Laurentian Bank of Canada Investor Day

Raphael Ambeault: On behalf of the entire management team, we are delighted to have you today to present the details of our revamped strategic plan. The presentation materials are available on our website in our investor relations section.

Men team, we're delighted to have you today.

Speaker Change: [noise] sent you the details of our revamped strategic plant.

Speaker Change: The presentation materials are available on our website in our Investor Relations section.

Raphael Ambeault: Following our presentation, we'll hold a Q&A session. Given that today's presentation includes forward-looking statements, I would like to direct your attention to slide 2 of our presentation regarding forward-looking statements. Without further ado, I will now introduce you to our President and CEO, Eric Provost. Merci beaucoup, tout le monde.

Speaker Change: Following our presentation, we'll open the Q&A session.

Speaker Change: Given that todays presentation includes forward looking statements I would like to direct your attention to slide two of our presentation regarding forward looking statements without further Ado I will now introduce you our president and CEO level.

Speaker Change: Level.

Speaker Change: Yeah.

Speaker Change: Yes.

Eric Provost: Merci de prendre le temps aujourd'hui à ceux sur notre diffusion web site prendre cette période pour être avec nous pour la Presentation of our Investors' Day at the Laurentian Bank 2024. Thank you for taking the time for those of you here as well, in terms of I know it's been a busy week for all of you, but I'm quite thrilled to be with you this afternoon, and to be able to talk to you about our path forward.

Speaker Change: Well, Matt we can turn them on a messy the bundle of downhill zuri.

Speaker Change: Sure So let's see on web.

Speaker Change: Palm of a set up period poised have ignored Paula.

Speaker Change: Yeah, I represent that Sheldon that says you'll need is I have a song about god send them event getting.

Speaker Change: Hi, Thank you for taking the time for those of you here as well in terms of I know, it's been a busy week for all of you but.

Speaker Change: I'm quite trilled to be with you this afternoon and be able to talk to you about our path forward.

Eric Provost: As Raphael said, I'm Eric Provost, and I'm President and CEO of Laurentian Bank. And joining me on stage today will be Yvan Deschamps, our Chief Financial Officer, to walk you through the different midterm objectives we're going to give ourselves for this plan. Not solely an opportunity to talk to you about our path forward, but also a great opportunity to take time to give you a perspective of who we are, also the businesses that we operate in, and to give you a perspective of the opportunities we see in all of those businesses going forward. And we're not here today to tell you it's a...

As Jeff has said the I mean, thank provost and I'm, the president CEO of Orange and bank and joining me on stage today are will be.

He found a shower chief financial officer to walk you through the different.

Speaker Change: Midterms objectives, we're gonna give ourself for discipline.

Speaker Change: Not solely an opportunity to talk to you about our path forward, but also a great opportunity to take time to give you a perspective of all we are also the businesses that we operate in two.

Speaker Change: And and and to give you a perspective of the opportunities we see.

Speaker Change: In all of those businesses going forward.

Speaker Change: And we're not here today to tell you it's a.

Eric Provost: It's a straight line ahead. It's definitely going to be an ambitious plan for us to achieve, but our goal is to give you a realistic view of our current state, but most importantly, provide you with an opportunity we believe we can execute on as a leadership team. So, before we talk about the future, I just want to take some time to talk about our past. Because this was what we did as an exercise, as a leadership team, to make sure that we actually understand our roots better and define this plan for. What were we, and what do we want to become in the future?

Speaker Change: It's a straight line I had and it's gonna be a definitely an ambitious plan for us to achieve but.

Speaker Change: Our goal is to give you a realistic view of our current state, but most importantly provide you the opportunity. We believe we can execute on as a leadership team.

Speaker Change: So before we talk about the future just just wanted to take some time to to talk about our past.

Speaker Change: Because this is what we did as an exercise as a leadership team to make sure that we actually understand better our routes.

Speaker Change: And defined this plan towards.

Speaker Change: What where are we.

Speaker Change: And what we've done what we wanted to become in the future.

Eric Provost: And for those who don't know here in the room, actually Laurentian Bank was funded 178 years ago with the purpose of serving a portion of the population that, at the time, didn't find the banking services they needed to help them grow their savings for more difficult times, and throughout the years, Laurentian Bank has been able to serve those customers, but not solely on the personal bank side but also on the business side. For sure, in terms of the businesses that we help grow, create jobs, and build the economy, we're part of Laurentian Bank's journey. And let's remind ourselves that through all these years, Laurentian Bank went through deep recessions. Economic cycles and, lately, a global pandemic.

And for those who don't know here in the room actually allowed Laurentian Bank was funded 178 years ago.

Speaker Change: And the purpose of surveying a portion of the population that are at the time didn't find.

Speaker Change:

Speaker Change: The banking services they needed to help them grow their savings for a more difficult times.

Speaker Change: And and trailed the year's Laurentian Bank has been able actually to to serve those customers, but also not solely on the personal bank side, but also on the business side.

Speaker Change: For sure in terms of the businesses that we all grow.

Speaker Change: Create jobs build the economy, where part of the Laurentian Bank journey.

Speaker Change: And let's remind ourselves like through all these years Laurentian Bank went true deep recessions.

Kind of make cycles and lately, a global pandemic and true all of these we have remained strong and as of today. We are a strong financial institution and we're going to demonstrate that and then I see a lot of untapped potential for us in the future ahead.

Eric Provost: And through all of this, we've remained strong. And as of today, we are a strong financial institution. And we're going to demonstrate that, and I see a lot of potential for us in the future. And who are we today?

Speaker Change: Are we today well where.

Eric Provost: Well, we're a world-class specialty lending platform. You know, we have a commercial banking platform that specializes... and Tanisha's services customers across Canada and the United States. We have a solid deposit base, and we believe there's a lot of room for us to grow in the future. And that deposit base is supported by... Our retail branch network, positioned in Quebec, but also with an advisory and broker network that operates across Canada

Speaker Change: We're a world class specialty lending platform.

Speaker Change: You know we have a commercial banking platform that specializes.

Speaker Change: And.

Speaker Change: And tenacious service customers across Canada, and the United States.

Speaker Change: We have a solid deposit base and we believe there's a lot of headroom to grow for us in the future and that deposit base supported by.

Speaker Change: Our retail branch network position in Quebec, but also within advisory and broker network that operates across Canada.

Eric Provost: We also have a capital market group that supports corporate and government issuers, that we rely upon to create revenue and efficiency for us in the future. And I believe that through this plan, we're going to be able to set the right levels in terms of us having our rightful place in the different markets we want to tackle. And I believe right now that these opportunities aligned with our strategies aren't accurately reflected in our valuation. I wouldn't be giving you a true perspective of who we are if I didn't talk to you about our team.

Speaker Change: We also have a capsule market group that supports corporate then governor government issuers that we rely upon to create revenue and efficiency for us in the future.

Speaker Change: Okay.

Speaker Change: And.

Speaker Change: I believe that through this plan, we're going to be able to set the right levels in terms of us having our rightful place.

Speaker Change: In the different markets, we want to tackle.

Speaker Change: And I believe right now that these opportunities aligned with our strategies aren't accurately reflected in our valuation.

Speaker Change: I wouldn't be giving you a REIT perspective of who we are if I don't talk to you about our team.

Eric Provost: An extraordinary team that I'm very proud to be able to work with on a daily basis. An engaged team that puts in the effort day after day serving our customers, and that is actually what makes a huge difference for this organization. I think we've made very, very strong progress in the last few years, and I really want to take this opportunity early in the presentation to thank our employees. I want to thank you for your hard work and your resilience throughout what I would classify as a challenging 2023 year. Like you've been the key to us remaining strong and being focused on our customers, so thank you for that.

Speaker Change: And extraordinarily team that I'm very proud to be able to work with on a daily basis and they engage team that provides effort.

Speaker Change: They after day servicing our customers and that is actually what makes a huge difference for this organization.

Speaker Change: I think we've made very very strong.

Speaker Change: Progress in the last few years and I really wanted to take this opportunity early in the presentation too to tank.

Speaker Change: Uh huh.

Speaker Change: Our employees.

Speaker Change: I want to thank you for your hard work your resiliency throughout what I would qualify a challenge 2023 year like you've been the key of US remaining strong and being focused on our customers. So thank you for that.

Eric Provost: While we did make some great..., cultural progress. And there you can see that we were able to reduce our turnover by over 50%. As the engagement survey says, we have increased our engagement levels from our employee base. But most importantly, and this is the big takeaway, Laurentian Bank was able to attract and retain top talent. And this, again, is the foundation for the execution of this plan. While we did make some good progress, there's still some... room to evolve and keep improving in terms of culture, like we need to be proud of our path forward, need to be accountable for our outcomes determined by our execution capabilities, proactive in our engagement, and keep our eye on conviction and focus because that's going to make the difference. Throughout the 175 years plus this bank has been around, ESG has been the core of what we are and will continue to be

Speaker Change: While we did make some some great.

Speaker Change: Cultural progress and there you can see like we were able to reduce our turnover by by over 50%.

Speaker Change: As the engagement surveys says.

Speaker Change: Increased our engagement levels from our employee base, but most importantly, and I think this is the big takeaway Laurentian bank was able to attract and retain.

Speaker Change: Top talent.

Speaker Change: And this again is a foundation for execution of this plan.

Speaker Change: While we did make some good progress there system.

Speaker Change: Room to evolve and keep improving in terms of a culture like we need to be proud of our path forward need to be accountable for our outcomes determined in our execution capabilities.

Speaker Change: Proactive and our engagement in and keep I conviction and focus because that's going to make the difference.

Throughout the 175 years plus this bank has been around ESG as been core.

Speaker Change: Of what we are and will continue to be in the future.

Eric Provost: Those three pillars, in the last few years, I'm very proud to say that we've made great progress on our journey and that we will continue to build upon those throughout the plan because for our employees, for our customers, and for our shareholders, this is important. And if it's important for them, it is important for us to continue and push further throughout the execution.

Speaker Change: Those three pillars in the last few years I'm very proud to say that we've made great progress in our journey and that we will continue to build upon dose throughout the plan because for our employees for our customers and for our shareholders. This is important.

Speaker Change: And if it's important for them it is important for us to continue.

Speaker Change: And push further throughout the execution.

Eric Provost: Now our ambition for this plan, what we aspire to be, well, we really want to foster prosperity for all customers through our specialized commercial banking and low-cost... Banking Services, to grow savings for middle class Canadians. This is what we want to be in the future. How are we going to do that?

Speaker Change: Now our ambition.

Speaker Change: For display and what we aspired to be well, we really want to foster prosperity.

Speaker Change: For all customers through our specialized commercial banking and low cost banking services to.

Speaker Change: To grow savings for Middle class Canadians.

Speaker Change: This is what we want to be.

Speaker Change: In the future.

Eric Provost: Well, it all relates to our value proposition, and we believe that we offer a differentiated approach out there. And I did mention our... Specialized Commercial Banking, and you're going to hear me talk a lot about that group and our successes, and it's all related to the customer focus and the ease of doing business we provide. I'm going to be talking about having a digital LED, keeping that human experience, but again, Low Cost to No Cost Day-to-Day Banking, an efficient platform that would allow middle-class Canadians to actually lower their banking costs.

Speaker Change: How we're going to do that well it all relates to our value proposition.

Speaker Change: And we believe that we offer a differentiated approach out there.

Speaker Change: And I did mention our specialized commercial banking and Youre going to hear me talk a lot about that group and our successes and its all related to the company's gas customer focus and the ease of doing business we provide.

Speaker Change: I'm going to be talking about having a digital led.

Speaker Change: Personal banking with keeping that human experience, but again tackling.

Speaker Change: LOE costs to know costs day to day banking efficient.

Speaker Change: Efficient platform that would allow middle class Canadians to actually lower their banking costs.

Eric Provost: And by doing that, we truly believe that we will create an alternative out there versus The Big Bank. And we intend through this plan to acquire net new customers in personal banking to strengthen our core deposit base and, by doing so, enhance our funding mix and create more profitability for this organization.

Speaker Change: And by doing that we truly believe that we will create an alternatives out there versus the big banks.

Speaker Change: And we intend to this plan to acquire net new customers in personal banking to strengthen.

Speaker Change: Our core deposit base and by doing so enhancing our funding mix.

Speaker Change: And create more profitability for this organization.

Eric Provost: Through this value proposition, we believe we're going to build a stronger bank, a more reliable bank, and a more profitable bank. It's all going to be about execution, and to execute well, we need to focus, and our key focus areas are going to be aimed at where we can compete with an edge, and that relates to our specialized niches in commercial banking. We'll need to simplify and decomplexify this organization to make it more efficient. Because for too long, we've been all things to all people.

Speaker Change: Through this value proposition, we believe we're going to build a stronger bank, a more reliable bank and a more profitable bank.

Speaker Change: Okay.

Speaker Change: It's all going to be about execution.

Speaker Change: To execute well, we need to focus in our key focus areas are gonna be aimed towards where we can compete with an edge.

Speaker Change: And that relates to our specialized niche is in commercial banking.

Speaker Change: We will need to simplify and accomplish the complex defined this organization to make it more efficient because for too long right now we've been all things to all people and this is what this plan.

Eric Provost: And this is what this plan is all about. We're going to drive accountability to deliver on outcomes and not focus solely on activities. And we will make sure we harness the power of partnership throughout the plan in various ways. And to do so, I'm happy to have with me today a great leadership team.

Speaker Change: It is all about.

Speaker Change: We're going to drive accountability to deliver on outcomes and not focus solely on activities and we will make sure we'll arnez the power ship the power of partnership throughout the plan in various ways.

Eric Provost: A team that is composed of senior leaders that have deep experience in specific fields of expertise, as well as transformational leaders that will be needed to walk us through this journey. Before we talk about the 2024 plan, because I anticipate we're going to have some questions, maybe later on, on the difference or sequence versus the 21 plan. Throughout this presentation, we're going to come back to what we laid out in December 2021.

Speaker Change: And to do so and IP to have with me today are grew.

Great leadership team a team that is composed of senior leaders that have deep experience in specific field of expertise as well as transformational leaders that will be needed to walk us through this journey.

Speaker Change: Yeah.

Before we talk about the 'twenty 'twenty four plan because I anticipate we're going to have some questions may be later on on the DIFM.

Speaker Change: A difference or a sequence versus the 'twenty one plan.

Speaker Change: Throughout this presentation, we're going to come back on to what.

Speaker Change: What we'd laid out in December 2021.

Eric Provost: And I think that it's important for us to acknowledge that we made good progress versus this plan where we said that we would grow commercial banking, that we would reposition personal banking, and that we would focus and align our capital market group. I can be very proud to say that all these teams made key progress in each one of those areas.

And I think that.

Speaker Change: It is important for us to acknowledge that we made good progress versus this plan, where we said that we would grow commercial banking that we would reposition personal bank and that we would focus and align our capital market groups.

Speaker Change: And.

Speaker Change: I can be very proud to say that all of these teams made key progress is in each one of those areas in commercial banking, where we're able to grow our assets from 14 billion to $17 billion in those few years, we closed.

Eric Provost: In commercial banking, we were able to grow our assets from $14 billion to $17 billion in those few years. We closed key pain points in our digital offering in personal banking, and we grew our syndicate position within our capital market groups with corporate and government issuers. So, I can say that...

Speaker Change: Key pain points in our digital offering and personal banking.

And we grew our syndicate position within our capital market groups with corporate and government issuers.

So I can say that.

Eric Provost: Throughout this plan, in the first year, when the focus was very high, I can say that we can qualify that as a success because, in that first year, we almost met all of our financial KPIs. But after that, 2023 arrived, and we started facing strong macroeconomic headwinds. And this is why, in summer 2023, Laurentian Bank decided to undergo a strategic review. And from that exercise, as well as our own internal reflections, I have to say my observations. After 11 years in this institution, today, we really wanted to share with you key learnings from those activities. First of all, we need to better manage our personal banking and align it with our revenue stream. We need to make sure that we make the right fundamental investments in our technology. And why is that?

Speaker Change: Throughout this plan in the first year when focus was very I like I can say that we can call. It qualified as a success because in that first year, we almost met all of our financial Kpis.

Speaker Change: But after that 2023 occurred.

Speaker Change: And we started facing strong macro economic headwinds.

Speaker Change: And this is why in summer 'twenty 'twenty tree Laurentian Bank decided to undergo a strategic review.

Speaker Change: And from that exercise as well as our own internal reflections.

Speaker Change: I have to say my observations after being 11 years in this institution today, we really wanted to share with you key learnings from those activities.

Speaker Change: First of all we need to manage better our personal banking and align it with our revenue stream.

Speaker Change: We need to make sure that we make the right fundamental.

Eric Provost: It's because we're a too complex, too manual organization still, and that doesn't allow us to scale key products that would be accretive to this bank but, unfortunately, were not set up properly to do so. And it is with these key learnings that we came up with this revamped strategic plan. We will keep engaging in strategic partnerships to bolster technology and improve our product offering. We'll invest in process simplification to improve our customer experience.

Speaker Change: Investments into our technology and why is that is because were too complex too manual organization still and that doesn't allow us to scale.

Speaker Change: Key products that would be accretive to this bank, but unfortunately, we're not set up properly to do so.

Speaker Change: And this is what these key learnings that we came up with this revamp strategic plan.

We will keep engaging and strategic partnerships to bolster our technology and to improve our product offering we will invest in progress process simplification to improve our customer experience will reduce complexity in our cost structure to improve profitability.

Eric Provost: We'll reduce complexity in our cost structure to improve profitability, and we'll make sure that the focus in personal banking will be about increasing the gathering capabilities to strengthen our core banking deposits. But we didn't wait today to actually start the journey.

