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    Ebrahim Poonawala • Bank of America

    Ebrahim Poonawala's questions to Cullen/Frost Bankers Inc (CFR) leadership

    Ebrahim Poonawala's questions to Cullen/Frost Bankers Inc (CFR) leadership • Q2 2025

    Question

    Ebrahim Poonawala from Bank of America questioned when shareholders could expect to see bottom-line earnings growth from the multi-year expansion strategy, noting that earnings have been flat while expenses have grown. He also asked for the outlook on non-interest-bearing deposit (DDA) balances.

    Answer

    Chairman and CEO Phillip Green projected significant earnings accretion from the expansion program starting in 2026, noting that recent expense growth also includes investments in technology and personnel. CFO Dan Geddes provided market share data for Houston and Dallas to illustrate the long-term growth runway. Regarding deposits, both executives expressed cautious optimism that DDA balances are near a bottom and are beginning to show signs of returning to seasonal growth patterns.

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    Ebrahim Poonawala's questions to Cullen/Frost Bankers Inc (CFR) leadership • Q4 2024

    Question

    Ebrahim Poonawala asked about the long-term branch expansion strategy, questioning if the current pace was sufficient given the market opportunity and if there were plans for further acceleration.

    Answer

    CEO Phillip Green affirmed that the expansion is a 'durable and scalable' strategy that will continue with a 'regular cadence.' He explained that after completing current build-outs, the bank will revisit major markets to fill in gaps and follow population growth. CFO Dan Geddes supported this by highlighting the bank's low market share in Houston and Dallas, which provides significant room for continued growth.

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    Ebrahim Poonawala's questions to Cullen/Frost Bankers Inc (CFR) leadership • Q3 2024

    Question

    Ebrahim Poonawala from Bank of America inquired about the primary drivers of deposit acquisition without promotional pricing and the competitive landscape for lending, including pressure from other banks and private credit.

    Answer

    CEO Phillip Green attributed strong deposit growth to a combination of factors: the physical branch expansion, world-class customer service driving word-of-mouth referrals, a highly-rated mobile app, and more effective marketing. On lending, Green noted that competition is intensifying, particularly on structure, which Frost avoids. He acknowledged private credit is a factor, often providing bridge financing for commercial real estate projects, but stated that Frost's consumer lending growth is driven by unique products like home equity loans in the current rate environment.

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    Ebrahim Poonawala's questions to Northern Trust Corp (NTRS) leadership

    Ebrahim Poonawala's questions to Northern Trust Corp (NTRS) leadership • Q2 2025

    Question

    Ebrahim Poonawala questioned whether any M&A scenario would be considered given the firm's stated commitment to independence and also asked about the strategy for the pace of share buybacks.

    Answer

    Chairman and CEO Michael O'Grady reiterated that the company is focused on its independent strategy, which they believe offers a unique value proposition for clients, though small, capability-enhancing acquisitions could be considered. EVP & CFO David Fox added that the pace of buybacks is determined by multiple factors including regulatory capital, earnings, and ROE, not just stock valuation, and that the current pace is healthy.

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    Ebrahim Poonawala's questions to Northern Trust Corp (NTRS) leadership • Q1 2025

    Question

    Ebrahim Poonawala asked for specific proof points on the success of recent expense management initiatives and inquired about the sensitivity of Net Interest Income (NII) to potential interest rate cuts.

    Answer

    CEO Mike O'Grady detailed progress on efficiency through workforce optimization, location strategy, and technology deployment like machine learning and generative AI. He noted the move to a centralized operating model is a longer-term driver. CFO David Fox stated that NII is not highly sensitive to initial rate cuts, estimating a 25 basis point cut would impact NII by less than $1 million per month.

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    Ebrahim Poonawala's questions to Northern Trust Corp (NTRS) leadership • Q3 2024

    Question

    Ebrahim Poonawala asked for perspective on the recent leadership changes and their impact on operational efficiency, and questioned if Net Interest Income (NII) could continue to grow from its strong Q3 level.

    Answer

    CEO Mike O'Grady explained the leadership changes align the organization with its strategy to drive operational excellence and scale, highlighting the new COO role. Then-CFO Jason Tyler noted that while Q3 NII was strong due to favorable deposit repricing, anticipated rate cuts make further growth unlikely, guiding for Q4 NII between $550 million and $560 million.

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    Ebrahim Poonawala's questions to East West Bancorp Inc (EWBC) leadership

    Ebrahim Poonawala's questions to East West Bancorp Inc (EWBC) leadership • Q2 2025

    Question

    Ebrahim Poonawala of Bank of America Merrill Lynch questioned the 7%+ NII growth guidance, which implies flat performance in the second half, and asked about client sentiment regarding investment pace and the impact of tariffs.

    Answer

    EVP & CFO Christopher Del Moral-Niles confirmed the bank's asset sensitivity, noting that fewer rate cuts or stronger loan growth could lead to upside on the NII guidance. Chairman & CEO Dominic Ng added that client sentiment is improving as they gain more certainty around tariffs, highlighting that many clients are experienced in navigating such situations and the bank's portfolio is highly diversified.

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    Ebrahim Poonawala's questions to East West Bancorp Inc (EWBC) leadership • Q1 2025

    Question

    Ebrahim Poonawala asked about the bank's approach to share buybacks given the stock's pullback amid macro uncertainty, and questioned if risks from U.S.-China tensions are greater now than in 2018-19.

    Answer

    CFO Christopher Del Moral-Niles stated the bank will be opportunistic with its $244 million buyback authorization while prioritizing a position of strength. CEO Dominic Ng added that clients are better prepared for tariffs now than in 2017, having diversified supply chains. He noted that directly impacted clients represent only 1% of the C&I loan portfolio and the bank is working closely with them, seeing no immediate credit loss risk.

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    Ebrahim Poonawala's questions to East West Bancorp Inc (EWBC) leadership • Q4 2024

    Question

    Ebrahim Poonawala questioned the outlook for commercial real estate (CRE) loan balances, potential credit risk from higher rates, and whether the bank's best-in-class efficiency ratio is expected to trend higher due to ongoing investments.

    Answer

    CFO Christopher Del Moral-Niles stated that CRE growth will be muted as the bank focuses on C&I and residential lending. CRO Irene Oh added that a modest rate increase is not expected to significantly impact credit risk. Regarding efficiency, CEO Dominic Ng explained that the primary focus is on ROE, ROA, and EPS growth, and a slight increase in the efficiency ratio from its current low level would not be a concern as the bank diversifies into fee-generating businesses.

