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    Lemar Persaud • Cormark Securities

    Lemar Persaud's questions to Sun Life Financial Inc (SLF) leadership

    Lemar Persaud's questions to Sun Life Financial Inc (SLF) leadership • Q2 2025

    Question

    Lemar Persaud of Cormark Securities asked for clarification on the risk of further write-downs of customer-related intangibles and questioned if the year-over-year drop in MFS margins indicates a structural decline.

    Answer

    EVP & CFO Tim Deacon explained that the recent intangible write-down was for a unique, standalone contract and that other contracts are bundled and assessed in aggregate, with the company comfortable with current carrying values. Regarding MFS, he attributed the margin decline primarily to lower average net assets during the quarter. CEO of MFS Ted Maloney added there is no change to the long-term structural view on margins, as costs are managed tightly.

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    Lemar Persaud's questions to Sun Life Financial Inc (SLF) leadership • Q2 2025

    Question

    Lemar Persaud of Cormark Securities asked for clarification on the U.S. Dental customer-related intangibles and the risk of future write-downs. He also questioned the outlook for MFS margins, which saw a steeper-than-expected year-over-year decline.

    Answer

    EVP & CFO Tim Deacon stated the recent intangible write-off was for a unique, standalone contract and that the company is comfortable with the carrying value of its aggregated customer intangibles. He attributed the MFS margin decline primarily to lower average net assets. CEO of MFS Investment Management Ted Maloney affirmed there is no change to the long-term structural view on margins.

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    Lemar Persaud's questions to Sun Life Financial Inc (SLF) leadership • Q1 2025

    Question

    Lemar Persaud asked if the $100 million dental earnings target for 2025 includes the benefit from retroactive premium payments and questioned if the SLC 2025 earnings target of $235 million would be handily exceeded given Q1's strong results.

    Answer

    Daniel Fishbein, President of Sun Life U.S., confirmed that any revenue, including retroactive payments, is part of the earnings calculation and that such payments are becoming a more regular feature of the business. Stephen Peacher, President of SLC Management, expressed confidence in the $235 million target but noted that wildcards, like the timing of large fund closings, make it difficult to guarantee they will significantly beat the number.

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    Lemar Persaud's questions to Sun Life Financial Inc (SLF) leadership • Q4 2024

    Question

    Lemar Persaud asked for clarification on why the mid-2024 stop-loss price increases didn't prevent the Q4 claims surprise. He also requested details on the Vietnam bancassurance impairment, specifically its timing and the nature of regulatory changes.

    Answer

    Daniel Fishbein (executive) clarified that the mid-year price hikes addressed rising claims utilization, while the Q4 surprise was driven by a separate issue of increased claims severity. Manjit Singh (executive) explained the Vietnam impairment reflected a significant market-wide sales decline and that regulators are reviewing commission structures, with the timing of the write-down based on emerging facts over recent quarters.

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    Lemar Persaud's questions to Sun Life Financial Inc (SLF) leadership • Q2 2024

    Question

    Lemar Persaud asked if the current restructuring charge is a one-time event or the start of a broader program, and how the $200 million in savings would be split between underlying earnings and CSM. He also inquired if potential U.S. rate cuts would positively impact net flows at MFS.

    Answer

    Timothy Deacon, EVP & CFO, described the charge as a singular program to be executed over 18 months, with the savings predominantly flowing through to earnings. Michael Roberge, CEO of MFS, stated that rate cuts are expected to be helpful, as historical cycles show investors re-engage with longer-term equity and fixed-income products when cash yields decline, which should lead to more normal, positive retail flows.

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    Lemar Persaud's questions to Manulife Financial Corp (MFC) leadership

    Lemar Persaud's questions to Manulife Financial Corp (MFC) leadership • Q2 2025

    Question

    Lemar Persaud of Cormark Securities asked for the specific drivers behind the quarterly spike in credit losses and requested a quantification of the expected revenue synergies from the Comvest acquisition.

    Answer

    Chief Investment Officer Trevor Kreel attributed the credit loss provision to a few specific below-investment-grade loans in the U.S. with no common theme, reaffirming the portfolio remains 96% investment grade and the long-term guidance of $30-$50 million per quarter holds. Paul Lorentz, President and CEO of Global WAM, declined to quantify revenue synergies but expressed strong optimism for future growth.

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    Lemar Persaud's questions to Manulife Financial Corp (MFC) leadership • Q1 2025

    Question

    Lemar Persaud of Cormark Securities asked if CEO Roy Gori's emphasis on the earnings contributions from Canada and the U.S. was a subtle signal of potential future weakness in Asia.