Speaker Change: And we'll make sure that the focus in personal banking will be about increasing the.

Speaker Change: The gathering capabilities to strengthen our core banking deposits.

Speaker Change: But we didn't wait today to actually start the journey, we started six months ago executing on key things and I think that you saw within those months that we are.

Eric Provost: We started six months ago, executing on key things, and I think that you saw within those months that we... We made key executive appointments. We also revisited and started realigning our ad counts towards a future that will make this bank leaner and simpler. Some examples of what we already undertook are the sale of our full retail brokerage sector to Industrial Alliance, and last week, where we announced some headcount reduction, we decided to exit equity research for capital markets. Also, we are very proud to have hired a new technology leader that is actually a...

Speaker Change: We made a key executive appointments. We also revisited then started realigning our at counts towards our future.

Speaker Change: That will make this bank leaner and simpler.

Speaker Change: Some examples of what we already undertook is are the sale of our full retail brokerage.

Speaker Change: Sector, two IDE, CLI yellows and last week, where we announce.

Speaker Change: Some are some head count reduction, we decided to exit equity research.

Speaker Change: For our capital markets.

Speaker Change: Also very proud to have hired a new tech knowledge leaders leader that is actually.

Eric Provost: We are starting to hire additional talent in technology because you're going to hear me talk a lot about the need for our foundational technology. And through that ire and what we're putting in place right now is strong governance and oversight of our programs to make sure that these deliver the right outcomes, that these generate the right return on investment, and this is where it's going to make a huge difference for us in the future. So now, let's go deeper.

Speaker Change: Starting to to ire.

Speaker Change: Digital talent and technology, because you're you're going to hear me talk a lot about the need of our foundational technology.

Speaker Change: And true that ire and what we're putting in place right now is strong governance.

Speaker Change: And oversight on our programs to make sure that these deliver the right outcomes that these generate the right return on investment and this is where it's going to make a huge difference for us in the future.

Eric Provost: Let's talk about our different business activities, starting with personal and commercial banking, uh... starting with commercial banking. And you're going to hear me say how proud I am of the progress and what we have actually built in the last 10 years. Very proud because when I joined Laurentian Bank 11 years ago, that group was... mainly generalists, with six billion assets that we grew throughout the years, up to 17 billion where we are today. As you can see in the chart, we grew that segment.

Speaker Change: So now let's go deeper and talk about our our different our business activities, starting with the personal and commercial banking.

Speaker Change: Starting with commercial banking.

Speaker Change: And then you're going to hear me say are proud I am of the progress and what we actually built in the last 10 years.

Speaker Change: Very proud because when I joined Laurentian Bank 11 years ago that group was mainly generalist.

Speaker Change: With 6 billion assets that we grew throughout the years up to 17 billion, where we are today.

Speaker Change: You can see and there we grew that segment.

Eric Provost: Leveraging expertise, the specialization approach that helped us diversify the business mix, and diversify our geographic footprint. And I think that this is why claiming that we have, at Laurentian Bank, a world-class, Specialty Lending Platform is not an understatement. And this is what I'm going to explain to you when we deep dive into each one of these groups.

Speaker Change: Leveraging expertise specialization approach that helped us there.

Speaker Change: Diversify the business mix.

Speaker Change: Diversify our geographic footprint.

Speaker Change: And I think that this is why qualifying that we have at Laurentian Bank a world class specialty lending platform is not an understatement and this is what I'm going to explain to you when we deep dive in each one of these groups.

Eric Provost: I'm going to be able to walk you through the value-added we bring to our customers and why we believe that... Commercial banking will be and will continue to be a great growth engine for us in the future. Different business sectors, I think taking the opportunity today to actually walk you through each one of them and give you a better perspective and details. So we'll talk about inventory financing, equipment financing to only, only owned, subsidiary stand-alone businesses that operate under Laurentian Bank's commercial real estate as well as our commercial SME group.

Speaker Change: I'm going to be able to walk you through the value added we bring to our customers and why we believe.

Debt.

Speaker Change: Commercial banking will be and will continue to be a great growth engine for us in the future.

Speaker Change:

Speaker Change: Various business sectors, I think are taking the opportunity today to actually walk you through each one of them and give you better perspective and details.

Speaker Change: Yeah.

Yeah.

Speaker Change: So we'll talk about inventory financing equipment financing to only only owned.

Speaker Change: Subsidiary Standalone businesses that operates under Laurentian Bank.

Speaker Change: Or commercial real estate as well as our commercial SME group.

Eric Provost: Starting with inventory financing, so... I think we should be very, very proud of that business, which we acquired in 2017 and operates under the name of Nord Point Commercial Finance. And through this business, we're able to actually service the needs of dealers.

Speaker Change: Starting with our inventory financing so.

Speaker Change: I think we should be a very very proud of of that business, which we acquired in 2017.

Speaker Change: And operates under the name of Northpoint commercial finance.

Speaker Change: And through this business, we're able to actually service dealers.

Eric Provost: And the industries we operate right now are the vast majority in terms of marine, RV, manufactured housing, and trailers. But throughout the years, since the acquisition, we've been putting more and more emphasis on diversifying those industries, maximizing the capabilities of that platform. And I'm very proud to say that, and maybe it's not known enough, but Laurentian Bank actually services, throughout North America, 6,000 dealers through that platform. And throughout the years, we were able to establish strong relationships that start with the original equipment manufacturers, which I'll refer to as OEMs, and those relationships. I've definitely...

Speaker Change: And the industries, we operate right now our.

Speaker Change: The vast majority in terms of marine RV manufactured housing and trailers, but throughout the years since the acquisition, we've been putting more and more emphasis into diversifying those industry maximizing.

Speaker Change: The capabilities of that platform and.

And I'm very proud to say that and maybe it's not known enough, but Laurentian bank actually service throughout North America 6000 dealers.

Speaker Change: Through that platform and throughout the years, we were able to establish strong relationships that starts at D. Original equipment manufacturers that are referred to as Oems.

Speaker Change: And those relationships as definitely.

Eric Provost: They pay off and appreciate for sure the type of service that we can provide because you can see in there that we are rated world-class in terms of our customer survey telling us how great a business we have to deal with, the ease of doing business, the strength of our relationships, and this is what, this is what makes us so successful there. And to give you examples or reference points in terms of efficiency, because we're going to be talking about efficiency today. This platform went from a billion dollars to now today 4.2 billion dollars, so four-time growth. Through that period, and as of today, we've increased our head count by 25%.

Speaker Change: Paid off and appreciated for sure the type of service that we can provide because you can see in there that we are rated world class in terms of our customer survey, telling us al great.

Speaker Change: That business, we have to deal with the ease of doing business the strength of our relationships and this is what this is what makes us so successful there.

Speaker Change: And to give you examples of our reference points in terms of efficiency, because we're gonna be talking about efficiencies today.

Speaker Change:

Speaker Change: This platform one from a 1 billion dollar to now today $4.2 billion. So four time growth.

Speaker Change: Through that period and as of today, we've increased head count by 25%.

Eric Provost: So, it means that this business provides a strong and efficient way of doing business. Where we believe in it, we have the capability of keeping on growing and maximizing the potential scale of it. Because we believe that in the various industries that do address inventory financing, this platform can supply the right financing needs for those dealers. And in there, we haven't competed on price. Like we've delivered that growth while maintaining our high margins, which I think is a very, very important takeaway. Also, we haven't played on risk.

Speaker Change: So it means that this business provides strong and efficient way of doing business that where we believe in there we have capability of keeping on growing and maximizing the potential scale in there because we believe that throughout the various industries.

Speaker Change: That do address inventory financing this platform can supply the right financing needs for those dealers and then in there like we we haven't competed on price like we've delivered that drove maintaining our high margins.

Speaker Change: Which I think is a very very important takeaway also we haven't played on.

Speaker Change: Risk like we've stayed very stable and focus in terms of our risk underwriting and how we manage the portfolio.

Eric Provost: We've stayed very stable and focused in terms of our risk underwriting and how we manage the portfolio. So, very happy about this platform, very happy about its performance, and, most of all, very confident in our ability to keep on growing this further through the cycle or business model that we have, starting with the OEMs, delivering on the dealer base, and I'm going to be talking about equipment finance and point of sale after that. So please remember that model. Because it's quite important after that when I'm going to be talking about growing the ecosystem and A business where we service 18,000 customers. A business that is well diversified and that provides for those dealers that are selling to actual end-users.

Speaker Change: So very happy about this platform very happy about his performance and most of all very confident in our ability to keep on growing this further through the cycle our business model that we have starting with D O.

Speaker Change: Ms deliver.

Speaker Change: Delivering on the dealer base and I'm gonna be talking of equipment finance and point of sales after that so please remember that model in there.

Speaker Change: Because it's quite important after that when I'm going to be talking about growing the vehicle system and maximizing the value chain into our different sectors.

Speaker Change: If I go into equipment finance again, a business I don't think we talk enough about.

Speaker Change: Our business, where we service 18000 customers a business that is well diversified and that provides for those dealers that are selling actually to end users at the end of the day, we do finance dose commercial end users either through leases or two term loans.

Eric Provost: At the end of the day, we do finance those commercial end-users either through leases or through term loans. This business has been quite successful as well, keeping great efficiency profile because we don't play on price, we play on value-added proposal and again in that business segment you can see the surveys we're getting from our customers which rates ourselves year after year in the excellent, ...bucket, which means that we're easy to do business with, means that our account managers, our frontline people make a difference in the day-to-day.., service they provide to DOE's customers.

Speaker Change: This business has been quite successful as well keeping great efficiency profile, because we don't play on price we play on value added proposal.

Speaker Change: And again in that business segment, you can see the surveys, we're getting from our customers, which rates ourself year after year and the excellent.

Speaker Change #100: Bucket, which means that we're easy to do business with means that our account managers, our frontline people make a difference in the day to day.

Speaker Change #101: Service they provide to those customers and this is where I think it's important to go back to the model because there's even more we can do getting those two businesses closer.

Eric Provost: And this is where I think it's important to go back to the model because there's even more we can do to get those two businesses closer because those 6,000 dealers do have opportunities at the point of sale. And through our equipment finance arm that is focused on commercial, we could actually go from the manufacturers to the dealers, and after that, to service the end users, which provides opportunities in the overall economy at very different levels that we believe we can keep on maximizing.

Speaker Change #101: Because those 6000 dealers do have opportunities I point of cells.

Speaker Change #101: And true our equipment finance arm that is focused on commercial we could actually go from the manufacturers to the dealers and after that to serve as the end users, which provides opportunity N D. Overall economist at very different levels that we believe we can keep.

Speaker Change #101: On maximizing.

Eric Provost: Our commercial real estate group, again, a very successful group for us, 9.2 billion in assets right now, and a business model where we actually start from the land financing for most of the time because we concentrate our efforts on construction, where again, we don't play on price. We bring value to the chain and make sure that we focus our efforts where we're going to be able to make a difference for our customers.

Speaker Change #102: Our commercial real estate group are again very successful group for Us <unk>.

$9 2 billion in assets right now and a business model, where we actually start from the land financing for most of the time, because we concentrate our efforts into construction where again.

Speaker Change #102: We don't play on price, we bring value to the chain and make sure that we focus our efforts, where we're gonna be able to make a difference for our customers.

Eric Provost: There's some take-out financing. If it makes sense for us, we do capture that opportunity, but again, we try to aim the deployment of capital where it's going to deliver the best return, where we've shown good success, as well as in terms of repositioning some loans because the team has deep expertise and is able to execute on some of those projects. These financing and that portfolio is 100% Canadian-based, where our financing is all across Canada in the major cities.

Speaker Change #102: There are some take out financings.

Speaker Change #102: If it makes sense for us we do capture that opportunity, but again, we try to aim deployment of capital where it is going to deliver the best returns.

Where we have shown good.

Speaker Change #102: <unk> success as well as in terms of repositioning some loans because the team has a deep expertise and is able to execute on some of those projects.

Speaker Change #103: These financing in that portfolio is 100% Canadian base, where our financing are all across Canada in the major cities and we believe that through this group were very well position if we experience.

Eric Provost: And we believe that through this group, we're very well positioned if we experience these interest rates in Canada for the next few quarters, because our top tier developers that we have relationships with are just awaiting that moment so that they can relaunch projects and that we can actually start funding those. This is another group with an excellent..., surveyed from our customers. And this is where we are very proud of what we are in terms of how we provide value to the market. And this is true value-added.

Speaker Change #104: In the next few quarters and these in interest rates in Canada, because our top tier developers that we have relationships with are just awaiting that moment. So that they can relaunch projects and that we can actually start funding dose.

Speaker Change #105: This is another group with an excellent.

Speaker Change #106: Survey for our cost from our customers.

Speaker Change #106: And this is where this is where we are.

Speaker Change #107: We're very proud of what we are in terms of how we provide to the market and this is true value added.

Eric Provost: Not playing on price, having a very well-structured risk approach, prudent in our underwriting, managing our credit risk the right way, and I think that has shown throughout the years in terms of our portfolio resiliency, our commercial SME group. Well, we actually took the same approach, smaller in terms of outstanding there. A big portion of that group is actually Quebec-based, but again, we took our people and specialized them in various niches. Subsidized daycare is an example of that, where we are right now about 15% over in terms of the market in Quebec. And why?

Speaker Change #108: Not play on price, having a very well structured risk approach prudent in our underwriting managing our credit risk the right way and I think that as shown throughout the years in terms of our portfolio resiliency.

Speaker Change #108: Our commercial SME group, while we actually took the same approach are smaller in terms of our outstanding there.

Speaker Change #108:

Speaker Change #109: A big portion of that group is actually Quebec base, but again, we took our people and we specialize them in various niches are subsidized daycare and is an example of that where are we we are right now about 15% over in terms of our market.

Speaker Change #110: And in Quebec, and why is because we are able to.

Eric Provost: to offer a differentiated offer, and our people once again provide the right level of service that makes a difference in the customer experience. So I think it's important to remember that we strongly believe that through our specialized approach, we were able to deliver value for this organization. And this is why you're going to hear me out in terms of our ability to keep creating that value because this is what we've built in the last 10 years, and this is what we can continue to build on to deliver value for our shareholders.

Speaker Change #111: To offer a differentiated offer and our people provide again the right level of service that makes a difference in the customer experience. So I think it's important to remember that.

Speaker Change #112: We strongly believe that through our specialized approach.

Speaker Change #113: We were able to deliver value for this organization and this is why youre going to hear me out in terms of our ability to keep creating that value. Because this is what we've built in the last 10 years.

Speaker Change #114: And this is what we can continue and built to deliver value for our shareholders.

Eric Provost: Again, important to come back on what we said in 2021 because not too long ago, and for commercial banking, the objectives or the priorities were to continue and grow our specialized focus, diversify by geography and industry, and keep deepening our customer relationships. And I can tell you proudly that this is what we have executed on.

Speaker Change #115: Again important to come back on what we said in 2020, one because not too long ago and for commercial banking. The objectives are the priorities were to continue and grow to our specialized focus diversify.

Speaker Change #116: By geography, and industry and keep deepening our customer relationships.

Speaker Change #117: I can tell you proudly that this is what we executed upon this is what we've delivered we grew 14 billion to $17 billion to that timeframe.

Eric Provost: This is what we've delivered. We grew $14 billion to $17 billion in that time frame, and the team worked real hard to make sure that we executed and made this happen. Why we believe there's a lot of opportunity moving forward is because of the megatrends we see out there in terms of macroeconomics. And for sure, if we just take our commercial real estate practice as an example, well, we all know that there's a housing shortage across the country. And our Commercial Real Estate Group is mostly focused on multi-residential. Out of the $9.2 billion I talked earlier about in our portfolio, 55% of that is into multi-residential. 10% is in condos.

Speaker Change #118: And the team worked real hard to make sure that we executed and made this happen.

Speaker Change #119: Why we believe there is a lot of opportunity moving forward is because of the mega trends, we see out there in terms of the macroeconomics and for sure. If we just take our commercial real estate practice as an example, well we all know that there's housing shortage across the country and our.

Speaker Change #120: Commercial real estate group is mostly focus.

Speaker Change #121: On multi residential out of the $9 2 billion I talked earlier about of portfolio, 55% of that is into multi residential 10% is in condos.

Eric Provost: So for us, as soon as we start seeing the ease in interest rates and that consumers come back, with the right price tag and price value for our developers, we believe that our team is well positioned to benefit from that rebound. We also believe that the economy as a whole is perhaps more complex these days and that our specialized approach will be able to service these customer needs in the way they want to be served and to provide that value added that we can deliver and that we prove and that we can deliver upon.

Speaker Change #122: So for us as soon as we start seeing the ease in interest rate and the consumers come back.

Speaker Change #122: With the right price tag.

Speaker Change #123: Tag and price value for our developers, we believe that our team is well positioned to benefit from that to rebound.

Speaker Change #124: We also believe that the economy as a whole is maybe more complex. These days and that are specialized approach will be able to service these customer needs.

Speaker Change #124: In the way they want to be served and to provide that value added that we can delivered and that we've proven that we can deliver upon.

Eric Provost: This gives you perspective in terms of addressable markets, our market share, and you can see that there's plenty of room to grow. Plenty of room to grow organically, plenty of room to grow with partners, which I'm going to talk a bit more about later on.

Speaker Change #124: It does give you perspective in terms of our addressable markets our market share and you can see in there that are there's plenty of room to grow.

Speaker Change #124: Plenty of room to grow organically plenty of room to grow with partners, which I'm going to talk a bit more about later on.

Eric Provost: So, what are we going to do through this plan differently? Well, we're going to keep on growing organically because, like, we know we can. We've proven it.

