Thank you, Sylvie, and good morning, everyone. Your hosts for today's Q3 results call are Chadwick Westlake, President and CEO; Annalisa [Sinani?]

, CFO; and Puneesh Arora, CRO. Also present for the Q&A session is Darren Lorimer, EVP, Commercial Banking; and Daniel Ratassi, EVP, Personal Banking.

After prepared remarks, we will open the lines for questions from our pre-qualified analysts. We encourage you to also log in to our webcast and view our quarterly presentation, which will be referenced during the prepared remarks.

On Slide 2 of our presentation, you will find EQB's caution regarding forward-looking statements, which involves assumptions that have inherent risks and uncertainties. Actual results may differ materially.

I would remind listeners that all figures referenced today are on an adjusted basis where applicable, unless otherwise noted. With that, I will now turn the call over to Chadwick.

Thanks, Lemar, and good morning. The third quarter marked a historic inflection point for EQB.

It is worth taking a moment to acknowledge what it took to get here: the complexity, the pace of change, and the sheer amount of effort to decisively close our PC Financial transaction. Hundreds of people across EQB and PC Financial spent months planning, testing, and preparing to make a very complex integration feel seamless from day one.

Through it all, we remained focused on our customers, supported one another, and delivered an extraordinary outcome. We're a very different Challenger now, with a new level of relevance, reach, and choice for millions of everyday Canadians.

What excites me most is that we're only beginning to unlock the opportunity ahead. At the same time, the quarter behind us is not a clean reflection of the earnings power of the combined franchise.

We reported only 1 month of PC Financial results in a seasonally dynamic cards business alongside the accounting and capital impacts associated with the transaction. Even in that context, PC Financial contributed approximately $10 million of earnings, excluding the favorable impacts of purchase price accounting, reinforcing our confidence in the long-term value.

Early days, the integration is at, and in some cases ahead of expectations. Against our $30 million cost synergy target, we achieved 50% on an annualized basis in the first month, plus organic growth month-over-month across our new product shelf.

The composition of our earnings is very different now. On a pro forma basis, PC Financial would have approximately doubled revenue excluding loyalty point costs, and nearly tripled non-interest revenue, significantly increasing the proportion of recurring, fee-based earnings within the franchise.

We've also started to go to market with real ambition for our EQ Bank brand as part of the early integration and with our game-changing PC Optimum and Loblaw partnership. For example, a few weeks ago, we announced the Grand Scan Contest, the largest PC Optimum points giveaway in history, with 25 million points for a single winner.

As part of this, we introduced multiple EQ Bank pop-up stores inside Loblaws in three major cities across Canada. Most banks compete for a customer with a one-time offer and an appointment.

We're now meeting 14 to 15 million Canadians where they are every week in the grocery aisle, while running errands and filling up their cars with brands they trust. This gives us a unique opportunity to build tremendous awareness, engagement, and ultimately customer relationships at a scale very few banks can match.

Our purpose is to help Canadians get ahead every day. Today, we have the reach, capabilities, and scale to do that in entirely new ways.

Now, before moving to some points on the quarter, a few comments on talent. We welcomed over 300 new PC Financial colleagues, and the transition was seamless from day one.

These new colleagues include our Chief Risk Officer, Puneesh, who you'll hear from shortly. Since joining as part of PC Financial, he has spent considerable time evaluating our risk capabilities and making enhancements.

He's part of a broader strengthening of our team, as we also welcome Michele Garfeild as Senior Vice President, Customer Growth, Experience, and Strategy; and Ian Hanning as Senior Vice President, Credit Cards, Insurance, and Operations. On the technology side, we also welcome Basel Al-Tamm, Chief Technology Officer for our digital business.

I want to again thank Marlene Lenarduzzi for her years of service as CRO. We are pleased to continue benefiting from her experience and counsel in her role as Special Advisor.

Shifting to three areas, I'll speak to before Annalisa shares more results: one, context for the quarter; two, our core businesses; and three, outlook. Despite being a complex and noisy quarter as anticipated, there were several clear, encouraging outcomes.

ROE and return on tangible common equity, or ROTCE, both improved sequentially and year-over-year. With the closing of PC Financial, we recognized significant goodwill and intangibles, reflecting the value of the acquired franchise and an increase in EQB's share price at closing.

ROE will continue to show you the full capital we deployed, while ROTCE excludes goodwill and other intangible assets. We believe it offers a cleaner view of operating performance once the deal closed.

For the first time, we generated over $1 billion of revenue through the first nine months into a fiscal year. With just one month of PC results, net interest margin rose to 2.41%, reflecting the evolution of our business mix and earnings profile.

