CIBC (CM) RBC Capital Markets Global Financial Institutions Conference 2025 summary

Tariff impacts and client engagement

• Tariffs create significant uncertainty for clients, delaying capital investments and expansion plans.

• Direct exposure to affected industries like manufacturing, agriculture, and steel is below natural market share, limiting risk.

• Less than 1% of the overall loan book is highly exposed to tariff-sensitive sectors, reflecting a conscious risk management strategy.

• Retail impact is harder to predict and depends on broader economic factors and government response.

• Ongoing stress testing and close client relationships help monitor and manage emerging risks.

Loan growth, margins, and business mix

• Loan growth outlook is muted, with early-year improvement slowing due to uncertainty.

• Net interest margin benefits from hedging, business mix, and pricing discipline, with tailwinds expected into 2025-2026.

• Focus remains on relationship-based pricing and selective participation in lower-margin products like mortgages and GICs.

• U.S. margins are elevated but expected to normalize, with commercial banking as the primary focus.

• Loan growth uncertainty is less pronounced in the U.S. compared to Canada.

Wealth management and capital markets

• Strong flows in mass affluent and private wealth segments, supported by technology and advisor expansion.

• Enhanced financial planning tools and advisor empowerment drive higher customer satisfaction and asset visibility.

• Gradual advisor additions balance growth with expense control, creating a sustainable revenue flywheel.

• Capital Markets delivered a record quarter, with growth targeted at 7%-10% and continued investment in U.S. capabilities.

• Market conditions and corporate activity may introduce volatility, but the environment remains constructive.