Great-West Lifeco (GWO) Scotiabank’s 27th Annual Financials Summit summary

Business performance and strategic direction

• Achieved strong business performance in the first year under new leadership, with notable earnings growth and capital generation driving results.

• ROE reached 19.3%, surpassing medium-term targets set just a year prior, with capital-light businesses now comprising about two-thirds of earnings and expected to exceed 70%.

• Capital-light earnings growth is expected to drive further ROE expansion, while M&A activity may moderate this trajectory.

• Buybacks remain a key capital deployment tool, with at least CAD 1.6 billion targeted for the year, alongside a disciplined approach to M&A.

Technology and operational efficiency

• AI is being integrated across all business areas, with expectations for significant efficiency gains and improved customer experience over the coming years.

• No official AI targets have been published, but ambitions align with or exceed industry peers, focusing on supporting medium-term EPS growth targets of 8%-10%.

• AI-driven improvements are expected to reduce costs, modernize operations, and enhance service delivery, supporting ongoing margin expansion.

Empower and wealth management

• Empower retirement business surpassed $2 trillion in workplace client assets, with Q2 operating margin at 34.7%, though some fallback is expected due to ongoing brand investment.

• Margin expansion is supported by scale, AI-driven efficiencies, and new product offerings, with a long-term target north of 35%.

• Wealth business in the U.S. is young but already exceeds $100 billion in assets and achieved a 40% margin, with further growth expected as customer retention improves.

• Rollover capture rate is currently around 15%, with ambitions to reach mid-20s to high-20s over time.

• Platform improvements will focus on retail brokerage and executive financial planning, with both in-house development and acquisitions considered.