We exited the quarter with a much more diversified balance sheet and revenue mix, plus our highest-ever level of direct retail deposits. We have an efficient operating model with opportunities for continued improvement in our cost base.

Taken together, these results point to a stronger, more resilient franchise with growing earnings power. The primary headwind in the third quarter was a higher level of performing and impaired credit provisions.

We proactively updated our provisions following a comprehensive review of our portfolio and the evolution of economic indicators alongside our assessment of the operating environment and ongoing uncertainty, which Puneesh will discuss. Early-stage delinquency trends across the portfolio are stable to improving, and we believe we are positioned to perform well across a range of economic outcomes.

Turning to the core business, this is a very different company than it was a year ago. We said we would restore efficiency as a competitive advantage, and that work is showing up in our results.

We are making clear choices about where to invest capital, focusing on businesses where we see sustainable and attractive returns, and just as importantly, stepping back where we do not. With new energy and focus in personal banking under Daniel's leadership, we gained meaningful market share in single-family uninsurable originations and continue to drive strong growth in reverse mortgages.

We are leaning into our competitive advantages, sharpening our execution, and winning in areas we choose to compete. I expect that momentum will increasingly translate into stronger net asset growth in the quarters ahead.

While market share gains are encouraging, the housing market in general remains subdued with limited industry-wide growth. That said, taking share matters.

We are seeing stronger application volumes, deepening broker relationships, and improving underwriting efficiency. As market activity returns, we are will be well-positioned to convert that momentum into earnings growth.

Our largest revenue-generating business is now credit card interest and fee income from the tens of billions in annual spend across our suite of PC Mastercards. In the first month following close, credit card applica- applications increased 3% month-over-month, with initial cross-selling to existing EQ Bank customers.

It was also a record month for new PC Insurance policies, reaching 93,000 in force. These indicators point to strong customer engagement and are an encouraging start.

Commercial banking continues to perform well under Darren's leadership, importantly, our insured multi-unit residential business, which finances exactly what Canada needs more of: purpose-built rental housing supply. Uninsured commercial real estate remains the more challenging part of the market, and our approach has been consistent: fewer, better opportunities with strong, risk-adjusted yields and close attention to credit quality.

Being cloud native and API-first was a deliberate choice years ago, and it's paying off now. It's why we can integrate a business like PC Financial at this pace, why we can scale without adding costs at the same rate, and why our investments in technology and AI translate into efficiency rather than added overhead.

This creates a structural advantage over institutions many times our size, and we intend to keep pressing it. That brings me to outlook.

We have one quarter left in fiscal 2026, and we look forward to sharing our fiscal 2027 and refreshed medium-term outlook at our Investor Day on December 7th, which is set to be an immersive and highly-engaging morning for attendees here in the EQ Bank tower. In Q4, investors will see the first full-quarter contribution of PC Financial, a further increase in weighted average shares outstanding, and still only a portion of the synergies we expect to realize.

We have all experienced sentiment in past days, weeks, and months about the magnitude of geopolitical and macro uncertainty and the potential impact to Canadian employment and the economy broadly. We do believe Canadian households are proving resilient, and our balance sheet shows that.

We do focus on everyday Canadians and small business owners that are impacted. Our purpose is to be there to help them get ahead every day, and this volatility and uncertainty could continue for an extended period of time.

Taking those factors into account, we expect fiscal 2026 ROE will improve further from our Q3 level, including ROTCE in the 12% range as we make strides toward our medium-term ranges. We built proactive provisioning in Q3 in readiness for this type of environment, and the ongoing trade uncertainty could still add more sensitivity to these ranges.

On capital allocation, our focus is reinvestment in the business, while maintaining the flexibility that has long been one of EQB's strategic advantages. Our top priority is a successful integration and progress toward our ROE objectives.

We will remain opportunistic across share repurchases, with capacity under our existing NCIB, dividend growth, and selective inorganic opportunities. There is significant but exciting integration work ahead of us, and we were only at the beginning of what is possible.

We have a clear strategy, strong momentum, and a unique opportunity to help millions more Canadians get ahead. This week marks my first year as CEO, and I've never been more optimistic about the future of EQB.

Now over to Annalisa.

Thanks, Chadwick, and good morning, everyone. As a reminder, my comments will be on an adjusted basis, and you can find a summary of these adjustments on Slide 25 of today's presentation.

Adjusted results exclude the $219 million day-one provision on performing acquired credit card receivables and other acquisition-related items. Starting on Slide 7.