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    Ebrahim Poonawala's questions to East West Bancorp Inc (EWBC) leadership • Q3 2024

    Question

    Ebrahim Poonawala of Bank of America asked about the potential for loan growth to return to historical high single-digit levels post-election. He also inquired about plans for branch network expansion and sought clarity on potential non-organic growth opportunities.

    Answer

    Chairman and CEO Dominic Ng stated the bank is positioned with a "fortress-like balance sheet" but the post-election economic environment remains uncertain. He confirmed no current plans for new branches. CFO Christopher Del Moral-Niles added that fee-driven M&A opportunities are of interest, but the appetite for depository acquisitions is "light right now."

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    Ebrahim Poonawala's questions to KeyCorp (KEY) leadership

    Ebrahim Poonawala's questions to KeyCorp (KEY) leadership • Q2 2025

    Question

    Ebrahim Poonawala from Bank of America Merrill Lynch questioned the path to achieving a 3% Net Interest Margin (NIM) by 2026 and whether it would require a larger balance sheet. He also requested details on the plan to increase frontline bankers by 10%.

    Answer

    CFO Clark H. I. Khayat affirmed the 3% NIM target by the end of 2026, stating it could be reached without significant balance sheet growth due to favorable asset mix shifts and capital markets distribution. Chairman & CEO Christopher M. Gorman specified that the 10% hiring increase targets investment bankers, middle market relationship managers, wealth managers, and payments advisers to drive future growth.

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    Ebrahim Poonawala's questions to KeyCorp (KEY) leadership • Q1 2025

    Question

    Ebrahim Poonawala from Bank of America asked for clarity on the outlook for project loans and client CapEx decisions given the high level of uncertainty. He also inquired about the new $1 billion share repurchase authorization, seeking details on the target CET1 ratio and the expected timing and pace of the buybacks.

    Answer

    Chairman and CEO Christopher Gorman clarified that while existing, in-flight CapEx projects are proceeding, new project launches are being paused by clients pending greater visibility. Regarding the buyback, he stated the target is a 9.5% to 10% marked CET1 ratio. He emphasized that repurchases would likely commence in the second half of the year, but the pace depends on gaining clarity on the economy and Basel III endgame rules, with client support being the top priority for capital.

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    Ebrahim Poonawala's questions to KeyCorp (KEY) leadership • Q4 2024

    Question

    Ebrahim Poonawala from Bank of America Merrill Lynch asked about the historical correlation between M&A activity and lending demand. He also inquired about the 2025 outlook for deposit growth, funding mix, and the trend for average earning assets.

    Answer

    CEO Christopher Gorman confirmed that a robust M&A market is historically positive for lending, partly due to private equity's use of leverage. CFO Clark Khayat projected that deposit balances would be 'stable to slightly up' with continued remixing out of brokered deposits, and that average earning assets are expected to be 'relatively flat' throughout the year.

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    Ebrahim Poonawala's questions to KeyCorp (KEY) leadership • Q4 2024

    Question

    Ebrahim Poonawala of Bank of America Merrill Lynch asked about the historical correlation between a pickup in M&A activity and loan demand, and sought guidance on deposit growth and the trajectory of average earning assets for 2025.

    Answer

    CEO Christopher M. Gorman confirmed that a robust M&A market, particularly with private equity involvement, is beneficial for lending. CFO Clark H. I. Khayat projected that client deposit balances would be stable to slightly up, with continued remixing out of brokered deposits, and that average earning assets are expected to be relatively flat throughout the year.

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    Ebrahim Poonawala's questions to Regions Financial Corp (RF) leadership

    Ebrahim Poonawala's questions to Regions Financial Corp (RF) leadership • Q2 2025

    Question

    Ebrahim Poonawala asked about the implications of the recent tax bill, including bonus depreciation, on customer sentiment and loan growth, and also inquired about Regions Financial's perspective on bank M&A activity.

    Answer

    President, CEO, & Chairman John Turner explained that the tax package provides helpful certainty for businesses and consumers, noting an uptick in inquiries for equipment purchases due to bonus depreciation. Regarding M&A, he reiterated that Regions is not interested in depository deals, as the company is focused on executing its current strategic plan and completing its major technology modernization project.

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    Ebrahim Poonawala's questions to Regions Financial Corp (RF) leadership • Q1 2025

    Question

    Ebrahim Poonawala from Bank of America asked about the potential for further securities portfolio restructuring versus share buybacks. He also questioned how quickly customer activity might rebound with tariff clarity and if any impacts from auto tariffs have been observed.

    Answer

    Executive David Turner responded that while a small repositioning was done, they are near the end of such opportunities and will continue to weigh them against buybacks. Executive John Turner suggested a period of stability of at least 90 days, and possibly longer, is needed for customer activity to pick up. He also confirmed that no significant impact from auto tariffs has been seen to date.

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    Ebrahim Poonawala's questions to Regions Financial Corp (RF) leadership • Q3 2024

    Question

    Ebrahim Poonawala asked about the credit outlook, specifically if net charge-offs are expected to remain in the 40-50 basis point range or decline. He also questioned if the bank could lower deposit costs without additional Fed rate cuts.

    Answer

    CEO John Turner explained that the 40-50 basis point range for net charge-offs is considered a typical run-rate for the portfolio. CFO David Turner confirmed that deposit costs are expected to decline in Q4 even without further Fed cuts, driven by maturing CDs repricing at lower rates.

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    Ebrahim Poonawala's questions to Wells Fargo & Co (WFC) leadership

    Ebrahim Poonawala's questions to Wells Fargo & Co (WFC) leadership • Q2 2025

    Question

    Ebrahim Poonawala from Bank of America Merrill Lynch sought assurance that the company's aggressive growth plans would not dilute its Return on Tangible Common Equity (ROTCE). He also inquired about the bank's asset sensitivity and its ability to offset the impact of potential Federal Reserve rate cuts.

    Answer

    CEO Charles Scharf asserted that the company will not sacrifice returns for growth, stating that growth initiatives are designed to increase returns, funded in part by ongoing efficiency efforts. He also noted the Q2 ROTCE was boosted by a one-time gain. CFO Michael Santomassimo added that the NII outlook already factors in market expectations for rate cuts, which they expect to mitigate through favorable deposit pricing, asset repricing, and loan growth.

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    Ebrahim Poonawala's questions to Wells Fargo & Co (WFC) leadership • Q2 2025

    Question

    Ebrahim Poonawala of Bank of America Merrill Lynch asked for assurance that the company's aggressive growth plans post-asset cap would not sacrifice returns. He also inquired about the bank's asset sensitivity and how potential Fed rate cuts might impact the NII outlook.

