Financial Data and Key Metrics Changes - The bank reported Q4 earnings of CAD 3.9 billion, with EPS of CAD 2.18, and ROE increased by 110 basis points year over year [9][10] - Year-over-year earnings growth was 5%, with a total payout ratio of 93% including share buybacks and dividends [10][30] - The CET1 ratio ended the quarter at 14.7%, down 15 basis points sequentially, with strong internal capital generation [29] Business Line Data and Key Metrics Changes - Canadian Personal and Commercial Banking achieved record revenue, deposits, and loan volumes, with average deposits up 4% year over year [12][24] - U.S. Retail saw core loans grow by 2% year over year, with bank card balances up 14% year over year [12][25] - Wealth Management delivered record earnings and assets, with new accounts in direct investing up 27% and trades per day up 37% year over year [14][27] - Wholesale Banking generated record revenue of CAD 2.2 billion, benefiting from a constructive capital markets backdrop [15][28] Market Data and Key Metrics Changes - The Canadian economy remains resilient despite trade uncertainties, with government actions expected to support economic activity [4][5] - In the U.S., businesses and households are benefiting from regulatory and monetary policy changes, leading to increased investment activity [5] Company Strategy and Development Direction - The bank's strategy focuses on deepening client relationships, simplifying operations, and executing with discipline [6][8] - AI is identified as a significant growth opportunity, with plans to implement 200 million in incremental value from AI use cases in the next year [7] - The bank aims to achieve 6%-8% EPS growth and 13% ROE targets for fiscal 2026, with potential upside from strong business momentum [9][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving medium-term targets despite economic uncertainties, with a focus on prudent provisioning and strong capital position [8][34] - The bank expects PCLs to be in the 40-50 basis points range, an improvement from the previous year's guidance [34] Other Important Information - The bank transitioned to a semi-annual dividend review cycle, announcing a CAD 0.03 dividend increase to CAD 1.08 per share [10] - The bank is over three-quarters through its CAD 8 billion share buyback program, with plans for a new buyback of CAD 6 billion-CAD 7 billion [11] Q&A Session Summary Question: Dynamics behind residential mortgages and HELOC portfolio performance - Management noted that the Canadian housing outlook is slightly better due to pent-up demand and a strong customer profile, with stable delinquencies across both residential mortgages and HELOCs [36][37] Question: Capital allocation and CET1 ratio outlook - Management indicated a disciplined approach to capital allocation, prioritizing organic growth and returning capital to shareholders, with expectations to maintain a CET1 ratio in the mid-13s over the next year [40][41] Question: Margin outlook and expense growth commitment - Management confirmed that while NIM is expected to remain stable, they are committed to delivering mid-single-digit expense growth in 2026, supported by ongoing productivity initiatives [48][54] Question: Insurance segment performance and future outlook - Management acknowledged weaker earnings in the insurance segment for Q4 but emphasized strong full-year growth in gross written premiums and a strategic rebalancing away from high-catastrophe zones [59][60]