As Chadwick mentioned, Q3 marks the beginning of a significant shift in EQB's earning profile and the immediate shift in our revenue mix and balance sheet. As this is our first quarter reporting as a combined business, we have provided additional detail on the acquisition and related accounting impacts on Slide 23 of today's earnings presentation.

Slide 24 also highlights key accounting considerations related to the acquisition and how the impacts are expected to flow through reported and adjusted earnings going forward. With that context, I'll turn to this quarter's financial performance.

Sequentially, diluted EPS was up 4% to $2.12, and ROE increased to 10.3%. The positive impacts of the acquisition and continued expense discipline more than offset the continued tough operating environment that resulted in higher PCLs and slower revenue growth, overall delivering returns on a significantly larger equity base following the acquisition.

ROTCE, which excludes the approximately $580 million of goodwill and intangibles recognized on July 1st, increased 40 basis points to 11.1%. Turning to the balance sheet on Slide 8.

Loans under management, or LUM, are a key performance metric as they include our market-leading position in insured multi-unit residential mortgages. LUM increased 12% year-over-year and 7% sequentially to $82.5 billion.

Sequential growth was primarily driven by the acquisition of the acquired PC Financial cards. Excluding the acquired cards, LUM increased 1% sequentially, driven by continued strength in our insured multi-unit residential, decumulation, and uninsured single-family residential portfolios.

We achieved this growth despite softer market conditions, reflecting the benefits of our ongoing strategy to optimize our portfolio mix and redeploy capital away from lower-return businesses, including certain pockets of uninsured single-family residential, and long-haul and subprime leases in our equipment financing portfolios. Conventional loans, which exclude the insured single-family and multi-unit residential portfolios, are the primary contributor of net interest income.

Conventional loans increased 16% year-over-year and 14% sequentially, reflecting the addition of the cards to the EQB product shelf and continued growth across most remaining portfolios. Looking ahead, the addition of PC Financial broadens the drivers of growth across the franchise.

While lending remains an important growth engine, we now benefit from the addition of a scaled, loyalty-linked cards business and a significantly larger customer base, reducing our dependence on housing-related activity. We are on track to achieve our 2026 LUM growth outlook of high single-digit to low double-digit growth, and now expect to land in the upper end of the range as a combined franchise.

Now, turning to deposits. Total deposits were up 3% year-over-year and 2% sequentially, driven by growth in retail banking deposits following the closing of PC Financial, partly offset by the impacts of a covered bond maturity and seasonality in credit union balances.

We continue to access a diversified mix of funding sources. This provides important flexibility and enables us to actively manage and optimize our cost of funding, while maintaining pricing discipline in a competitive environment.

We also continue to improve the proportion of lower-cost funding, supporting margin resilience in a difficult and highly-competitive environment. Retail deposits now represent 29% of total funding, up more than 2 percentage points from a year ago.

As we deepen customer relationships across our larger franchise, we expect further growth in lower-cost deposits and a continued strengthening of our funding profile. Turning to NII on Slide 9.

Net interest income was $319 million, up 22% both year-over-year and quarter-over-quarter. NIM increased 33 basis points, reflecting a structural shift in our product mix and margin profile following the addition of the acquired credit card portfolio.

Margins in other personal and commercial portfolios were stable on a normalized-days basis as compared to last quarter, reflecting disciplined pricing and proactive margin management. Looking ahead, we expect margin performance to improve next quarter, reflecting a full a full quarter's contribution from PC Financial.

Turning to Slide 10. Non-interest revenue of $73.9 million increased 55% year-over-year and 77% sequentially.

The addition of PC Financial represents a significant diversification of our revenue streams and introduces a larger source of recurring, fee-based income through interchange, card fees, and insurance-related revenue. These benefits were partially offset by lower securitization income, where we saw activity moderating and tighter spreads, driven by sluggish economic and interest rate environments.

Turning to nix on Slide 11. Adjusted non-interest expenses increased 19% year-over-year and 32% sequentially.

Year-over-year results reflected the addition of PC Financial, partially offset by the benefits of the strategic restructuring program completed last October, where we are tracking to exceed our pretax expense savings target of $45 million, while continuing to invest thoughtfully in growth and strategic priorities. Sequentially, results reflected the addition of PC Financial and higher initiative spending, while expense discipline remains strong.

Recall that Q2 also benefited from a few favorable items, including a capital tax benefit. Efficiency remains strong at 50.1%, and we are on track to achieve our low-50s target for fiscal 2026, despite loyalty-linked cards portfolios carrying a higher relative expense profile.

Our focus remains on managing the combined organization thoughtfully, while continuing to invest in customer growth and the capabilities required to support a business of greater scale. As Chadwick mentioned, we have strong initial momentum capturing integrate integration cost synergies already.

