'Now’s a good time': Canada’s biggest Indigenous-owned bank plans major expansion
Canada’s biggest Indigenous-owned bank is planning a major expansion that will raise as much as $50 million to reach more customers.
Saskatoon-based First Nations Bank of Canada aims for an issuance later this year that could expand its capital by as much as 50 per cent, with a goal to double its $600 million loan book over the next few years, chief executive Bill Lomax said in an interview. This may be the first of two equity raises in the next couple of years, he said.
“Now’s a good time to do it,” Lomax said of the capital raise, citing more than a decade of dividend payments and record profitability. “We’re looking at a community that is starting to skyrocket in terms of the opportunity set.”
The move underscores how First Nations, Metis and Inuit communities are becoming a bigger financial force in Canada. This week, Lomax spoke at a conference in Toronto — Canada’s financial capital — hosted by the First Nations Major Projects Coalition, a group of more than 150 First Nations working to develop and benefit from infrastructure and resources on their traditional territories.
Deputy Prime Minister Chrystia Freeland also appeared at the summit to discuss a federal plan announced earlier in the month to guarantee as much as $5 billion in loans to Indigenous groups. Lomax said he hopes First Nations Bank will play a role in the loan-guarantee program.
Lomax became First Nations Bank’s second CEO last year, after eight years at Goldman Sachs Group Inc. The Canadian lender received its official charter in 1996 and is about 86 per cfent owned by First Nations, with most of the rest held by Toronto-Dominion Bank.
Some existing shareholders will likely put in more capital as part of the expansion. TD Bank won’t contribute
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