    Answer

    CEO Roy Gori clarified his comments were not signaling weakness in Asia but rather highlighting the resilience of Manulife's diversified business model, which is a key advantage in an uncertain environment. Incoming CEO Philip Witherington supported this, stating that Asia's Q1 earnings run rate is a good indicator for coming quarters and that short-term sales variations won't significantly impact earnings stability under IFRS 17.

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    Lemar Persaud's questions to Manulife Financial Corp (MFC) leadership • Q4 2024

    Question

    Lemar Persaud asked about the expected core tax rate for 2025, the outlook for credit losses amid macroeconomic volatility, and whether the recent positive insurance experience should be considered a new run rate.

    Answer

    CFO Colin Simpson noted the tax rate is trending towards the low end of the 17-23% range. Executive Trevor Kreel maintained the credit loss guidance of $30-50 million per quarter through the cycle. Executive Steven Finch cautioned against modeling a positive insurance experience run rate, suggesting the last half of 2024, adjusted for a one-off benefit, was roughly neutral.

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    Lemar Persaud's questions to Manulife Financial Corp (MFC) leadership • Q2 2024

    Question

    Lemar Persaud from Cormark Securities asked for a specific quantification of the Alternative Long-Duration Assets (ALDA) charge from private equity and how much of a decrease in short-term rates is needed to provide relief to that portfolio.

    Answer

    Retiring CIO Scott Hartz quantified the private equity loss at slightly more than $150 million. He also stated that while difficult to quantify, any rate decrease would be helpful, and a 75-100 basis point drop by year-end, as expected by markets, would be very positive for the portfolio's performance.

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    Lemar Persaud's questions to Royal Bank of Canada (RY) leadership

    Lemar Persaud's questions to Royal Bank of Canada (RY) leadership • Q2 2025

    Question

    Lemar Persaud asked for the rationale behind introducing a new 'trade disruption' downside scenario, questioning why existing scenarios and modeling levers were not sufficient and if this implied a more persistent risk.

    Answer

    Chief Risk Officer Graeme Hepworth explained that the level of uncertainty escalated significantly during the quarter, particularly in April. He stated that creating a new, specific scenario allowed the bank to more precisely target the current risks and allocate reserves within their IFRS 9 framework, which they prefer over using more subjective management overlays.

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    Lemar Persaud's questions to Royal Bank of Canada (RY) leadership • Q2 2025

    Question

    Lemar Persaud from Cormark Securities questioned the decision to introduce a new 'trade disruption' downside scenario, asking why existing scenarios and management judgment were not sufficient and if this implied a more persistent risk.

    Answer

    Chief Risk Officer Graeme Hepworth explained that as trade uncertainty intensified significantly during the quarter, a specific scenario was created to directly address the unique risks and more accurately allocate reserves using their IFRS 9 framework, rather than relying on generic scenarios or subjective management overlays.

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    Lemar Persaud's questions to Royal Bank of Canada (RY) leadership • Q1 2025

    Question

    Lemar Persaud of Cormark Securities asked for the drivers behind the confidence to raise NII guidance, given macroeconomic uncertainty, and questioned if unquantified HSBC synergies were a factor.

    Answer

    CFO Katherine Gibson attributed the guidance increase to strong Q1 results, specifically better-than-expected spreads, a favorable product mix shift towards non-maturity deposits, and a positive tailwind from foreign exchange. She explicitly stated that the change was not due to new or unquantified revenue synergy expectations from the HSBC Canada acquisition.

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    Lemar Persaud's questions to Royal Bank of Canada (RY) leadership • Q3 2024

    Question

    Lemar Persaud asked for clarification on the timing of peak retail credit losses, questioning why the peak is expected to extend through 2025 rather than occurring sooner, especially with the onset of rate cuts.

    Answer

    Chief Risk Officer Graeme Hepworth explained the delayed peak is driven by two main factors. First, unemployment is expected to peak in late 2024 or early 2025, with a subsequent lag before it translates into impaired loans. Second, while rate cuts are helpful, many consumers still face a significant payment shock as their mortgages reprice in 2025 and 2026, creating a sustained headwind.

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    Lemar Persaud's questions to Canadian Imperial Bank of Commerce (CM) leadership

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

    Question

    Lemar Persaud of Cormark Securities Inc. requested an update on CIBC's capital deployment strategy, asking about the target CET1 ratio, the appetite for continued share buybacks, and the bank's view on potential tuck-in M&A.

    Answer

    Victor Dodig, President & CEO, reiterated the bank's four-pronged capital approach: dividends, organic growth, buybacks, and tuck-in M&A. Robert Sedran, Senior EVP & CFO, added that the target CET1 ratio remains comfortably above the regulatory minimum (around 12.5%) and that the buyback program is managed to be stable and predictable.