    Answer

    CEO Charles Scharf emphasized that the company will not sacrifice returns for growth and remains focused on increasing returns, funding investments through ongoing efficiency initiatives. CFO Michael Santomassimo noted that the NII outlook already incorporates market expectations for rate cuts, and that despite potential cuts, factors like lower deposit costs, fixed asset repricing, and loan growth should remain constructive for NII.

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    Ebrahim Poonawala's questions to Wells Fargo & Co (WFC) leadership • Q1 2025

    Question

    Ebrahim Poonawala asked about the path to improving the Consumer business ROE and inquired about the company's capital management philosophy, particularly its target CET1 ratio in light of potential regulatory changes.

    Answer

    CEO Charlie Scharf detailed that improving consumer ROE involves maturing the card business, enhancing the auto business through partnerships like Volkswagen, and optimizing the home lending business. He noted that while the consumer bank's returns are strong, growth has been constrained. Regarding capital, Scharf stated the company has significant excess capital and found last year's SCB increase illogical. He views the current regulatory direction as positive but will wait for clarity before defining specific capital buffer targets.

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    Ebrahim Poonawala's questions to Wells Fargo & Co (WFC) leadership • Q4 2024

    Question

    Ebrahim Poonawala of Bank of America asked for tangible examples of business changes following the lifting of the OCC's sales practices consent order, particularly regarding branch incentives. He also inquired about future expense efficiency opportunities beyond the recent severance charge.

    Answer

    CFO Mike Santomassimo stated that the consent order's removal allows for a broader rollout of a standard incentive framework in branches, which has already shown positive results in pilots. CEO Charlie Scharf added that this involves a combination of compensation, reporting, and management routines within a new, robust control framework. Regarding expenses, Mike Santomassimo affirmed that significant opportunities for efficiency remain, comparing the process to 'peeling an onion' where new layers of potential savings are continuously uncovered through technology and automation.

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    Ebrahim Poonawala's questions to Wells Fargo & Co (WFC) leadership • Q3 2024

    Question

    Ebrahim Poonawala questioned if the flat expense trend could continue into 2025 while allowing for reinvestment, and why Q4 NII is not expected to decline despite recent Fed rate cuts.

    Answer

    CEO Charlie Scharf deferred specific 2025 expense guidance but affirmed the strategy of balancing significant efficiency opportunities with necessary investments in risk and growth. CFO Michael Santomassimo added that underlying efficiencies are materializing but are offset by revenue-related compensation. On NII, he cited a combination of factors, including a stabilizing deposit mix, proactive pricing actions, asset repricing, and the recent securities portfolio repositioning, as reasons for the stable Q4 outlook.

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    Ebrahim Poonawala's questions to Truist Financial Corp (TFC) leadership

    Ebrahim Poonawala's questions to Truist Financial Corp (TFC) leadership • Q2 2025

    Question

    Ebrahim Poonawala from Bank of America Merrill Lynch questioned the path to achieving a 15% ROTCE given limited operating leverage in the first half of the year, and asked about the significance of the new RTP payment capability for driving deposits.

    Answer

    CFO Mike Maguire outlined that improved returns will be driven by capital-efficient revenue growth, fixed asset repricing, and disciplined loan growth. CEO William Rogers explained that the new RTP capability is one example of broader innovation driving a 14% YoY increase in treasury management revenue. He positioned this as a leading indicator for future deposit growth as new and deepened client relationships mature.

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    Ebrahim Poonawala's questions to Truist Financial Corp (TFC) leadership • Q1 2025

    Question

    Ebrahim Poonawala questioned how much more aggressive Truist could be with share buybacks and asked about the near-term CET1 capital ratio target the bank is managing towards.

    Answer

    CFO Michael Maguire indicated the established $500 million quarterly buyback is the sustainable rhythm, with the additional Q2 amount being opportunistic and not a new run rate. He reiterated that a 10% CET1 ratio is a sensible operating level but that the bank is awaiting the final Basel rule before setting a firm target, showing no immediate desire to add significant leverage.

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    Ebrahim Poonawala's questions to Truist Financial Corp (TFC) leadership • Q4 2024

    Question

    Ebrahim Poonawala asked for details on Truist's growth strategy in New Jersey, Pennsylvania, and Texas, questioning whether it would be organic or through M&A. He also inquired about talent attrition and market share defense in the Southeast.

    Answer

    CEO Bill Rogers clarified that these are existing markets where Truist is increasing investment and leveraging its full product suite, emphasizing that the growth strategy is organic. Rogers also expressed confidence in the company's ability to not only defend but also go on offense in its core markets, citing positive momentum in net new accounts and successful talent attraction.

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    Ebrahim Poonawala's questions to Truist Financial Corp (TFC) leadership • Q3 2024

    Question

    Ebrahim Poonawala inquired about the potential to increase the pace of share buybacks from the $500 million quarterly rate and asked where the bank expects to gain market share now that merger-related overhangs are resolved.

    Answer

    CEO Bill Rogers indicated that buybacks will remain at an "elevated level" and could be adjusted if loan growth is slower than anticipated, but the priority is funding growth. He identified market share gains in investment banking, growth in "net new" clients, and increased "primacy" (wallet share) with existing clients as key focus areas, signaling a strategic shift from integration to expansion.

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    Ebrahim Poonawala's questions to Citizens Financial Group Inc (CFG) leadership

    Ebrahim Poonawala's questions to Citizens Financial Group Inc (CFG) leadership • Q2 2025

    Question

    Ebrahim Poonawala from Bank of America asked for an outlook on deposit costs assuming no Fed rate cuts, and also inquired about any recent uptick in sponsor-led lending, particularly in capital call lines, and its impact on the second-half forecast.

    Answer

    CFO John Woods confirmed that deposit costs should continue to benefit from a significant book of CDs repricing at much lower rates, providing a tailwind for the rest of the year. He reiterated confidence in the bank's cumulative deposit beta performance. On sponsor lending, Head of Commercial Banking Don McCree reported an 8% increase in capital call line utilization in Q2 and expects further growth, as utilization remains about six points below its long-term average and the private equity complex is becoming more active.

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    Ebrahim Poonawala's questions to Citizens Financial Group Inc (CFG) leadership • Q1 2025

    Question

    Ebrahim Poonawala requested the specific fee revenue assumptions for capital markets for the second quarter and the full year. He also asked about the Fed funds rate assumption underpinning the NIM outlook for 2025 and 2026 and the potential risk from rate cuts.

