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    Doug Young • Desjardins Capital Markets

    Doug Young's questions to Sun Life Financial Inc (SLF) leadership

    Doug Young's questions to Sun Life Financial Inc (SLF) leadership • Q2 2025

    Question

    Doug Young from Desjardins Capital Markets inquired about the long-term earnings outlook for the U.S. Dental business, the potential for goodwill write-offs, the reasons for a specific contract termination, and the impact of Hong Kong's MPF changes.

    Answer

    EVP & CFO Tim Deacon reforecasted the dental earnings trajectory but reaffirmed the U.S. segment's 12%+ medium-term growth objective, with dental contributing at least one-third. President - U.S. Dan Fishbein explained the contract loss was a unique situation and that repricing has been slowed by Medicaid funding uncertainty. President - Asia Manjit Singh quantified the MPF impact at approximately CAD $10 million per quarter.

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    Doug Young's questions to Sun Life Financial Inc (SLF) leadership • Q2 2025

    Question

    Doug Young from Desjardins Capital Markets inquired about the long-term earnings evolution for the U.S. Dental business, the status of its goodwill and intangibles, the reason for a specific contract termination, and the impact of Hong Kong's MPF changes.

    Answer

    EVP & CFO Tim Deacon explained that while the 2025 dental earnings target is no longer expected, the business is projected to contribute at least one-third of the U.S. segment's 12.5%+ medium-term earnings growth. He confirmed the goodwill has ample cushion. President - U.S. Dan Fishbein attributed the contract loss to a unique situation with a nonprofit client and noted that repricing is slowed by uncertainty around U.S. Medicaid funding. President - Asia Manjit Singh quantified the MPF impact at approximately CAD $10 million per quarter.

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    Doug Young's questions to Sun Life Financial Inc (SLF) leadership • Q1 2025

    Question

    Doug Young asked about the weaker U.S. group dental sales, the underlying earnings outlook for that business amid potential regulatory changes, and the rationale for renewing the NCIB at $10 million instead of the previous $15 million.

    Answer

    Daniel Fishbein, President of Sun Life U.S., attributed weaker dental sales to uncertainty around Medicaid funding, which is slowing RFP timelines, but noted the sales pipeline remains robust. EVP & CFO Timothy Deacon and President & CEO Kevin Strain explained the smaller NCIB renewal provides flexibility, balancing share buybacks with upcoming capital needs, such as the ~$2.3 billion SLC affiliate buy-ups, and maintaining prudence in an uncertain economic environment.

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    Doug Young's questions to Sun Life Financial Inc (SLF) leadership • Q4 2024

    Question

    Doug Young sought confirmation that the stop-loss business renews 100% annually, asked to quantify the morbidity impact, and questioned if the claims impact could be smoothed. He also asked for details on a onetime ASO reimbursement payment in U.S. Dental.

    Answer

    Daniel Fishbein (executive) confirmed that virtually 100% of the stop-loss business renews annually and that the morbidity loss estimate of ~USD 50 million was "spot on." He explained that while reserving already involves estimation, unanticipated events must be reflected quarterly. He clarified the dental provision was to reimburse ASO clients for services where Sun Life overpaid claims on their behalf, with no impact on loss ratios.

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    Doug Young's questions to Sun Life Financial Inc (SLF) leadership • Q2 2024

    Question

    Doug Young asked a high-level question about whether the quarter's $1.72 in underlying EPS represents the company's true earnings power. He also inquired about the U.S. stop-loss business, questioning the cause of negative morbidity experience and seeking details on pricing trends.

    Answer

    Kevin Strain, President & CEO, characterized the previous quarter as an anomaly and stated that the current quarter's results are a return to expected levels of underlying earnings. Daniel Fishbein, President of Sun Life U.S., explained that the stop-loss experience reflects a normalization of hospital utilization back to pre-COVID levels. He noted that year-to-date results are consistent with pricing targets and that Sun Life anticipates a firming pricing environment heading into next year.

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    Doug Young's questions to Manulife Financial Corp (MFC) leadership

    Doug Young's questions to Manulife Financial Corp (MFC) leadership • Q2 2025

    Question

    Doug Young from Desjardins Capital Markets challenged the valuation of the Comvest acquisition, asked about the sales decline in Japan, and questioned if the eMPF earnings drag could be offset.