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

    Question

    Lemar Persaud requested an update on CIBC's capital deployment strategy, specifically asking about the target CET1 ratio, the appetite for continued share buybacks, and the bank's view on potential tuck-in M&A.

    Answer

    Victor Dodig, President and CEO, reiterated the bank's four-pronged capital approach: dividends, organic growth, buybacks, and capital-light M&A, all aimed at achieving a 15%+ ROE. Robert Sedran, CFO, added that the bank uses buybacks for predictable capital management and targets a CET1 ratio 75-100 basis points above the regulatory minimum, while also remaining mindful of its position relative to peers.

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

    Question

    Lemar Persaud of Cormark Securities asked for an update on CIBC's capital deployment strategy, including its targeted CET1 ratio, appetite for share buybacks, and views on potential M&A.

    Answer

    CEO Victor Dodig reiterated the bank's four-pronged capital approach: dividends, organic growth, buybacks, and capital-light M&A, all aimed at achieving an ROE above 15%. CFO Robert Sedran added that the bank aims to remain well above regulatory minimums, viewing the buyback as a predictable tool to manage its capital position, which currently has significant excess.

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

    Question

    Lemar Persaud of Cormark Securities asked if the bottom-up stress test on the wholesale portfolio for tariff implications was captured in the Q1 performing provision, and which industries raised the most concern.

    Answer

    Chief Risk Officer Frank Guse clarified that the Q1 performing allowance was based on information as of January 31 and included management judgment on downside scenarios. He stated that while sectors like manufacturing and agriculture are monitored, the analysis showed a very small fraction of clients have direct, material exposure. He emphasized the portfolio's strong starting position and robust allowance coverage.

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

    Question

    Lemar Persaud asked about the normalized level of U.S. commercial PCLs, suggesting that a reversion to the mean could push the bank's total PCLs above its guidance. He also questioned the outlook for expense growth and operating leverage given tough comps and non-recurring treasury gains.

    Answer

    Chief Risk Officer Frank Guse expressed comfort with the bank's mid-30s PCL guidance, stating it already incorporates potential for episodic losses and that a higher U.S. run-rate fits within the total bank outlook. CFO Robert Sedran reiterated the mid-single-digit expense growth guidance and affirmed the bank has levers to manage for its annual operating leverage target, even if revenues are less robust.

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    Lemar Persaud's questions to Bank of Montreal (BMO) leadership

    Lemar Persaud's questions to Bank of Montreal (BMO) leadership • Q2 2025

    Question

    Lemar Persaud asked whether a post-trade-war recovery would be led by consumers or commercial clients, and if U.S. loan growth could plausibly outperform Canadian growth.

    Answer

    CEO Darryl White described a likely mixed recovery, noting persistent challenges for some consumers and a varied rebound for commercial clients. He agreed it was 'possible, plausible' for U.S. loan growth to outperform, given the expanded franchise, but cautioned against underestimating Canadian growth drivers like infrastructure spending.

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    Lemar Persaud's questions to Bank of Montreal (BMO) leadership • Q2 2025

    Question

    Lemar Persaud from Cormark Securities asked whether a post-trade-war recovery would be led by consumer or commercial clients and compared loan growth prospects between Canada and the U.S., given the Bank of the West integration.

    Answer

    CEO Darryl White suggested a recovery would be mixed, as some consumer segments would face persistent challenges from unemployment, while commercial recovery would vary by sector. He stated it is 'possible and plausible' for U.S. loan growth to outperform Canada's in a recovery, given BMO's positioning, but cautioned not to discount potential Canadian growth drivers like infrastructure spending and resolved interprovincial trade barriers.

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    Lemar Persaud's questions to Bank of Montreal (BMO) leadership • Q1 2025

    Question

    Lemar Persaud asked for the outlook for the Capital Markets business heading into Q2 and for a reminder of what constitutes a more normalized level of earnings or PPPT for the segment.

    Answer

    Alan Tannenbaum, Head of BMO Capital Markets, described the Q2 market activity as 'above trend line, but not as strong as what they experienced in November and December.' He reiterated the previously communicated expectation of $625 million in pre-provision, pre-tax earnings (PPPT) and above as the baseline for the business, stating it was premature to recalibrate long-term expectations despite the exceptionally strong Q1 performance.

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    Lemar Persaud's questions to Bank of Montreal (BMO) leadership • Q3 2024

    Question

    Lemar Persaud asked why BMO avoids providing specific PCL guidance unlike peers, and whether its syndicated loan losses suggest more conservative accounting or simply a greater relative impact.

