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    Sohrab Movahedi

    Research Analyst at BMO Capital Markets

    Sohrab Movahedi is Managing Director of Financials Research at BMO Capital Markets, specializing in equity research on Canadian banks and asset managers including Brookfield Asset Management, Canadian Western Bank, CIBC, Laurentian Bank, National Bank, Royal Bank, Scotiabank, and TD Bank. Over a documented track record of 103 ratings on 6 major financial services companies, his recommendations have met their price targets at a ratio of 38.23% with an average potential upside of 26.46%, and top calls such as Brookfield Corp delivered returns over 4% in under a week. Movahedi joined BMO in 2014 after serving as financials sector head at Canada Pension Plan Investment Board and previously held senior management roles in risk and finance at CIBC for 13 years. He holds a Bachelor of Engineering Science and Bachelor of Arts in Economics from Western University, an MBA from Schulich School of Business, and was recognized as a TopGun analyst for Canadian banks in the 2020 and 2021 Brendan Wood International Surveys.

    Sohrab Movahedi's questions to TORONTO DOMINION BANK (TD) leadership

    Sohrab Movahedi's questions to TORONTO DOMINION BANK (TD) leadership • Q3 2025

    Question

    Sohrab Movahedi from BMO Capital Markets inquired about the scale of future investment needed for the Wholesale Bank to achieve its 'top 10' aspiration and the associated expectations for RWA growth and ROE targets.

    Answer

    Tim Wiggan, Group Head - Wholesale Banking, explained that major investments are already hitting the run rate and FTEs are not expected to grow materially. He pointed to the pre-Cowen ROE of 13% as a historical benchmark and emphasized that a key objective is managing the RWA denominator by deepening client relationships and reallocating capital effectively with the newly expanded platform.

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    Sohrab Movahedi's questions to TORONTO DOMINION BANK (TD) leadership • Q3 2025

    Question

    Sohrab Movahedi from BMO Capital Markets inquired about the scale of future investment required for the Wholesale Bank to reach its top-10 North American goal, and the associated expectations for RWA growth and ROE targets.

    Answer

    Tim Wiggan, Head of Wholesale Banking, explained that current expenses already reflect significant investments in platforms and risk controls, with FTE levels not expected to grow materially. He pointed to the pre-Cowen ROE of 13% as a historical benchmark and emphasized that a key objective is managing RWA growth by deepening client relationships and reallocating capital effectively with the new platform.

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    Sohrab Movahedi's questions to TORONTO DOMINION BANK (TD) leadership • Q2 2025

    Question

    Sohrab Movahedi of BMO Capital Markets asked for an earnings outlook for the U.S. Retail segment for the second half of the year and questioned where management expects to see credit deterioration given the complex economic environment.

    Answer

    Leo Salom, President and CEO of TD Bank AMCB, expressed a positive H2 outlook for U.S. Retail, citing NII tailwinds and moderating expense growth. Chief Risk Officer Ajai Bambawale stated that while deterioration could occur in both consumer and business lending, the bank's recent $500M reserve build was primarily focused on non-retail exposures sensitive to trade policy.

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    Sohrab Movahedi's questions to TORONTO DOMINION BANK (TD) leadership • Q3 2024

    Question

    Sohrab Movahedi inquired about the potential growth capacity of the Wholesale Bank and the resources required for acceleration. He also asked if the current U.S. Retail quarterly expense run-rate fully incorporates all anticipated risk and control investments or if it is expected to rise further.

    Answer

    Riaz Ahmed, Group Head of Wholesale Banking, stated that while the business has significant room to grow, any acceleration will be balanced with risk considerations and infrastructure development. Leo Salom, President and CEO of TD Bank, America's most Convenient Bank, indicated that while he wouldn't provide specific guidance, he expects the bulk of related expenses to peak in early 2025 and that the focus remains on using productivity gains to fund these investments.

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    Sohrab Movahedi's questions to TORONTO DOMINION BANK (TD) leadership • Q2 2024

    Question

    Sohrab Movahedi from BMO Capital Markets asked if increased savings from the larger restructuring program would boost the bottom line and questioned if U.S. segment expenses were understated due to costs being booked in the Corporate segment.