Speaker Change #124: So what are we going to do through this plan differently well, we're going to keep on growing organically because like we know we can we've proven it and we're going to keep.

Eric Provost: And we're going to keep... Deepening the relationship and making sure that that repeat business and those opportunities we capture will also do so through partnership. We're going to maximize the value of the ecosystems around our specialization, and we'll diversify it into adjacent sectors or specialties because we've demonstrated we can do it throughout the 10 years, and we believe there are a lot of those out there that we could tackle over time. First of all, grow organically. I think I have touched on it before.

Speaker Change #124: Deepening the relationships and make sure that that repeat business and those opportunity we capture.

Speaker Change #124: We'll also do it through partnerships, we're going to maximize the value of the ecosystems around our specialization and well diversified into adjacent sectors. Our specialties because we've demonstrated we can do it throughout the 10 years and we believe there's a lot of those out there.

Speaker Change #125: We could tackle through time.

Eric Provost: We're good with our customers, and we're getting more of their business and proportion, and we have demonstrated the ability to compete against the big banks because this is what competition is about in those sectors. We compete on a daily basis against the big banks. Where we can make a difference even further is through partnerships. And what I mean by that is that if we take a specific industry we're in, I said we don't play on price.

Speaker Change #126: First of all growing organically like I think I touched on it.

Speaker Change #127: We're good with our customers and we were getting more of their business and the proportion and we have demonstrated the ability to compete against the big banks. Because this is what competition is about in those sectors. We compete on a daily basis against the big banks.

Where are we can make a difference even further is through partnerships and what I mean by that is that if we take a specific industry. We're in I said, we don't play on price, but some partners are there might be interested in terms of those types of assets at.

Eric Provost: But some partners out there might be interested in terms of those types of assets at a cheaper price point, and through our relationship and our ability to originate those deals, we can actually work on flow through financing towards these partners and be able to capture a portion of the economy, to again enhance other income for us. And there you see White Label.

Speaker Change #127: At a cheaper.

This point.

Speaker Change #128: And through our relationship and our ability to originate those deals we can actually work on flow through financing towards these partners and be able to capture a portion of the economist to again and sent and as other income for us.

Eric Provost: I think, again, this is an area maybe it's not as well known, but through our Equipment Finance Group, we do provide White Label services. And one of them, as an example, would be Lenovo. Like, the world's largest PC manufacturer out there, where we do provide White Labeling for all their Canadian business, and we've been doing so for more than 10 years now.

Speaker Change #129: And there you see white label I think again this is an area maybe it's not as known but through our equipment Finance group, we do provide white label services and one of them is an example would be a lenovo.

Speaker Change #129: Like the world's largest PC manufacturer out there, where we do provide white labeling for all their Canadian business.

Speaker Change #130: And we've been doing so for more than 10 years now so it proves the fact that.

Eric Provost: So it proved the fact that with our strength, we can push even further, and Lenovo is an example of multiple others that we deal with already. If we're able to scale, position ourselves better on a North American footprint, this is where I believe we can keep expanding and making sure that we deploy our capital efficiently, we keep the right risk profile for our portfolio, and we leverage those partners that have an interest in expanding into these asset types. How do we maximize the ecosystem?

Speaker Change #129: Yeah.

Speaker Change #131: Our strength, we can push it even further and Lenovo is an example of of multiple others that we deal with already.

Speaker Change #132: If we're able to scale position ourselves better on in our North American footprint. This is where I believe we can keep expanding and making sure that we deploy our capital efficiently. We keep the right the right risk profile for our portfolio and we leveraged those partners that have entered.

Speaker Change #133: Yes into expanding into these asset types.

Speaker Change #134: How do we maximize the ecosystem.

Eric Provost: I think I made my point in terms of how customers appreciate how we do business with them. Well, customers are actually asking us how they can do more business with us because they know we deliver on expectation, because they know that we've demonstrated we have the right capability to serve them.

Speaker Change #134: I think I made my point in terms of our customers appreciate how we do business with them.

Speaker Change #135: Well customers are actually asking us out can they do more busy.

Speaker Change #135: Business with us.

Speaker Change #135: Because they know we deliver on expectation because they know that we've demonstrated we have the right capability to service them. It's just a question of how do we invest in focus in the right areas and the right niches to actually take these industries or specialties and act.

Eric Provost: It's just a question of how we invest and focus in the right areas and the right niches to actually take these industries or specialties and actually push them even further. And there you have examples, and now I want to manage expectations in terms of the products or the new things we're going to put out there. This is a midterm ambition, but there are a lot of things that we can tackle.

Speaker Change #136: We push it even further and in there you have examples in and now like.

Speaker Change #137: I want to manage expectations in terms of like the products or the new things, we're going to put out there like this is a midterm ambition, but like there's a lot of things that we can tackle and I did mentioned one in terms of the 6000 dealers we serve across North America.

Eric Provost: And I mentioned one in terms of the 6,000 dealers we serve across North America, like they sell to end customers. Are there partners out there that could be interested in these points of sale that we have strong relationships with? I believe so.

Speaker Change #137: They sell to end customers.

Speaker Change #138: Are there partners out there that could be interested in these point of sales that we have strong relationships with.

Speaker Change #139: I believe so.

Eric Provost: Would some of them be interested in terms of our OEM footprint and try to maximize those relationships? I can go on and on in terms of how we can actually bring value to the organization and not solely in terms of deploying capital, but what we need is to generate those other income opportunities, and we think that throughout our commercial banking. There's a lot out there that is untapped right now because we haven't been putting the effort, and the focus, and the investments to actually target, though, diversified and adjacent sectors? Well, I think that you saw what we did in the current ones.

Speaker Change #140: With some of them be interested in terms of our OEM footprint and try to maximize those relationships and I can go on and on in terms of how we can actually bring value to the organization and not solely in terms of deploying capital, but what we need is to generate those other income.

Speaker Change #141: Opportunities and we think that true outdoor commercial banking.

Speaker Change #142: Theres a lot out there that is untapped right now because we haven't been putting the efforts.

Speaker Change #142: And the focus and the investments to actually.

Speaker Change #142: Target dose.

Speaker Change #142: Diversified and agile since sectors, well I think that you saw what we did in the current ones are.

Eric Provost: There are others, and again... both a mix of the people we onboard, the specialties, but we need to take the right approach in terms of understanding the risk, how does it fit within Laurentian Bank, and after that, make sure that we execute the same recipe we've been using in other specialties to be successful. So what will success look like for commercial banking in this strategic plan? And how do we actually believe that we're going to be able to execute towards growth?

Speaker Change #143: There are others and again.

Both the mix of the people, we onboard the specialties, but.

We need to take the right approach in terms of understanding the risk how does it fit within Laurentian bank and after that make sure that we execute the same recipe we've been using in other specialty to be successful.

Speaker Change #143: So what will success look like for commercial banking in this strategic plan and how do we actually believe that we're going to be able to execute towards grows well.

Eric Provost: Well, we're going to be aiming for high single-digit growth, will maintain an industry-leading position in our specialization through our NPS and our customer surveys, and we will continue to operate as efficiently as we've done throughout the years. Yvan is going to touch on this, but, like, I can tell you commercial banking for this group has been operating very efficiently, and we intend to continue doing so. Now Personal Banking, another great group for the bank, but before I talk about the future, I really want to reaffirm, as this group provides, a solid core deposit base.

Speaker Change #144: We're going to be aiming at a high single digit growth.

While maintaining an industry leading position in our specialization to our M. P S and our customer surveys and we will continue to operate.

Speaker Change #144: As efficiently as we've done throughout the years and if I was going to touch on this but like.

Speaker Change #145: I can tell you commercial banking for this group has been operating very efficiently and we intend to continue doing so.

Speaker Change #146: Now personal banking another great group for the bank.

Speaker Change #147: But before I talk about the future I really want to reaffirm this group provides.

Speaker Change #147: Our solid core deposit base.

Eric Provost: And that deposit base is definitely essential for us to keep funding our commercial banking ambitions, and we believe that over the years, there is tremendous headroom for growth for us. And why I'm saying that is, if we just take what we are right now, in terms of footprint, we're the third largest... Quebec-based bank in terms of branch footprint with over 50 branches, over a hundred ATMs out there, and like I said earlier, that network is actually supported by advisors and brokers through our B2B bank that operates across Canada.

Speaker Change #148: And and that deposit base is definitely essential for us to keep funding our commercial banking ambition.

Speaker Change #149: And we believe that trailed the years there is tremendous headroom for growth for us and why I'm, saying that is if we just take what we are right now in terms of footprint or we're the third largest ah.

Quebec based bank in terms of branch footprint with over 50 branches.

Speaker Change #150: Over 100 Atms out there.

Speaker Change #151: And like I said earlier on that network is actually supported by advisors and brokers to our beat to be bank that operates across Canada.

Eric Provost: Our retail network branches account for $8 billion of our core deposits out of $21 billion if you take into consideration B2B Bank. And I think that... As we demonstrated in commercial banking, the long tenure of our advisors, our approach towards the customer in terms of tailoring needs, is an advantage that we need to keep on maximizing in this plan. And also, don't forget, like I did come back to our roots, the fact that we've been around now for 178 years.

Speaker Change #151: Our retail network branches account four 8 billion of our core deposits out of $21 billion. If you do taken into consideration.

Speaker Change #152: Our b to B bank, and I think that.

Speaker Change #153: As we demonstrated in commercial banking.

The long tenured of our our advisers our approach towards the customer in terms of tailoring the needs.

Speaker Change #154: Is it an advantage that we need to keep on maximizing indiscipline and also don't forget like I did come back to our roots as the fact that we've been around now for 178 years, while we have deep roots into those communities.

Eric Provost: Well, we have deep roots in those communities we are in, and I believe that there is room for growth if we provide the right tools and that we are able to take those best practices that we've learned throughout the years in commercial banking and actually extend them through personal banking. If you allow me, I would like to invite you to join me in a moment of silence. In a moment of silence. In a moment of silence. Again, for personal banking, I think it's highly important we come back to 2021.

Speaker Change #155: We are in and I believe that there there is headroom for growth. If we provide the right tools and that we are able to take those best practices that we've.

Speaker Change #155: That's what we've realized throughout the years in commercial banking and actually extend them through personal banking.

Speaker Change #156: Few allow.

Speaker Change #156: Again for personal banking I think.

It's highly important we come back to 2021.

Eric Provost: Because there, as well, we set ourselves some key priorities, which were to create a performance-oriented bank to focus our products and our services, to introduce a digital-led approach, and also to unify our brand. And there, as well, the team made great progress towards those priorities.

Speaker Change #157: Because there is well we set ourselves some key priorities, which was to create.

Speaker Change #158: Create a performance oriented bank to focus our products and our services to introduce.

Speaker Change #159: Digital led approach and also to unify our brand.

And there as well the team made great progress towards those.

Eric Provost: Like, we were able to deploy and implement a new operating model that provides for better sales management as well as introduce new training skills for our people that interact with our customers. We were able, through that time, to actually reduce our approval day to get a mortgage from 8 to 2, which is a significant progress from where we were. We launched a new visa offering where we have enhanced features, and we also started digitalizing our account onboarding.

Speaker Change #160: <unk> like we were able to deploy implement a new operating model that provides for better sales management as well as introducing new training skills for our people that do interact with our customers we were able to that time to action.

We reduce our approval day.

Speaker Change #161: To get a mortgage from eight to two which is a significant progress from where we were we then ends how are we launch a new visa offering where we have enhanced features and we also started.

Speaker Change #162: Utilizing our account onboarding.

Eric Provost: In terms of the digital first approach, well... The team made great progress in a very short time period in terms of closing customer pain points that really we needed to focus on because it put us aside from competition and simple things like online password reset or just tapping on debit. I have to tell you like prior to 2021 we didn't have. So we made progress, but at the end of the day, I think we did too little.

Speaker Change #163: In terms of the digital first approach well.

Speaker Change #164: The team made great progress in very short time period in terms of closing customer pain points that really we needed to focus on because it made us aside from competition and simple things as a online password reset or are just are just stop on debit have to tell you like.

Speaker Change #165: Prior to <unk> 2021 we didn't have.

Speaker Change #165: So we made progress but at the end of the day.

Speaker Change #166: I think we did too little.

Eric Provost: We haven't done enough to actually improve our personal banking, and mostly because we've been too focused on our internal processes to actually be solving customer issues on a day-to-day basis. I think that we've remained too complex in terms of our product range, and for most of those products, we don't have a significant scale. And in terms of foundational technology, well, this is where we need to make the right investments because you can close some gaps. But if you close them on things that will not allow you to be more sustainable... and I'm not talking about next year or next two years; sustainable, real time.

Speaker Change #166: We haven't done enough to actually improve our personal banking and mostly because we've been to focus are in our internal processes to actually be solving for the customer issues on a day to day basis, I think that we've remained too complex in terms of our product.

Speaker Change #166: Shelf and for most of those products, we don't have significant scale.

Speaker Change #167: And in terms of foundational technology, well this is where we need to make the right investments because you can close some gaps.

Speaker Change #167: But if you close them on things that will not allow you to be more sustainable.

Speaker Change #168: And I'm not talking about next year next two years sustainable through time.

Eric Provost: As the PACE technology is moving, we need to make those investments so that we provide the right customer experience through the right tools. Why I'm confident about our personal banking is because of this, because on a daily basis, we do receive. Those types of feedback, where our advisors, the people that interact directly with our customers day-to-day, provide great advice, guidance, and they make sure that they deliver to the best of their ability to those customers.

Speaker Change #168: The pace technology is moving we need to make those investments so that we provide the right customer experience through the right tools.

Speaker Change #168: Okay.

Speaker Change #169: Why I'm confident about our personal banking is because of this.

Speaker Change #169: Because on a daily basis, we do receive.

Speaker Change #169: Those types of feedback.

Speaker Change #169: Where our advisers that.

Speaker Change #170: People that interact directly with our customers day to day provide.

Speaker Change #171: Provide great advisers guidance.

Speaker Change #171: And they make sure that they deliver to their best of their ability to those customers and I think this is why we can be so proud of our our deposit base.

Eric Provost: And I think this is why we can be so proud of our deposit base, so stable in terms of our customers, throughout the 2023 challenges we face. And this is why I believe that if we're able to reduce... our manual processes to simplify this organization, but mostly being able to provide those people with the right tools, we will be able to acquire that new customer. We will because there's a great market opportunity out there, targeting the middle class.

Speaker Change #172: So stable in terms of our customers.

Speaker Change #173: Throughout the 20th twenty-three challenges, we faced and this is why I believe that if we're able to reduce.

Speaker Change #174: Our manual processes to simplify this organization, but mostly being able to provide those people with the right tools, we'll be able to acquire net new customers.

Speaker Change #175: We will.

Speaker Change #176: Because there's a great market opportunity out there.

Speaker Change #176: Targeting the middle class.

Eric Provost: 17 million Canadians, to provide the low, to know cost-tied banking experience on a day-to-day basis is definitely, for us, room for growth. But to do so, we know what we need to provide. We need to provide a seamless digital experience so that they can actually self-serve themselves for those day-to-day banking products. We need to make sure that our customer experience remains or increases in terms of how we tailor that experience between our advisors and our customers, and strategic partners will be leveraged there to make sure that we deploy the right capabilities, and this will accelerate speed to market for things that we are considering moving forward.

Speaker Change #177: 17 million Canadian.

Speaker Change #177: To provide the low.

Speaker Change #177: To no cost type banking experience on a day to day basis is definitely for us headroom for growth.

Speaker Change #178: But to do so we know what we need to provide we need to provide a seamless digital experience.

Speaker Change #178: That they can actually self serve themselves towards those day to day banking products, we need to make sure that our customer experience remains or increase in terms of how we tailor that experience between our advisers and our customers.

Speaker Change #179: And and strategic partners will be leverage there to make sure that we deployed our rate capabilities.

Speaker Change #179: And this will accelerate speed to market for things that we are considering moving forward.

Eric Provost: This is an important page. This is based on a survey that the average Canadian pays... about $250 a year on banking. And on top of that, the unearned interest on their balance in their bank accounts. That can account for about $50 to $100 a year.

Speaker Change #179: This is an important page this is based on a survey.

Speaker Change #179: That average Canadian.

Speaker Change #179: PE.

Speaker Change #180: About 250 dollar a year on banking fees.

Speaker Change #180: And on.

Speaker Change #181: On top of that the earn interest of there.

Speaker Change #182: Balance in their bank accounts that clinic account for about 50 to 100 dollar a year. So when you take.

Speaker Change #182: Those costs and those on earn.

Eric Provost: So when you take DOSCOT and those unearned interest rates, well, I'll tell you something, this makes a difference to an annual budget for those middle class people. In the current environment where we have high inflation, the price of everything we consume has gone up and put pressure on everyone's budget. We think that if Laurentian Bank comes out with an offering, that will help lower these costs or eliminate these costs. This is going to be a true value proposition that will make us acquire net new customers. If we offer it in that simple way...

Speaker Change #182: Interest.

Speaker Change #183: Well tell tell you something I did this makes a difference to our annual budget for those middle class people.

In the current environment, where we have I inflation.

Rice of everything we consume has gone up and put pressure on everyone's budget, we think that if Laurentian bank comes out with an offering that will help lower these costs.

Speaker Change #184: Or eliminate these costs.

Speaker Change #185: This is going to be a true value proposition that will make us acquire net new customers.

Speaker Change #186: If we offer that simple way.

Eric Provost: I think that we can become their bank of choice for the future. So our approach going forward is really going to be to simplify and make sure that we provide the self-serve type products I just described. We will work on it.

Speaker Change #186: I think that we can become their bank of choice for the future.

