Bank of Montreal (BMO) Scotiabank’s 27th Annual Financials Summit summary

ROE progress and business performance

• Achieved 14% ROE, up from 10% at the start of the journey, with a target of 15% by 2027.

• ROE improvement is broad-based: Canadian P&C, U.S. banking, Capital Markets, and Wealth all contributed.

• Record PPPT across all four business lines in Q3, reflecting strong core business performance.

• U.S. banking ROE rose from below 7% to 9.8%, with ROTCE at 17.3%.

• Diversification by business line and geography provides resilience and growth optionality.

Credit quality and risk management

• Impaired credit performance improved to 41%, the best in 10 quarters, with expectations to reach mid-30% range by 2027.

• Enhanced underwriting standards and unified client selection processes have improved credit outcomes.

• Actively managed lower-end card portfolio risk while expanding premium card offerings.

• Positive trends in U.S. credit quality, with portfolio changes supporting ongoing ROTCE improvement.

U.S. and Canadian business strategies

• U.S. P&C banking focuses on unified go-to-market and balance sheet integration, targeting 17–19% ROTCE.

• Commercial loan growth resumed post-optimization, with 4% sequential growth in Q3.

• California market expansion aims to double deposit share from 2% to 4%, leveraging a differentiated client relationship model.

• Wealth business in the U.S. is growing through better client segmentation and integration with mass affluent strategy.

• Canadian P&C gaining share in deposits, mutual funds, commercial deposits, and home financing.