    Answer

    Chief Risk Officer Piyush Agrawal and CEO Darryl White explained that quarterly wholesale PCLs are difficult to forecast precisely during a credit cycle due to high variability in loss-given-default outcomes on a few names. Regarding syndicated loans, Piyush noted it's difficult to compare provisioning with peers on specific credits but affirmed BMO's practice is to take impairments promptly when problems are identified.

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    Lemar Persaud's questions to Bank of Nova Scotia (BNS) leadership

    Lemar Persaud's questions to Bank of Nova Scotia (BNS) leadership • Q2 2025

    Question

    Lemar Persaud asked for the outlook on net interest margin (NIM) at the all-bank and segment levels, suggesting that all-bank NIM expansion may be nearing its peak. He also sought clarification on whether the 5-7% EPS growth guidance for 2025 now includes KeyCorp and potential buybacks.

    Answer

    CFO Rajagopal Viswanathan agreed that the all-bank NIM is near the top end for now but noted that renewing fixed-rate mortgages will be accretive in 2026. He expects the Canadian banking NIM to trough soon and international NIM to remain healthy. President and CEO Scott Thomson clarified the 5-7% EPS growth guidance for 2025 now includes both the impact of KeyCorp and the large PCL build, with the two effectively offsetting each other. The guidance does not include any impact from share buybacks.

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    Lemar Persaud's questions to Bank of Nova Scotia (BNS) leadership • Q2 2025

    Question

    Lemar Persaud inquired about the outlook for net interest margin (NIM) at both the all-bank and segment levels. He also sought clarification on the 5-7% EPS growth guidance for 2025, asking if it was now inclusive of KeyCorp and potential buybacks.

    Answer

    Raj Viswanathan, CFO, indicated that the all-bank NIM is near its peak for now but should be accretive in 2026, with the Canadian banking margin expected to trough soon. Scott Thomson, CEO, clarified that the 5-7% EPS growth guidance for 2025 now includes the offsetting impacts of the large PCL build and the contribution from KeyCorp. He explicitly stated that this guidance does not include any impact from share buyback activity.

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    Lemar Persaud's questions to Bank of Nova Scotia (BNS) leadership • Q3 2024

    Question

    Lemar Persaud asked if the sequential mortgage growth marks an inflection point for the domestic P&C business and whether to expect increased earnings growth from the segment.

    Answer

    An executive confirmed that an inflection point was reached in July, with mortgage balances now growing sequentially. The strategy remains focused on 'value over volume,' with 90% of new broker originations including additional products. Future earnings growth will depend on a combination of this disciplined volume growth, cost control, and the evolution of PCLs, with a continued focus on improving quality metrics like ROE.

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    Lemar Persaud's questions to Toronto-Dominion Bank (TD) leadership

    Lemar Persaud's questions to Toronto-Dominion Bank (TD) leadership • Q2 2025

    Question

    Lemar Persaud of Cormark Securities asked about the target normalized level for the Liquidity Coverage Ratio (LCR), the timeline to reach it, details on industries most sensitive to tariffs, and the evolution of the credit watch list.

    Answer

    CFO Kelvin Tran stated the normal LCR range is 125%-135% and expects to reach it within a year as Schwab proceeds are deployed. Chief Risk Officer Ajai Bambawale identified auto, agriculture, manufacturing, transport, and retail as industries most sensitive to tariffs and confirmed the credit watch list has been improving and is down across all segments.

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    Lemar Persaud's questions to Toronto-Dominion Bank (TD) leadership • Q3 2024

    Question

    Lemar Persaud asked for assurance on the U.S. business's ability to grow earnings in 2025 despite potential nonmonetary penalties and whether its underlying performance would lag peers. He also inquired about the historical success rate of class-action lawsuits against Canadian banks.

    Answer

    Leo Salom, President and CEO of TD Bank, America's most Convenient Bank, expressed optimism about the U.S. outlook, citing strong operating momentum and favorable macro trends, and affirmed the goal is to demonstrate peer-leading performance. CEO Bharat Masrani stated that it is difficult to generalize or speculate on the outcomes of class-action lawsuits, as each case is unique.

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    Lemar Persaud's questions to Toronto-Dominion Bank (TD) leadership • Q2 2024

    Question

    Lemar Persaud of Cormark Securities asked for a potential timeline for resolving the AML issue and inquired if the strong performance in Wealth Management was a one-off result or a fundamental shift in earnings power.

    Answer

    CEO Bharat Masrani declined to provide a timeline for the AML resolution. Tim Wiggan, Group Head of Wealth Management and Insurance, attributed the strong results to a diversified model, market appreciation, and expense discipline. Raymond Chun and Barbara Hooper added that the 'One TD' partnership between banking and wealth is driving record referrals and volumes.

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