    Answer

    President & CEO Philip Witherington and Global WAM CEO Paul Lorentz justified the Comvest valuation based on future value creation, revenue synergies, and its alignment with high strategic and financial hurdles, including exceeding the company's 18%+ ROE target. Asia CEO Steven Finch attributed the Japan sales decline to a tough prior-year comparison. Paul Lorentz noted that the net eMPF impact already accounts for expense management actions.

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    Doug Young's questions to Manulife Financial Corp (MFC) leadership • Q1 2025

    Question

    Doug Young of Desjardins Capital Markets inquired about the drivers of strong sales in Japan and Hong Kong, and questioned the path to achieving the 15% medium-term earnings growth target for Asia.

    Answer

    Incoming CEO Philip Witherington explained that Japan's sales are largely USD-denominated (around 80%), driven by customer demand for diversification and yield. In Hong Kong, strong demand for savings solutions is driving growth across all channels. Regarding the earnings target, he noted that after normalizing for ECL and a prior-year reinsurance transaction, Asia's underlying growth was about 11%, and the strong organic growth in the Contractual Service Margin (CSM) supports future earnings potential.

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    Doug Young's questions to Manulife Financial Corp (MFC) leadership • Q4 2024

    Question

    Doug Young asked for a quantification of the reinsurance impact on the $7 billion of 2024 remittances and whether this puts Manulife ahead of its cumulative target. He also inquired if the quarter's low expected investment earnings represent a new run rate.

    Answer

    CFO Colin Simpson stated that $750 million from a reinsurance deal contributed to the $7 billion remittance, marking a strong start to the four-year plan, but reiterated the go-forward expectation of 60-70% of core earnings. Executive Trevor Kreel confirmed that Q4's expected investment earnings level is an appropriate base for future modeling, with the decline driven by recent reinsurance transactions.

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    Doug Young's questions to Manulife Financial Corp (MFC) leadership • Q2 2024

    Question

    Doug Young of Desjardins Capital Markets asked about the increase in non-directly attributable (NDA) expenses and the future run rate. He also requested an update on the long-term care (LTC) insurance book, its drivers, and the impact of the reinsurance transaction.

    Answer

    CFO Colin Simpson attributed the $37 million NDA expense increase to investments like AI and a reclassification, advising the current level is a good run rate. Chief Actuary Steven Finch explained the modest negative LTC result was due to higher care costs and lower claim terminations, noting this was the first negative result in nine quarters and that favorable incidence continues to be an offset.

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    Doug Young's questions to Canadian Imperial Bank of Commerce (CM) leadership

    Doug Young's questions to Canadian Imperial Bank of Commerce (CM) leadership • Q2 2025

    Question

    Doug Young of Desjardins Capital Markets asked about the path to achieving the bank's 15%+ target ROE, given the current 13.9% level, and whether this target is achievable with a 13% CET1 ratio. He also requested a quantification of severance costs incurred during the quarter.

    Answer

    Victor Dodig, President & CEO, affirmed that the bank is on a clear path to its 15%+ ROE target, driven by deepening client relationships, efficiency gains, and capital deployment. Robert Sedran, Senior EVP & CFO, declined to quantify severance costs, describing them as a regular, run-rate item embedded in their operating philosophy rather than an unusual item.

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    Doug Young's questions to Canadian Imperial Bank of Commerce (CM) leadership • Q2 2025

    Question

    Doug Young asked about the path to achieving the 15%+ target ROE, questioning if the current quarter's 13.9% was a reasonable starting point and if the target is achievable with a 13% CET1 ratio. He also requested quantification of severance costs included in expenses.

    Answer

    Victor Dodig, President and CEO, affirmed the bank is on a path to its 15%+ ROE target, driven by deepening client relationships, ongoing efficiency gains, and disciplined capital deployment. Robert Sedran, CFO, stated that severance costs are not quantified as they are considered a regular, run-rate expense embedded in the bank's operating philosophy and were not an adjusting item.

