Core Points - Sun Life Financial Inc. declared a dividend of $0.88 per share on common shares, payable on September 29, 2025, to shareholders of record as of August 27, 2025, which is the same amount as the previous quarter [1] - The Board announced dividends for Class A Non-Cumulative Preferred Shares, with varying amounts for different series, also payable on September 29, 2025, to shareholders of record as of August 27, 2025 [2] - The declared dividends are designated as eligible dividends under the Income Tax Act (Canada) [3] Company Overview - Sun Life is a leading international financial services organization providing asset management, wealth, insurance, and health solutions to individual and institutional clients [4] - As of June 30, 2025, Sun Life had total assets under management of $1.54 trillion [4] - The company operates in multiple markets worldwide, including Canada, the U.S., the U.K., and several Asian countries [4]

Core Insights - Sun Life Financial Inc. reported strong Q2 results driven by record underlying net income in Asia, with significant growth in protection business and bancassurance sales [3][4][10] - The company maintained a robust capital position with a LICAT ratio of 151%, allowing for stability and flexibility in investments [3][10] - Digital initiatives and innovative GenAI tools are key strategic priorities for enhancing client experience and operational efficiency [3][10] Financial Performance - Underlying net income for Q2 2025 was $1,015 million, a 2% increase from Q2 2024 [4][8] - Reported net income for common shareholders was $716 million, reflecting an 11% increase year-over-year [4][10] - Underlying EPS was $1.79, while reported EPS was $1.26, showing improvements from the previous year [4][10] Business Segment Highlights - Asia segment achieved underlying net income of $206 million, a 15% increase from the prior year, driven by strong sales and profit margins [25][27] - Canada segment reported underlying net income of $379 million, a decrease of 6% from the previous year, impacted by higher expenses and unfavorable mortality experience [17][19] - U.S. segment's underlying net income was US$143 million, down 4% year-over-year, affected by an impairment charge related to a dental contract [21][22] Sales and Growth Metrics - Bancassurance sales in Asia increased by 15%, with notable growth in markets like Hong Kong, India, and the Philippines [3][4] - Total assets under management (AUM) reached $1,541 billion, a 5% increase from the previous year [4][8] - Group Health & Protection sales rose by 8% year-over-year, while Individual Protection sales increased by 15% [9][31] Strategic Initiatives - The company is focusing on digital transformation to improve client engagement and streamline processes [3][20] - Sun Life's acquisition of Bowtie Life Insurance Company Limited aims to enhance health insurance accessibility in Hong Kong [28] - The launch of new services, such as the Expert Cancer Review, reflects the company's commitment to providing comprehensive health solutions [24][20]

Financial Data and Key Metrics Changes - Core earnings per share increased to $0.38, surpassing consensus estimates by $0.03 and improving from $0.32 in the first quarter [6] - Core return on assets reached 1.31%, with a core pretax pre-provision ROA of 1.95% and a core efficiency ratio of 54.1% [6] - Net interest margin expanded from 3.62% in the first quarter to 3.83% in the second quarter, a 21 basis point increase [7] - Net interest income increased by $10,700,000 to $106,200,000, driven by improved loan yields and lower deposit costs [7][8] Business Line Data and Key Metrics Changes - Loan growth was 8.1% annualized, with significant contributions from Equipment Finance, small business, commercial, indirect, and branch lending [7][8] - Noninterest income increased by $2,100,000 to $24,700,000, with strong contributions from mortgage, SBA, interchange, wealth, and other service charges [8] - Total deposits grew by 9% year to date, reaching $10,100,000,000, with the Community Pennsylvania region performing exceptionally well [9] Market Data and Key Metrics Changes - The integration of Centre Bank added $295,000,000 in loans and $278,000,000 in deposits, enhancing the company's presence in Cincinnati [10] - The company experienced loan and deposit growth in four of its six geographic markets [8] Company Strategy and Development Direction - The company aims to be the leading community bank in its markets, focusing on improving financial lives of customers and communities [12] - Strategic acquisitions and a regional business model are key components of the company's growth strategy [12] - The company is exploring smaller acquisition opportunities while maintaining a disciplined approach to M&A [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's trajectory, citing disciplined execution and strategic acquisitions as drivers of growth [12] - The company anticipates continued loan growth and margin expansion, with a revised forecast of two Fed cuts by year-end [16][72] - Management highlighted the importance of maintaining low-cost deposits to support loan growth [121] Other Important Information - The company reported a second quarter provision expense of $12,600,000, with $3,800,000 related to the Centre Bank acquisition [11] - Nonperforming loans increased by $40,100,000 due to the Centre Bank acquisition and a single commercial loan [12] Q&A Session Summary Question: Guidance for expenses in the third quarter or back half of the year - Management indicated that expenses are on track, with consensus estimates for the third quarter at $72,800,000 and fourth quarter at $73,100,000 [23][24] Question: Appetite for stock repurchases - Management plans to resume stock repurchases after a blackout period, with a focus on buying back shares at a set price [28][30] Question: Outlook for charge-offs - Charge-offs have been low, and management expects them to normalize in the mid-20 basis point range [32] Question: Loan yield trends and guidance - Management indicated that loan yields have been consistent, with expectations for continued positive trends if the Fed does not cut rates [38][40] Question: Market share opportunities - Management believes there is significant room for growth in existing markets, particularly in Ohio and Western Pennsylvania [92][95] Question: Impact of recent investments in Pennsylvania - Management noted significant investments in the area, particularly in infrastructure and energy, which could benefit the company [100] Question: Credit quality of the portfolio - Management confirmed that the majority of the nonaccruals are from a legacy loan, with the overall portfolio performing well [106][112]