    Answer

    CEO Bruce Van Saun and CFO John Woods did not provide a specific breakdown for capital markets revenue but confirmed it is a material driver of the overall fee guide, expressing confidence due to business diversity. On the NIM outlook, Woods explained that their forecast is not highly sensitive to rate cuts due to their near-neutral, hedged position. He noted the long-term NIM range assumes a terminal Fed funds rate of around 3.5%.

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    Ebrahim Poonawala's questions to Fifth Third Bancorp (FITB) leadership

    Ebrahim Poonawala's questions to Fifth Third Bancorp (FITB) leadership • Q2 2025

    Question

    Ebrahim Poonawala asked about Fifth Third's capital allocation priorities, particularly regarding M&A, and the impact of a recent tax bill on its Dividend residential solar lending business.

    Answer

    CEO Tim Spence reiterated that organic growth is the top priority, followed by dividends and share repurchases, emphasizing that any M&A must provide strategic density. CFO Bryan Preston and CEO Tim Spence explained that while the tax bill will reduce future solar loan originations, the existing portfolio is unaffected, credit trends are improving, and the Dividend platform is pivoting to offer home equity products for broader home improvement projects.

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    Ebrahim Poonawala's questions to Fifth Third Bancorp (FITB) leadership • Q4 2024

    Question

    Ebrahim Poonawala asked about the payoff from investments in Southeast branches and whether this positions Fifth Third for outperformance. He also questioned how dependent the fee businesses are on balance sheet loan growth.

    Answer

    CFO Bryan Preston stated that Southeast branches are still in early growth stages, driving future deposit potential. CEO Tim Spence clarified the fee business dependencies: Wealth Management is not dependent, Commercial Payments is mixed (with 40% of new relationships having no credit), and Capital Markets is linked to cross-selling but has significant room to grow within the existing client base.

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    Ebrahim Poonawala's questions to Fifth Third Bancorp (FITB) leadership • Q3 2024

    Question

    Ebrahim Poonawala asked about the runoff in the Shared National Credit (SNC) portfolio and the competitive threat from private credit. He also challenged the capital allocation strategy, questioning the decision to accelerate buybacks rather than hold excess capital for growth or defensive purposes.

    Answer

    CEO Tim Spence indicated the bank is at an inflection point with its RWA optimization, expecting the SNC runoff to moderate, supported by a record middle-market pipeline. He noted that while private credit is a competitor, Fifth Third avoids its higher-risk practices. CFO Bryan Preston defended the buyback strategy, stating the stock is a good value and the bank's strong earnings generation provides flexibility to fund growth while returning capital, thus avoiding the high cost of holding idle excess capital.

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    Ebrahim Poonawala's questions to Fifth Third Bancorp (FITB) leadership • Q2 2024

    Question

    Ebrahim Poonawala asked about Fifth Third's rate sensitivity, the confidence in downside deposit beta assumptions, and whether rate cuts are a net positive for NII. He also inquired about the credit outlook and the potential triggers for a pickup in loan growth.

    Answer

    CFO Bryan Preston confirmed that rate cuts are positive for the bank, noting that 64% of the interest-bearing deposit book is in higher-beta categories, providing confidence in managing costs down. CEO Tim Spence added that while rate relief would be constructive for loan demand and credit, he remains cautious due to broader macroeconomic uncertainties and will not chase loan growth at the expense of returns.

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    Ebrahim Poonawala's questions to Synovus Financial Corp (SNV) leadership

    Ebrahim Poonawala's questions to Synovus Financial Corp (SNV) leadership • Q2 2025

    Question

    Ebrahim Poonawala of Bank of America Merrill Lynch inquired about the competitive landscape for lending, its impact on pricing, and whether expense plans would be adjusted if strong revenue momentum continues.

    Answer

    CEO Kevin Blair acknowledged a competitive environment, noting a modest 5 basis point decline in SOFR spreads, but emphasized competing on relationship value. EVP & CFO Jamie Gregory stated that strategic investments like hiring are based on their long-term IRR and are not reactive to short-term revenue, though variable incentive costs could rise with outperformance.

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    Ebrahim Poonawala's questions to Synovus Financial Corp (SNV) leadership • Q3 2024

    Question

    Ebrahim Poonawala of Bank of America questioned Synovus's deposit strategy, including pricing, betas in an easing cycle, and new acquisition sources. He also asked for an update on the Maast embedded payments business and its competitive positioning.

    Answer

    CFO Jamie Gregory projected a cumulative deposit beta of 40-45% in the easing cycle, driven by active repricing, and expects core deposit growth to continue into 2025. CEO Kevin Blair stated that the Maast platform is being enhanced based on pilot feedback, with resources also focused on expanding the profitable commercial sponsorship business. He affirmed that partnerships, not scale, are key to winning in the embedded finance space.

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    Ebrahim Poonawala's questions to US Bancorp (USB) leadership

    Ebrahim Poonawala's questions to US Bancorp (USB) leadership • Q2 2025

    Question

    Ebrahim Poonawala asked about the future pace of share buybacks given the rising CET1 ratio. He also inquired about the recent flat performance of commercial products revenue and sought reassurance on the bank's confidence in its NII outlook.

    Answer

    Vice Chair & CFO John Stern stated that while they are committed to a ~75% payout ratio over time, they may prioritize funding strong loan growth over increasing buybacks in the immediate short term. Regarding NII, both he and President & CEO Gunjan Kedia expressed strong confidence in the growth trajectory, attributing it to the strategic actions taken to reposition the balance sheet for better returns and deeper client relationships.

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    Ebrahim Poonawala's questions to US Bancorp (USB) leadership • Q1 2025

    Question

    Ebrahim Poonawala from Bank of America sought clarification on whether the 3% NIM is an average target for 2027 and asked if flat-to-lower expenses are a reasonable expectation.

    Answer

    CFO John Stern clarified the goal is to achieve a 3% NIM during the 2026-2027 timeframe, not for it to be an average. CEO Gunjan Kedia explained that the expense base will be flexed to consistently deliver positive operating leverage, with the absolute level dependent on the revenue environment.

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    Ebrahim Poonawala's questions to US Bancorp (USB) leadership • Q4 2024

    Question

    Ebrahim Poonawala asked about the loan and deposit growth assumptions underpinning the 2025 revenue guidance and whether there were any signs of a pickup in lending demand. He also requested a deeper dive into fee revenue expectations for the payments business and its market positioning.