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    Doug Young's questions to Canadian Imperial Bank of Commerce (CM) leadership • Q2 2025

    Question

    Doug Young of Desjardins Capital Markets questioned the path to achieving the 15%+ target ROE from the current 13.9%, asking if Q2 was a reasonable baseline and what levers would be pulled. He also asked for quantification of severance costs.

    Answer

    CEO Victor Dodig outlined a three-part strategy to boost ROE: deepening higher-return client relationships, continuing efficiency initiatives, and deploying excess capital. CFO Robert Sedran stated that severance costs were not quantified as they are considered a regular, run-rate operating expense and not an adjusting item.

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    Doug Young's questions to Canadian Imperial Bank of Commerce (CM) leadership • Q1 2025

    Question

    Doug Young of Desjardins Capital Markets asked for an explanation for the counter-intuitive decline in consumer net write-offs and delinquencies in Canada, and also questioned the disconnect between rising gross impaired loan formations and stable impaired PCLs.

    Answer

    Chief Risk Officer Frank Guse credited the strong consumer credit performance to a strategic focus on the resilient mass affluent segment and enhanced risk management infrastructure. He explained that the rise in gross impaired loans is primarily in the mortgage portfolio, which has very strong collateral with low loan-to-value ratios, and is therefore not expected to result in significant write-offs.

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    Doug Young's questions to Canadian Imperial Bank of Commerce (CM) leadership • Q3 2024

    Question

    Doug Young asked about the path to achieving CIBC's premium ROE target of 16%+, seeking details on the key drivers and the expected timeframe.

    Answer

    President and CEO Victor Dodig clarified that on a like-for-like basis with current capital rules, the target is closer to 14.5%. He outlined a multi-pronged strategy to improve ROE over the 'medium-term': deepening premium client relationships, enhancing cross-business connectivity, operating with a more optimized CET1 ratio, and scaling prior technology investments to drive returns and efficiency.

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    Doug Young's questions to Bank of Montreal (BMO) leadership

    Doug Young's questions to Bank of Montreal (BMO) leadership • Q2 2025

    Question

    Doug Young asked for clarification on what 'moderately' higher impaired PCLs means and inquired about the drivers behind the sequential decline in non-interest revenue.

    Answer

    CRO Piyush Agrawal clarified that 'moderately' implies a potential increase of a 'couple of basis points' due to trade uncertainty, not a return to 2024 levels. CFO Tayfun Tuzun attributed the lower non-interest revenue to the U.S. card portfolio sale, the shift of certain fees to NII in Canada, and the impact of three fewer days in the quarter.

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    Doug Young's questions to Bank of Montreal (BMO) leadership • Q2 2025

    Question

    Doug Young from Desjardins Capital Markets sought clarification on the comment that impaired PCLs might rise 'moderately' and asked about the drivers behind lower non-interest revenues in Canada and the U.S.

    Answer

    CRO Piyush Agrawal explained that 'moderately' higher PCLs implies a few basis points of increase due to the prolonged uncertainty from trade policies, but not a return to 2024 levels. CFO Tayfun Tuzun clarified that the non-interest revenue decline was impacted by the loss on the U.S. card portfolio sale, the shift of BA fees to net interest income in Canada, and fewer days in the quarter.

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    Doug Young's questions to Bank of Montreal (BMO) leadership • Q1 2025

    Question

    Doug Young asked for details on the liability-side optimization within the U.S. ROE improvement plan, the assumed CET1 ratio for the U.S. business, and the ultimate long-term ROE goal for the U.S. segment beyond 12%.

    Answer

    CFO Tayfun Tuzun explained that liability optimization focuses on improving the funding mix by growing consumer deposits to reduce reliance on higher-cost funds. He suggested modeling the U.S. business with a CET1 ratio similar to the enterprise target of 12.5%-13%. Over the long term (5+ years), he stated the goal is for the U.S. ROE to get closer to its pre-Bank of the West acquisition level of 15%.

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    Doug Young's questions to Bank of Montreal (BMO) leadership • Q3 2024

    Question

    Doug Young questioned the higher-than-guided Provision for Credit Losses (PCLs), asking what surprised the bank and seeking clarity on the timeline for returning to long-term averages in fiscal 2025.

