed securitization instruments in Canada have continued to function. We continue to have access to funding vehicles on the back of our mortgages. Your comments on CMBS markets may be more referring to other markets, but in Canada, we do not see any changes in any programs that would involve mortgages. In fact, we have seen more support for those programs through the recent actions by the government and regulators. Therefore, our financials do not need to reflect anything with that respect.
As always, our financials will continue to reflect the economics as well as the expected credit exposures of that asset class, as with any other asset class, if there are any changes.
Good. Thank you, Hratch. Michelle?
John, we have a question from multiple shareholders regarding dividends. Robin and David ask, "Will our bank maintain the dividend due to COVID-19?"
I'd like to thank you for your question and respond as follows. Dividends have always been an important component of return to our shareholders. We have consistently paid dividends since 1868, and we plan on continuing to pay them. Dividends that our bank pays are important to individual Canadians and to our other shareholders, including pension plans and mutual funds, which in large part represent individuals in Canada and abroad. We plan on maintaining our dividend payments. We know that over CAD 10 billion of dividends are paid through the Canadian banking system to individual shareholders. During this time of financial anxiety and hardship, it's important for us to continue paying those dividends as a bank. We're proud of our ability to be able to produce them. We're proud of our shareholders' support for our shares, and we will continue to pay them.
The final note I'd say is our regulator has asked all banks to hold back on buybacks and dividend increases during this period of time, which we think is a very prudent approach given what we're all going through.
Thank you, Victor. Michelle?
We have a question from shareholder MÉDAC. "How do you explain the decrease in executive compensation this year?"
That I guess would come to me, Victor. Of course, at CIBC and across, I'd say, across the financial sector, executive compensation is very, very much tied to the performance of the enterprise. I think we've seen a modest decline in compensation across the sector this year. That partly reflects that the results were more challenging in the circumstances that all of us faced in the economy over the past year. You had a bit lower result. I think shareholders should take some satisfaction from the fact that executive compensation is very much aligned with shareholder interests at CIBC. If the results for the shareholders are not as good, then the results for management will not be as good either.
John, there are no other questions to read to the meeting.
Thank you. Since we have no other questions from shareholders or proxy holders, I'd like to thank shareholders for participating in the meeting. I'd also like to thank once again employees, management, directors, and everyone who worked tirelessly on very tight deadlines to convert our Edmonton meeting into this virtual meeting for the first time that we've ever done this. We'll be anxious to hear from shareholders and other stakeholders whether the experience was satisfactory for them. It's not our, as I said earlier, it's not our desired way to hold a meeting, but we hope that it achieved all of the necessary objectives. With that and with no other questions, I declare the meeting to be terminated. Thank you very much.