    Answer

    CFO John Stern indicated that the forecast assumes modest loan and deposit growth for the year. While client sentiment is positive, a significant pickup in loan growth has not yet materialized but is hoped for in the second half. Regarding payments, Stern noted core momentum is strong, with mid-single-digit growth expected in retail cards. He acknowledged that merchant acquiring growth was below aspirations in 2024 due to a client mix shift but expects improvement, while the CPS business is projected to see high single-digit growth.

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    Ebrahim Poonawala's questions to US Bancorp (USB) leadership • Q3 2024

    Question

    Ebrahim Poonawala asked about the drivers for fee income acceleration into 2025, the potential cadence for Net Interest Margin (NIM) expansion, and whether the eventual move to Category II bank status constrains current loan growth.

    Answer

    President Gunjan Kedia and CFO John Stern highlighted the diversified fee mix as a key strength for growth. Stern projected Q4 NIM stability, followed by potential expansion driven by asset remixing and deposit repricing, calling a 3% NIM a "good level to think about" long-term. Chairman and CEO Andy Cecere confirmed the 2027 Category II timeline is not a constraint on current loan growth, which is driven by market demand.

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    Ebrahim Poonawala's questions to Goldman Sachs Group Inc (GS) leadership

    Ebrahim Poonawala's questions to Goldman Sachs Group Inc (GS) leadership • Q2 2025

    Question

    Ebrahim Poonawala inquired about Goldman Sachs's target CET1 ratio going forward and where inorganic acquisitions rank as a potential use of capital.

    Answer

    CFO Denis Coleman indicated that the firm expects to operate with a 50 to 100 basis point buffer above its new minimum regulatory capital requirement. Chairman & CEO David Solomon addressed acquisitions, stating that while they are always looking for opportunities to accelerate the franchise, particularly in Asset & Wealth Management, the 'bar to do anything significant will be very, very high.'

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    Ebrahim Poonawala's questions to Goldman Sachs Group Inc (GS) leadership • Q1 2025

    Question

    Ebrahim Poonawala inquired about market activity levels in early April and the execution of the firm's three-year efficiency plan, including adjustments to its 'pyramid structure' and expense management.

    Answer

    CEO David Solomon stated that despite a shift in sentiment, the business was performing well with active clients in early April. On efficiency, he confirmed the firm's commitment to the plan and announced an expected severance charge of approximately $150 million in the second quarter related to performance management actions.

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    Ebrahim Poonawala's questions to Goldman Sachs Group Inc (GS) leadership • Q4 2024

    Question

    Ebrahim Poonawala inquired about the regulatory outlook for capital markets and the potential timing and magnitude of a recovery in M&A and IPO activity.

    Answer

    CEO David Solomon addressed the regulatory environment, noting the industry's lawsuit over the Federal Reserve's stress test (CCAR) transparency and expressing hope for a more constructive dialogue on Basel III and G-SIB rules. He stated that while unpredictable, the environment feels more constructive. Regarding dealmaking, Solomon confirmed a meaningful pickup in large-cap M&A and sponsor dialogues, expecting a more robust environment throughout 2025 driven by renewed CEO confidence.

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    Ebrahim Poonawala's questions to Goldman Sachs Group Inc (GS) leadership • Q3 2024

    Question

    Ebrahim Poonawala of Bank of America inquired about the competitive threat from non-bank trading venues in fixed income and the key drivers required for Goldman Sachs to achieve a sustainable 15%+ return on equity (ROE).

    Answer

    CEO David Solomon addressed competition by highlighting the firm's scale, breadth of services, and integrated client relationships. On the path to a 15%+ ROE, Solomon outlined three building blocks: 1) continued strong performance in Global Banking & Markets with a potential tailwind from a recovery in M&A, 2) improving margins and returns in Asset & Wealth Management, and 3) reducing the drag from the consumer platform business.

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    Ebrahim Poonawala's questions to First Horizon Corp (FHN) leadership

    Ebrahim Poonawala's questions to First Horizon Corp (FHN) leadership • Q2 2025

    Question

    Eric, on behalf of Ebrahim Poonawala at Bank of America, inquired about potential downside to the expense guidance, trends in fee income, and the bank's approach to share buybacks in the coming quarters.

    Answer

    CFO Hope Dmuchowski noted that fee income from Average Daily Revenue (ADR) was at a one-year low. She explained that second-half expenses will see seasonal marketing increases and amortization from new tech projects. On buybacks, she stated they are contingent on loan growth; activity was paused in May as loan pipelines grew, and future repurchases will be balanced against organic growth needs.

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    Ebrahim Poonawala's questions to First Horizon Corp (FHN) leadership • Q1 2025

    Question

    Ebrahim Poonawala asked for the timeline to achieve the 15%+ ROTCE target and the strategy for the mortgage warehouse business in a stable rate environment. He also followed up on whether the bank was considering hedging to protect the NIM from potential rate cuts.

    Answer

    Chairman, President and CEO Bryan Jordan stated that achieving the 15%+ ROTCE target is tied to normalizing the CET1 ratio to the 10.0-10.5% range and leveraging their strong footprint. He described the mortgage warehouse business as efficient and countercyclical, noting they have raised the floor on balances and see significant upside from potential refi activity. Regarding hedging, Jordan and CFO Hope Dmuchowski explained that the bank's countercyclical businesses provide a natural hedge, and while they constantly model extreme rate scenarios up to 400 bps, they are not taking specific new actions at this time.

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    Ebrahim Poonawala's questions to First Horizon Corp (FHN) leadership • Q4 2024

    Question

    Ebrahim Poonawala sought clarity on the loan growth assumptions underlying the 2025 revenue outlook and asked about the expected timeline for achieving the company's 15%+ Return on Tangible Common Equity (ROTCE) target.

    Answer

    CEO Bryan Jordan indicated an expectation of low-to-mid single-digit loan growth, tempered by likely paydowns in commercial real estate. CFO Hope Dmuchowski explained that reaching the 15%+ ROTCE target depends on three key levers: revenue growth, the normalization of credit provisions, and the deployment of excess capital. Jordan added that repatriating capital via buybacks is a meaningful tool to improve returns.

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    Ebrahim Poonawala's questions to First Horizon Corp (FHN) leadership • Q3 2024

    Question

    Ebrahim Poonawala of Bank of America Securities questioned the shift to total revenue guidance, asking about the potential upside for the fixed income business and the bank's target for its loan-to-deposit ratio.