    Answer

    Chief Financial Officer Tayfun Tuzun and Chief Risk Officer Piyush Agrawal explained that the PCL increase was driven by unexpected variability in a few large wholesale accounts, not systemic issues. They confirmed PCLs will remain elevated for the next 1-2 quarters before trending down towards their long-term average by the end of fiscal 2025, with the current 50 bps level being a reasonable starting point for the elevated period.

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    Doug Young's questions to Bank of Nova Scotia (BNS) leadership

    Doug Young's questions to Bank of Nova Scotia (BNS) leadership • Q2 2025

    Question

    Doug Young asked for details on the CET1 ratio movement, specifically the drivers behind the positive impact from LGD parameter updates and the increase in operational risk RWA. He also sought to quantify the expert credit judgment (ECJ) overlay related to trade uncertainty.

    Answer

    CFO Rajagopal Viswanathan explained the LGD parameter update was a regular process reflecting updated loss experience, while the operational risk RWA increase was a minor adjustment. President and CEO Scott Thomson confirmed 12.5% is the comfortable floor for the CET1 ratio. Chief Risk Officer Philip Thomas quantified the ECJ, stating it constituted over 60% of the performing PCL build over the last two quarters.

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    Doug Young's questions to Bank of Nova Scotia (BNS) leadership • Q2 2025

    Question

    Doug Young sought clarification on the drivers of the CET1 ratio, specifically the impact of parameter updates and operational risk RWA. He also asked for a quantification of the expert credit judgment (ECJ) overlay used in the PCL build.

    Answer

    Raj Viswanathan, CFO, described the LGD parameter updates as a routine process and the operational risk RWA increase as minor. Scott Thomson, CEO, confirmed that 12.5% CET1 is the bottom end of the bank's comfortable operating range. Phil Thomas, CRO, quantified the ECJ, stating it accounted for over 60% of the performing PCL build over the last two quarters.

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    Doug Young's questions to Bank of Nova Scotia (BNS) leadership • Q1 2025

    Question

    Doug Young pressed for details on the impact of potential tariffs, asking where the PCL rate guidance would go if tariffs are implemented as proposed, seeking a potential range.

    Answer

    Chief Risk Officer Philip Thomas declined to provide a specific range, citing numerous variables like the size, duration, and government response to tariffs. He emphasized that if tariffs are imposed in Q2, the bank will make a 'sizable, but manageable build' to allowances, expressing confidence in the bank's strong capitalization to navigate the impact.

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    Doug Young's questions to Bank of Nova Scotia (BNS) leadership • Q3 2024

    Question

    Doug Young requested details on the recent uptick in PCLs in Mexico and an update on the strategic plan for the bank's operation in Colombia.

    Answer

    Chief Risk Officer Philip Thomas attributed the PCL increase in Mexico to a single commercial account in the retail sector. Francisco Aristeguieta, Head of International Banking, explained that the Colombia operation's losses reflect a challenged local market. The current strategy is disciplined expense reduction and selective credit deployment, but he reiterated that capital will be redeployed if a path to acceptable returns does not emerge.

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    Doug Young's questions to Toronto-Dominion Bank (TD) leadership

    Doug Young's questions to Toronto-Dominion Bank (TD) leadership • Q2 2025

    Question

    Doug Young of Desjardins Capital Markets asked for clarification on the specific point-of-sale business being exited, inquired about other potential business wind-downs, and questioned the cause of a sequential drop in Canadian banking non-interest income.

    Answer

    Leo Salom, President and CEO of TD Bank AMCB, clarified the exit pertains to the Retail Card Services (RCS) business, not the strategic co-branded cards like Target. CEO Raymond Chun deferred comments on other exits. Sona Mehta, Group Head of Canadian Personal Banking, attributed the non-interest income dip to fewer days in the quarter, moderated FX spend, and lower merchant fees.

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    Doug Young's questions to Toronto-Dominion Bank (TD) leadership • Q2 2024

    Question

    Doug Young from Desjardins Securities inquired about the drivers behind the 50-basis-point drop in the CET1 ratio, specifically seeking details on credit migration and a quantification of the upcoming operational risk impact from legal provisions.