Speaker Change #186: So our approach going forward is really going to be to simplify and make sure that we provide with the self serve type products I just described.

Speaker Change #186: We will work on.

Eric Provost: The complexity of the organization makes sure that we reduce the product shelf so that we tackle day-to-day simple product needs for middle class customers. And again, it's all going to be about accelerating that foundation technology need that we absolutely need to have for this plan. So in the near term, our goal is to be able to launch that day-to-day banking that will allow customers access to a lower cost type banking product.

Speaker Change #186: The complexity of the organization make sure it as we reduce our product shelf. So that we tackled day to day simple product needs for the middle class customers.

Speaker Change #186: And again, it's all going to be about accelerating that foundation technology need that we.

Speaker Change #186: Absolutely need to have for this plan.

Speaker Change #186: Yeah.

Speaker Change #187: So in the near term our goal is to be able to launch that day to day banking debt will allow customer.

Speaker Change #187: That access to a lower cost type.

Eric Provost: After that, really, into our reduced product shelf to expand those digital capabilities so that our customers of the future can again self-serve and make sure that they benefit also from that human touch. And in the midterm, can we expand towards more creative and again value-added type products? I believe we can, and it's all about finding and implementing the right technology stack, which at the moment is way too complex.

Speaker Change #188: Banking product after that really into our reduce product shelf to expand those digital capabilities. So that our customers of the future again can self serve and make sure that they benefit also from that human touch.

Speaker Change #188: And in the midterm can we expand towards more accretive and again value added type products.

Speaker Change #189: I believe we can and it's all good about finding and implementing the right technology stack, which has the moment is way too complex.

Eric Provost: Simplify Our Bank, Definitely Optimizing Our Portfolio, In the aligned target segment, so the middle class, reimagine our physical footprint, our branches. And what I mean by that is not leaving our footprint, not at all, like our goal is to optimize that footprint because right now, and as you might know or recall, since 2018, Laurentian Bank provides advice-only services in the branch. We are transactionless.

Speaker Change #190: Simplify our bank definitely optimizing our portfolio.

In the aligned target segments, so middle class re imagine our physical footprint, our branches and what I mean by that is not exiting our footprint not at all.

Speaker Change #191: Our goal is to optimize those footprint because right now and as you might know or recall since 2018, Laurentian bank provide advice only services in the branches.

Speaker Change #192: We are transaction less.

Eric Provost: But we still have those branch footprints that have a vault, have a counter, and are way too big for the needs of our customers and our advisors to provide the right level of service. So we believe that through this optimization, we'll be able to create cost savings that will help, again, improve profitability throughout this plan. We'll improve our operations and systems to make sure that the customer experience is enhanced, and this, as we demonstrated in commercial banking, will make the difference. Leverage, our partnership, to deploy new capabilities, and speed to market is again at the core of the personal banking implementation. How are we going to measure success?

Speaker Change #192: But we still have those branch footprint that have evolved I have a counter at our way too big for the needs of our customers and our advisors to provide the right level of service. So we believe that true this optimization will be able to create cost savings that will help again.

Speaker Change #193: Improved profitability throughout this plan.

Speaker Change #193: Will it improve our operation and systems to make sure that the customer experience is in our hands and this has we demonstrated in commercial banking will make the difference.

Speaker Change #194: Leverage at.

Speaker Change #195: Our partnerships to deploy new capabilities speed to market is again at the core of the personal banking implementation.

Speaker Change #195: How we're going to measure should measure success, well again for us it's all about the customer.

Eric Provost: Well, again, for us, it's all about the customer and how they rate us because this is how we can create momentum. This is how we believe we can create net new customer growth through our day-to-day retail product availability through the digital lives approach and make sure that we keep a strong focus on core deposit gathering. And this is what it's about.

Speaker Change #196: And how they rate us because this is how we can create momentum. This is al. We believe we can create net new customer growth.

Speaker Change #196: Our day to day retail product availability true digital lives approach and making sure that.

Speaker Change #196: We keep a strong focus on core deposit gathering.

Eric Provost: Day-to-day banking product to increase core deposit gathering because it's going to help. In terms of our funding mix, it's going to improve our cost of funds overall, and it's going to help us fuel our commercial business and create more profitability for the organization. Efficiency will be on top of mind for everything we do in personal banking to make sure that we create a more efficient personal bank. And now, our capital markets, another important group of ours, and in terms of activities for us, it is also a group that, since 2021, has worked really, really hard in terms of the priorities we gave ourselves at the time, which was to act as an alternative to the big banks to make sure that their capabilities were extended or align And in that as well, the team has worked hard and delivered on those aspects.

Speaker Change #196: And this is what it's about day to day banking product to increase core deposit gathering because it's going to help.

In terms of our funding mix is going to improve our cost of funds overall.

Speaker Change #197: And it's going to help us fuel, our commercial business and <unk>.

Speaker Change #198: Create more profitability for the organization.

Speaker Change #199: Efficiency will be on top of mind for everything we do in commercial and personal banking to make sure that we create a more efficient personal bank.

And now our capital markets another important.

Speaker Change #200: Group of ours and in terms of activities.

Speaker Change #201: For us. It is also a group that since 2021 is where Korea real hard in terms of the priorities. We gave ourself at the time, which was to act as an alternative in terms of the big banks to make sure that their capabilities were extended or aligned more towards our.

Speaker Change #202: Customers and that we're able also to offer some a S G capability trial that journey.

Speaker Change #203: And in there as well the team has worked hard and delivered on those aspects. We've improved level of service and made sure that we grow our syndicate positions to corporate and government issuance. We've aligned products just like our foreign exchange for example, aligning that service towards <unk>.

Eric Provost: We've improved the level of service and made sure that we grow our syndicate positions to corporate and government issuance. We've aligned products just like foreign exchange, for example, aligning that service towards our commercial customers that actually do some cross-border activities. For us, capital markets are going to be about enhancing and making sure that we play where we can win and where we can have scale and do so efficiently, and we strongly believe our Fixing Crumb Group has done so throughout the years and will continue to do so for us in the future.

Speaker Change #203: Our commercial customers that actually do some cross border activities and we did launch them ESG products that had good.

Speaker Change #204: Ramp up into the capital markets group, and we'll continue to do that in the future, but different ways in terms of focus.

Speaker Change #205: For us capsule, mark is going to be about enhancing and making sure that.

Speaker Change #206: We play where we can win.

Speaker Change #206: And where we can have scale.

Speaker Change #207: And doing so efficiently and we strongly believe our fixed income group.

Speaker Change #208: As done so throughout the years and will continue to do so for us in the future years FX I did mention and we believe that this provide value added to our commercial customers see.

Eric Provost: FX, I did mention, and we believe that this provides value added to our commercial customers. Simplification is key here because we have already started, as I explained at the beginning, revisiting, by exiting our full brokerage service to Industrial Alliance and also exiting our equity research group last week. And throughout the bank, we'll continue to evaluate, make sure we position ourselves to take the right decisions, to make this bank simpler. The measure of success for the capital markets will be to grow in fixed income and our FX specialization, maintain connectivity, and make sure that where we do... believe we can win, we put some emphasis on that. Otherwise,

Speaker Change #208: Simplification is key here because we already started reeves.

Speaker Change #209: Revisiting as I explained at the beginning by exiting our full brokerage service two into C&I. The house and also exiting our equity research group last week.

Speaker Change #210: And throughout the bank will continue to evaluate make sure we position ourselves to take the right decision.

To make this bank simpler.

Speaker Change #211: The measure of success for capital market will be to grow in fixed income and FX specialization maintain connectivity and make sure that where we do.

Speaker Change #212: Believe we can win we put some emphasis otherwise we.

Eric Provost: We need to rethink how we do things or take courageous decisions and actually exit areas where we don't believe we can bring scale, and we will continue to focus on our ESG offering in that direction. Alright, uh, key enablers for uh... for us to talk about, which are technology and operations. And I think I said technology enough that you will believe this is quite important for us, a two-pronged focus on technology, simplifying, which I did say in terms of the complexity of the technology stack we need to address. And we've started addressing that; we need to go faster, we need to go further, and make sure that we put in the right programs to reduce those manual processes.

Speaker Change #213: We need to rethink, how we do things or take courageous decision and actually exit the areas, where we don't believe we can bring scale and we will continue to focus on our ESG offering in that group.

Speaker Change #213: Alright.

Speaker Change #213: Two.

Speaker Change #213: Key enablers for.

Speaker Change #214: For us to talk about which is technology and operations.

Speaker Change #215: And I think I I said technology enough that you.

Speaker Change #216: You will believe this is quite important for us.

Uh huh.

Speaker Change #216: Two pronged focus on technology simplifying.

Speaker Change #217: Tried to say in terms of the complexity of the technology stack, we need to address and we started addressing that we need to go faster. We you need to go further and make sure that we go into the right programs to reduce those manual processes, but most importantly to make sure that we transport.

Eric Provost: But most importantly, to make sure that we transform, and again, related to increased capabilities, better capabilities, and making sure that we execute on those programs to bring results and the right return on investment. And we've already started, like I said, appointing a new CIO who is onboarding new talent, but the most important thing is the implementation of the new governance program, having oversight over the projects that are underway and that we are about to launch, and making sure that we have the right assessment.

Transform and again related to increased capabilities better capabilities, and making sure that we execute on those programs.

Speaker Change #217: Execute to bring outcome and the right return on investment.

Speaker Change #217: And we've already started in terms of like I said appointing a new CIO that is onboarding new talent, but the most important is the implementation of the new governance program.

Speaker Change #218: Having oversight over the projects that are underway and that we are about to launch.

Speaker Change #218: And make sure that we have the right assessment and this is why we took time to come to market with this investor day.

Eric Provost: And this is why we took time to come to market with this Investor Day, because we wanted to take time to reflect on what will make a difference to the profitability profile of this institution. How do we spend the money and technology to make sure that we make the moves that will enhance that product offering? And the path ahead is definitely to modernize and simplify partnership for speed to market and capabilities and make sure that we rationalize our portfolio.

Speaker Change #219: Because we wanted to take time to reflect on.

Speaker Change #220: What will make a difference to the profitability profile of this institution, how do we spend the money in technology to make sure that we make the moves that will enhance that product offering and the path ahead is definitely to modernize and to simplify again partnership for speed to market and capabilities in it.

Speaker Change #220: Making sure that we rationalize our portfolio.

Speaker Change #220: Yeah.

Eric Provost: Talking about operations will be all about how we work, where we work, and actually how we organize that work around our customers, and this is, as an example, why we announced today that we'd be reducing our Toronto corporate footprint by two-thirds. We realized that the hybrid model for us works, that our facilities here weren't used more than 20%, and those cost savings represent $5 million on a yearly basis.

Speaker Change #221: Talking about operation will be all about how we work, where we work and actually how we organize that work around our customers.

Speaker Change #222: And this is.

Speaker Change #223: As an example, why we announced today that we'd be reducing our Toronto corporate footprint by tutors, we realize that hybrid hybrid model.

Speaker Change #223: For Us works.

Speaker Change #224: That our facilities here werent use at more than 20%.

Speaker Change #224: And those cost savings represent $5 million on a yearly basis.

Speaker Change #224: And doing that reduction doesn't change anything in terms of our employees' ability to actually come here downtown because we're maintaining a footprint.

Speaker Change #225: And it will allow and allowed them as well to leverage our Burlington offices, where equipment financing and inventory financing group are already operating.

Speaker Change #226: From so just going to enhance or create even more flexibility for our Ontario employees, but at the same time make sure that we take steps to reduce our cost structure.

And now I'm very happy to invite the foundation of our Chief Financial Officer to.

Speaker Change #227: Walk us through the financial objectives for this plan event.

Yvan Deschamps: And doing that reduction doesn't change anything in terms of our employees' ability to actually come here downtown because we're maintaining a footprint, and it will allow them, as well, to leverage our Burlington offices, where Equipment Financing and Inventory Financing Group are already operating. So, it's just going to enhance or create even more flexibility for our Ontario employees but at the same time make sure that we take steps to reduce our costs. And now, I'm very happy to invite Yvan Deschamps, our Chief Financial Officer, to walk us through the financial objectives for this planned event. Merci, Eric. Bonjour à tous. Très heureux de vous avoir avec nous cette après-midi.

Speaker Change #228: Theory, Basel, where tourists hazards of all of it and we said that Premier Z. Thank you everybody to be here with us really proud to be here to present, the financial path for the bank as Eric mentioned, we made good progress over the last few years, we're going to continue making progress and the one thing that we will do is improve profitability.

Yvan Deschamps: Thank you everybody for being here with us. I'm really proud to be here to present the financial path forward for the bank. As Eric mentioned, we've made good progress over the last few years. We're going to continue making progress. And one thing that we will do is improve the profitability of the bank. And how we're going to do that, we're going to start from a strong financial base. And the financial base of that bank is composed of three key elements. The first one is capital.

Speaker Change #229: Of the bank and how we're going to do that we're going to start from a strong financial base and defined so base of that bank is composed of three key elements. The first one is capital.

Yvan Deschamps: Capital is really strong right now. If you look at that slide, if you look on the left side, you see that we have a strong buffer versus the regulatory minimum. So our CT1 stands at 10.4 versus a regulatory minimum of 7%, which is a great buffer in terms of being able to take on any economic turmoil. We're asked very often, "How does your capital compare to the other banks?" The other big banks usually disclose their capital under the advanced approach versus the smaller banks under the standardized approach.

Speaker Change #229: Capital is really strong right now if you look at that slide if you look on the on the left side you see that we have a strong buffer versus the regulatory minimums. So our CET one stands at 10.4 versus a regulatory minimum of 7%, which is a great buffer in terms of being able.

Speaker Change #229: To take on any economists turmoil.

Speaker Change #229: We're asked very often how does your capital compared to the outer banks.

Speaker Change #230: The other big banks, usually disclose their capital under the advanced approach versus the smaller banks under the standardize approach since the end of 2023, the big banks also disclose their capital under the standardize approach. So when you look at apples and apples on the right side of this do you see that if you look at the.

Yvan Deschamps: Since the end of 2023, the big banks will also disclose their capital under the standardized approach. So, when you look at Apple and Apple, on the right side of this, you see that if you look at the yellow bars, we do compare favorably in terms of capital versus the rest of the industry. And that will allow us, you know, to build in terms of growth from the strong brace of capital that we have.

Speaker Change #231: The yellow bars, we do compare favorably in terms of capital versus the rest of the industry. So that will allow US you know to build in terms of growth from the strong base of capital that we have.

Yvan Deschamps: The second element of the strong financial base that we have is the diversified funding that we have in place. We have a good and strong liquidity position that we can start with, and we can also fund the growth of the bank using the strong liquidity that we have in place. You can see at the bottom of this chart the very solid liquid position that we have but also the diversification of the various things that we can do to fund the bank.

Speaker Change #231: The second element of the strong financial base. We have is the diversified funding that we have in place we have a good and strong liquidity position that we can start with and we can also fund the growth of the bank using the strong liquidity that we have in place.

Speaker Change #232: You can see at the bottom of this chart the very solid liquid position that we have but also the diversification of their various things that we can do to fund the bank, so really strong and diversified and continued to diversified over the last few years.

Yvan Deschamps: So really strong and diversified and continues to be diversified over the last few years. If you look at the LCR ratio at the top of that chart, you see that over the last 12 to 18 months, seeing the microeconomic uncertainty coming and increasing, we've been building a liquidity war chest. And that liquidity war chest is going to help us again to fund the growth going forward of that bank and really is a great position to start with as well. We did complete a few good things in the last few years.

Speaker Change #232: If you look at the L C ours.

Speaker Change #232: Ratio at the top of that chart, you see that over the last 12 to 18 months seeing the micro economy.

Speaker Change #233: Uncertainty coming in increasing we've been building liquidity war chest and that liquidity war chest is going to help us again to fund the growth going forward of that bank and really is a great position to start with as well we did complete over the last few years or do a few good things we.

Yvan Deschamps: We did stabilize the retail deposit erosion that we had in the past. We reduced by about 20% the wholesale funding of this bank, which is by itself a buffer because we can tap into that funding if need be going forward. And we did improve securitization funding at the bank. What we intend to do going forward is, as Eric mentioned, we will strengthen our digital deposit capability at the bank. So that will strengthen our deposit gathering to fund the commercial growth that we anticipate. The second thing is that we discuss partnerships a lot.

Speaker Change #234: Did stabilize the retail deposit erosion that we had in the past we reduced by about 20% of the wholesale funding of this bank, which is by itself a buffer because we can tap into that funding if need be going forward and we did improve securitization funding at the bank.

Speaker Change #234: What we intend to do going forward is that as Eric mentioned, we will strengthen our digital deposit capability of the bank. So that will strengthen our deposit gathering to fund the commercial growth that we envision.

The second thing is that we discuss a lot about partnerships. So we want to have partners that will support the growth that we're going to have from a commercial perspective as well.

Yvan Deschamps: So we want to have partners that will support the growth that we're going to have from a commercial perspective as well. And finally, talking about securitization, which is something we've been focusing on a lot because it's long-term, cost-efficient, and it pretty much fits the maturity of your loans as well. We intend to build and have a new securitization conduit for ALTE, which is also a specialty of this bank. The third portion of this strong financial base is really credit.

Speaker Change #235: And finally talking about securitization, which is something we've been focusing a lot because it's long term cost of fishing and it's pretty much fits the maturity of your loans as well, we intend to build and have a new securitization conduits for Allstate, which is also a specialty of this bank.

The third portion of the strong financial base is really their credit.

Yvan Deschamps: This bank has, is, and will sustain a great credit position, very strong in the past. If you look over the last 15 years, we have run at about half of the losses of the rest of the industry. And why is that?