    Answer

    CFO Hope Dmuchowski stated there is upside potential in fixed income, especially if rates decline further, noting that clients are already considering restructuring. CEO Bryan Jordan added that deposit pricing is viewed through a customer acquisition lens, focusing on growing relationships rather than managing to a specific loan-to-deposit ratio.

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    Ebrahim Poonawala's questions to State Street Corp (STT) leadership

    Ebrahim Poonawala's questions to State Street Corp (STT) leadership • Q2 2025

    Question

    Ebrahim Poonawala from Bank of America asked for clarification on the 80% capital payout target, the key capital ratio being managed, and what might limit more aggressive buybacks. He also asked about the long-term drivers for deposit growth.

    Answer

    Interim CFO Mark Keating confirmed the 80% full-year payout target would be achieved with a progressive cadence of buybacks. He stated they prudently manage to the higher end of their 10-11% CET1 target range. For future deposit growth, Keating emphasized that the primary driver is winning and installing new back-office custody business, which is supported by the record backlog of new servicing fees.

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    Ebrahim Poonawala's questions to Citigroup Inc (C) leadership

    Ebrahim Poonawala's questions to Citigroup Inc (C) leadership • Q2 2025

    Question

    Ebrahim Poonawala of Bank of America Merrill Lynch asked about capital optimization, specifically how Citigroup is managing its binding constraint between standardized and advanced RWA. He also inquired about the firm's use of stablecoins for treasury management and the potential disruption risk to its Services revenue.

    Answer

    CFO Mark Mason explained that standardized CET1 is the current binding constraint and the firm is disciplined in managing RWA on both standardized and advanced bases, while being mindful of the evolving regulatory landscape. CEO Jane Fraser addressed stablecoins, viewing them as an opportunity, not a threat. She highlighted Citi Token Services, which allows clients to move billions in tokenized deposits cross-border 24/7, as a superior offering that complements their existing global payments leadership.

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    Ebrahim Poonawala's questions to Citigroup Inc (C) leadership • Q2 2025

    Question

    Ebrahim Poonawala of Bank of America asked about Citigroup's binding capital constraint between Standardized and Advanced RWA and actions being taken for optimization. He also questioned the potential disruption risk to the Services business from the increased adoption of stablecoins.

    Answer

    CFO Mark Mason confirmed that Standardized CET1 is currently the binding constraint and the firm is focused on efficient RWA utilization across both frameworks. CEO Jane Fraser positioned digital assets as a significant opportunity, not a threat. She highlighted Citi Token Services as a superior offering that enables clients to move money 24/7 cross-border, complementing the existing product suite and solving client complexities.

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    Ebrahim Poonawala's questions to Citigroup Inc (C) leadership • Q1 2025

    Question

    Ebrahim Poonawala inquired about the drivers of RWA growth and how it affects the pace of buybacks to reach the year-end CET1 target. He also asked about the macroeconomic assumptions baked into credit reserves and what would cause a significant increase in provisioning.

    Answer

    CFO Mark Mason stated that the $20 billion share repurchase program remains on track and that RWA consumption is tied to meeting strong, accretive client demand. On credit, he explained that reserves now incorporate a weighted average unemployment rate of 5.1% (with a 6.7% downside scenario), and the firm feels well-reserved based on the current outlook. He noted the consumer remains resilient and credit performance is in line with expectations.

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    Ebrahim Poonawala's questions to Citigroup Inc (C) leadership • Q4 2024

    Question

    Ebrahim Poonawala asked about the Wealth segment's competitive positioning and key growth opportunities. He also inquired if the Banking segment could see a similar positive RoTCE trajectory and what the key opportunities are to improve its returns.

    Answer

    CEO Jane Fraser detailed her vision for Wealth to become a global leader by tapping existing client assets, leveraging the firm's global footprint, and focusing on the investment business. She highlighted strong net new investment asset inflows as a key proof point. For Banking, she expressed confidence in reaching its targets, citing recent share gains across all products and geographies, a focus on key sectors like healthcare and technology, and disciplined capital allocation.

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    Ebrahim Poonawala's questions to Citigroup Inc (C) leadership • Q3 2024

    Question

    Ebrahim Poonawala asked if Net Interest Income (NII) ex-markets had bottomed in Q2 and questioned the progress and future contribution of the Wealth segment to Citigroup's returns.

    Answer

    CFO Mark Mason confirmed NII ex-markets is expected to be flat sequentially in Q4 and emphasized the firm's strong fee (NIR) growth momentum. CEO Jane Fraser highlighted significant progress in the Wealth business, pointing to 24% growth in client investment assets and steady progress toward its medium-term RoTCE target of 15-20%.

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    Ebrahim Poonawala's questions to Royal Bank of Canada (RY) leadership

    Ebrahim Poonawala's questions to Royal Bank of Canada (RY) leadership • Q2 2025

    Question

    Ebrahim Poonawala asked for the outlook on impaired PCLs for the rest of the year, the rationale for peak losses being pushed to 2026, and whether new areas of stress are emerging. He also questioned the drivers of Net Interest Income (NII) growth and the impact of future rate cuts.

    Answer

    Chief Risk Officer Graeme Hepworth explained that 80% of the reserve build is driven by forward-looking macroeconomic uncertainty rather than current credit deterioration. Chief Financial Officer Katherine Gibson detailed that NII guidance depends on loan volumes, the 'tractor' hedging strategy, and variables like client deposit mix and competitive pressures.

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    Ebrahim Poonawala's questions to Royal Bank of Canada (RY) leadership • Q2 2025

    Question

    Ebrahim Poonawala of Bank of America Merrill Lynch inquired about the outlook for impaired PCLs, the rationale for peak losses being pushed to 2026, and the key drivers that would place net interest income (NII) growth at the high or low end of guidance.

    Answer

    Chief Risk Officer Graeme Hepworth attributed the credit outlook to forward-looking uncertainty rather than current credit migration. Chief Financial Officer Katherine Gibson detailed that NII growth depends on loan volumes, NIM performance driven by the 'tractor' strategy and deposit mix, and competitive pressures.

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    Ebrahim Poonawala's questions to Royal Bank of Canada (RY) leadership • Q1 2025

    Question

    Ebrahim Poonawala of Bank of America questioned if the stronger Canadian margin was due to balance sheet dynamics or a better competitive environment, and asked how the bank is balancing offense versus defense amid tariff uncertainty.

    Answer

    CFO Katherine Gibson attributed margin strength to better spreads and a favorable deposit mix, noting competition was less than forecast. Group Head of Personal Banking Erica Nielsen added that RBC is managing pricing effectively. CEO David McKay described their current strategy as 'balanced,' continuing to support client growth with strong momentum while preparing for potential downside scenarios.