Finally, turning to capital on Slide 12. The bank's CET1 ratio remains strong at 13.4% as compared to 13.6% last quarter, reflecting the impact of RWA growth primarily driven by the acquisition, and mostly offset by the issuance of common shares and modest capital consumption associated with the quarter's reported results.

Our total capital ratio is strong and remains well above our target and regulatory minimums. We also increased the dividend to $0.63 per share this morning, up 3% quarter-over-quarter and 15% year-over-year, continuing our track record of returning capital to shareholders.

I'll now turn the call over to Puneesh to take us through risk. Welcome, Puneesh.

Thank you, Annalisa and Chadwick, for the kind introduction. It is privilege to serve as the CRO of EQB Inc.

I'll start with Slide 14. The closing of PC Financial acquisition meaningfully changes the composition of our lending portfolio.

It also resulted in several acquisition-related credit impacts that are important to distinguish from the credit underlying performance. As Annalisa mentioned, we recorded day-one performing provisions of $219 million against the card portfolio.

It is one-time acquisition-related provision and does not reflect credit deterioration since closing. Drawing on my experience managing PC Financial's risk group, I would highlight a key following points about the portfolio.

PC Financial's credit card portfolio is seventh largest by purchase volume, which drives fee-based interchange revenue, and eighth largest by outstanding balances. It is top-in-wallet card for 42% of our customers, driving strong engagement and loyalty.

Approximately 72% of the customers have been with PC Financial for more than five years, underscoring the loyalty and tenure of the customer base. Finally, a significant portion of our purchase volume comes outside Loblaw banners, underscoring the broad utility of the card.

Speaking about the credit quality of the portfolio, approximately 70% of the customers are super-prime, with an average FICO score of 768. The portfolio is well-diversified across Canada.

Taken together, these metrics reinforce our view that this is resilient, high-quality portfolio with strong through-the-cycle performance characteristics. We believe the portfolio scale, seasoning, and broad national customer base provides a strong foundation as we integrate cards into our risk management framework.

Performing provisions were $35.2 million, largely driven by acquired credit card portfolio, which contributed $21 million during the July, as well as some material build with the personal residential portfolio in response to the current macroeconomic environment. In an environment characterized by persistent uncertainty, our priorities are unchanged: disciplined lending and rigorous credit oversight.

Our asset-backed lending portfolios continue to be focused in urban areas with economic diversity. Our ACL coverage ratio increased to 95 basis points, or 50 basis points excluding the impact of the credit card portfolio, compared to 46 basis points in Q2 and 33 basis points a year ago.

Turning to Slide 15. Impaired PCLs increased 7 basis points sequentially to 42 basis points, reflecting higher provisions across the personal and commercial business excluding the cards.

In personal lending, impaired provisions increased to $17 million, reflecting continued market softness fueled by uncertainty and extended resolution times. The pressures remain concentrated in select GTA's surrounding suburbs and continued to primarily associated with vintages associated with peak market values.

Importantly, as noted in prior quarters, we have not observed these pressures spreading to the other regions or vintages. In commercial, our impaired provisions increased to $24.9 million.

These provisions remain concentrated in small number of previously impaired loans that continue to experience extended resolution times within the subdued commercial real estate market. In equipment financing, provisions increased to $8.4 million, reflecting higher formations during the quarter.

While performance in the portfolio was elevated in Q3, we continue to see the benefits of repositioning actions undertaken over the last two years, including reducing our exposure to long-haul trucking and shift to higher-quality assets. Turning to Slide 16.

Gross impaired loans increased a modest $38 million, the lowest rate of sequential since Q1 '25. The gross impaired loan ratio declined due to growth in overall loan portfolio, including the addition of the acquired credit card receivables and slowdown in pace of new formations.

Formations were down 16% sequentially, primarily reflecting lower commercial formations, partly offset by modest increase in residential. Residential GILs increased 5% quarter-over-quarter, driven by continued pressure in softer housing market and longer workout times.

GILs in commercial lending increased a modest 1% quarter-over-quarter, driven by new formations, partly offset by resolution and write-off amidst a subdued real estate market. As a reminder, approximately 85% of our commercial LUM is CMHC-insured.

We are encouraged by this quarter's modest increase and the last quarter's decline excluding the large single insured exposure. Overall, while credit quality remains uneven, particularly within the portions of residential and commercial real estate markets, we remain comfortable with the quality of our portfolios, the level of reserves we carry, and actions we have taken to proactively position the balance sheet through the cycle.

