Market Trends & Performance - Gold price surged past $4,200 per ounce, a new all-time high, with a 60% year-to-date gain [1] - Bitcoin reached approximately $126,000 before a pullback, building on earlier peaks above $100,000 in 2025 [1] - Bitcoin and gold correlations are now at 0.85%, nearing historical peak [2] Macroeconomic Factors - Investor response to macroeconomic headwinds is driving simultaneous rallies in gold and Bitcoin [2] - Concerns include fiat displacement, inflation, geopolitical and policy uncertainty, and institutional capital rotation [2] - Central banks are hoarding physical gold as insurance against US dollar dominance and sanctions [3] Investment Strategy & Outlook - Gold's outperformance has overweighted portfolios, analysts expect flows to rotate into Bitcoin for its higher beta [4] - Gold's strength indicates a hard asset awakening [4] - Bitcoin is maturing from a speculative vehicle to a legitimate store of value [4]

Summary of Bank of Montreal (BMO) 2025 Conference Call Industry Overview - The banking industry is currently experiencing volatility, with macroeconomic headwinds affecting both the United States and Canada [1][2] - There is a noted improvement in the "uncertainty meter" for the U.S. economy, with clearer tax policies and trade outcomes compared to six to eight months ago [2][3] - Canada is experiencing a lag in economic recovery, with uncertainties around government policies and trade agreements impacting business decisions [4][5] Company Performance and Outlook - BMO's Return on Equity (ROE) target is set at 15%, with recent improvements from 9.8% to 12% over three quarters [9][16] - Key metrics for ROE improvement include: - U.S. Personal and Commercial (P&C) business showing 6% year-to-date growth [12] - Impaired credit reduced from 66 basis points to 45 basis points, translating to a significant P&L improvement [13][22] - Operating leverage at 4.7% year-to-date, outperforming peers [14] - Capital allocation strategies, including share buybacks, with a current CET1 ratio of 13.5% [15][75] Strategic Changes - A new go-to-market structure in the U.S. aims to enhance ROE by integrating business lines and focusing on customer demand [23][30] - The acquisition of Bank of the West is seen as a transformational deal, with BMO positioned to gain market share in California, which has a GDP larger than Canada [35][39] - The competitive landscape in the U.S. remains intense, but BMO is optimistic about its positioning within the top 10 banks [39][40] Canadian Market Insights - The Canadian banking landscape is competitive, with BMO focusing on net customer acquisition and growth in retail banking, commercial lending, and wealth management [41][44] - The bank is optimistic about its competitive positioning despite macroeconomic uncertainties, with a focus on retail operating deposits and mutual funds as growth areas [46][48] Credit and Mortgage Market - The credit environment is stabilizing, with expectations for normalization in credit performance [82] - The mortgage market is currently subdued, with a potential rebound anticipated as economic uncertainties are resolved [57][58] Capital Management and Share Buybacks - BMO is committed to maintaining a CET1 ratio of 12.5%, with ongoing share buyback programs to manage excess capital [75][79] - The bank is focused on organic growth and ROE improvement, with M&A opportunities being considered only if they align with these goals [72][73] Key Messages for Investors - BMO is on a positive trajectory towards achieving its ROE target, with significant EPS growth of 22% year-over-year [83][84] - The bank is optimistic about its future performance despite current uncertainties, emphasizing a strong operational strategy and capital management approach [84]