    Answer

    Ajai Bambawale, Chief Risk Officer, detailed that credit migration was observed in U.S. Retail commercial and auto, Canadian consumer auto and commercial, and across various wholesale industries. Kelvin Tran, CFO, specified that the operational risk RWA impact from these items in Q3 is expected to be approximately 12 basis points.

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    Doug Young's questions to Great-West Lifeco Inc (GWLIF) leadership

    Doug Young's questions to Great-West Lifeco Inc (GWLIF) leadership • Q1 2025

    Question

    Doug Young of Desjardins Capital Markets inquired about the significant sequential increase in the seg fund component of the LICAT ratio, the amount of capital dividended from operating companies to the holding company, and the forward-looking run rate for earnings on surplus.

    Answer

    Group CFO Jon Nielsen explained that new OSFI guidance on seg funds impacted the LICAT ratio by approximately 2 percentage points. He also confirmed that $1.1 billion was dividended up to the Holdco during the quarter. Regarding earnings on surplus, Nielsen noted that a sustained interest rate drop has an ~$80M annualized impact, with half coming from surplus, primarily in Canada and at Lifeco.

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    Doug Young's questions to Great-West Lifeco Inc (GWLIF) leadership • Q1 2025

    Question

    Doug Young asked about the significant sequential increase in the seg fund component of the base solvency buffer, its impact on the LICAT ratio, and the amount of capital dividended from the operating company. He also inquired about the future run rate for earnings on surplus.

    Answer

    Group CFO Jon Nielsen explained that new OSFI guidance on seg funds had a 2-point negative impact on the LICAT ratio. He confirmed strong capital generation and a dividend of approximately $1.1 billion from the operating company to the Holdco. Regarding earnings on surplus, he noted the sensitivity to lower rates is about $80 million annually, with half impacting surplus, principally in Canada and at Lifeco due to shorter duration. CEO Paul Mahon added that the company's seg fund book is relatively low-risk.

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    Doug Young's questions to Great-West Lifeco Inc (GWLIF) leadership • Q1 2025

    Question

    Doug Young asked about the significant sequential increase in the seg fund component of the base solvency buffer, its impact on the LICAT ratio, the amount of capital dividended from Opco to Holdco, and how to model future earnings on surplus.

    Answer

    Group CFO Jon Nielsen explained that new OSFI guidance on seg funds created a 2-point impact on the LICAT ratio. He confirmed that approximately $1.1 billion was dividended up from Canada Life Assurance to the holding company. For modeling, he provided a sensitivity of an $80 million annualized impact to base earnings from lower rates, with half of that affecting earnings on surplus, primarily in Canada and at Lifeco.

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    Doug Young's questions to Great-West Lifeco Inc (GWLIF) leadership • Q4 2024

    Question

    Doug Young of Desjardins Capital Markets inquired about the rationale and potential limitations of the new stock buyback program. He also asked about the drivers behind the significant pickup in structured product sales in the Capital and Risk Solutions (CRS) segment.

    Answer

    President and CEO Paul Mahon and CFO Jon Nielsen described the buyback as one tool in a broad capital allocation toolkit, emphasizing that organic and inorganic growth investments remain priorities. They noted the company has significant financial flexibility and other tools available. Jeff Poulin, EVP of Reinsurance, attributed the strong CRS results to typical Q4 seasonality, two large asset-intensive transactions, and a successful long-term partnership approach with ceding companies.

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    Doug Young's questions to Royal Bank of Canada (RY) leadership

    Doug Young's questions to Royal Bank of Canada (RY) leadership • Q3 2024

    Question

    Doug Young asked for more detail on City National Bank's performance, seeking quantification of non-core losses and PCL releases to understand if its adjusted earnings represent a sustainable turning point. He also inquired about the intentionality of the decline in market risk RWA.

    Answer

    Interim CFO Katherine Gibson clarified the non-core charges relate to simplifying the business. CEO David McKay added that significant cost take-out (nearly 500 FTEs) and balance sheet repositioning are underway. Chief Risk Officer Graeme Hepworth explained the PCL release was due to more favorable rate cut expectations. Regarding RWA, Derek Neldner, Group Head of Capital Markets, stated there has been no material shift in risk appetite, and the reduction is due to tactical capital optimization.

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