The addition of PC Financial credit card portfolio further diversifies our credit exposures and earnings profile away from Canadian real estate, while continuing to offer attractive risk-adjusted returns. Against a backdrop of elevated macro and geopolitical risk, we continue to expect normalization to be skewed towards 2027, absent a material shift in the outlook.

With that, I will turn the call back to Lemar for Q&A portion of the call.

Thanks, Puneesh. I would ask that you limit yourself to one or two questions, and then please re-queue so that we can get to everyone.

With that, operator, can we have the first question from the lines?

Good morning, Puneesh. Just wanted to clarify your statements on the commercial portfolio.

First, the commercial uh ex the equipment financing, you said the the increase in the impaired provisions were were basically because of the extended resolution portion. Was any of that was any of the increase actually related to new uh formations in within the commercial ex-equipment financing portfolio?

I I would say it was uh uh no major formations came from that portfolio.

Okay.

Then when I

when I take a look at the the fact that the um impaired provisions are actually increasing given the extended uh resolution period, what, what can we expect moving forward in terms of is this going to continue to tick up until these things are re- resolved, or was there something unusual in the quarter that caused the uh the $2 million increase?

Yeah. Darren, did you want to-

I was going to add to that. I think you're talking commercial real estate uh impairments, just wanted to be clear.

The the

the majority of the increase in provisions we took were on a handful of larger commercial loans where those have been with us for a while, not new formations. We have seen uh some softening in distressed asset values in certain locations and certain property types, it's that's really reflects the increased provisioning.

Um we feel very strongly that they're well-provisioned at this point, and don't expect um material new provisions next quarter, all else equal.

Okay. Thank you.

I'll re-queue.

Hi. Uh thank you.

Good morning. Uh just uh my first question is on the uh you know expenses.

Uh and it's been a good story for the past few quarters, coming in lower than uh I expected anyways. Uh I get your um you know managing the costs against the the revenue uh growth you're seeing, which is, uh reasonable, advisable, all that stuff.

Uh just wondering how that evolves in the coming quarters as, the PC Financial integration advances. Uh any promos, uh rebranding, uh things that cost money that might uh create some noise in the coming quarters, or is that just going to be offset through the uh, synergies?

Thanks, Gabe. Uh good morning.

A couple different dimensions there. Uh one, I'll reiterate what I said, that efficiency will be and needs to be a competitive advantage of EQB.

We'll we'll always continue to evaluate this on a continuous improvement uh process. Um and there there's a few dimensions to that uh that Annalisa will speak to in a minute.

I would say, um are there costs associated with the integration? Yes.

We'll certainly have an integration budget, and we'll disclose um as we spend that. There is investments we'll make to converge our brands, to converge the digital platforms, um and to ensure we're building full-some customer relationships.

That's all part of our business case, and when we uh really express the accretion that we we think we'll still generate from this deal. Annalisa, do you want to talk about a couple of the cost components to consider and how we're actually going to prove?

Absolutely. Thanks, Gabe, for the question.

Our philosophy is that expenses need to move in line with revenues. We're targeting an overall efficiency ratios maintaining in that low-50s range.

Of course, um loyalty-linked credit cards has a higher overall expense base as we do that. We will be really intentional around where we invest.

We see the integration and the acquisition of PC Financial provides significant cross-selling opportunities, and that will take investment together with other areas of growth across the banking, continued innovation, and building out capabilities. Overall, expenses has been a very positive story line.

We have consistently delivered thoughtful expense management through the quarter, and we'll continue to do that.

All right. Uh and then, uh as far as the credit uh performance goes in the uh mortgage book, like maybe uh let's dissect the uh the impaired PCL.

Like is that uh on newly impaired, loans or are we um still seeing any uh I'll call them catch-up provisions on previously impaired ones because they're spending more time in the market, more maintenance costs, and all that? Then you know broad more broadly, is there uh are are we still seeing the issues in the same, uh regions or uh cities, whatever, or is it broadening at all the areas of softness?

I'll I'll

Yeah, no, we'll I I'm going to turn to to Puneesh again. He he shared some of that in his remarks, but I'd say uh Gabriel as well, we've we've been preparing for these types of scenarios right in our modeling.

There's always judgment, there's models. We've been thinking through these types of scenarios, and that's why we mentioned there's more proactive uh builds that we did.

That's why you saw the performing uh build component. Uh do you want to talk a little bit about the the single family [unclear] some points for Gabe?

Uh

thanks, Chadwick. Uh our provisions you know are remaining concentrated in the shorter vintages that, we've spoken in past.

