CM has undergone a transformational period, its US commercial book is growing, its pivoted its strategy into gaining mass-affluent clients, which is driving margins, and its ROE is significant - above 17%. NA trades at the highest forward earnings valuation of the big 6 banks, but it has also shown some of the better growth rates and total return metrics. It has acquired Canadian Western Bank which has been a major earnings accelerator, and this boosts its footprint outside Quebec and commercial lending growth. We think both names have major growth stories attached to them, and while there are concerns of mortgage renewal cliffs occurring in the coming year or two, we think they have expansion plans that can offset some of the potential weakness in mortgage renewals.
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