Speaker Change #235: This bank as is and will sustain a great credit position very strong in the past if you look over the last 15 years, we ran at about half of the losses of the rest of the industry and why is that because we have strong underwriting methods and criteria.

Yvan Deschamps: Because we have strong underwriting methods and criteria. But also, if you look at the metrics, very impressive. 95% of the loan book is securitized and collateralized. About 60% of the residential portfolio is insured, and the remaining portion has an LTV of 50%.

Speaker Change #236: But also if you look at the metrics very impressive 95% of the loan book is securitize and collateralized.

Speaker Change #237: About 60% of the residential portfolio is insured and the remaining portion as an LTV of 50% very strong very secure portfolio than the residential mortgages commercial real estate two thirds of it is in multi residential residential so very good place to be.

Yvan Deschamps: Very strong, very secure portfolio in residential mortgages. Commercial real estate, two-thirds of it is in multi-residential residential, so very good place to be. Very limited office exposure with 2% of the commercial book. And the LTV of the uninsured portion of the commercial real estate stands at 62%.

Speaker Change #237: Very limited office exposure with 2% of the commercial book and the LTV of the uninsured portion of the commercial real estate stands at 62%.

Yvan Deschamps: More than 25% of our commercial real estate book is insured as well, so it is a very strong asset to weather the uncertainty that we have currently in the economy. And finally, we've been discussing many times over the last few quarters. Inventory financing is a great asset, very strong from a credit perspective with a lot of levels of protection as well. So let me take a look here, or let us take a look at their recent performance.

Speaker Change #238: More than 25% of our commercial real estate book is insured as well so very strong commercial real estate to weather the uncertainty that we have currently in the economy and finally, we've been discussing many times that over the last few quarters inventory financing great asset very strong.

Speaker Change #238: From a credit perspective, with a lot of levels of protection as well.

Speaker Change #239: So let me take a look here or let us take a look at the recent performance as Eric mentioned from a financial perspective, we started strong in 2022.

Yvan Deschamps: As Eric mentioned, from a financial perspective, we started strong in 2022, but macroeconomic and some other events during 2023 slowed down the financial results. So we intend to build from this point, and let's take a look at what we've done versus the rest of the industry in terms of revenue, growth of expenses, and efficiency ratio. Let's start with the middle graph.

Speaker Change #239: Then macroeconomic and some various evans during 2023 slowed down to financial results.

Speaker Change #240: So we intend to build from this point and let's take a look at what we've done versus the rest of the industry in terms of route of the revenue growth of the expenses and efficiency ratio.

Yvan Deschamps: You can see that we've managed our expenses growth to be lower than the rest of the industry. But if you look at revenue growth, unfortunately, we've been below the rest of the industry as well. So we need to invest further to manage the cost and be more efficient. That's something I'm going to discuss a lot. And you're going to see on the last graph at the bottom that we sustained as of today, too high, way too high in terms of efficiency ratio, which is definitely one key focus that we're going to have in this plan. But let me double down on efficiency.

Speaker Change #240: Let's start by the Middle graph, you can see that we've manage our expenses growth to be lower than the rest of the industry, but if you look at the revenue growth. Unfortunately, we've been below the rest of the industry as well so we need to invest further to manage the cost and be more efficient that's something I'm going to discuss a lot.

Speaker Change #241: And you're going to see on the last graph at the bottom that we sustained as of today.

Speaker Change #242: Two high worth way too high in terms of efficiency ratio, which is definitely one key focus that we're going to have in this plan.

Speaker Change #243: But let me double down in terms of efficiency.

Yvan Deschamps: It's the first time that we've disclosed the efficiency of our different businesses. So if you look at commercial banking, we grew that business, and pretty much over the last 10 years, we tripled the business. And we did that while being extremely efficient through that growth. We maintain our efficiency ratio despite the fact that we've been growing it very rapidly.

Speaker Change #244: The first time that we disclose the efficiency of our different businesses. So if you look at commercial banking, we grew that business in pretty much over the last 10 years, we tripled the business and we did that while being extremely efficient from that growth we maintain our.

Speaker Change #245: Since the ratio this back despite the fact that we've been growing it very rapidly.

Yvan Deschamps: On the commercial banking side, unfortunately, we've been somewhat inefficient. We need to invest in technology and processes, and we need to be better on the digital side. So those are key points.

Speaker Change #246: Personal banking on the outer side. Unfortunately, we've been somewhat inefficient, we need to invest in technology and processes, we need to be better on the digital side. So those are key points and as you can see and you're going to hear me that in the next few slides we need to continue growing commercial banking because it's highly.

Yvan Deschamps: And as you can see, and you're going to hear me say in the next few slides, we need to continue growing commercial banking because it's highly efficient. And personal banking is not a question about growth or volume; it's a question about being more efficient. So if I recap, technically, we start from a 6% ROE.

Missions and personal banking is not a question about growth or volume its acquired question about being more efficient.

Speaker Change #247: So if I recap technically we start from a 6% ROE we have an objective to grow with that and the double digit and obviously it comes from revenue increase mainly based out of the commercial growth that's going to be the growth driver of the bank, we're going to do that with the new capabilities on the deposit.

Yvan Deschamps: We have an objective to grow that by double digits. And obviously, that comes from revenue increases, mainly based on commercial growth. That's gonna be the growth driver of the bank. We're gonna do that with the new capabilities on the deposit. It's gonna fund that growth. That's what we're gonna do on the retail side, on the digital side.

Speaker Change #248: It's going to fund that growth that we're what we're going to do on the retail side digital side and from the next Spence perspective as I just mentioned the key focus is going to be really the efficiency, but to get to that efficiency, we need to start by investing we need to start playing the short game, we need to be able to invest in a really true.

Yvan Deschamps: And from an expense perspective, as I just mentioned, the key focus is gonna be really efficiency. But to get to that efficiency, we need to start by investing. We need to stop playing the short game.

Yvan Deschamps: We need to be able to invest and really transform the business to be able to generate efficiency in a sustainable way going forward. Let me double down on a bit more detail, but that recaps pretty much what I've discussed to this point, right? So, we have a strong base, strong liquidity, strong funding, and a strong capital position. We have the enablers that we need, and technology, Eric discussed that, is going to be key. We will accelerate investments in technology. We need to be more digital.

Speaker Change #248: <unk> formed a business to be able to generate the efficiency in a sustainable way going forward.

Speaker Change #248: Okay.

Speaker Change #249: Let me double down in a bit more detail, but that recaps pretty much what I've discussed at this point right. So we have a strong base strong liquidity strong funding and strong capital position, we have enablers that we need in technology, Eric discuss about that.

Speaker Change #250: Going to be something key we will accelerate the investments and technology, we need to be more digital we need to review our processes, because we want to be way more efficient we can do that partly but we're gonna have partners to this so that we can go faster and we can do better.

Yvan Deschamps: We need to review our processes because we want to be way more efficient. We can do that partly, but we're going to have partners in this so that we can go faster and we can do better. If you go by activity, the key objective of commercial banking is growth. It's a highly efficient business.

Speaker Change #251: If you go by activity. The key objective of commercial banking has grown its a highly efficient business. We have niches. We have specialties, we went and our customers love US we need to continue growing the commercial bank. That's the growth factor of the bank.

Yvan Deschamps: We have niches. We have specialties. We win, and our customers love us. We need to continue growing the commercial bank. That's the growth factor of the bank. Personal banking is all about efficiency.

Yvan Deschamps: We need to be better, and by reviewing the efficiency, not the efficiency, but the processes and investing in technology, we intend to make that business more profitable. We're going to enhance, as I discussed before, the deposit capabilities, which is going to support the growth of the business. And finally, in the capital markets, we're going to have focused growth where we can win again. We don't want to be everything to everybody.

Speaker Change #252: Personal banking, it's all about efficiency, we need to be better and by reviewing the efficient did not the efficiency, but the processes and investing in technology, we intend to make that business more profitable, we're gonna hand hands as I discussed before the deposit capabilities.

Speaker Change #253: It has gone to support the growth of the business and finally in the capital markets. We're going to have focus grout why are we can win again, we don't want to be everything to everybody. We want to focus where we can win so target metrics along with that on the commercial banking loan growth is single digit this spring.

Yvan Deschamps: We want to focus where we can win. So target metrics, along with that, on commercial banking, loan growth, high single digit. This is pretty much what we've done over the last many years. A very credible objective.

Speaker Change #253: Much of what we've done over the last many years very critical objective, we want to maintain the good efficiency ratio that we have through that grow personal banking retail deposits going to be a key element of our strategy. We want to have high single digit growth in the mid term for personal.

Yvan Deschamps: We want to maintain the good efficiency ratio that we have through that growth. Personal banking and retail deposits are going to be a key element of our strategy. We want to have high single-digit growth in the midterm for personal banking and retail specifically, but the key, key factor is going to be the efficiency ratio. We want to have a double-digit reduction in terms of the expense level of that business.

Speaker Change #253: For retail specifically.

Speaker Change #254: But the key factor is going to be the efficiency ratio, we want to have a double digit reduction in terms of the expense level of that business capital markets focused growth, but we also through that are going to improve the efficiency of that business.

Yvan Deschamps: Capital markets, focused growth, but we also, through that, are going to improve the efficiency of that business. So all that leads to financial targets for the mid-term, adjusted EPS, double-digit growth. We want to achieve a double-digit efficiency ratio. We want to get to 60% or lower; we're too high right now.

So all that leads to financial targets for the midterm adjusted EPS double digit Groot are we want to achieve the double digit efficiency ratio, we want to get to 60% or lower or too high right now and obviously all of those metrics brings us to be positive.

Yvan Deschamps: And obviously, all those metrics bring us to be positive from an operating leverage perspective. How are we going to do that through the growth drivers that are very credible? growth in the mid-single-digit overall for the bank, growing the NIM that today is at 1.8 to 2% or above, and we're going to achieve that by changing and continuing to evolve the bank's approach towards commercial being at 55% or higher. So thank you very much.

Speaker Change #254: On an operating leverage perspective are we going to do that through the growth drivers that are very credible loan growth and deposit growth in the mid single digits overall for the bank grow the NIM that today is at 1.822% or above and we're going to achieve that by changing and continuing to.

Speaker Change #255: We evolve the bank mix towards commercial being at 55% or higher.

Eric Provost: I'll let Eric conclude and add some closing remarks. All right, thank you, Yvan. Before I conclude, I just want to make sure that I take this opportunity and this time to actually thank again our employees for the hard work and their commitment to this organization, thank our customers for their loyalty and their resiliency throughout the challenges time we went through, but I want to reassure you that definitely this bank is strong, this bank is well positioned for the future and we will continue to service you and our goal is to service you to a higher level, more efficiently and on a sustainable basis going forward.

Speaker Change #255: So thank you very much I'll, let Eric conclude and add some closing remarks.

Yes.

Eric: Alright, Thank you Eva.

Eric:

Speaker Change #257: Before I conclude I just wanted to make sure that I take this opportunity and this time to actually tank.

Speaker Change #257: Thank again, our employees for for their hard work and their commitment to this organization.

Speaker Change #258: Thank our customers for their loyalty and their resiliency throughout the challenges time, we went through but I want to reassure you that definitely this bank is strong. This bank is well positioned for the future and we will continue to service U and our goal is to serve as due to a higher level.

Eric Provost: I want to thank our shareholders for their patience, and hopefully, this plan provides some highlights of how we intend to position this bank stronger and more profitable for the future. If I summarize what our midterm objectives are, it's definitely to continue and... and leverage commercial banking as a growth engine. I think we have made the demonstration that through our efficiency and our approach toward customers, this is the right path forward.

Speaker Change #259: <unk> more efficiently and on a sustainable basis going forward.

Speaker Change #260: I think our thank our shareholders for their patience and hopefully this plan provides some highlights of how we intend to position this bank.

Speaker Change #260: Stronger and more profitable for future.

Speaker Change #260: Yeah.

Speaker Change #261: If I summarize what are our midterm objectives are is definitely to continue and.

Speaker Change #261: And leverage commercial banking as a growth engine and I think we made the demonstration that our to our efficiency and our approach toward customers. This is the right path forward.

Eric Provost: We want to make sure that our focus in personal banking is to strengthen our core deposit capabilities, and that's going to help our funding mix and improve profitability for the future. And the capital markets will keep acting as a key enabler for us, for those corporate and government issuers we are out there, positioning themselves where they can win. We have a great plan ahead of us. The thing is, and the key focus is going to be on execution.

Speaker Change #262: We want to make sure that our focus in personal banking is to strengthen our core deposit capabilities and that's gonna have to our funding mix and improve profitability for the future.

Speaker Change #263: And capital market, what will keep acting as a key enabler for us for those corporate and government issue as we are out there and position themselves where they can win.

Speaker Change #264: We have a great plan ahead of us.

Speaker Change #264: The thing is and the key focus is going to be on execution.

Eric Provost: And to execute, this is what we're going to target in terms of making sure that we work through our existing ecosystem, enhance it, and keep expanding in terms of business mix for everything that concerns commercial banking. The funding aspect of all this is very important. As Yvan mentioned, we will keep on focusing on gathering core deposits to fund and fuel our commercial growth. Technology, we mentioned in terms of getting the right capabilities out there, but on a foundational basis to really position this bank for years and years to come and be able to actually offer self-service at low cost to no cost to middle-class customers for their day-to-day banking, and also in terms of profitability.

Speaker Change #264: And to execute this is what we're going to target in terms of making sure that we work through our existing ecosystem and hands them and keep expanding in terms of business mix for everything that concerns commercial banking.

Speaker Change #264: The funding aspect of all this is very important as Ivan mentioned, we will keep on focusing on gathering core deposits to fund and.

Speaker Change #265: And fuel our commercial growth technology, we mentioned in terms of <unk>.

Speaker Change #266: Getting the right capabilities out there, but on a foundational basis to really position. This bank for years and years to come and be able to actually offer self service.

Speaker Change #266: At low cost to no cost.

Speaker Change #266: To middle class customers for their day to day banking.

Speaker Change #266: And also in terms of profitability.

Eric Provost: What we need to focus on is profitable growth versus volume ownership, and I think that with this plan and this focus, my leadership team will be able to execute and deliver on Archimetric. Everything out there is rooted in our belief that we can help middle-class families to actually thrive financially.

Speaker Change #267: What we need to focus on is profitable growth versus volume only.

Speaker Change #268: And I think that with this plan and this focus my leadership team will be able to execute and deliver upon.

Speaker Change #269: Our key metrics.

Speaker Change #269: Everything out there is rooted in our belief that we can add middle class families, who actually drive financially and if we do so we're going to be able to.

Eric Provost: And if we do so, we're going to be able to help them keep more money in their bank account, and I think that's going to be a differentiator, and that's going to help us acquire new customers in retail. In terms of our employees, our customers, and our shareholders out there, I know your expectations are high. And as the leader of this organization, I can tell you that my expectations are high as well, and it is my commitment to you that we will deliver on this plan, we will execute strongly on this plan, and I strongly believe that this plan is the right plan at the right time for Laurentian Bank. Again, my name is Eric Provost.

Speaker Change #270: Held them.

Speaker Change #271: Keep more money in their bank accounts and I think that is going to be a differentiator and that's going to help us acquire net new customers in retail.

Speaker Change #272: In terms of our employees, our customers and our shareholders out there I know your expectations are high and as leader of this organization I can tell you that my expectation our eye as well.

And it is my commitment.

Speaker Change #273: To you.

Speaker Change #274: We will deliver on this plan, we will execute strongly on this plan and I strongly believe that this plan is the right plan at the right time for Laurentian Bank.

Speaker Change #275: Again my name is I think puzzle.

Eric Provost: Thank you for taking the time this afternoon, and now I think it's time to move on to Q&A. Thank you. Thank you very much, Eric and Yvan. We're now going to hold a Q&A session. For the people in person, just please raise your hand. Someone can hand out a mic. I would kindly request that you state your name and your organization. And for those online, you can actually ask the question online, and I'll relay it to Eric and Yvan.

Speaker Change #276: You for taking the time this afternoon and now I think it's time to move for Q&A. Thank you.

Speaker Change #277: Thank you very much <unk> and <unk>.

Speaker Change #278: We're now are we going to hold a Q&A session for the for the people in person just please raise your and someone can and out and Mike I would kindly request that you state your name and your Oregon innovation and for those online you can actually asked the question online and I'll really them to it.

Speaker Change #278: Any of them.

Speaker Change #279: Okay. Thank you.

Speaker Change #279: It's.

Eric Provost: Okay, it's Sohrab Movahedi from BMO Capital Markets. Appreciate the details you've shared with us. Two broad questions here. When you think about this plan that you and the team have laid out in front of you, what's the most ambitious part? Where can you go wrong?

Speaker Change #280: Okay. So are up more than 80 BMO capital markets.

Speaker Change #281: <unk> D. The details you've shared with us maybe two two.

Eric: Broad questions here Eric.

Eric: When you think about this plan did you of late you and the team have laid in front of us.

Speaker Change #282: What's the most ambitious part if this would you say what's the.

Speaker Change #282: What can you go wrong.

Sohrab Movahedi: I think, Sohrab, that's a great question. And this is why, at the beginning, I said this is not a straight line forward; it's definitely the technology stack. The complexity we have right now, make sure we put the right fundamentals together. To actually deploy the capabilities, we want to gather those core deposits. So that self-serve type is really the main focus for us in the near term to be able to deploy this. Okay, and so when I think about the deposit plan and, you know, the importance of the deposit gathering, I suppose, engine, is the plan for those branches and the footprint to be solely focused on deposit gathering, or are you still trying to sell mortgages and credit cards and other financial products more at those? Yeah, it's a great question, Sohrab.