These are particularly in GTA, uh where property values have fallen and resolution times were taking more. By and large, it is in the same regions, and we have not seen the movement of these to any other regions.

Right. In the nature of the impaireds, is it uh are are the impaireds we saw this quarter on formations in the quarter, or are they uh any increases to previously impaired uh mortgages?

It was with with both. Both?

Okay. It's it's with both.

Yeah.

All right. Thank you.

Next

Thank you. Um just wanted to start off with uh PC Financial, and apologies if I missed this earlier, but anything you can give us on uh timing or magnitude of um what you expect there to ramp up in terms of growing the uh retail deposits with uh the acquired business?

Sure. Uh Fernando, good morning.

It's a great question. We're excited about quite a lot of growth from this the this business, and we saw some of that even in the first month where I mentioned we saw saw growth in applications, growth right across the product shelf.

Uh we have a really concise strategy here, and I I think Daniel runs this business now. I think, Daniel, do you want to share some some comments on how we're going to grow deposits, but the overall uh business as well?

Yeah. Thanks for the question, Fernando.

The way we think about growth now as an integrated bank is we think about uh growth from a customer perspective, and that'll span across all the different product areas that we now support. Um our strategy will be to look within the customer base that we have, look within the PC Optimum uh customer base, and uh think about how we can attract multi-product customers new to the bank and also how we can take our existing customers and move them across products, card products into deposits and into GICs, and if it's uh core EQ Bank deposit customers, moving them into the card products.

Got it. Thank you.

That makes sense. Uh and then, just to shift over a little bit into um uh residential mortgage credit.

Uh one thing that stood out to me is, delinquencies have been on a downtrend for the past couple quarters, so that certainly is a positive. New formations, they are either stable or up for the uh residential book.

Just wondering why why that's the case.

Go ahead, Puneesh.

We have you know looked at the the the models we have, and, decided to basically take an holistic approach on this one. Models are you know showing you know both you know judgment and model-driven numbers, and we have incorporated this in the the the final you know provision that we've taken, and, we are very comfortable with that number.

Sorry. You're saying that the uh new formations um uh sorry, I'm not sure that I understood that.

You're saying that the new formations reflect uh a greater conservatism on on existing loans, or or is it that there's new loans that are becoming impaired as time goes by, even though the delinquencies are down?

Yes, it's it's on both.

Okay. Thank you.

Then and then, just maybe uh one uh one last one. Uh I also noticed that LTVs on originations, not the entire loan book, just on originations, they they continue to climb.

They're now at 71%. Just wondering what how that affects your your outlook for for credit, because I would imagine with uh uh if you want to be more conservative, wouldn't that mean that LTVs on newly originated mortgages should be down rather rather than up?

Any color you can offer on that would be uh helpful. That's on insured mortgages I'm referring to.

It's it's it's Daniel here. Um I guess a couple things I would say is nothing's changed in terms of our adjudication criteria for for new mortgages.

Obviously on the insured side, you do see higher LTV, that's the nature of the product. Uh so we have reentered into the prime insured space, and so you will see higher LTV in those, but obviously offset by the fact that the clients have default insurance against it.

Um but nothing on the uninsured side that would be outside of our historical uh approval criteria for uh for for new originations.

That's fair. Thank you very much.

Okay. Thank you.

Um so first question is going back to the single-family residential mortgages. A number of questions on credit trends.

I think the real question people are trying to get to is have impaired PCLs peaked here, um or is there more to go? If the answer is they've peaked or reached a plateau, like what what what metrics would you point us to to support that argument?

Go ahead.

Yeah. We you know uh I think it's a great question, you know.

From my perspective, what we've done is, we've looked at the comprehensive, nature of our models. At the quarter end, we've included, all the the judgments and you know model outputs.

Our view is that you know we are appropriately provided at the end, and we've taken several quarters of you know the lower delinquencies in the equation as well.

Okay. That answer is, you believe they've peaked and you're now adequately provisioned?

We're proactively provisioned for the current environment. I think what we're saying is it's there's still going to be uncertainty out there, but we we proactively uh also applied judgment uh to build the performing uh provisions given the current environment.

I we are comfortable with our provisioning, uh but that's an important part of the the build uh that we made. It's that you look at that 50 versus 30 basis points, right, that's a reflection uh of the proactive build.

Understand. Okay.

Any any anything then, following up on that, like anything you can point to just in terms of like um from a rate-of-change argument, right? Like there's some The reason I'm going to drill down on this is there's some conflicting-type information I see, right?

Where you look at the delinquent but not yet impaired rates, and those are improving and I think improve two two quarters in a row, again sticking with

single-family

residential. Yet formations are are are are up.

