Canadian banks’ strength shines in times of crisis: former Scotiabank CEO

Rick Waugh uttered the words, jokingly, well before fresh United States tariffs became a reality: “Gimme a crisis.”

He’d led Canada’s most international bank — Scotiabank — through events such as the global financial crisis in 2008 and the 2001 default in Argentina.

And yet, under his decade-long tenure as chief executive, Scotiabank’s profits tripled to $6.5 billion from $2 billion. He oversaw some 40 acquisitions with a roughly $13 billion value between 2003 and 2013.

Waugh returned to his hometown of Winnipeg this week with a message: Canada’s banks will be all right.

“We should recognize now, going forward, what we have,” Waugh said, donning a blue University of Manitoba commerce jacket inside the post-secondary institution.

He visited his alma mater Wednesday and addressed students.

The midweek event doubled as a chance for Waugh and journalist Howard Green to promote Gimme a Crisis, a book about Waugh’s experience at Scotiabank through various global shifts and upheavals. The Associates, a group of prominent business leaders with ties to the Asper School of Business, held its annual general meeting Wednesday evening; Waugh and Green were set to be interviewed in front of members.

The book’s publication date was cemented before Donald Trump became U.S. president, said Green. He wrote the book following hours of interviews with Waugh.

History on Canada’s banks and international crises fill the pages. Take the global financial crisis of 2008, Waugh said: Canadian banks fared better than other G7 countries. Canada has a strong system. This moment is an “opportunity,” Waugh added.

“If our neighbour does well, we do well,” he said, referring to the United States. “If it doesn’t work (for them), we’re gonna do well.”

Canada will still be seen as credible if America’s banking system collapses, Waugh said, adding he always considers risk.

He spoke to the Free Press ahead of the Associates’ annual general meeting.

“The challenge with the U.S. is the rule of law seems to change at the whim of one person,” said Manny Atwal, vice-chair of the Associates.

He planned to ask Waugh for advice during an on-stage discussion at the group’s AGM. Around 200 business executives could attend, Atwal estimated. He read Gimme a Crisis and looked for ties to the current moment.

“I think part of the key parallels is, you’ve got to think about who your customer is and who your client is,” said Atwal, People Corporation’s chief operating officer. “That’s got to be first and foremost.”

Waugh rose from a Scotiabank teller in Windsor Park to the company’s chief executive over four decades, ending with a 2013 retirement. He intentionally placed women in leadership positions during a time where women were sidelined and Waugh travelled to dangerous locations, like Argentina and Haiti, in periods of instability to help employees.

The feats are admirable and a good reminder to Manitoba’s business community to “push the status quo,” Atwal said.

gabrielle.piche@winnipegfreepress.com