Eric: I'd take Sohrab, that's a great question for us.

Eric: And this is why at the beginning I said this is not a straight line forward, it's definitely the technology stack.

Speaker Change #283: Complexity, we have right now and make sure we put the right fundamental too.

Speaker Change #284: To actually deploy the capabilities, we are we want to to gather dose those core deposits.

Speaker Change #284: So that self serve type.

Speaker Change #284: Is is really the main focus for us in the near term to be able to deploy this.

Speaker Change #284: Okay and so.

Speaker Change #284: When I think about the deposit plan and.

Speaker Change #285: You know the importance of the personal bank has as a deposit gathering I suppose.

Speaker Change #286: Engine for you.

Speaker Change #287: Is the plan for.

Speaker Change #287: For those branches and the footprint to be surely focused on deposit gathering or are you still trying to sell mortgages and credit cards and other financial products that those mortgage auto centers as well yeah. It's a great question Sohrab I think that that as even describe like our goal is to move the mic.

Eric Provost: I think that, as Yvan described, our goal is to move the mix of the bank towards a more 55% commercial, but 45% of it will still remain loan products that we have and that we will continue to offer to our customer base and personal banking. Okay, and one last question. I think several times you mentioned the aspiration of having self-service at low cost to no cost.

Speaker Change #288: <unk> of the bank towards a more 55% commercial but 45% of it will still remain.

Speaker Change #289: Loan products that we have and that we will continue to offer to our our customer base and the personal banking.

Speaker Change #289: Okay, and one last question and I think several times you mentioned Ed.

Speaker Change #289: Aspiration of having is self service.

Speaker Change #290: At low cost to no cost.

Eric Provost: How do Laurentian Bank shareholders benefit from a low cost to no cost? Well, Sohrab, I think that in terms of the funding mix of the bank, this allows us to grow that core deposit base at an efficient cost for us and provide a diversification of our mix that, in our assumptions, will improve overall profitability because of our ability to take that funding and deploy it in the right sectors that are going to bring the right margin.

Sohrab: How do Laurentian bank shareholders benefit from our low cost no cost offering well sohrab I think that our in terms of the funding mix of the bank like this allows us to to grow that that core deposit base at inefficient costs for us and provide a diversification of our.

Sohrab: Of our mixed debt.

Speaker Change #292: In our assumptions will improve overall profitability because of our ability to take that funding and deploy it in the right sectors that are going to bring the right margins. Okay. I mean like just to clear, but if a Devil's advocate you could raise those deposits may be cheaper.

Eric Provost: I mean, like, just to play a bit of a devil's advocate, you could raise those deposits somewhere else from an efficiency ratio. Well, again, yeah, Sohrab, it's a great point. I think that it's all about the mix.

Speaker Change #292: Somewhere else from an efficiency ratio perspective, while again, yeah Suraj, it's a great point I think that it's all about the mix and I think if I walk us through the how diversify our funding mix is like this plan does not solely rely on.

Eric Provost: And I think Yvan walked us through how diversified our funding mix is. Like, this plan does not solely rely on core deposit increases. Instead, it is about enhancing the overall mix.

Speaker Change #292: On core deposit increase like it is about enhancing the overall mix and that is one source out of many others that that we believe will enhance the global cost of funds throughout the plan and will create and generate that profitability further and if I may had also so Ron.

Eric Provost: And that is one source out of many others that we believe will enhance the global cost of funds throughout the plan and will create and generate that profitability further. And if I may add also, Sohrab... We want to improve the digital capabilities that we have from a deposit perspective. As we do that, it's also going to be way more efficient from a process perspective, and the back office treatment of all that stuff is also going to be very efficient.

We want to improve the digital capabilities that we have from a deposit perspective as we do that it's also going to be way more efficient from a process perspective, and the back office treatment of all of that stuff is going to be also very more efficient. So maybe the revenue will get hit.

Eric Provost: So, maybe the revenue will get hit, but you're going to recover from a cost side, in addition to what they have described, being able to redeploy that in potentially a creative direction. Thank you for taking the question. There is another question in the room.

Speaker Change #293: Youre going to recover from a cost side. In addition to what they have described being able to redeploy that in potentially accretive.

Speaker Change #293: Okay. Thank you for taking the question. Thank you. Thank you. Thank you Sam.

Speaker Change #294: Another question in the room.

Unknown Executive: Hi, Nigel D'Souza, Veritas Investment Research. So first, a question on capital, you know, when I think about standardized versus AIRB, under the standardized, you know, commercial component of it, that tends to be a bit more capital intensive. And you've paused your AIRB transition and kind of reconciled the focus on growing commercial lending or loans with pausing the ARB given that there would be a substantial capital benefit of having your commercial credit exposures under the ARB. So why not do that in parallel and get both the benefit of long growth and less capital intensive exposure? Yeah, thank you, Nigel. And this is a great question, actually.

Speaker Change #294: Hi, Nigel D'souza Veritas investment research.

So first a question on capital you know when I think about standardized versus a or b under standardized commercial component of it that tends to be a bit more capital intensive and you've paused your E IRB transition and kind of reconcile the focus on growing commercial.

Speaker Change #295: Lending or loans.

Speaker Change #295: With pausing here it'd be given that there would be a substantial capital benefit of having a commercial credit exposures under the ERP framework.

Speaker Change #295: Framework, so why not do that in parallel and get both the benefit of loan growth and less capital intensive our exposures.

Speaker Change #295: Thank you Nigel and this is a great question actually.

Eric Provost: We talked a lot about the actions we took this morning, and pausing ARB for us means pause. It doesn't mean we will not pursue ARB in the future. It means that right now, this bank needs to really focus its investment into what will create the foundation for the future. And ARB is all about data management, and for sure, technology will enhance our management towards being a better and stronger place to actually complete an ARB journey.

Speaker Change #295: We talked a lot about the actions we took this morning, and pausing a or b for us.

Speaker Change #296: Means pausing doesn't mean, we will not pursue a or be in the future. It means that right now this bank needs to really focus on.

Speaker Change #297: Our investment into what will create the foundation for future.

Speaker Change #298: And <unk> is all about data management in and for sure technology will enhance our management towards being a better and stronger place to actually complete.

Eric Provost: So you're right about deploying capital, but for sure, I think I explain the opportunity without deploying capital to work through our ecosystem to actually be able to generate other income out of our commercial activities. I could just put a finer point on that: you know, ARB is a multi-year process; I believe the regulator would want to see a few years of a parallel run under ARB before you can successfully transition.

Speaker Change #299: And they are be journey, so you're right about deploying capital, but for sure I think I explained also D opportunity without deploying capital to work through our ecosystem to actually be able to generate other income out of our commercial activities.

Speaker Change #300: And if I could just put a finer point on that <unk>.

Speaker Change #301: <unk> is a multiyear process I believe the regulators want to see a few years, if a parallel run the Arab be before you could successfully transition.

Unknown Executive: So with that in mind, should we just interpret it as, you know, a cost, the investments required to run that parallel system are just too intensive while you're investing in other areas to improve the bank? I don't think it's about cost; I think it's about resources and expertise internally to be able to tackle the right projects to deliver on the outcome. And I think that this is where, in terms of execution, sometimes in the past, we weren't able to deliver properly on some projects.

Speaker Change #302: So with that in mind should we just interpret it as you know the cost the investments required to run that parallel system is just too intensive while you're investing in other areas to improve the bank.

Speaker Change #303: I don't think it's about costs I think it's about resources expertise internally to be able to tackle the right projects to deliver on the outcome.

Speaker Change #303: And I think like this is where in terms of execution, sometimes in the past, we weren't able to deliver properly on some projects and this is where we need to focus right now on delivering upon what we set ourself.

Unknown Executive: And this is where we need to focus right now on delivering upon what we set ourselves... which is improving capabilities for our personal banking customers again to strengthen deposit gathering, and after that, it might be a project that we will undergo, but running both in parallels right now. I don't think this bank is to our benefit.

Speaker Change #303: Two which is improving capabilities for our.

Speaker Change #304: Personal banking customers again to strengthen deposit gathering.

Speaker Change #305: And after that might be a project that we will undergo but running both in parallel right now I don't think this bank.

Speaker Change #305: There's been this bank is it's not to our benefit is gonna be moored beneficial do it in the future.

Eric Provost: It's going to be more beneficial to do so in the future. And then on deposits, to your point, on the digital side, you already have other banks in the space that are entirely digitally focused. You have DCIPs that have brands that are more digitally focused, like Simply or Tangerine.

Speaker Change #306: And then on deposits are to your point on the digital side already have other.

Speaker Change #307: Banks in this space that are entirely digitally focused.

Speaker Change #308: D Sibs that have brands that are more digitally focused like simply our tangerine. So how do you differentiate yourself on the digital side to the younger demographic and then on deposits conceptually think depositors generally want safety and stability and the larger banks are viewed as cheaper. So how do you win deposits without competing on.

Unknown Executive: So how do you differentiate yourself on the digital side to the younger demographic? And then on deposits, conceptually, I think depositors generally want safety and stability, and the larger banks are viewed as safer. So how do you win deposits without competing on price, which is what a lot of the smaller banks have to do? And on stability, depositors probably don't want to see a bank being taken over by another bank or sold.

Speaker Change #309: <unk>, which is what a lot of the smaller banks out to do and our stability.

Speaker Change #310: Depositors, probably don't want to see a bank.

Speaker Change #310: You know being taken over by another bank or sold so does that mean that.

Unknown Executive: So does that mean that any sale of Laurentian is completely off the table, and Laurentian is here to stay for the long term, and you have that stability you can offer your clients? Thank you for that, Nigel.

Laurentian: Any sale of Laurentian is completely off the table and Laurentian is here to stay for the long term and you have that stability you can offer for your clients. Thank.

Laurentian: Thank you for that Nigel.

Eric Provost: My goal as a leader is to build a stronger, sustainable, and more profitable bank. So this is what me and the leadership team will be working towards in that midterm horizon that we're setting ourselves for. In terms of the deposits, I think the studies we showed demonstrate that this group, of middle class customers are the ones that will be seeking out the most opportunities in terms of reducing their costs, and that have the more openness in terms of of considering changing banks and and we believe that by going after those with a low cost to no cost day-to-day offering will allow us to to gain our fair share and again as Yvan highlighted like we're not talking about doubling our our retail customers in in that mid-term plan like it's just to make sure that we have a sustained Middle single-digit growth and and we believe that that this is achievable Again, bringing the right product suite out there and simplifying the bank, That's it for me. Thanks.

Laurentian: Michael is a later is is to build a stronger and sustainable and more profitable bank. So this is what me and the leadership team will be working towards in that midterm horizon that we're setting ourselves for in terms of the deposits like I think the studies we showed demonstrated.

Speaker Change #312: At that this group.

Speaker Change #312: Group.

Of of Middle class customers are are the ones that are will be seeking out the most opportunities in terms of reducing their costs and that have the more openness in terms of of considering changing banks and we believe that by going after does with our low cost no cost day to day offer.

Speaker Change #312: Bring.

Will allow us to gain our fair share and again as this is Eva I liked it like.

Speaker Change #312: We're not talking about doubling our our retail customers in in that mid near mid term plan I guess just to make sure that we have a sustain.

Speaker Change #313: A middle single digit growth and we believe that that this is achievable again, bringing the right product suite out there and simplifying the bank.

Operator: Thank you. Thank you, Nigel. Another question in the room. Hi, it's Meny Grauman from Scotiabank. If I could distill your plan, it would be that you're basically signaling it's business as usual on the commercial side, and really where the change that you're highlighting or signaling is really on the personal side. So first, I want to just check if I'm interpreting that correctly, or would you push back on that simplified sort of characterization of the plan between those two business models? Definitely a mix there, Manny, because we I think that we're going to push that even further in terms of deployment.

Unknown Executive: Okay. That's it for me. Thanks. Thank you. Thank you Nigel another question in the room many.

Speaker Change #315: I had so many grummin from Scotiabank.

Speaker Change #316: To distill your plan.

Speaker Change #317: It would be that you're basically signaling it's business as usual on the commercial side and really where the change that you're highlighting are signaling is really on the personal side. So first I wanted to just check if I'm interpreting that correctly or would you push back on that simplified sort of characterization of the plan between those.

Speaker Change #317: Two business lines.

Speaker Change #317: Definitely a mix there are many because like we did say that that commercial banking will continue to be the growth engine I think that we're going to push that even further in terms of deployment I think what's different in this plan is the focus we're going to provide in terms of.

Meny Grauman: I think what's different in this plan is the focus we're going to provide in terms of managing and expanding how we exploit the ecosystems we deal with. Because we believe there are a lot of untapped opportunities within those ecosystems. And I have to say, throughout the last plan, there wasn't a lot of focus on maximizing those.

Speaker Change #318: Managing and expanding how we explore exploit the ecosystems, we deal with because we believe theres a lot of untapped opportunities within those ecosystems and I have to say throughout the last plan there weren't a lot of focus into maximizing do so.

Eric Provost: So I think that this is a big differentiator versus the last plan in terms of commercial banking. In terms of the bank overall, the goal is to simplify. I think that, like I said, closing digital pain points, made us make progress or at least gave us a right to play in personal banking because like we were very behind so the team did a great job there but we're still too complex like we still have two origination channels for mortgages and as an example like right now with our digital offering for deposits like we we have three channels for deposit gathering to our b2b bank to our branch network and now digitally, So this plan will be to tackle and simplify, and we've already started, and I think that's the message in terms of we went through a full... Assessment of our product shelf.

Speaker Change #319: So I think that this is a big differentiator versus the last plan in terms of commercial banking in terms of the bank overall the goal is to simplify I think that like I said closing did it digital pain points.

Speaker Change #319: Made us made progress or at least.

Speaker Change #319: Hi.

Speaker Change #319: Gave us a right to play in personal banking because like we were very behind so the team did a great job there, but we're still too complex like we still have too.

Origination channel for mortgages and as an example, like right now with our digital offering for deposits like we we have three channels for deposit gathering to our B to B bank to our branch network and now digitally. So so this plan will be to tackle in simplifying and we've.

Speaker Change #320: <unk> already started and I think that's the message in terms of we went through a fool.

Speaker Change #321: Assessment of our product shelf.

Eric Provost: And this plan is about executing on simplifying, but making sure that we come back with, uh... The product shelf that will be meaningful, self-serve to our personal bank. So from that standpoint, this is, I believe, a differentiator.

Speaker Change #321: And this plan is about executing on simplifying, but making sure that we come back with.

Speaker Change #322: Our product shelf that will be meaningful self serve to our personal bank. So from that standpoint. This is I believe a differentiator.

Meny Grauman: And then on the personal side, when I hear you talking about it, it definitely sounds like what you're pitching is a digital bank. Now, that business model, I think, is quite proven already in Canada and then globally, but it is a branchless concept, I think, everywhere. What you're highlighting is a digital concept, but you're still holding on to your branches. And so the question is... Why not go branchless, especially if the focus is on efficiency? Wouldn't that be a clear way to drive down efficiency? And isn't the model really geared towards a branchless model, effectively?

Speaker Change #323: And then on the personal side when I hear you talking about it it definitely sounds like what you're pitching is a is a digital bank now that business model I think is quite proven already now and Camden and then globally, but it is a branchless concept I think everywhere, which you're highlighting is a digital concept.

Speaker Change #324: But you're still holding onto your branches and so the question is why not go branchless, especially if the focus is on efficiency wouldn't that be.

Speaker Change #325: A clear way to drive down efficiency and isn't the model really geared towards a branchless model effectively. So is it practical considerations that don't allow you to close your branches or am I'm. Just curious why this hybrid model why not just go all the way and just make a fully digital.

Eric Provost: So is it practical considerations that don't allow you to close your branches? Or is it just curious why this hybrid model; why not just go all the way and just make a fully digital personal bank? Yeah, that's a great question. And really, the easy answer is because we believe it's a strength.

Personal bank, Yeah, that's a great question.

Speaker Change #326: And really the.

Speaker Change #327: Easy answer is because we believe it's a straight we believe that our current footprint.

Meny Grauman: We believe that our current footprint is a strength in terms of being able to provide for that human interaction, and I think we demonstrate that through how we approach Commercial Banking and the value it brings to customers. And our retail customers are telling us the same thing about how they appreciate that opportunity to get guidance and get some advice from a human. I just think that optimizing, as we described, is going to be to make that footprint, in terms of feet per square foot, smaller. Like, I think it's not suited to the type of service we're providing right now. These branches are still too big for the advice-only type we provide in those branches.

Speaker Change #328: Is a strength in terms of being able to provide for that human.

Speaker Change #329: Interaction and and I think we demonstrated that true true all we approach commercial banking and the value it brings to the customers and our.

Speaker Change #329: Retail customers are telling us the same how they appreciate that opportunity to get guidance and get some advice from a human I just think that optimizing as we described is going to be to make that footprint.

Speaker Change #329: In terms of foot square.

Smaller like I think it's it's not adapted to the type of service, we're providing right. Now these branches are still too big for the advice only type.

Speaker Change #329: We provide we provide in those branches, but definitely within this plan like our goal is to maintain that human touch, but you're totally right in terms of building that digital bank maximizing the strength, we have in the communities in our Quebec branches, but also after that.

Eric Provost: But definitely, within this plan, our goal is to maintain that human touch. But you're totally right in terms of building that digital bank, maximizing the strength we have in the communities in our Quebec branches, but also after that, that opens the door to address other areas in the Canadian marketplace, and we believe that the middle class will be appealed to by another alternative versus versus the big bank. Thank you. Before moving to the next question, I'll move to a question online, Yvan and Eric.