That's why I just want to drill down onto this. Like what should we looking to to get confidence again, if we should get confidence that the situation has has stabilized, or maybe we should take a view that, well, maybe it hasn't stabilized, maybe there is potential for um for impaired to continue to go up in the near term?

Yeah. Again, that's why we we What I'd say again, Paul, is we we proactively built for a higher level of uncertainty.

This is not spread past what we talked about, we talked about these particular uh vintages for a period of time. I agree we've seen some great improving uh stable to improving trends.

Formations are slowing, so that's always going to be one of your key indicators, right, the the delinquencies and formations whether they're slowing. Um so the days past due uh is down, that's another metric that we look at regularly, and that's improving as well.

I'll keep reiterating, uh we've been proactive given the economic environment to do a further build. The the key indicators around formations, delinquency, days past due, those are all stable to improving.

That should be seen as an encouraging trend.

Okay. All right, I'll leave that one alone.

I I want to go back to another question that was asked earlier in the call because I do also think it's a really important question, which is kind of on the timing at which you can actually start to pursue this growth strategy, right? You kind of provide an overview of what the growth strategy is.

Uh but like, when should we expect this growth strategy to really kind of manifest? Does it does it take a a year of integration before you can really start pushing uh growth through PC customers and PC cards or cards into existing EQB clients, or maybe it goes faster than that?

I guess that's what we're trying to um trying to assess out here, like how how long does it take before we can start seeing some some of those results of the growth strategy?

For sure, Paul. It's it's It's an excellent question that we're happy to provide more context on with Daniel.

Cuz my my my short answer is it started day one. Day one, we were seeing that.

I I really want to reinforce the excitement and the momentum that we have day one. It's going to look a lot different day 100, day 360- 65.

There's a lot of excitement to share. Daniel, do you want to give a few components to

Yeah. Thanks, Chadwick.

You You took my answer. It started It started day one in July.

We we went out um very quickly after legal day one already to our EQ Bank customers with um really attractive offers for uh the PC Mastercard, and we saw great results. We're going to continue to do this.

Uh obviously, through integration, we're going to start bringing the platforms together, the technology together, the digital experiences together. We have a lot of work to do, of course, on physical branding um and how we show up in our 6,000 locations across the country.

That doesn't stop us from bringing value to the customers, our combined 4 million customers that we have today, uh and helping them both understand and be aware of our brands and our products, but also start to take advantage of the great opportunities to do more business with us. Uh we have pop-up locations going up across the country.

Uh it's generating a ton of excitement right now. There is a lot going on.

Um the way what I would look for from us is the continued momentum, both on how we're deepening relationships with our customers and also how we're bringing in new, active customers into our bank. That'll be a key thing that we're focused on uh over the coming months.

The only point I'd I'd re-underline um Paul, is that you don't have to wait for everything to converge to see that growth. That's what I don't want people to to believe.

We have a wonderful platform with PC Mastercard, PC Money Accounts, PC Insurance, the list goes on, and PC Optimum with 18 18 million members. All of this comes together into our new ecosystem.

The growth will simply expand further faster as we converge the the platforms. All the ingredients are there, and the accelerator is already proven.

Okay. The answer's clear now, and uh and helpful.

Thank you.

Hi. Thank you.

Good morning. Uh my question is for Puneesh, and uh nice to meet you over conference call.

Look forward to meeting you in person. Um but uh typically, it's been uh my experience that uh when we do get a new chief risk officer, uh they typically do a deep dive and a review of the portfolio.

I haven't heard you explicitly say you're doing it, but uh my question is sort of two-fold along those lines. First is, are you indeed uh doing a deep dive on the portfolio?

Then, secondly, would it be reasonable to conclude that you might be able to finish this deep dive by year end?

I would say uh I've already done deep dive, you know. I've spent, first 45 days you know on the portfolio.

We've looked at in in the portfolio in in from various angles: where are the vulnerabilities, what are the models you know reflecting, what's happening on you know resolution times for us, what's happening in the the LGD. In during this period, I would say, I've taken all these factors into the equation.

We have you know used both uh uh reflected them in the models, and I would say we have also applied judgment. That's the reason, I'm fairly comfortable to, highlight that the the provisions that we have taken are appropriate.

Having said this, you know there are a couple of other areas that, I would spend time in Q4 and you know reflect. Overall, very comfortable, with the the number we have booked uh based on all the enhancements that I've done in my first 45 days.

Okay. It's reasonable what portfolios might still be up for a deeper dive, a little bit more of a review?

