Darryl.
Hey, Mike.
Hi. Good to see you as always. How are you?
Thank you. I'm very well. How are you?
Good. Darryl, I'd love to start on just the ROE journey. You've obviously proven a lot of people wrong, myself included. I was one of those skeptics a couple of years ago on getting to that 15%, but you're not too far off from that as of the latest quarter. Maybe just talk about that journey and what's sort of the next leg to get you past that?
Yeah, I guess it is a good place to start, Mike, and thanks for the question. Thanks for hosting. I think the punchline is we are 80% of the way there and 60% of the time, right? If you go back to when we called our shot at the end of 2024, we were running at 10% ROE. We said it is going to be 15%. We did not say by when. At a conference at one of your competitors earlier this year, I said it would be timestamped by the end of 2027. We were running a little over 11 %then. We are at 14% today. The teams have done an excellent job responding to the challenge as our number one imperative. I have been fond of saying I declared war on the ROE, and we are actually winning the war, and we are winning it for the benefit of shareholders.
If you put it together with, Mike, the commitments that we have made at our Investor Day where we said it was about the both, not just driving the ROE, but accelerating the returns while we accelerate the growth. I am very proud of what the teams have done. In that same seven quarters that I have just talked about, if we look at those quarters in their entirety, our bank relative to our peers is at the number one rate of accretion to ROE and the number one rate of EPS growth. And that is important because you can make decisions that do too much, as you know well in your models, but in reality, to trade off one for the other, and we are holding ourselves accountable for doing both at the same time.
I guess last point on the ROE rebuild, and this is something that gives me a lot of confidence that we will hit the destination that we have put out there on time, is when you decompose where it is coming from, there may be a little bit of a myth that it sort of all comes from the fee businesses, wealth, and capital markets. When you look at, for example, let us use this year to date, we are up 220 basis points on the ROE year- to- date. And when I look at the decomposition of where that has come from by line of business, get this, it is 50 basis points Canadian P&C. Sorry, 50 basis points from Canadian P&C, 60 basis points from U.S. banking, 80 basis points from Capital Markets, and 40 basis points from Wealth. So Wealth and Capital Markets are 120 basis points. They are about half of the contribution.
The P&C businesses, north and south, are about half of the contribution. It is very equally distributed in terms of the challenges we have put in delivering all of the businesses against that. And when we had record PPPT for all four businesses in the third quarter, it is kind of evidence as we are driving that, not just with our PCL improvement, but also with the core business performance. Look, it is a good story. It is a very important one for us, and the teams have done really well delivering it.
Awesome. Thanks for that. Just in terms of once you get to that 15%, I'm sure you're going to have broader ambitions to get it even higher. Just if you do see some sort of pullback in market-sensitive businesses and some of the fees that have been generated the last few quarters, what's sort of the next leg of growth? Is it a cost story? Is it something else? Is it just more optimization, better efficiency on how you utilize capital to get that primacy? What's the longer-term sort of
Yeah. As I mentioned a moment ago, it's very broad-based where we're seeing the improvements coming from. So we're not relying on one-trick ponies to get ourselves there. When I look at the composition of businesses in the portfolio, there are different roles that they play. The U.S. business, for example, in U.S. banking, we started this journey at a sub 7% ROE. We're at 9.8% today, which by the way is 17.3% on the ROTCE. We think tangible is a very important comparison in the United States. When we get to 12% in the U.S. on the ROE, that gets me to 18%- 19% on the ROTCE. That's best- in- class, or at least it's in the top quartile, which I should say about among our peer set in the United States.
Then I'm at a point where I've got pretty close to indifferent capital allocation decisions from a return perspective. Then you can therefore say, where can I get that magic combination of good return and high growth? We've got really good optionality in the portfolio of businesses that we've built. Look, over the course of time, across the portfolio of businesses, there will be variations in terms of how they perform, but the diversification at BMO, both by line of business and by geography, give us a lot of optionality in terms of when one thing softens, another can pick up. We've seen that in living color, actually, in the last three or four quarters, and it's benefited us well. Last point, the capital is absolutely there to feed all of the above, and I heard somebody using that reference earlier.
Remember, our 13% CET1 published ratio is really 13.5% pro forma the divestitures that we've announced. One of them closed on Friday. The next two we're expecting to close in the next couple few months. So 13.5% going into 2027 fiscal gives us a lot of flexibility to drive all of that.
