Canadian Financials Podcast

Research evidence excerpt

Canadian Financials Podcast

were significantly stronger than our core EPS estimate by $0.10. A notable theme was that core

insurance experience in Canada turned negative across the group after being strong for most of

the group throughout 2025. MFC and SLF's wealth businesses (a key part of our investment theses)

underperformed due to net outflows, performance fee issues, and relatively low margins, though both

companies delivered strong Asia results, in our view. Despite the soft quarter in wealth, the longer-

term thesis remains intact as these capital-light wealth and Asia businesses are at scale, and we expect

them to grow over time. We maintain our pecking order of: MFC, SLF, IAG, GWO. We continue to prefer

the large Canadian banks we cover over the large Canadian lifecos under our coverage fundamentally

due to stronger relative core EPS growth.

• GSY Internal Control Weakness [8:55]: Goeasy disclosed a material weakness in their internal controls

and cautioned the investor there may be material misstatements in the financials presented. GSY

expects to remediate the issues by the end of 2026 and until then, we maintain our cautious stance.

• BN Conversion to US GAAP [10:33]: Brookfield announced they expect to convert from IFRS to US

GAAP reporting effective Q1/27. This increases BN's comparability to the U.S. Alts we cover, and

improves transparency. We have received positive investor feedback, particularly from U.S. investors.

Recent research: Canadian Banks Q2/26 Preview

Priced as of prior trading day's market close, EST (unless otherwise noted). All values in CAD unless otherwise noted

Disseminated: May 19, 2026 00:15EDT; Produced: May 18, 2026 17:30EDT

For Required Non-U.S. Analyst and Conflicts Disclosures, see page 5