Would I be correct in thinking it might be commercial, equipment finance? That maybe

Yep. and

maybe given the the action you took today and or this this quarter with respect to mortgage uh performing reserves, that that mortgage reserve is sort of a function of the deep di- dive there? Maybe commercial and equipment comes by year end?

Is that a reasonable thought process for me to go through?

No, I would say, we've looked at, you know I would say, I've looked at commercial, we've looked at equipment finance, and, we have looked at SFR. Where I mentioned that, things that, we will look in Q4 it's you know the whole scope and evolving nature of the the macro environment, and how do we reflect that in the equations.

From my deep dive perspective, we've looked at SFR, we've looked at commercial, we've looked at uh equipment financing business, and all aspects have been covered in the the appropriate provisions that we've taken in the quarter.

Okay. Thank you very much.

Appreciate that.

good morning. Uh Chadwick, I just wanted to go back to your comment on I think what you mentioned was the ROTCE potentially moving from 10 to 11.

Then just by the the differential, it sounds like ROE would move from uh 11 to sorry uh ROTC moving towards 11, which means the ROE would probably move towards um so something something north of 11. Uh just in the context of that guidance, I know it's just a loose sort of guidance, but are you just building in conservatism there?

Because when I think about PCLs potentially normalizing and maybe maybe we finally get some um increased activity in the housing market, it's been anemic for so long. It It seems like you could just potentially, if if those things do happen, just blow right past that number.

I'm just wondering if that's a conservative bent on on what you said earlier. Uh

yeah, I'd said on on uh in my remarks, uh so expansion from Q3, and ROTC in ROTCE in the 12 12% range, right? That that's a range.

There's always going to be seasonality with cards, there's going to be various factors. I wouldn't say conservatism is an accounting term, but we're just we're being practical and thoughtful, applying our judgment in the current operating environment.

Uh it's uh enough said about what's happening today, right, and in past days. That's why we were very proactive about that.

That that is growth. We we think we will, we could pick up the pace more, yes, if geopolitical calms, and it can go the the other way, too.

We're we're very comfortable with the provisioning and our momentum that that progress towards uh ROTCE. The and then we'll share more at uh at Q4, right, and with the Investor Day in terms of what that looks like for next year.

We're comfortable that it's going to continue to uh improve and go higher from here in ROE and ROTCE.

Okay. I I get it.

Sorry, I I miss- uh misquoted the the RTC 12, which means the ROE would be somewhere in that 11 range. Okay.

Then just on the on the credit and interest rate mark, just want to get your your color on this. I know it's common practice that banks do leave this in adjusted numbers or or core numbers.

In the case of of EQB with this deal, because it is such a sizable transaction, it does seem to set up a dynamic where, as that mark comes off into 2028, like it just seems to set up a pretty tough comp year for 2028 versus 2027 in terms of the growth. Do you have any concerns on that?

I'm just wondering the rationale of of leaving such a sizable amount in your in your core numbers, which will uh looks like it will disappear in about seven or eight quarters.

Thanks Mike for the question. Um we've included on Slide 24 of the earnings presentation kind of a roadmap, if you will, to make sure that it's really clear and transparent the impact of those marks in quarter and also the impact of those marks in future quarters.

Um the reality is those marks, the fair value marks, they are a true reflection of the economics of the portfolio that we bought. It's no different than buying another bond at a premium or a discount, and we treat this exactly the same way, and so there's real economic value in those, which is why they continue to impact the results.

You're absolutely right that they don't last forever. Um what happens effectively is that as the marks come down, we get really good momentum on our synergy targets.

For example, our cost synergies, we've already achieved the 50% of the $30 million 2-year target that we set, and that continues to come in. We think about the cross-selling and the integration work that both Chadwick and Daniel have talked about this morning.

Yes, it is quite a bit to earn through, but we have a lot of confidence and conviction in the deal thesis.

Okay. Appreciate the color.

Then, just if I can sneak a quick one in for Puneesh, just in terms of the court backlog that's been a bit of a of an issue for EQB in getting resolutions, has that started to improve at all?

I can actually take that, it's Daniel. We we look at this very closely on the collections side.

I think I shared last quarter, we were seeing uh collections timeline starting to push into the 12 to 18 months for enforcement. It's actually getting longer.

We're now seeing some in the 18 to 24 months. It's national, it's across the country.

I would highlight Quebec has been the most challenging. Um what I would have said last quarter, 12 to 18, is now starting to push 18 to 24.

Continues to be a challenge from an enforcement standpoint.

Okay. That's helpful.

Thanks for the color.

Thanks, Mike.

Thank you. Uh the the best way to understand a business is to try the products and services.

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