Okay, awesome. Then maybe just switching over to credit. Obviously, some volatility out there in the market right now. Investors do want to have a bit of sense of comfort from hearing what the guidance looks like. I am not trying to pin you on next year's number, but obviously, the credit story has gotten a lot better for BMO since Q4 of 2024. It has just been progressively getting better.
Yep
You have been clear that you are not expecting any sort of hiccups there. Any sort of color on just in light of CUSMA, are you worried about anything? Are you hearing anything from clients that would concern you?
Yeah, I do not mind you trying to pin on 2027 either because our story has not changed. So we are very consistent in what we have said. We said we would come through 2026 fiscal in the mid-40%s. That is exactly what we are doing. In fact, we saw a step down in the third quarter from 45% to 41%. That is the best impaired credit performance that we have had in 10 quarters, to your reference just a moment ago. That is great. I think our CRO has guided that that should be somewhat plus or minus flat as we go into the fourth quarter.
Then as we look through 2027, we do expect a little bit of a walk down, I think we have said into the mid-30%s, mid- to high- 30%s as we go into 2027, and I would stand by that today because yes, there are uncertainties and there are overhangs in the environment, but at the same time, it is remarkable how adaptable the commercial and capital markets customer base has become, as we have seen the way they have worked through the tariff environment. And when we look fundamentally at our key indicators and our forward indicators, if you look at our watchlist, if we look at our formations, the trend is pretty clear, particularly in wholesale, that we will continue to see a little bit of a walk-down.
We do not need a big walk-down at this point, having come from 41%. Whether we settle at 36%, 37%, 38%, the walk-down from 41% to there is pretty reasonable in terms of our expectations. None of that has changed. We have said that over the last couple of quarters, and that is consistent with what we said on the third quarter.
Okay, awesome. In terms of the U.S., obviously there has been, again, a very good trend the last few quarters, last couple years. It does not seem to be any residual risk on some of the losses you took a couple years ago. Has anything changed on the underwriting? Have you changed anything structurally? Are you just looking at things differently since that period?
From a credit perspective?
Yeah.
Yes. We made a couple of tuck-ins around underwriting, names that were new to BMO, size of hold when you are new to BMO, how we deal with core customers versus participants. Those tuck-ins have served us, I would say, very well when we look at the quality of underwriting that we are putting on the books today. We have an overall changed risk appetite, but we have certainly changed the way we run some of our processes to drive better outcomes on client selection, on core client growth. When we unified our structure five quarters ago now, in terms of looking at a unified go-to-market strategy across our businesses, that was useful as well, as far as client selection is concerned, because then you can look at full client relationships through the course of whether it is commercial, personal, or wealth management. That is all driving better results.
That is before I get to the portfolio change, right? We have made some portfolio changes as well. On the core operating business, we are driving better results on that, and that has driven the 17% ROTCE that I talked about earlier, and we think that will continue to get a little bit better over the course of 2027.
What about on the card portfolio in Canada?
Yeah.
That is something that a lot of investors have asked about, and it is interesting that as you move into that sort of mass affluent push within that.
Yep
portfolio, I guess the expectation is that you would have a perpetually lower loss ratio on a go-forward basis.
Well, there are two things going on at the same time. I am glad you brought this up. There are two things going on at the same time. In the lower end of the card portfolio, we have been pretty clear with investors over the last several quarters. We have been very actively risk managing that portion of the portfolio, credit limit decreases, and making sure that there are some portions of that book that otherwise we would prefer to have contained. We have done a really nice job containing that. At the same time, we have been adding to the premium portfolio in a variety of ways. You saw what we did with the Porter portfolio. That is very high FICO. That is very good net new acquisition in the cards book. You saw we made an announcement yesterday with the Blue Rewards.
Remember, Blue Rewards is the vestiges of the old AIR MILES , which we bought years ago and we had kept more or less separate. Now we have integrated it into a loyalty offering that combines into the overall mass affluent that you are talking about in the app. You have got, on the one hand, you have got better risk management at the lower- end of the portfolio, and on the other hand, you are actually adding good growth at the higher and the premium- end of the portfolio. I think this quarter that we put up for you all a couple of weeks ago was an inflection point. We actually started to see some really nice growth as we are managing down.
We have said it will take us a couple of more quarters to be really clear that we are in the clear on that, but we are ahead of schedule, and all the signs on the actions we have taken have been really positive.