Speaker Change #330: Add that that opens the door to address other areas in the Canadian marketplace, and we believe that the middle class will be appealed by another alternative versus versus the big banks.

Speaker Change #331: Thank you. Thank you.

Before moving to the next question I'll move to a question online that you're in Natick.

Eric Provost: Lemar Persaud from Cormark asked his question, just finding it a bit tough to really understand what was wrong with the old strategy. Should we think about this as the evolution of the old strategy? What was wrong with the previous one? Was it really the speed of execution?

Speaker Change #331: Art Parsow from core Mark.

Art Parsow: His question just finding it a bit tough to really understand what was wrong with the old strategy should we think about this as the evolution of the old strategy what was wrong with the previous one was it really the speed of execution is it more the advancement of technology.

Operator: Is it more the advancement of technology? Well, thank you, Lemar, for that and for spending time with us on the web. I think this is why we took the time to come back on the 2021 plan. First of all, because it's not so long ago and I think that it was necessary for us to acknowledge the fact that, we delivered in in some areas of that plan and that we believe that some things in the plan are actually very relevant for for this revamp plan so it's not that it was wrong it's just that right now there are some areas that we need to accelerate further and and go, I'm going to say faster into implementing those, digital capabilities, but again on the foundational base instead of, Just closing some customer pain points in the technology stack.

Speaker Change #333: Well, thank you Lamar for that and for for spending time with us on web.

Art Parsow: <unk>.

Speaker Change #334: And I think this is why we took the time to come back on 2020 one.

Speaker Change #335: Plan first of all because it's it's not so long ago, and I think that it was necessary for us to acknowledge the fact that.

Speaker Change #336: We delivered and in some areas of that plan and that we believe that some.

Speaker Change #336: Things in the plan are actually.

Speaker Change #337: A very relevant for for this revamp plan. So said that it was wrong. It's just that right now there are some areas that we need to accelerate further and go.

Speaker Change #338: I'm going to say faster than two implementing does digital capabilities, but again on the foundational base instead of.

Speaker Change #339: Just closing some some some customer pain points are in the technology stack and if I can have one award that is very important from this presentation. This focus.

Operator: And if I can add one word that is very important from this presentation, it is focus, right? So that's one thing that we see as different from an evolution of the last plan as well, not trying to do everything for everyone. Right? So we need to focus because the evolution of the profitability of the bank is going to be the first priority of the bank. And as I mentioned in my speech, it's not about volumes. What we want is to increase profitability, and you can do that by being focused on what you do, where you can make money, and you can... Thank you. Next question in the room.

Speaker Change #340: Right. So that's one thing that we see as different from when evolution of the last plan as well is not trying to do everything for everyone right. So we need to focus because the evolution of the profitability of the bank is going to be the first priority of the bank.

Speaker Change #340: And as I mentioned in my speech, it's not about you know volumes, what we want is to increase profitability and you can do that by being focused on what you do where you can make money and you can win.

Speaker Change #341: Thank you next question in the room. Thanks.

Stephen Boland: Thanks, Steve Boland at Raymond James. Just following up on that theme, when you talk about too many products, too many, you know, complexity in the personal bank, was that something that just didn't get done quick enough under the old plan or were there actually products that were added under the old plan to become you know everything to everybody and that's being reversed I'm just trying to see is just is this just legacy you know products and systems that never got addressed under the old plan, Well, I wouldn't refer to the old plan, and thank you for the question.

Speaker Change #341: So Steve Boland at Raymond James just following up on that theme when you talk about too many products to many of you know.

Stephen Boland: Complexity in the personal banking was not something that just didn't get done quick enough under the old plan or where they are actually products that were added under the old plan to become.

Speaker Change #343: Everything to everybody and that's being reverse I'm just trying to see is this is this just a legacy.

Speaker Change #343: Products and systems that never got addressed under the old plan.

Speaker Change #344: Well I I wouldn't refer to deal old plant and thank you for the question I would refer to the state we are in versus.

Stephen Boland: I would refer to the state we are in versus.., historical decisions, and then I did say it during the presentation. I think that for too long, we tried to copy the big bank model that is offering everything to everyone, and I think that where it created some very high pressure is that for a bank of our size, like you need to take the resources and the people and align them into so many areas, it makes us average in too many ways. And this is why we demonstrated the fact that when we are focused... And we provide the right fundamental systems, just like in inventory financing, in our equipment financing arm.

Speaker Change #344: Historical decisions and I did said it said during the presentation I think that.

Speaker Change #345: For too long we tried.

Speaker Change #346: To copy the Big Bank model.

Speaker Change #347: That is offering everything to everyone and I think that's where it created some very eye pressure is that for a bank of our size like you need to take the resources and the people and to align them into so many areas.

Speaker Change #348: Makes us average too.

Speaker Change #349: Too many ways and this is why we demonstrated the fact that when we are focus.

Speaker Change #350: And we provide the right fundamental systems, just like an inventory financing in our equipment financing arm and after that we focus on the customer and what they really want.

Stephen Boland: And after that, we focus on the customer and what they really want. As an outcome, we can be successful. So, like I mentioned, we still have too many distribution channels for the size of our bank, and this is what we need to execute and simplify. Thanks, and I'll just do one more.

Speaker Change #350: As an outcome we can be successful. So so like I mentioned like we still have too many distribution channels for the size of our bank and this is what we need to.

Speaker Change #351: To execute and simplify.

Eric Provost: In terms of the equipment financing that you're moving into new verticals, so construction, you know, power sports, things like that. I mean, those are, I wouldn't say saturated, but there are a lot of funders out there in some of those verticals, especially yellow iron and construction. But you still believe that you can get the same covenants from the OEM, from the dealer, the same guarantees. Why would a dealer or an OEM that has, maybe, multiple channels or multiple funders want to give you that extra protection?

Speaker Change #352: Okay. Thanks, and then I'll just do one more in terms of the I guess it was the equipment financing that you're moving into new verticals. So construction.

Speaker Change #352: I think you know power sports things like that I mean, those are I wouldn't say saturated, but theres a lot of thunders out there and some of those verticals, especially yellow iron and construction, but you still believe that you can get the same covenants from the OEM from the dealer did the same guarantees like why would why would a dealer or an OEM that.

Speaker Change #353: Maybe multiple channels multiple funders want to give you that extra protection.

Stephen Boland: Yeah, it is a great question, and I think this is the value we bring forward. And again, in the current industry we compete in, on a day-to-day basis, the OEMs we go after have that optionality. We haven't grown in the sector because competition didn't exist.

Speaker Change #354: I'm just curious, but yeah. It is a great question and I think this is the value we bring forward and again in the current industry. We compete on a day to day basis. The OEM. We go after I have that Optionality, we haven't grown in the sector because competition didn't exist.

Eric Provost: We grow in that sector because we demonstrate to those dealer base that we bring the right value proposition to the table. And after that, through our networking, we're able to pitch to those OEMs that coming through us will service their distribution network better, and this is what is appealing to them. Because when those dealers want to order those assets to put them on the floor, the OEMs want them to move smoothly.

Speaker Change #354: We grow in that sector, because we demonstrate to those dealer base that we bring the right value proposition to the table and after that throughout our networking we're able to.

Speaker Change #355: Pitch to those Oems that golar coming true us will serve us better their distribution network and this is what is appealing to them because when those dealers want to order those assets to put them on the floor the Oems want them to move.

Stephen Boland: And the platform actually allows us to do that. So, we compete on a daily basis, we've grown that business by competing against big banks and OEMs that have access to funding, and we believe that we can just expand and continue to maximize that model. Thank you, Eric.

Speaker Change #356: Totally and the platform actually allows us to do that so we compete on a daily basis, we've grown that business by competing against the big banks and Oems that have access to funding and we believe that we can just expand and continue to maximize that model.

Speaker Change #356: Okay.

Operator: Moving to another question online from Gabriel Dechaine from National Bank Financial: Twofold, when do we start to see progress on your objectives? Will there be a step back before a step forward?

debit Yale: Thank you Eric moving to another question on line from debit Yale does shine from National Bank financial.

debit Yale: Twofold, when do we start to see progress on Euro objectives will there be a step back before step four and second to build out on the digital capabilities expand the inventory finance business into new verticals, what sort of additional spending is required and how will that show up.

Gabriel Dechaine: And second, to build out on the digital capabilities, and expand the inventory finance business into new verticals, what sort of additional spending is required, and how will that show up in your cost inflation in the coming years? Yeah, thank you for that, Gabriel, and for attending our webcast. Listen, I said from the beginning, this is not a straight path forward, so there are some things to consider.

debit Yale: And your cost inflation in coming years.

debit Yale: Yeah, Thank you for that Gabrielle and and for attending as well on our webcast.

debit Yale: Listen I said from the beginning like this this is not a straight path forward. So so.

Some things to consider we did mention that our commercial real estate business as well as inventory financing right now is still facing some some ed wins in terms of the overall macroeconomic conditions and these portfolios have been challenged in terms of growth.

Eric Provost: We did mention that our commercial real estate business as well as inventory financing right now is still facing some headwinds in terms of the overall macroeconomic condition, and these portfolios have been challenged in terms of growth just because right now the expectation of an easing of interest rates is not coming as fast as we thought. And as soon as we start seeing that, we believe we're going to be able, and we are well positioned to benefit from that rebound, and those assets will start growing back again and will contribute to profitability. In terms of our investment, well, in our specialized businesses, we have good technology in place. We have technology that can keep evolving, but like those businesses, it is standalone.

Growth just because of of right now the our expectation of easing of interest rate is us coming as fast as our as we taught them.

Speaker Change #358: And as soon as we start seeing that we believe we're gonna be able and we are well positioned to benefit from that that rebound and those assets will start growing back again and will contribute to profitability in terms of our investment well in our specialized businesses we have good.

Speaker Change #359: Technology in place, we have technology that can keep evolving but like those businesses are stand alone. So in terms of investment they are required to keep the hedge to make sure that we keep evolving at the right pace, but I feel we're in good position to to continue and sustain the investment we've been.

Eric Provost: So in terms of investment, they are required to keep the hedge to make sure that we keep evolving at the right pace. But I feel we're in a good position to continue and sustain the investment we've been making on a yearly basis. On needs, we need to close some gaps, but from that standpoint, I think that we're well positioned to manage our commercial banking efficiently the way we've done in the last years. So the main investments are aimed at fundamental needs in our personal banking. Other questions in the room?

Speaker Change #359: Making actually are on a yearly basis on the needs we need to close some gaps, but but from that standpoint, I think that that's where we're well positioned to to to.

Speaker Change #360: Manage efficiently our commercial banking the way we've done in the last the last years. So the main investments are aimed towards fundamental needs into our personal banking.

Speaker Change #361: Other question in the room, yes.

Paul David Holden: Hi Paul Holden, CIBC. So my first question is regarding the foundational investments you want to make in technology. Sounds like that's very important and critical to your deposit growth strategy. So the question is, how long will it take to make those investments?

Speaker Change #361: Paul will then share B C. So first question is regarding the found any foundational investments you want to make them the technology stack. It sounds like that's very important and critical to your deposit growth strategy. So question is.

Paul: How long will it take to make those investments and can you start to accelerate growth in deposits before.

Paul: These investments are complete yeah great.

Eric Provost: and Can You Start to Accelerate Growth in Deposits Before Those Investments? Yeah, great question, Paul. And again, as it relates to core deposits in terms of day-to-day banking, because we demonstrated that we were able actually to maintain and grow deposits in different areas through the different channels that we have at the bank. So for us, in terms of addressing your question on technology, we have a new CIO that is designing the path forward, and I think it's going to take a couple years in this mid-term plan to actually achieve the goal we want to achieve in terms of the right foundation and the right capability.

Speaker Change #363: Great question, Paul and then again relates to core deposits in terms of day to day banking, because we demonstrated that we were able actually to maintain and grow deposits in different areas through the different channels that we have at the bank. So for us in terms of addressing your question on technology.

G: G. We have a new CIO that is designing the path forward and I think it's going to take a couple of years and this midterm plan to actually achieve the goals, where we want to get in terms of the right Foundation and the right capabilities.

Eric Provost: In terms of the pace we're going to be able to accelerate deposits, like on a day-to-day basis, our teams are working with current capabilities to continue to attract customers, and we have campaigns that we run to gather deposits, and we will continue to do that even though we don't have those capabilities right now.

In terms of the pace, we're going to be able to accelerate deposits like on on a day to day basis. Our teams are working with current capabilities to continue and attract customers and we have campaigns that we run to gather deposits and we will continue to do that.

Speaker Change #365: Even though we don't have right now those capabilities like the focus on personal banking is to definitely keep on.

Paul David Holden: The focus on personal banking is to definitely keep on gathering deposits and acquiring new customers, but with the capabilities we have at the moment. And one point I would add, Paul, is that we start with the luxury of having very high liquidity right now. And then I want to ask a question on your commercial growth objectives as well. I understand the current industry or economic headwinds, but putting that aside, if you thought about your market share, which sits in each of your sort of critical, critical product groups, and potential growth going forward, what would you say your growth, your real growth limiter is? Going forward, is it going to be the funding? Capital. Is it going to be a competition?

Speaker Change #366: Gathering deposits in acquiring net new customers, but with the capabilities. We have at the moment and one point I would add Paul is that we start with the luxury of having a very high liquidity right. Now. So we don't have pressure on the raising deposits. So that will allow us some time to put in place the technology as we strength.

Paul: And that but right now were cash rich. So we have a good position to do all that all those changes.

Speaker Change #367: And then I want to ask a question on your commercial growth objectives as well and.

Speaker Change #368: I understand the current industry or economic headwinds, but putting that aside if you thought about your market share which hits in each of your sort of critical.

Speaker Change #369: Critical product groups.

Speaker Change #370: And potential growth going forward, what would you say your growth your real growth limiter is.

Speaker Change #370: Going forward is it is it is it can be the funding is it going to be capital or is it going to be competition or is it youre going to have a capability to grow as fast as you want at some point in the future.

Eric Provost: Or is it you're going to have a capability to grow as? Well, it's a great question there as well. I think that it comes back to my conclusion in terms of focusing on profitable growth, on what we want to keep on our books that's going to be accretive, and it's going to enhance and bring more profitability to the organization without impairing the growth of our platform. Meaning that through those partnerships, we can enhance the funding structure to make sure that we keep on growing; we benefit from it. So we don't slow down the platforms in any way, but we can go deeper into the risk profile or allow for... opportunities for actually better credit that other funders might be interested in our capabilities in terms of the operation to generate those assets for them, and we believe there's a play for us to generate other income doing so. Other questions in the room?

Speaker Change #371: Well I, it's a great question, there as well I think that it comes back to my conclusion in terms of focusing on unprofitable growth.

And what we want to keep on our book that is going to be accretive.

Speaker Change #372: Enhance and bring more profitability to the organization without impairing the growth of our platform.

Speaker Change #373: Meaning that through those partnerships, we can enhance the funding structure to make sure that we keep on growing we benefit from it so.

Speaker Change #374: So we don't slow down the put the platforms in any ways, but we can go deeper into the risk profile or allow for.

Speaker Change #375: Opportunities in actually better credit that other funders might be interested in our capabilities in terms of the operation to generate for them those assets and we believe there's a play for us to generate other income doing so.

Speaker Change #376: Other questions yes.

Richard Huang: Thank you. Richard Huang, Dayjordan Capital Markets. Also, focusing on technology, you mentioned that you need to invest for efficiency. So just curious, what areas would you say you have been under investing in over the years? And maybe this is also tied to personal banking. What are some of the key technology gaps you are most concerned about right now? That's a great question and thank you for that. For us, it's free to address.

Speaker Change #376: Yes, Thank you Richard Huang dessert and come to market. So also focusing on technology, you mentioned that you need to invest for efficiency. So just curious what areas would you say you had been under investing over the years and maybe this is also tight dot on personal banking are what are some of the key technology gaps are are you most.

Concern right now.

Speaker Change #377: That's a great question and thank you for that.

Speaker Change #377: For us, it's really to address them.

Eric Provost: The manual processes, and there are too many in this bank, and I think you saw when we discussed reducing the approval days for mortgages. So we were eight days, now we're two days, and then we're still too high versus the industry. Like, there are way faster approvers out there.

Richard Huang: The manual processes and there are too many in this bank and I think you saw when the when we're discussing in terms of reducing the approval.

Speaker Change #379: Days for mortgages. So we were eight days now or two days.

Speaker Change #379: And then we're still too I versus the industry like there's wave faster approvals out there and this is what it means in terms for US limited scalability in some of the probe products because of the fact that we're too manual and.

Richard Huang: And this is what it means in terms of terms for us, limited scalability in some of the products because of the fact that we're too manual. And what it means is that when we want to scale, we actually increase expenses, and by doing so, it creates what it did create in terms of our efficiency ratio in personal banking. And you saw the graph Yvan showed, like this is what we've experienced. So a steady, efficient commercial banking group while we were trying to increase or grow in some areas, and we actually did so in a way that was less efficient.

Speaker Change #380: What it means is that when we went to scale actually we increase expenses and by doing so it creates what it did create in terms of our efficiency ratio in personal banking and you saw the grassy Vas showed like this is what we've experience so a steady efficient commercial bank.

Speaker Change #381: <unk> group, while we were trying to increase our grow in some areas and actually we've done so in a way that was less efficient. So the technology gaps we need to close need to address those manual processes reduce complexity reduce distribution.

Richard Huang: So the technology gaps we need to close need to address those manual processes, reduce complexity, and reduce distribution channels so that we keep offering relevant products, but in a way, a much better way for us to actually generate that profitability in the future. Thank you. And then maybe another question regarding the current restructuring effort, understanding that you're setting up the bank for success for long-term growth. Just curious, your thoughts, how much are you prepared to allow this year's performance to be impacted?

