iA Financial (IAG) TD Financial Services & Fintech Summit summary

Quarterly performance and capital generation

• Core EPS increased by 17%, surpassing the long-term target of 10%+ growth.

• Strong sales momentum with 11% asset growth and 8% increase in premiums and deposits.

• Significant buyback activity, amending the NCIB to repurchase more shares due to perceived undervaluation.

• Capital generation and book value growth remain key performance indicators.

• U.S. dealer business shows early signs of recovery, though overall results are not yet fully satisfactory.

Interest rate environment and sensitivity

• Short-term rate changes have limited impact; long-term rates are more influential for business outcomes.

• Lower short-term rates may benefit dealer businesses by improving affordability for clients.

• Wealth management profitability faces some pressure when rates decline, but overall sensitivity to short-term rates is low.

Capital allocation strategy

• Excess capital is prioritized for organic growth, including technology investments and business expansion.

• Acquisition opportunities are actively pursued, but discipline is maintained regarding pricing.

• Dividend increases and share buybacks are used when acquisition opportunities are limited.

• Targeting midterm ROE above 15% through effective capital deployment.