Okay, thanks for that. Maybe switching over to the U.S. P&C banking business. Obviously, a big part of your growth story on a go-forward basis. You are allocating capital there. A lot of big plans for BMO's U.S. business. I just wanted to ask about post-optimization. You have gotten to where you wanted to be.
Yep.
Under Aron's leadership, you've got a lot of ambition to grow, 150 stores in the California market. Just in terms of just that trajectory, what should investors expect? Is it just going to be a continuation of commercial volumes picking up and staying strong? Or where will we see in the element-
Yeah
fee-based revenue? Maybe touch on the-
Yep. I think it's important to kind of take us back a bit to take us forward. When we announced the restructuring of how we were going to go to market with those businesses five quarters ago, in July of 2025, what we said was we wanted to drive a unified go-to-market strategy and a unified balance sheet integration strategy in the United States in what is a top 10 bank in the United States. Through that, we were going to drive that ROTCE up to 17%, 18%, 19%. The team has done an exceptional job driving that, and it is not just a commercial loan growth-led strategy. We told you all that we would have an optimization program that would conclude at the end of the second quarter of this year. It did, right on time.
At the second quarter, we showed sequential growth in the commercial loan book after we'd come through. In the third quarter, it was 4% sequential. We are seeing that growth in the commercial loan book. The more important point, though, Mike, is the full client relationships that we're driving around the integrated strategy is really what is driving the improved fee business, the improved ROE, the lower credit losses, and the durability of the trajectory that we're on right now. Example, in the TPS business, we're up 15% year-over-year in TPS fees in our U.S. banking business, which is on top of the 23% we were up the year prior. We exposed a little bit of this at our Investor Day. You should keep us honest on this as we go forward. This is a really key thrust to our performance.
We have got a differentiated offering, and now it is completely integrated into the client offering, inclusive of how we do consumer banking, Bank at Work programs, how we do wealth to consumer mass affluent. We do not do it every single in every single corner of the United States. We pick our spots right down to the node, right down to the MSA. Last point, you referred to a build-out of 150 new financial centers, mostly in California. That is a piece of the equation, but in and of itself, it is not the story. It is the story because it drives those full customer relationships.
We took some investors, some of you might have been there, out to see a couple of these last week, where you see a full financial center offering that has been deeply researched to be in the right neighborhood, where the right clients are, where we can be competitive relative to others that are in the neighborhood, and we can bring that three-in-the-box model and drive a full client relationship model over time. That is a symbol of the strategy, and it is the coming to life, the physical coming to life of the strategy. We got a really good chance. I will give you one last data point just to some things that we get excited about as nerdy bankers. The deposit market in California is $1.7 trillion- $1.8 trillion. It is bigger than Canada. In California, we have a 9% deposit market share in the Midwest.
We have 2% in California. If I can take 2% to 4%, which I am very confident we can do over time with the strategies that we have got in place, that is CAD 20 billion of funding. Before you even get into how we drive the full relationship with the client that I can use to spin the flywheel with commercial lending, for example. It is a very effective strategy. It has only been rolling for five quarters now, but it is just going to get better.
Maybe touch on that a little bit more. You talked about moving that market share in California in what a lot of people would consider a very competitive market. What is going to drive that? What does BMO do? What can you do differently to win those clients versus your peers in a generally competitive market?
Yeah, it's a good question. If anybody would like to see this in living color, give us a call and we'll take you down there and see our teams in action in this market. It's pretty impressive. That three-in-the-box model that I talked about earlier is actually quite unique. We have very good competitors in California. We have large competitors who are doing a really good job, who are taking notice of the really good job that we're doing, and we're talking about us, so we know that we've got their attention, which is interesting. We also have a lot of competitors in California who just suffer from an incomplete offering. Their shelf isn't as complete, their tech isn't as complete, their offering or their talent may not be as complete as ours. The market is very fragmented outside of the largest players in the market.
You look at the story of what we've done over the course of a long period of time in the Midwest, driving to a 9% market share. When I look at the industry structure against our capabilities in California, relative to many in that segment of the market, that we can move pretty aggressively against if we choose to. We're seeing it in living color. We're getting the talent, we're getting the customers, and then you get the full relationship and you get the returns. It's all being driven as a combined ecosystem with the management team that's there.
What about the Wealth business in the U.S.? Obviously, there's a pretty close tie in between Commercial and Wealth.
Yeah.
I guess it's fair to say BMO is not at the scale it wants to be. What does that build-out look like in the next few years?