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    Ebrahim Poonawala's questions to Royal Bank of Canada (RY) leadership • Q3 2024

    Question

    Ebrahim Poonawala asked about Royal Bank of Canada's capital allocation strategy, questioning the balance between accelerating share buybacks and accumulating capital for future organic growth or M&A, given the bank's strong capital generation and ROE.

    Answer

    President and CEO David McKay stated that RBC's significant organic capital generation allows for both share buybacks and capital accretion for strategic optionality. He emphasized that the plan is to return capital to shareholders to drive a premium TSR while patiently building the balance sheet for the right future deployment, similar to the discipline shown with the HSBC acquisition.

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    Ebrahim Poonawala's questions to Canadian Imperial Bank of Commerce (CM) leadership

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

    Question

    Ebrahim Poonawala of Bank of America Merrill Lynch inquired about the on-the-ground credit reality for Canadian consumers and businesses, seeking to understand the source of management's confidence in their impaired PCL outlook. He also asked for Victor Dodig's view on the prospects for policy changes to stimulate the Canadian economy.

    Answer

    Frank Guse, Senior EVP & Chief Risk Officer, pointed to leading indicators like declining delinquency rates in Q2 as a source of confidence in their credit outlook. Victor Dodig, President & CEO, expressed optimism about potential government policies to boost growth and believes an eventual 'detente' on the North American trade front will occur.

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

    Question

    Ebrahim Poonawala of Bank of America asked for an on-the-ground assessment of stress among Canadian consumers and businesses, seeking to understand the confidence behind the impaired PCL guidance. He also inquired about the prospects for pro-growth policy changes in Canada.

    Answer

    Chief Risk Officer Frank Guse cited declining delinquency rates in Q2 as a key indicator supporting the bank's confidence in its credit outlook. CEO Victor Dodig expressed optimism for pro-growth policies in Canada, highlighting areas like trade, housing, and resource development as key opportunities for the government to address.

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

    Question

    Ebrahim Poonawala asked for an assessment of the on-the-ground stress facing Canadian consumers and businesses, and what provides confidence in the current impaired PCL guidance. He also questioned CEO Victor Dodig on his optimism for policy changes to stimulate the Canadian economy.

    Answer

    Frank Guse, Chief Risk Officer, pointed to leading indicators like declining delinquency rates in Q2 as a source of confidence in the bank's credit quality and guidance. Victor Dodig, President and CEO, expressed optimism for pro-growth policies in Canada, highlighting opportunities in interprovincial trade, housing, natural resources, and fostering risk capital, while emphasizing the strength of the integrated North American economy.

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

    Question

    Ebrahim Poonawala of Bank of America asked for details on where client activity is picking up and how CIBC plans to manage its 13.5% CET1 capital ratio, specifically questioning if the pace of share buybacks could increase.

    Answer

    President and CEO Victor Dodig confirmed CIBC will continue its buyback activity while preserving capital for organic growth. He then deferred to business leaders Shawn Beber (U.S. Region), Harry Culham (Capital Markets), and Susan Rimmer (Commercial Banking), who all described healthy business pipelines and client readiness to invest once economic certainty returns.

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

    Question

    Ebrahim Poonawala asked about the improving economic sentiment in Canada, the impact of interest rates on consumers and businesses, and the outlook for GDP and credit reserving. He also inquired about CIBC's capital allocation priorities, including organic growth, buybacks, and M&A.

    Answer

    President and CEO Victor Dodig stated that while sentiment is improving, more rate cuts are needed to solidify confidence. Chief Risk Officer Frank Guse added that the credit outlook remains prudent, with unemployment as a near-term headwind. On capital, Victor Dodig prioritized organic growth first, followed by dividend growth, share buybacks, and opportunistic tuck-in M&A, all aimed at delivering a premium ROE.

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    Ebrahim Poonawala's questions to Bank of Montreal (BMO) leadership

    Ebrahim Poonawala's questions to Bank of Montreal (BMO) leadership • Q2 2025

    Question

    Ebrahim Poonawala questioned if upcoming U.S. stress test results could affect capital allocation and asked for the outlook on the U.S. Net Interest Margin (NIM) given its strong performance.

    Answer

    CFO Tayfun Tuzun stated he does not expect the CCAR exercise to meaningfully impact capital management. Regarding NIM, he reiterated a strategy focused on stability, driven by business actions rather than interest rate speculation, and expects a stable margin with some potential upside while remaining cautious.

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    Ebrahim Poonawala's questions to Bank of Montreal (BMO) leadership • Q2 2025

    Question

    Ebrahim Poonawala of Bank of America asked about U.S. capital allocation in light of the upcoming stress test and questioned the sustainability of the high U.S. Net Interest Margin (NIM).

    Answer

    CFO Tayfun Tuzun stated he does not expect this year's CCAR exercise to have a meaningful impact on capital management, noting the U.S. capital position is strong and accreting as expected. Regarding NIM, he reiterated a principle of stability, expecting margins to remain stable with some potential upside driven by business actions like deposit optimization, but he remained cautious.

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    Ebrahim Poonawala's questions to Bank of Montreal (BMO) leadership • Q1 2025

    Question

    Ebrahim Poonawala inquired about the differential impact of potential trade tariffs on U.S. versus Canadian commercial clients and the bank's outlook on the situation. He also asked if the pace of share buybacks would increase given the strong 13.6% CET1 ratio.

    Answer

    CEO Darryl White stated it is premature to predict specific tariff outcomes but acknowledged higher anxiety levels among Canadian clients, with some pausing capital deployment. Nadim Hirji, Head of BMO Commercial Banking, added that clients are actively creating contingency plans and BMO's North American footprint is an advantage. Regarding capital, Darryl White confirmed the intention to continue the buyback program to manage the CET1 ratio towards the bank's target.

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    Ebrahim Poonawala's questions to Bank of Montreal (BMO) leadership • Q3 2024

    Question

    Ebrahim Poonawala asked about credit risk management, questioning if BMO has an issue with outsized exposures, and separately, what the path is for the bank to return to a 14-15% ROE.

    Answer

    Chief Risk Officer Piyush Agrawal and CEO Darryl White addressed credit, noting that large losses were episodic, often in syndicated loans from a specific 'pandemic vintage,' and that the issue is known and bounded. On profitability, Darryl White reaffirmed the mid-term 15% ROE target, outlining levers such as credit normalization, sustained positive operating leverage, and an improving U.S. environment as the path forward.