    Answer

    CFO Kelvin Tran clarified that additional savings are a run-rate benefit for 2025, for which guidance is not yet provided. Leo Salom, President and CEO of TD Bank, AMCB, acknowledged that while transformational AML costs are in Corporate, the ongoing run-rate expenses will be held at the segment level and are factored into their forecasts for positive operating leverage.

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    Sohrab Movahedi's questions to CANADIAN IMPERIAL BANK OF COMMERCE /CAN/ (CM) leadership

    Sohrab Movahedi's questions to CANADIAN IMPERIAL BANK OF COMMERCE /CAN/ (CM) leadership • Q3 2025

    Question

    Sohrab Movahedi of BMO Capital Markets inquired about CIBC's intention to complete its renewed Normal Course Issuer Bid (NCIB) and whether this signals confidence in the bank's earnings trajectory.

    Answer

    Robert Sedran, Senior EVP, CFO & Enterprise Strategy, confirmed that CIBC expects to utilize the buyback program as a consistent part of its strategy, offering flexibility while prioritizing organic growth. He stated that strong performance in revenue, margins, client acquisition, and expense discipline, leading to a rising ROE, reinforces the management's conviction in the bank's earnings power and strategic direction.

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    Sohrab Movahedi's questions to CANADIAN IMPERIAL BANK OF COMMERCE /CAN/ (CM) leadership • Q2 2025

    Question

    In a follow-up, Sohrab Movahedi of BMO Capital Markets asked if the current allowance for credit losses at 77 basis points is considered the 'right level' or if it might require future adjustments.

    Answer

    Frank Guse, Senior EVP & Chief Risk Officer, stated that 77 basis points is the right level and represents prudent coverage based on all currently available information, though it is subject to reassessment each quarter.

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    Sohrab Movahedi's questions to CANADIAN IMPERIAL BANK OF COMMERCE /CAN/ (CM) leadership • Q2 2025

    Question

    Sohrab Movahedi asked for details on the margin dynamics between deposits and assets in the personal and business banking segment. In a follow-up, he questioned if the current allowance for credit losses at 77 basis points is considered the appropriate level.

    Answer

    Hratch Panossian, Head of Personal and Business Banking Canada, attributed margin strength to a strategic focus on profitable relationships, resulting in a favorable mix shift from GICs to demand deposits and investment sales. Frank Guse, Chief Risk Officer, confirmed that the 77 basis point allowance coverage is considered the 'right level' and a 'prudent' measure based on all currently available information.

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    Sohrab Movahedi's questions to CANADIAN IMPERIAL BANK OF COMMERCE /CAN/ (CM) leadership • Q2 2025

    Question

    Sohrab Movahedi of BMO Capital Markets asked about the margin dynamics between deposits and assets in the Canadian P&C business. In a follow-up, he questioned if the current allowance for credit losses at 77 basis points is the appropriate level.

    Answer

    Hratch Panossian, Head of Personal and Business Banking Canada, attributed margin strength to a strategic mix shift towards higher-margin demand deposits and away from GICs. Chief Risk Officer Frank Guse confirmed that the current 77 basis point allowance coverage is a 'prudent' and 'right level' based on all available information.

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    Sohrab Movahedi's questions to CANADIAN IMPERIAL BANK OF COMMERCE /CAN/ (CM) leadership • Q3 2024

    Question

    Sohrab Movahedi noted that U.S. segment earnings are flat compared to two years ago despite a significant increase in FTEs. He asked if this represents a stable earnings base, if FTE growth has plateaued, and when revenue benefits from the buildout will materialize.

    Answer

    Shawn Beber, head of the U.S. Region, positioned the current earnings as a 'good starting point' for future growth. He explained that about half the expense growth funds growth initiatives expected to pay off in coming quarters. While investment will continue, he does not expect the same pace of expense growth going forward, and the FTE build is intended to drive future revenue.

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    Sohrab Movahedi's questions to ROYAL BANK OF CANADA (RY) leadership

    Sohrab Movahedi's questions to ROYAL BANK OF CANADA (RY) leadership • Q3 2025

    Question

    Sohrab Movahedi asked whether the bank's strong performance and confidence would make it willing to pursue an inorganic growth opportunity, despite macroeconomic uncertainties.