Speaker Change #382: <unk>, so that we keep offering relevant products, but in a way in a much better way for us to actually generate that profitability in the future.

Speaker Change #385: Thank you and then maybe another question regarding the current restructuring effort understanding now you're setting up the bank for success for long term growth just.

Speaker Change #382: Just curious your thoughts how much are you prepared to allow this year's performance being impacted are.

Eric Provost: In your mind, do you have an implicit floor for earnings that you would like to maintain this year? In fact, what you've seen this morning is our way of improving the short-term profitability of the bank by doing some restructuring. Those restructurings are efficiencies that we can gain rapidly. The second one is, as we just mentioned, we need to invest as well. So going forward, in terms of restructuring, we're going to continue looking at every part of the bank where we can make it more efficient.

Speaker Change #383: In your mind do you have an implicit floor for earnings that you would like to maintain this year.

Speaker Change #384: This one.

Speaker Change #386: In fact, what you've seen this morning is our way of improving as to where or in fact want to improve the profitability of the bank short term by doing some restructuring those restructuring or efficiencies that we can gain rapidly. The second one is we just mentioned we need to invest as well so.

Speaker Change #386: Going forward in terms of restructuring we're going to continue looking at every part of the bank, where we can make that more efficient. We will continue to review that we will move and have potentially other restructuring costs, where it does make sense and bring long term benefits to the bank, but definitely not to the size that you've seen this morning.

Eric Provost: We will continue to review that. We will move and potentially have other restructuring costs where it does make sense and brings long-term benefits to the bank, but definitely not to the size that you've seen this morning. Thank you. And maybe one last question from me.

Speaker Change #387: Yeah. Thank you and then maybe one last question for me you recently reduced your capital markets operations. So just wondering what's the earnings contribution from this business today, and where do you see this going forward.

Richard Huang: You recently reduced your capital markets operation. So, just wondering, what's the earning contribution from this business today? And where do you see this going forward? We don't disclose the profitability of the business by segment, but there are two things in what you've seen on one of my slides that we wanted to be focused on growth. And what we mean by focused growth is some areas of capital markets were really strong and really delivering solutions that really helped customers, and they were making good money on that.

Speaker Change #388: We don't disclose by segment the profitability of the business, but there's two things there and what you've seen on one of my slides is we wanted to be focused growth and what we mean by focus growth as some areas of capital markets were really strong and really delivering solutions that really help customers and we're making good money on that.

Richard Huang: In some other areas, we were too weak or too small, and we didn't have the size or the capabilities to do that. And that's why we started restructuring by letting go of the full service brokerage assets. We were way too small. We were not efficient in the same way in terms of research. We were not efficient as well.

Speaker Change #389: In some other areas, we were too weak or too small and we didn't have the size or the capabilities to do that so that's why we started the restructuring by letting go the full service brokerage assets, we were way too small and we are not efficient and those same thing in terms of research.

Speaker Change #389: We were not efficient as well so we want to be focused on the growth, where we can win where were strong, but we want to make sure that we don't do everything for antibody right. So it's really and the basis that you've seen on the slides is where were the strongest in capital markets is FX and fixed income. So those are our key.

Yvan Deschamps: So we want to be focused on growth where we can win, where we're strong. But we want to make sure that we don't do everything for anybody, right? So it's really and the basis that you've seen on the slides is where we're the strongest in capital markets, FX and fixed income. So those are our key bases, and the rest of it we need to make stronger or do different moves as we've done over the last.

Speaker Change #390: <unk> and the rest of it we need to make stronger or do different moves as we've done over the last few months.

Yvan Deschamps: I will now move to another question online from a follow-up question from Lamar. Just on the personal banking side, how do you plan to attract these clients to Laurentian? There are already some competitive low-fee digital options or stand-alone financial institutions or digital offerings from the large banks that already have this strategy. What is your competitive advantage? Yeah, thank you, Lemar, for that.

I will now move to another question online from a follow up question from art parcel.

Just on the personal banking side I'll do you plan to attract these clients to Laurentian.

Speaker Change #391: There are already other some competitive low feed digital options, our standalone financial institution, our digital offerings from the large banks that already have this strategy what is your competitive advantage.

Operator: Actually, I think it's going to be about the self-serve capabilities we want to bring forward. That's going to make a difference and a different way for Laurentian Bank to position the product. Again, like we believe that we can create an alternative to the big banks and that we can compete, as we have demonstrated in other areas, in ways if we are efficient and we deploy the right efforts and campaigns, we'll be able to attract our fair share of customers. And this is what this plan is about, making sure that we grow, but realistically, bring back our customer base. And we're going to be starting where the bank is known.

Speaker Change #392: Yeah. Thank you Lamar for that.

Actually I think is going to be about the self serve capabilities, we want to bring forward a that's going to make.

Speaker Change #393: Difference in a different way for Laurentian bank to position the product.

Speaker Change #394: Again like we believe that we can create an alternative versus the big banks and I. We can compete as we demonstrated in other areas into ways. If we are efficient and we deploy the right efforts.

Speaker Change #394: <unk> pains will be able to attract car our fair share of customers and this is what this plan is about is to make sure that we grow.

Speaker Change #395: But realistically.

Speaker Change #396: Our customer base and we're gonna be starting where the bank is known we're going to be going back to our our branches areas, where we add success. We still have success that we've Ah trial for for the last years and we believe.

Eric Provost: We're going to be going back to our branches, areas where we had success, and we still have success, that we tried for the last years. And we believe that that's going to be a key to success for us in that particular segment. Thank you, Eric. I see another question in the room. Yes, sir. Hi. Can you hear me?

Speaker Change #396: That's going to be a key to success for us and in that particular segment.

Speaker Change #396: Thank you Eric I see another question in the room.

Unknown Person: Okay, great. Thank you. It's Darko from RBI, and I apologize in advance for the nature of my questions. They are relatively basic.

Unknown Executive: Yes, Sir.

Darko: Can you hear me okay, great. Thank you, it's it's darko from RBC.

Darko: And I apologize in advance for the nature of my questions. They are relatively basic and maybe I missed it when are you coming out with this product it's deposit is.

Eric Provost: Maybe I missed it, when are you coming out with this product? It's going to be in the near term, Darko, but again, we don't have a specific date to announce today, so we'll be coming back in the next few quarters to give you more details about that. The next basic question I have... When you say middle class, do you mean middle class Quebec or middle class Canada?

Speaker Change #398: Got to be in the near term Darko, but again I, we don't have a specific date to announce today. So we'll be coming back in next few quarters to give you more details about that okay.

Speaker Change #399: The next basic question I have.

Speaker Change #399: Is.

Speaker Change #400: When you say middle class do you mean middle class, Quebec or Middle Class Canada.

Unknown Person: We mean middle class Canada, but we are going to be targeting segments at the beginning where we believe we have a better chance of acquiring those net new customers. And yes, of course, going back to our roots, for us as a bank that is well known in Quebec, we believe that with the right product, we're going to get good traction there. Okay, and what makes Laurentian...

Speaker Change #403: We mean middle class, Canada, but we are going to be targeting segments at the beginning where we believe we have a better chance of acquiring those net new customers and yes of course going back to our roots for us as a bank that is well known in Quebec, We believe that with the <unk>.

Speaker Change #401: Product, we're going to get a.

Speaker Change #402: Good traction there.

Speaker Change #404: Okay, and what makes Laurentian bank uniquely situated to serve the middle class.

Eric Provost: Excuse me, I didn't understand that. What makes you unique? Well-placed to serve. Well, I think it goes back to our roots, why we were funded to serve that middle class that we've been doing so for the last hundred and seventy five years. And this is why, as a leadership team, we took time to reflect on that foundation and our roots. And we want to continue and build out of that. And, we suffered from a systems outage last year, and I'm not sure how your brand has recovered from that. Is it still there?

Speaker Change #405: Excuse me I didn't get what makes you unique and well placed to serve the middle class well I think it goes back to our roots, while we were funded.

Speaker Change #406: To serve that middle class that we've been doing so for the last 175 years and and this is why as a leadership team. We took time to reflect on that foundation and our roots in.

Speaker Change #407: And we want to continue and build out of that.

Speaker Change #407: And.

Speaker Change #408: A similar question you suffered from a systems outage last year and I'm not.

Speaker Change #409: I live here in Toronto.

Speaker Change #410: Do you think your brand has recovered from that is it still.

Unknown Person: Top of Mind in Quebec and in and around where you're, I think that the take-up of this product will be hindered by that. Actually, Darko, that's a great question, where I would answer that... that we've been able to sustain our customer base, that we've maintained strong deposits even though there was an outage. And again, I want to thank our customers for their patience throughout that particular event. But I think that in the last eight months, we have demonstrated the stability of this bank, how strong we are in terms of capital and in terms of liquidity as we walk you through today.

Speaker Change #411: Top of mind in Quebec, and in and around where your roots are from and do you think that the take up of this product will be hindered by that memory.

Speaker Change #412: Actually the darker that's a great question, where I would answer that.

Speaker Change #413: That that we've been able to sustain our customer base that we've maintained strong deposits, even though that audit and again want to thank our customers for their patience trailed that particular event, but I think that in the last eight months, we demonstrated the stability of this bank how strong or weak.

Speaker Change #414: We are in terms of capital in terms of liquidity as we walk you through today and I think that if we come back to the market with the right offering and the right technology are our customers and future customers will definitely acknowledge the fact that this bank is there's a real turn into for them.

Unknown Person: And I think that if we come back to the market with the right offering and the right technology, our customers and future customers will definitely acknowledge the fact that this bank is a real alternative for them. Okay, so there's been no testing of the market, surveys, or is there anything you can point to as concrete evidence that your brand is strong? Well, our brand is well known, for sure.

Speaker Change #415: Okay. So there's there's been no testing of the marketplaces. There had been any kind of surveys or is there anything you can point to with any concrete evidence that.

Speaker Change #416: Your brand and your reputation.

Speaker Change #417: In Quebec is not while our brand is well known for sure in terms of rebuilding the trust like this is a day to day exercise we've been doing since I was appointed and it's still part of the efforts we're doing consistently with our advisor, but I think the the best testimonial there is really there.

Eric Provost: In terms of rebuilding trust, this is a day-to-day exercise we've been doing since I was appointed. And it's still part of the efforts we make consistently with our advisor. But I think the best testimonial there is really the fact that we haven't seen customer attrition. We haven't seen a deposit-based reduction there.

Speaker Change #418: Fact that we haven't seen customer attrition, we haven't seen a deposit base reduction there. So it tells you a lot in terms of our ability to service those customers and I think our customers to our messaging understood. This was a 90.

Unknown Person: So it tells you a lot in terms of our ability to service those customers. And I think our customers, through our messaging, understood this was an IT... planned upgrade that actually didn't go well. That we were there to serve them and that we took the right actions to stabilize. And right now, I think that it's a testament that we are in a different place. I've only got a couple more, I promise. Sure. I don't mean to hog the limelight.

Speaker Change #419: Planned upgrade that actually didn't go well that we were there to service them and that we took the right actions to stabilize and right now I think that it's a testimonial that we are in a different place. Okay. I've only got a couple more I promise sure don't mean, we have all afternoon.

Eric Provost: Yeah, we have all afternoon. I'm... At the beginning of your presentation, you had mentioned that you went through another, If I recall correctly, there may have been an unsolicited bid for Laurentian Bank or possibly... Would you consider... Possibly selling, that you own two wholly owned subsidiaries, are not released.

Speaker Change #419: Just.

Speaker Change #420: Stepping back for a moment.

Speaker Change #420: From from.

Speaker Change #420: That.

In the beginning of your presentation, you had mentioned that.

Speaker Change #421: You went through another strategic review and.

Speaker Change #421: And this plan sort of came out of that strategic review.

Speaker Change #422: If I recall correctly, there may have been an unsolicited bid for Laurentian bank or possibly for pieces of your business.

Speaker Change #423: So would you consider.

Speaker Change #424: Possibly selling off.

Speaker Change #425: Some businesses for example, you mentioned today twice or I thought I heard you say it twice maybe when he said at once.

Speaker Change #426: That you own two wholly owned subsidiaries at work separately.

Speaker Change #427: Not really integrated into the bank would you consider selling those.

Unknown Person: Darko, it's a great question, and I can tell you that since we've acquired, as an example, NCF, there is not a single year after 2020-18 that we didn't get a call because this is a great platform of ours, but the plan we're laying out today is definitely to keep maximizing the output of those specialty banks that we have in commercial banking, including North Point, which I think we demonstrated the So for us, this plan means maximizing those specialties and keeping growing them organically and through partnership. My last question... Hopefully, everything goes according to plan. And you do have it.

Speaker Change #428: Darko, it's a great question and I can tell you that since we've acquired as an example N C. F. There is not a single year. After 'twenty 'twenty 18 that we didn't get a call back.

<unk>. This is a great platform of ours, but the plan we're laying out today is definitely to keep maximizing the output of those specialty.

Speaker Change #429: That we have in commercial banking, including North point, which I think we demonstrated the scalability, we have there and the strength it brings to the overall organization. So for US. This plan means maximizing those specialty and keep growing it.

Speaker Change #429: Organically and through partnerships.

Speaker Change #430: And my last question is.

Speaker Change #431: If all goes according to plan and you do have high.

Speaker Change #431: High growth in commercial, let's say rates come down and sort of can you just.

Eric Provost: High Growth, I'm not entirely sure that I understood from your presentation where we should expect the capital ratio to go to achieve the ROE objective. Can you, Yvan, maybe can you just walk me through how I should think about it? I understand it's a strong...

Speaker Change #432: I'm not entirely sure that I understood from your presentation, where we should expect the capital ratio to go and where you expect to keep it to.

Speaker Change #433: To achieve the Ara, we objective can you Oh.

Speaker Change #434: Maybe can you just walk me through how we should think about it I understand it's a strong level of capital, but where ultimately do you want to run this bank.

Unknown Person: So currently, in the current environment, we mentioned we want to stay above 10%. We believe that that's safe. That's a good place to be.

Speaker Change #435: So currently in the current environment, we mentioned, we want to stay above 10%. We believe that that's safe that's a safe place to be but it also gave us the firepower for the growth that we're talking about so we will see the situation evolve but at this point, we want to manage around 10%.

Yvan Deschamps: But it also gives us the firepower for the growth that we're talking about. So we'll see the situation evolve. But at this point, we want to manage it around.

Unknown Person: Thank you for... Thank you. Follow-up question in the room. It's Meny again from Scotiabank. Just a question about the branding of this relaunched personal, is the idea that you have to launch it under the Laurentian Bank brand, or is there a new brand being contemplated to launch this under? Thank you for the question, Manny. In terms of the plan we're discussing right now, we operate under Laurentian Bank, and we believe that this brand is a strong brand for us.

Speaker Change #435: Okay. Thank you for entertaining my questions. Thank you Rocco.

Speaker Change #436: Follow up question in the room.

Many: It's many again from Scotiabank just a question about the branding of this relaunched personal bank is the.

Speaker Change #438: Idea that you have to launch it under the wrench, the Laurentian Bank brand or is there a new brand.

Speaker Change #438: Is being contemplated to launch this under and thank you for the question Manny and in terms of the plant. We're discussing right now like we're operating under Laurentian Bank and we believe that this brand is a strong run for us so.

Unknown Person: Yeah, I would answer it this way. And then just in terms of the geographic mix of the commercial business, 25% US, 75% Canada, the plan that you're outlining, does it materially change that geographic mix at all? Not materially, but again, it's going to be depending on the opportunities that we seek in terms of the diversifying of industries and how quickly, let's say for example, in Canada we see a ease that could actually help our commercial real estate business grow or rebuild momentum and as you know, this is a 100% Canada based operation, so it will depend both on the macroeconomics of both countries, but we don't expect a big material shift in terms of that mix, but it could fluctuate towards a higher percentage in the US or a diminution depending on how we succeed in those different groups.

Speaker Change #438: Yeah, I would answer it this way.

Speaker Change #439: And then just in terms of the geographic mix of the commercial business, 25%, 75%, 25% U S 75%, Canada. The plan that you're outlining does it materially change that geographic mix at all.

Speaker Change #439: Not materially, but again, there's going to be depending on the opportunities that we seek in terms of our the diversifying of industries and how quickly.

Speaker Change #439: Let's say for example in Canada, we see as that could actually help our commercial real estate business grow or rebuilding momentum and as you know this is 100%.

Speaker Change #439: Canada based operation. So so it will depend both on the macroeconomics of both countries, but we don't expect.

A big material shift in terms of that mix, but it could fluctuate towards a higher percentage in the U S or a diminishing depending on how we succeed.

Speaker Change #439: Succeed in those different groups. Thank you. Thank you.

I don't see any other questions in the room or online, so this concludes our Laurentian Bank Investor Day 2024. We thank you for your attendance and your interest, and have a good rest of the day. Thank you. Transcription by ESO. Translation by — [inaudible] and many more. [inaudible] and many more, at https://www.youtube.com.au/watch?v=8_L_ZZ_C. I'll see you next time. [inaudible]

Speaker Change #440: I don't see any other question in the room or online. So this concludes our Laurentian bank investor The 'twenty 'twenty four we thank you for your attendance your interest and have a good rest of the day. Thank you everyone here. Thank you.

Speaker Change #440: Yeah.

Speaker Change #440: Yeah.

Speaker Change #440: Yeah.

Speaker Change #440: Yeah.

Speaker Change #440: Yeah.

Speaker Change #440: Yeah.

Speaker Change #440: Yeah.

Speaker Change #440: Yeah.

Yeah.

Speaker Change #440: Sure.