Yeah, look, Wealth is a very high return business. I get asked the question often, would you increase the share of your U.S. pie that is Wealth through acquisition? That is a tougher thing to do in Wealth because the quality of the asset or the retention probabilities as you go through that. I wouldn't say we wouldn't do it, but it is tough to find the right thing that fits. In the meantime, what the teams have done a really nice job of is better and better and better client segmentation across the mass affluent channel. If you go and you figure out cost to serve, you've got a client who deserves to be served in the Personal and Consumer business. You've got another one that deserves to be served in the Wealth business.
And if they're properly allocated and you've got the right to win and not just do their banking business for them, but also do the investment management business. We'll grow this one client at a time for the time being. But it'll be a completely integrated part of the mass affluent strategy that we're running, as opposed to, we're just going to build a Wealth business and see what happens.
Fair to say that is the plan. You want to get it to a more meaningful place in terms of the-
Oh, it will get there. Yeah.
Okay.
Yeah.
Okay. Maybe switching to Canadian P&C banking. Would love to get your thoughts on just the competitive environment. I know it is a competitive market, but it is also an oligopoly. It is a bit of an interesting dynamic that you do not see in other jurisdictions. What is the competitive dynamic like right now in terms of the, maybe split that into the lending side and the deposit side?
It is an interesting I had somebody say to me, Boy, the Canadian market is getting really competitive these days. I have been in this business over 30 years. It has always been competitive. It has always been competitive. The competitors that are in this market, whether it is the big six that you are hosting today or the others that you have, or the credit unions. The market is very competitive, and it just depends on, from time to time, quarter to quarter, year to year, where those pressures come from, whether it is pushing assets, whether it is pricing on deposits, whether it is different offerings. We made an announcement today that we are going to move to a very attractive offer in our Investor Line business on fees. This has forever been true, that it is a very competitive market, despite the attributes that people put against it, and we are happy to compete in this market.
It has been serving us well. We are actually, by the way, I should say in the Canadian P&C business, what maybe has been a little bit unnoticed, if you look at where we are gaining share, despite how competitive it is, and I just described, it is completely consistent with the objectives that we put out on March 26th at our Investor Day. We have been gaining share in Canada, in P&C banking, in retail operating deposits, in mutual fund sales, in commercial deposits, and in home financings this year. So we are number one or two in all of those categories. So while you choose your spots, and you may say there is some pair I talked earlier about unsecured cards, you were asking me.
We may choose to give up a little bit there, but we will pick up here, and that will drive better outcomes over time in the market in Canada, and we are obviously never going to forget that.
What about the cost dynamic? Obviously, in a very mature market, investors would probably look to some element of cost control or cost moderation to be a potential driver of earnings if the revenue environment starts to slow.
Yeah. I think it is more sophisticated, frankly, than cost because it is about the discipline and the forcing mechanisms that you have against positive operating leverage. If you have somebody come to you with a business plan that says, I am going to grow my revenues at 15%, you should probably say, No. Show me a business plan where you are going to grow your revenues at 7% and deliver positive operating leverage." Then you get your cost outcome. You get your cost answer out of that. Over time, if you have seen, I think we have had 10 consecutive quarters of delivering positive operating leverage. That is what we focus on. Cost is an element of that, but if you want to just run a cost play, you can get pretty dangerous if you are going to do that, and you are going to under-invest in the business over the long term.
We think there is plenty of capacity to continue to invest in the business and drive positive operating leverage. We put out in the window at our Investor Day a 54% or lower efficiency ratio. We are not far away from that now, and we can get there by just continuing to do what I am telling you on the positive operating leverage mantra that we have across all of our businesses, not just this one or that one, and that is before we get to the AI question and the efficiencies of AI. I am pretty confident that we are in the right zone there.
Okay. What about the growth opportunity with the infrastructure spending, the Build Canada dynamic?
Yeah.
Can you talk about that? BMO being a more focused commercial lender
Yeah
versus some of the peers. Is this something, I'm guessing it's probably impossible to scale at this point, but just in terms of that incremental, how much of a push could it be? I feel like the banks have not been capital starved. It's not like they don't want to lend, but this brings in a new dynamic of demand, and then you're obviously able to supply that. Where does BMO fit in that mix?
Yeah, look, bottom- line is it's net positive. There may be a lag. There may be a delay before the demand pull that you're talking about is evident on the P&Ls and on the revenue lines in particular of the banks. But this is a great question to remind us that there are a couple of things that are differentiated at the Bank of Montreal. One is that we're overweight U.S., and in that U.S. business, we'll drive an 18%- 19% ROTCE, which means we're investing the margin or dollar of capital at that rate, which is not far away from where it is in Canada, but it comes at a higher growth rate. That's thing one.