    Answer

    President & CEO David McKay confirmed his confidence in the bank's organic growth momentum, especially with management's full focus after the HSBC integration. While RBC remains open to strategic M&A, particularly in U.S. and European wealth management, he stressed that any deal would face a very high bar, given the opportunity cost of distracting from the highly successful organic strategy.

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    Sohrab Movahedi's questions to ROYAL BANK OF CANADA (RY) leadership • Q2 2025

    Question

    Sohrab Movahedi asked for details on the specific industry sectors targeted by the reserve build in the commercial bank and questioned the timeline for the Commercial Banking segment to achieve its 18% ROE target.

    Answer

    Chief Risk Officer Graeme Hepworth identified sectors like industrial, manufacturing, and transportation as being targeted due to supply chain and tariff impacts. Group Head of Commercial Banking, Sean Amato-Gauci, reiterated that the 18% ROE is a three-year target, with current results impacted by the reserve build and HSBC acquisition goodwill.

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    Sohrab Movahedi's questions to ROYAL BANK OF CANADA (RY) leadership • Q2 2025

    Question

    Asked which commercial banking sectors were most affected by the credit reserve build and questioned the timeline for the commercial segment to achieve its 18% ROE target.

    Answer

    The reserve build targeted sectors like supply chain, manufacturing, and transportation that are sensitive to trade uncertainty. The 18% ROE target for the commercial bank is a three-year goal, with current performance impacted by the reserve build and HSBC acquisition goodwill.

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    Sohrab Movahedi's questions to ROYAL BANK OF CANADA (RY) leadership • Q2 2025

    Question

    Sohrab Movahedi from BMO Capital Markets inquired about the specific industry sectors targeted by the performing loan reserve build in the commercial bank and asked for the expected timeline to achieve the segment's 18% ROE target.

    Answer

    Chief Risk Officer Graeme Hepworth identified supply chain, industrial, manufacturing, and transportation as key sectors. Sean Amato-Gauci, Group Head of Commercial Banking, reiterated that the 18% ROE is a three-year target, with current results impacted by the reserve build, capital changes, and HSBC-related goodwill.

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    Sohrab Movahedi's questions to ROYAL BANK OF CANADA (RY) leadership • Q3 2024

    Question

    Sohrab Movahedi sought to reconcile the cautious macroeconomic commentary with the bank's strong business momentum, buyback plans, and the potential benefits of a steepening yield curve for the Capital Markets business, asking if the PCL outlook was overly conservative.

    Answer

    CEO David McKay acknowledged the cautious tone but emphasized the strong underlying momentum and opportunities in a lower rate environment, such as improved mortgage margins and increased M&A activity. He stated the caution reflects uncertainty around the full impact of mortgage repricing on consumers, but the bank is confident in its ability to manage through it. He confirmed the bank is still calling for a soft landing, not a recession, which supports the positive outlook.

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    Sohrab Movahedi's questions to BANK OF NOVA SCOTIA (BNS) leadership

    Sohrab Movahedi's questions to BANK OF NOVA SCOTIA (BNS) leadership • Q3 2025

    Question

    Sohrab Movahedi of BMO Capital Markets asked which segment, Canadian Banking or International Banking, is likely to exhibit stronger growth over the next six quarters.

    Answer

    CEO Scott Thomson responded that while International Banking is pivoting to steady 5-7% growth, he is particularly excited about significant net income growth in the Canadian bank through 2026-2027. This growth is expected to be driven by achieving positive operating leverage and the full benefits of its strategic pivot from optimization to growth.

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    Sohrab Movahedi's questions to BANK OF NOVA SCOTIA (BNS) leadership • Q2 2025

    Question

    Sohrab Movahedi asked how the updated target of a 12.5% CET1 ratio, which is higher than the 12%+ mentioned at Investor Day, affects the bank's medium-term goal of achieving a 14%+ return on equity (ROE).

    Answer

    President and CEO Scott Thomson stated that the 14%+ ROE target remains achievable and that the bank's internal plans had already embedded a capital level significantly in excess of 12%, providing a buffer. He expressed confidence in reaching the target, citing strong performance in Wealth and International Banking and a clear path to improvement in the Canadian bank through deposit growth, primacy, and productivity gains.

