CIBC (CM) Scotiabank’s 27th Annual Financials Summit summary

Leadership perspective and strategic focus

• Leadership transition has reinforced a focus on modernization, efficiency, and client-centricity, leveraging a resilient franchise with deep historical roots.

• Emphasis on risk discipline and a strong balance sheet positions the organization well amid economic uncertainty.

• Strategy remains consistent but is being executed with new enhancements to drive higher earnings and efficiency.

• Upcoming Investor Day will provide refreshed metrics and details on technology and efficiency initiatives.

• Executional excellence and trajectory toward higher earnings growth are key priorities.

Financial performance and capital allocation

• Achieved a 16.8% ROE last quarter, with 12 consecutive quarters of positive operating leverage.

• Shift toward a structurally higher ROE, balancing growth and returns, with a focus on the efficiency frontier.

• CET1 ratio remains strong, with plans to deploy more capital to clients as demand grows, aiming to lower CET1 over time.

• CAD 9 billion in excess capital above the regulatory floor, with optimism for further capital deployment through 2027 and beyond.

• No appetite for large-scale M&A; focus remains on organic growth and selective tuck-in acquisitions that fit culturally and are ROE accretive.

Business mix, credit quality, and market positioning

• Well-diversified business mix with strong performance in commercial, wealth, and capital markets, especially in the U.S.

• Consistent, client-driven credit strategy supported by advanced risk management tools, including AI.

• Mortgage business is less than 10% of P&C earnings, with diversified growth in mass affluent and checking accounts.

• Confident in credit quality and not concerned about housing market stress; focus remains on deep client relationships.

• Positioned to benefit from infrastructure and nation-building initiatives, leveraging expertise and capital deployment.