Bank of Montreal at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brian Morton - Barclays Services Corp - Analyst : <_ALACRA_META_ABSTRACT>Thanks. Can we start with an update on the economic environment in Canada, including the impact of tariffs, potential USMCA renegotiation. You also have a unique perspective on the impact of the tariff policies with large commercial businesses on both sides of the border.

Question: Brian Morton - Barclays Services Corp - Analyst : Okay, great. And then maybe, credit's been really coming up a lot. If you look at kind of the PCLs on performing loans declined materially in 3Q and the uncertainty around the tariffs and trade policies has already been reserved for. I mean, as you start looking towards the end of the year, we -- take us through your puts and takes around what could drive the reserving process performance.

Question: Brian Morton - Barclays Services Corp - Analyst : And maybe talk about like kind of the trends in the gross impaired loans, they kind of continue to move higher despite a decline in formations. Any particular factors that you want to talk about that drive that?

Question: Brian Morton - Barclays Services Corp - Analyst : Great. Maybe talk a little bit -- you mentioned about like loan demand trends and maybe talk a little bit more kind of what you're seeing. You've seen some declines in US commercial business. How much of that relates to consumer demand -- customer demand and balance sheet or balance sheet optimization activities? And maybe what do you see for a catalyst for acceleration in loan growth?

Question: Brian Morton - Barclays Services Corp - Analyst : Excellent. Great. And that kind of segues into my next question. You talked about your kind of ROE targets. Maybe talk us through again the progress you're making towards the medium-term target of 12% in the US P&C and the 15% overall and kind of just see how we're going to get there, walk us through that.

Question: Brian Morton - Barclays Services Corp - Analyst : I guess to maybe how it relates to your overall ROE targets, but we're talking a lot about -- or we've heard a lot about technology investments. And you've highlighted some ongoing investments in technology and digital innovation, including the rollout of Gen AI tools. Maybe could you elaborate on how these initiatives are maybe progressing and how much of -- when we could expect to see that kind of hit the ROE target?

Question: Brian Morton - Barclays Services Corp - Analyst : And then maybe talk about like, you've seen some operating efficiency improvement in third quarter. Maybe talk about how you see the efficiency ratio trends moving and targets given kind of the need for investments versus balancing like optimization and overall efficiency.

Question: Brian Morton - Barclays Services Corp - Analyst : And then I guess another piece of the ROE progression story is the capital levels. I maybe talking about -- right now, you're at about like a 13.5% CET1, picked up a repurchase program. Can you just run us through what your kind of target capital levels are and your priorities for capital?

Question: Brian Morton - Barclays Services Corp - Analyst : And one other thing, I didn't really touch too much on the NIM. Maybe talk about your NIM expectations for US and Canada over the near term? And how do you factor in Bank of Canada hasn't moved too much on rates lately, though there could be some rate cuts coming up. How do you factor those expectations into? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 11:30AM, BMO.TO - Bank of Montreal at Barclays Global Financial Services Conference

Question: Brian Morton - Barclays Services Corp - Analyst : Great. We've covered a lot of ground, Tayfun. But before we open up to questions, are there any other areas that you'd like to comment on?

Question: Brian Morton - Barclays Services Corp - Analyst : Excellent. We have a few minutes left. Does anyone has any questions for Tayfun. Mics running around the room. One over here. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 11:30AM, BMO.TO - Bank of Montreal at Barclays Global Financial Services Conference Unidentified Partcipant Yeah. I really apologize. I got here a little bit late, so you may have covered this territory. But I was just wondering if you could give us some color on the rapid turnaround in credit quality in the US in the last quarter and why that occurred?

Question: Brian Morton - Barclays Services Corp - Analyst : Okay. With that, we're pretty much out of time. Please join me in thanking Tayfun for his presentation.

Question: Brian Morton - Barclays Services Corp - Analyst : Thank you, Tayfun.