Thing two is what you've talked about, which is we are overweight, over-indexed relative to peers in wholesale, and that's commercial in Canada, commercial in the U.S., and it's in I&CB and capital markets, in the places that we think are really going to matter for the theme that you're talking about. We have the number one metals and mining bank in the world. We've got the number two market share in energy banking in Canada, power, infrastructure, utilities. We're very well set up from a mix perspective against the themes that you're talking about. The only caution I would give, while I think the direction of travel is absolutely the right one for the country, the implication on the trickle-down effect to demand on banks for loans, for fees, for advice, for servicing, takes time because announcements are one thing, business plans are another, shovels and ground are another.
You have to fund that. When that all starts to occur, I think it's good for the banking complex, for all of your guests here today, but I think it's particularly good for us given our mix set up.
Got it.
It'll come.
Then maybe just pivoting to the Wealth business in Canada. Some of your peers have talked about the tie-in with the retail, the branch channel, and wealth. What does that look like for BMO? What's the evolution there? What stage are you at right now? Is there a good amount of cross-sell and referral business that comes in? Where's BMO on that?
Yeah. Increasingly so. I got to tip my hat to our colleagues in Wealth. Dale and team have done an excellent job repositioning that business over the last three or four years. If you look at the complex of assets within wealth, if you look at asset management itself, many of you know it well. I think our absolute fund performance at a point in time was not where we wanted it to be. It is solidly second or first quartile across the board, and we are able then to distribute that product both through our channels and other people's channels really well. The private bank is perennially ranked as the best or next best in this country, and that is a really important asset for us. The Nesbitt channel is really important. Insurance is really important, where we are driving really interesting automation changes through AI and otherwise.
The complex of assets when you put them together are delivering the highest ROE of any of the assets within the bank and very competitive with all of our peers and is growing at a rate that is attractive. I think it will continue to. Markets may moderate, but some of the changes that we have put in place are structural. We actually think there is a new level of normal in those businesses that we can continue to deliver. That includes your point about how we run one client servicing through the retail channels and through our P&BB business, because from my seat, I am indifferent as to where the activity, as long as you are able to serve the client, retain the client, and make sure that you get the most for the client and from the client as you go through it.
I think that business has just done a terrific job.
It is trending in a positive direction in terms of the referrals. They are growing over time.
Absolutely, they are.
On the Cap Markets business, I would love to ask you because you do have a background in capital markets.
Yeah.
Are we in a super cycle here?
Yeah, I think we are in a super cycle. There will be moderations through time and through quarters on the super cycle, but I actually do think that we are, and I will tell you why. If you go back to several quarters ago when the capital markets revenue lines were pretty muted for all the banks, it is important to remind ourselves of what that world was like. We had a world that was pretty benign in terms of extraterritorial shocks. We did not have a war in the Middle East. We had a U.S. administration that was, let us say, quiet. Now we have a world that is pretty volatile, and our clients are repositioning themselves every day, sometimes every hour. That is a conducive environment, as you know well, for capital markets.
I'm not sure why that changes as we look forward in the next couple of years, for better or for worse for society, but for capital markets businesses, that presents a lot of opportunity. On the other side, on the I&CB business, we just talked about it. The ability to service the way the market comes to us with respect to demand for energy, infrastructure, AI ecosystem, and metals and mining, is hard to convince yourself that there's a negative there, and it's very positive. Should you flatline the rate of PPPT delivery that we've had over the last three quarters for the rest of time? That may be hard to do, but I do think there's definitely a structural step up relative to where we were a couple of years ago.
Last point, and we made this point on our third quarter call. If you look at the diversification of our Capital Markets business, both by product and by geography, it sets us up to be able to take advantage of opportunities in different places when they present. So we've been pretty close to CAD 900 million of PPPT in the last three quarters consecutively. But if you dissect each quarter individually, there were key drivers in Q1 that were different from Q2 that were different from Q3. That's good because that was the market presenting something to us that we were able to step in and take advantage of because of the breadth of products that we're talking about. We're the top three provider of agency CMBS on Wall Street. We're a top provider of leverage finance. We're a top provider in the U.S. of liquidity for US Treasuries.
