National Bank of Canada (NA) investor relations material

Macro environment and strategic priorities

• 2025 marked by trade war uncertainty, fragile labor market, and paused business investments, but Canadian economy showed resilience.

• Emphasis on national security, reindustrialization, and defense spending as top priorities; need to accelerate decision-making and collaboration among government, business, and indigenous communities.

• Canada is well-positioned with natural resources, engineering, and manufacturing capabilities; calls for faster action to leverage these strengths.

• Positive outlook on federal budget direction and interprovincial cooperation, especially with Alberta.

• Urgency to address interprovincial trade barriers and secure a quick agreement with the primary international ally.

Financial targets and capital strategy

• ROE target set at approximately 15% for 2026 and 17%+ for 2027, with improvements driven equally by numerator and denominator effects.

• AIRB conversion and Laurentian Bank portfolio impact capital deployment; share buybacks are a complement but not the main focus.

• Strong capital generation supports ongoing and potentially increased share buybacks before year-end 2026.

Revenue growth and business expansion

• CWB acquisition expected to deliver $270M in cost and funding synergies by 2027 and $50M in revenue synergies in 2026, with significant growth outside Quebec starting in late 2026.

• Revenue synergies from CWB will initially come from commercial client fees, expanding to NII and balance sheet growth by 2028.

• Focus shifting from international (Cambodia/ABA) to domestic growth, with more RWA deployment in Canada and outside Quebec.