1、 BofA Securities does and seeks to do business with issuers covered in its research reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making the

2、ir investment decision.Refer to important disclosures on page 36 to 39.Analyst Certification on page 34.Price Objective Basis/Risk on page 32.12849317 Canadian Banks Mid-Year Check-in:Winds of change blowing Price Objective Change Policy actions,US trade deal should boost bank stocks Optimism that P

3、M Mark Carney will rejuvenate a lackluster Canadian economy,strike a trade deal with the US(July 21 deadline watched),in our view,should put a bid into bank stocks.Recent approval to fast-track infrastructure projects and elimination of some interprovincial trade barriers reasons for optimism.BofA E

4、conomics team forecasts GDP growth to accelerate 2H25/FY26 vs 1H25.Exhibits 1-21.Relevant research note:Expert Insights:Canada economic outlook under Carney administration Revisiting the five themes from the start of the year Theme#1 Housing/mortgage:Activity recovering after tariff chill;condo mark

5、et in correction mode.Theme#2 Peak PCLs:delayed to 2H25/FY26,reserve builds provide buffer.Theme#3 Capital positioning:ample optionality for buybacks/M&A.Theme#4 Elections:Early days but policymakers moving with a sense of urgency.Theme#5 ROE improvement:Capital flex,resilient margin,growth rebound

6、should boost profitability.Relevant research note:Canadian Banks:2025 Year Ahead:Winds of change Competitive pressures rising:US de-reg,Wells,Fintechs Easing capital/liquidity requirements have the potential to weigh on US growth for the Canadian banks as domestic players lean-in.Additionally,we see