We've got the businesses that we have in Canada that are top three in almost everything, every single day. Different things are firing at different points in time in a volatile environment like this. The geography diversification is important, too. Our Capital Markets business is about 48% U.S., 41% Canada, 11% international. So I can look across this business and realize that there are a lot of levers that we can pull depending on the speed of market variability, which is only increasing. So I think we're set up pretty well for it.
That diversification, it sounds like you're suggesting it provides a bit more stability. So even if the markets do turn, it's not the same deceleration that might've been the case 10, 15 years ago.
Yeah, unless you believe in a world where everything decelerates at the same time.
Right.
That could happen, but that would be a dark place, I think, for all of us. I think the more realistic world is one where you get some deceleration in certain asset classes, but you are set up to pick up the activity in another asset class, and that is where we are.
Okay. Awesome. I would love to ask you about capital deployment. I know it is very topical for BMO because you have made a lot of acquisitions over time, and I think the obvious questions that investors ask is, a lot of excess capital right now.
Yeah.
Valuation levels are amazing. Never been this elevated. Maybe they are not elevated. Maybe it is the new normal. Time will tell, but—
Well, that's your job.
You've obviously got a very good dynamic on the excess capital. Your valuation is strong if you issue equity for a deal. I guess the question that a lot of investors ask is BMO going to do something larger in the U.S. outside of a tuck-in? I think you've been pretty clear, but I thought I'd just give you the floor to maybe reiterate.
Yeah, the answer to that is no. Let me unpack that for you. When I look at our capital planning a year or two years out, you're absolutely right to say I go in with a pro forma 13.5% CET1 ratio. What does that mean? When I work with my business leaders and we build the business plans, there is plenty of capital to satisfy what we forecast is good loan demand in all of the businesses. We look at that. We look at our dividend policy, which we don't expect to change, and then we look at our investments. Then the last thing we do is we say, is there anything left over within our target CET1 ratio? That goes to buybacks. You saw us announce our NCIB for 25 million shares last week. That number is not out of the blue.
It's a number that satisfies that formula that I just described on the Pareto, and that lands us in a CET1 range of somewhere between 12.5% and 13%, which is not new. That's a range we've been talking about for quite some time. Somewhere in there as we go through 2027 is a place that we're really comfortable. As far as M&A is concerned, we don't need M&A to satisfy the targets that we've set out for investors at Investor Day. Everything that we built into our assumptions then is consistent today, and I've been really clear that the focus in the meantime is very organic. Organic first, deliver on the targets that we've set out for all of you. If something that fits right in our wheelhouse comes along, we'll execute on it.
We always get the question, Mike, on U.S. M&A, so you're not wrong to ask it. But in the meantime, we should pay attention. It's not like we've closed all doors. We made the acquisition of Burgundy a year ago, which is going very well and ahead of expectations here in Canada. We made an announcement of a small investment bank in Australia in metals and mining. Why did we do that? You've got the biggest metals and mining investment bank in the world. Canada's the biggest investment banking market in the world. Number two is Australia. Number three is the United States. We're participating very actively in number one and number three markets. In number two market, we're trying to build that up. It's consistent with our global strategy in metals and mining.
We'll pick our spots, but I wouldn't expect, I think the words you used were large scale M&A in the United States. That's not on our radar right now.
Okay, awesome. Maybe I'll just turn it over to you, Darryl, just for some final key messages you want to leave with investors.
Yeah. Mike, the key messages would be that we're absolutely, completely committed to the plan that we set out seven quarters ago. You were good to say up front that you were a bit of a skeptic on some of it. I know there were others, but I wasn't, and neither was anybody on our team. We're delivering against that plan every day. We will continue to deliver against it. It's balanced across all lines of business. And when we get there, we have a really interesting value proposition for shareholders, which is we're spinning the U.S. ROTCE at a rate that is comparable and close to Canada's at a higher growth rate because we've got market share opportunity in the markets that we've chosen with a new strategy that's fully integrated. And we continue to drive that Canadian business at a high ROE and a lower growth rate.
The combination of those two things spells out better returns for shareholders than most will be able to provide when particularly you factor in the macro environment and the Build Canada agenda that I think we're particularly well set up for. None of that is new. None of that is a change. We're going to execute against all of those things as we go through the next few quarters.
Awesome. With that, we'll stop here. Thanks very much, Darryl, for the insights. It's great to have you here.
All right.
Thank you for joining us.
Okay, thanks for hosting. Appreciate it.
Thank you, Darryl.