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    Ebrahim Poonawala's questions to Bank of Nova Scotia (BNS) leadership

    Ebrahim Poonawala's questions to Bank of Nova Scotia (BNS) leadership • Q2 2025

    Question

    Ebrahim Poonawala inquired about the drivers behind the significant performing provision for credit losses (PCL) build, the extent of fundamental credit deterioration, and the outlook for impaired PCLs into 2026. He also asked what catalysts would be needed to revive customer activity amid macro uncertainty.

    Answer

    Chief Risk Officer Philip Thomas explained that while impaired PCL growth is slowing and credit portfolios remain relatively stable, the performing build reflects a conservative stance against macro uncertainty. He noted that impaired PCLs should remain near current levels for the rest of the year. President and CEO Scott Thomson added that progress on the USMCA trade agreement and increased political certainty in Canada could serve as catalysts for an inflection point in loan growth and business confidence heading into 2026.

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    Ebrahim Poonawala's questions to Bank of Nova Scotia (BNS) leadership • Q2 2025

    Question

    Ebrahim Poonawala asked for a breakdown of the significant performing provision for credit loss (PCL) build and inquired about the potential catalysts needed to stimulate a recovery in customer activity.

    Answer

    Phil Thomas, Group Head & Chief Risk Officer, explained that while impaired PCLs are stabilizing, the performing build reflects a weaker macro outlook and expert judgment. He expressed confidence in credit quality, noting stability in Canadian mortgages and positive trends internationally. Scott Thomson, President & CEO, added that increased political certainty in Canada and progress on the USMCA trade agreement would be key catalysts for improving customer confidence and activity.

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    Ebrahim Poonawala's questions to Bank of Nova Scotia (BNS) leadership • Q1 2025

    Question

    Ebrahim Poonawala inquired about the credit outlook excluding potential tariffs, asking if lower rates mitigate the 'higher for longer' risk, and questioned the absence of share buybacks given the stock's valuation and capital levels.

    Answer

    Chief Risk Officer Philip Thomas stated that while some softness remains in Canadian retail, customers are benefiting from rate cuts, and he expects provisions to trend down in H2 2025, tariffs aside. President and CEO L. Thomson explained that capital return plans are pending tariff clarity, but he anticipates resuming modest dividend growth next quarter and hopes to begin share repurchases by year-end.

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    Ebrahim Poonawala's questions to Bank of Nova Scotia (BNS) leadership • Q3 2024

    Question

    Ebrahim Poonawala inquired about the net interest margin (NIM) outlook amid expected rate cuts, the progress of the Canadian deposit franchise, and the strategic focus on growing the U.S. dollar business.

    Answer

    CFO Rajagopal Viswanathan projected modest NIM improvement in Q4, accelerating through 2025 as rate cut benefits materialize in the 'Other' segment. President & CEO Scott Thomson positioned the KeyCorp investment as a low-risk U.S. market entry. Aris Bogdaneris, Head of Canadian Banking, highlighted a $43 billion deposit increase over 18 months, driven by a focus on primary client relationships. Travis MacHen from Global Banking and Markets noted opportunities in the U.S. fee business.

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    Ebrahim Poonawala's questions to Prosperity Bancshares Inc (PB) leadership

    Ebrahim Poonawala's questions to Prosperity Bancshares Inc (PB) leadership • Q1 2025

    Question

    Ebrahim Poonawala from Bank of America asked how recent public stock price volatility affects M&A psychology and the potential for deals. He also inquired about the long-term outlook for the mortgage warehouse business in a potentially prolonged low-refinance environment.

    Answer

    Senior Chairman and CEO David Zalman expressed confidence that deals can still be done, as potential partners have seen Prosperity's stock volatility before and trust its long-term value. He also highlighted that the bank's large capital base provides flexibility for cash components in deals. President and COO Kevin Hanigan added that while there's a psychological impact, sophisticated CEOs understand that exchange ratios are relative. Regarding the warehouse business, Hanigan acknowledged its rate dependency, noting that current high rates could impact the latter part of Q2 and the typically strong Q3, as activity is driven by purchase mortgages, not refinances.

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    Ebrahim Poonawala's questions to Prosperity Bancshares Inc (PB) leadership • Q3 2024

    Question

    Ebrahim Poonawala from Bank of America sought clarification on the 2025 Net Interest Margin (NIM) outlook, its underlying interest rate assumptions, the potential for M&A activity, and the specifics of the loan portfolio's repricing dynamics.

    Answer

    CEO David Zalman confirmed the 2025 NIM average target of 3.27% is based on the prime rate ending 2025 at 6.5%, with rapid rate cuts being the biggest risk. On M&A, Zalman emphasized that the primary focus is on improving NIM but the bank remains open to value-accretive deals. CFO Asylbek Osmonov added that approximately $5 billion in annual loan cash flow is expected, with fixed-rate loans yielding under 5% set to reprice around 7.5%.

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    Ebrahim Poonawala's questions to Toronto-Dominion Bank (TD) leadership

    Ebrahim Poonawala's questions to Toronto-Dominion Bank (TD) leadership • Q3 2024

    Question

    Ebrahim Poonawala asked how much of the AML remediation plan is still evolving, the risk of further expense increases, and the expected timeline for completion. He also questioned how the bank can reassure shareholders about the U.S. franchise's health if a multi-year asset cap is imposed.

    Answer

    Leo Salom, President and CEO of TD Bank, America's most Convenient Bank, asserted that the bank has a comprehensive and robust roadmap for a "world-class" AML program and is executing against it, though it is a multi-year effort. To reassure investors, he highlighted the U.S. franchise's strong underlying performance, including peer-leading loan growth and NIM expansion, as evidence of its resilience and continued growth potential.

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    Ebrahim Poonawala's questions to Toronto-Dominion Bank (TD) leadership • Q2 2024

    Question

    Ebrahim Poonawala of Bank of America Securities raised concerns about the potential stagnation of the U.S. franchise due to the AML issue. He also asked for an explanation of what went wrong with TD's risk management and whether the problem could extend beyond U.S. AML.

    Answer

    Leo Salom, President and CEO of TD Bank, AMCB, pointed to strong quarterly results as evidence against stagnation. CEO Bharat Masrani stated the program's failure was unacceptable and is being fixed. Chief Risk Officer Ajai Bambawale attributed the failure to specific procedural weaknesses in the U.S. and actions of some employees, asserting it is a U.S. AML issue, not an enterprise-wide problem.

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