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    Mike Rizvanovic • Scotiabank

    Mike Rizvanovic's questions to Royal Bank of Canada (RY) leadership

    Mike Rizvanovic's questions to Royal Bank of Canada (RY) leadership • Q2 2025

    Question

    Mike Rizvanovic questioned the deterioration in the mortgage book's gross impaired loan (GIL) ratio, asking if it was related to the HSBC acquisition and if RBC's high-quality client narrative still holds. He also requested an estimate of the mortgage business's revenue contribution.

    Answer

    Chief Risk Officer Graeme Hepworth confirmed the GIL trend is not HSBC-related, attributing it to market-specific payment pressures while affirming the portfolio's overall high quality. Group Head of Personal Banking, Erica Nielsen, stated that mortgage profitability is improving but has not returned to historical levels, and she offered to discuss the specific revenue contribution offline.

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    Mike Rizvanovic's questions to Royal Bank of Canada (RY) leadership • Q2 2025

    Question

    Mike Rizvanovic of Scotiabank asked about the deterioration in the mortgage book's GIL ratio, questioning if it was related to the HSBC acquisition, and also requested the approximate revenue contribution from the mortgage business.

    Answer

    Chief Risk Officer Graeme Hepworth stated the GIL increase was not HSBC-related but driven by market challenges in areas like the GTA. Erica Nielsen, Group Head of Personal Banking, noted that mortgage profitability is improving from recent lows but has not returned to historical levels, offering to discuss specific figures offline.

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    Mike Rizvanovic's questions to Canadian Imperial Bank of Commerce (CM) leadership

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

    Question

    Mike Rizvanovic of Scotiabank asked for an update on the all-bank net interest margin (NIM) excluding trading and the outlook for the bank's hedging program. He also questioned the current revenue contribution from the mortgage business, referencing prior guidance of around 17% of segment revenue.

    Answer

    Robert Sedran, Senior EVP & CFO, maintained the 'flat to gradually higher' NIM guidance, attributing the Q2 flatness to business mix but confirming the positive underlying trend. Hratch Panossian, Group Head of Personal & Business Banking, stated that mortgages are now a significantly smaller revenue contributor than the historical 17% figure, as the bank prioritizes deeper, multi-product client relationships.

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

    Question

    Mike Rizvanovic asked for an update on the all-bank net interest margin (NIM) momentum, excluding trading, and the outlook for the bank's hedging strategy. He also inquired about the mortgage business's revenue contribution, asking if prior guidance of around 17% of segment revenue was still a valid proxy.

    Answer

    Robert Sedran, CFO, maintained the 'flat to gradually higher' guidance for all-bank NIM, attributing the recent flat performance to business mix but expecting the hedging strategy to continue delivering benefits. Hratch Panossian, Head of Personal and Business Banking Canada, stated that the mortgage business is now a 'significantly smaller' contributor to revenue than the 17% figure from a couple of years ago, as the bank prioritizes deeper, multi-product client relationships.

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    Mike Rizvanovic's questions to Bank of Montreal (BMO) leadership

    Mike Rizvanovic's questions to Bank of Montreal (BMO) leadership • Q2 2025

    Question

    Mike Rizvanovic of Scotiabank asked for clarity on the outlook for Non-Interest Revenue (NIR) following a sequential decline and inquired about mortgage growth and potential spread pressure in the broker channel.

    Answer

    CFO Tayfun Tuzun expects NIR to be stronger in the second half, noting the Q2 decline was amplified by fewer days in the quarter, which alone accounted for over $200 million in total revenue impact. Ernie Johannson, Head of North American P&B Banking, stated that while the mortgage market has slowed, the broker channel is performing as expected and that competitive pressure exists across all channels, not just the broker market.

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