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    Sohrab Movahedi's questions to BANK OF NOVA SCOTIA (BNS) leadership • Q2 2025

    Question

    Sohrab Movahedi asked how the updated CET1 ratio target of 12.5%, which is higher than the 12%+ mentioned at Investor Day, affects the bank's medium-term Return on Equity (ROE) target of 14% or more.

    Answer

    Scott Thomson, President & CEO, confirmed that the 14%+ ROE target remains fully intact. He explained that the original financial plan presented at Investor Day had already embedded a significant capital buffer well in excess of 12%. He expressed confidence in achieving the target, driven by outperformance in Wealth and International, future growth, and productivity improvements in the Canadian Bank.

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    Sohrab Movahedi's questions to BANK OF NOVA SCOTIA (BNS) leadership • Q1 2025

    Question

    Sohrab Movahedi asked if the bank's tariff assumptions would be different if the quarter ended today, and which of the December 2023 Investor Day assumptions are being tested the most.

    Answer

    Chief Risk Officer Philip Thomas stated the assumptions would not change, as there is still no official clarity on tariffs to act upon. Before the call was cut short, President and CEO L. Thomson began a review, noting International Banking is on track, Wealth is ahead of plan, and GBM had a strong quarter, while Canadian banking is executing on its primary client strategy.

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    Sohrab Movahedi's questions to BANK OF NOVA SCOTIA (BNS) leadership • Q3 2024

    Question

    Sohrab Movahedi asked if the 12.5% CET1 target implies GBM optimization is complete, questioned the tangential benefits of the KeyCorp investment, and inquired about the bank's past experience with similar strategic 'optionality' investments.

    Answer

    President & CEO Scott Thomson clarified that GBM's focus on primary client relationships is a continuing strategy, not a completed exercise. He stressed the KeyCorp investment is financially attractive and provides long-term optionality, but is strategically separate from GBM's organic growth and does not involve balance sheet synergies. He referenced the bank's successful entry into Mexico as a past example of a similar strategic approach.

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    Sohrab Movahedi's questions to BROOKFIELD Corp /ON/ (BN) leadership

    Sohrab Movahedi's questions to BROOKFIELD Corp /ON/ (BN) leadership • Q4 2024

    Question

    Sohrab Movahedi asked if Brookfield has a preference to monetize assets before making new investments and questioned where the greatest opportunities and risks lie amidst current market uncertainty, and if the 2025 outlook has changed.

    Answer

    President Nick Goodman responded that the company remains opportunistic and is not dependent on monetizations to fund new investments due to its significant scale and liquidity. He stated that opportunities are broad-based and that market volatility creates attractive entry points across their sectors. He confirmed their optimistic outlook for 2025 has not changed.

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    Sohrab Movahedi's questions to BROOKFIELD Corp /ON/ (BN) leadership • Q3 2024

    Question

    Sohrab Movahedi inquired about the eventual plan for the real estate transition and development (T&D) portfolio, which has seen dispositions. He also asked if Brookfield is considering changing the discount rates used to value its portfolios given recent movements in interest rates.

    Answer

    President Nick Goodman reiterated that the plan for the T&D portfolio remains consistent: monetize assets as their value-creation strategies are executed and market conditions become favorable. On discount rates, he explained that the firm did not significantly lower them when rates were at zero and has only made slight upward adjustments, with no major changes anticipated at year-end.

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    Sohrab Movahedi's questions to Brookfield Asset Management (BAM) leadership

    Sohrab Movahedi's questions to Brookfield Asset Management (BAM) leadership • Q3 2024

    Question

    Sohrab Movahedi requested a breakdown of the drivers for fee-related revenue and earnings growth similar to the fee-bearing capital plan from Investor Day, and asked what market dynamics make it both a good seller's and a good buyer's market.

    Answer

    CFO Hadley Peer Marshall offered to discuss the detailed earnings buildup offline but reiterated that growth will come from flagships, complementary strategies, and credit. President Connor Teskey explained the dual market dynamic by noting a robust bid for high-quality, cash-generative assets (seller's market) coexists with a shortage of capital for new development and construction opportunities (buyer's market), a bifurcation seen across multiple asset classes.

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