Group 1 - Sun Life Financial Inc. will release its second quarter financial results on August 7, 2025, after market close [1] - A live webcast of the quarterly results will be available on August 8, 2025, at 10:00 a.m. ET [1] - The company provides access to the call via live webcast and telephone, with a replay available after the event [1] Group 2 - Sun Life is a leading international financial services organization offering asset management, wealth, insurance, and health solutions [2] - The company operates in multiple markets worldwide, including Canada, the U.S., the U.K., and several Asian countries [2] - As of March 31, 2025, Sun Life had total assets under management of $1.55 trillion [2]

Core Points - Sun Life Financial Inc. announced the election of 12 nominees as directors during its annual meeting of common shareholders [1] - The voting results showed high approval rates for the nominees, with most receiving over 99% of votes in favor [2] - As of March 31, 2025, Sun Life had total assets under management of $1.55 trillion [3] Voting Results Summary - Deepak Chopra received 304,216,875 votes for (99.5%) and 1,613,731 votes withheld (0.5%) [2] - Stephanie L. Coyles received 300,374,417 votes for (98.2%) and 5,456,189 votes withheld (1.8%) [2] - Patrick P.F. Cronin received 305,012,363 votes for (99.7%) and 818,243 votes withheld (0.3%) [2] - Ashok K. Gupta received 304,824,776 votes for (99.7%) and 1,005,830 votes withheld (0.3%) [2] - David H. Y. Ho received 304,191,594 votes for (99.5%) and 1,639,012 votes withheld (0.5%) [2] - Laurie G. Hylton received 303,848,100 votes for (99.4%) and 1,982,506 votes withheld (0.6%) [2] - Stacey A. Madge received 304,451,936 votes for (99.5%) and 1,378,670 votes withheld (0.5%) [2] - Helen M. Mallovy Hicks received 297,600,009 votes for (97.3%) and 8,230,597 votes withheld (2.7%) [2] - Marie-Lucie Morin received 304,911,079 votes for (99.7%) and 919,527 votes withheld (0.3%) [2] - Joseph M. Natale received 304,444,433 votes for (99.5%) and 1,386,173 votes withheld (0.5%) [2] - Scott F. Powers received 300,283,090 votes for (98.2%) and 5,547,516 votes withheld (1.8%) [2] - Kevin D. Strain received 305,101,316 votes for (99.8%) and 729,290 votes withheld (0.2%) [2] Company Overview - Sun Life is a leading international financial services organization providing asset management, wealth, insurance, and health solutions [3] - The company operates in various markets worldwide, including Canada, the U.S., the U.K., and several Asian countries [3] - Sun Life trades on the Toronto, New York, and Philippine stock exchanges under the ticker symbol SLF [4]

Core Viewpoint - Sun Life Financial Inc. intends to renew its normal course issuer bid (NCIB) for share repurchases, pending approval from regulatory authorities [1][2]. Group 1: Normal Course Issuer Bid (NCIB) Details - The current NCIB, initiated on August 29, 2024, allows for the repurchase of up to 15,000,000 common shares, with 13,018,997 shares repurchased as of May 7, 2025 [2][5]. - Upon completion of the current NCIB, the company plans to establish a new NCIB (2025 NCIB) to repurchase an additional 10,000,000 common shares, subject to regulatory approvals [2][5]. - The 2025 NCIB will expire 12 months after its commencement or earlier if the company decides [2]. Group 2: Share Repurchase Mechanism - Purchases under the 2025 NCIB may occur through various trading platforms, including the TSX and NYSE, at prevailing market rates [3]. - The company may also engage in private agreements or share repurchase programs under exemption orders, typically at a discount to market prices [3]. - The actual number and timing of shares repurchased will be determined by the company [3]. Group 3: Pre-defined Plans and Compliance - The company may enter into pre-defined plans with brokers to facilitate share repurchases during internal trading blackout periods [4]. - Such plans will comply with applicable Canadian and U.S. securities laws [4]. Group 4: Financial Overview - As of May 7, 2025, the company had repurchased 13,018,997 shares at a weighted average price of approximately $80.79 per share [5]. - The total number of shares that can be repurchased under the 2025 NCIB will be adjusted to account for shares repurchased under the 2024 NCIB, allowing for a total of 25,000,000 shares, which represents about 4.1% of the total shares outstanding as of May 5, 2025 [5]. Group 5: Company Background - Sun Life is a prominent international financial services organization, offering asset management, wealth, insurance, and health solutions [9]. - As of March 31, 2025, the company had total assets under management of $1.55 trillion [9].

Core Points - Sun Life Financial Inc. declared a dividend of $0.88 per share on common shares, representing a $0.04 increase from the previous quarter, payable on June 30, 2025 [1] - The Board also announced dividends for Class A Non-Cumulative Preferred Shares, with varying amounts for different series, all payable on June 30, 2025 [2] - The declared dividends are designated as eligible dividends under the Income Tax Act (Canada) [3] Company Overview - Sun Life is a leading international financial services organization providing asset management, wealth, insurance, and health solutions to individual and institutional clients [4] - As of March 31, 2025, Sun Life had total assets under management of $1.55 trillion [4] - The company operates in multiple markets worldwide, including Canada, the U.S., the U.K., and several Asian countries [4] Trading Information - Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE), and Philippine (PSE) stock exchanges under the ticker symbol SLF [5]