Royal Bank of Canada (RY) 24 Feb 222022 Q1 Earnings call transcript

Good morning, ladies and gentlemen. Welcome to RBC's conference call for the First Quarter 2022 Financial Results. Please be advised that this call is being recorded. I would like to turn the meeting over to Asim Imran, Head of Investor Relations. Please go ahead, Mr. Imran.

morning good and you everyone. Thank

us be Speaking Wealth Head, Personal Executive Chief and President questions, Management, joining Chief Commercial Group Banking; Group and McKay, Nadine today Risk McLaughlin, Ahn, Head, Head, Also Hepworth, Insurance will Neldner, Officer; Graeme Chief and and I&TS; Capital your Derek Guzman, Dave Markets. Financial Group for today Doug Officer. Neil Officer; and

ask inherent Slide X, also involve our comments and forward-looking considers requeue. could Dave. business to everyone to turn contain results which give have the that, that remind adjusted useful in bank your would on may assumptions we assesses I'll to on statements, differ and chance both its questions noted and and risks that you performance. I basis Actual With it uncertainties. limit then To performance assessing underlying over a As materially. reported and questions, be a ask listeners

good were lower continued offset results the and spreads. and growth. record partially Pre-provision City our from leverage scale again our for second driven of management everyone. wealth were in and XX% client income and all and billion, record the underscoring we volume These last Thank Thanks on by from our robust investment invest growth to operating $X.X generated us. and franchises. X% strength pre-tax trading for Today, reported up bank earnings impact strong benefiting was Net of year-over-year highest revenue. while and you year morning continuing of Canadian we earnings National moderation banking revenue up positive joining banking

support us in manner ratio a a strong return and value. XX.X% combined to on growth deploy capital Our driven shareholder enabled long-term to balanced capital equity client with

to total ratio our share $X Canadian million of for Our a we our supported base, In well as dividends X payout repurchases. shareholders nearly billion in capital shareholder to of almost as largely aggregate, $X.X billion position returned XX%.

organic capital our of billion needs a deployment deployed level. continue billion This to with representing ended growth capital the our CETX XX.X%, moment. talent our opportunities in also RWA for quarter and of ratio growth sheet to balance across We accelerate businesses support in $XX this in investing quarter. significant an to provides flexibility robust in a clients' We resulting ambitions technology and excess $XX this of speak to will and XX% in strategy over the organic more I current

that quality also capital well in growth repurchases enables segments our Our current strategy geographic providing and franchises share strong align as to as optionality further with acquire position us footprint.

Looking forward, disciplined shareholder share our XX% approach and a this the annual and consistent a have a over and year-over-year book last three on balanced and focus value client as deployment evidenced value capital compounded quarter growth we X% and to rate per by clear growth creating years.

to I opportunities, speak macro touch growth want to I our Before the on environment.

capacity and experience and risk, imbalances inflationary to geopolitical supply volatility heightened by energy chain driven continue We market conditions. high disruption, labor acute resulting economic market shortages, continued

still economic However, the strong. underlying drivers are

driving potential capabilities. look Canada building of an business increased North and Recent the for on can savings bank into record and economies increases we peak, acceleration inflation in imminent to over strategies investment case Omicron the past move programs. in American tightening just inventory and $XXX digital demand suggests housing, consumer concerning around of quantitative new full level hawkish commentary services, rate central we and reaching billion alone, driving immigration As household renewed goods spending

to which Nadine rate will later. benchmark driven of volatility interest prospect are we markets, in the benefit increases from rising has equity well to speak While positioned rates,

cycle suggest curve yield economic we labor growth reaching This the markets to early and three with tight combined also seen significantly potential economies of mid an last have economic over recovery. the than we full However, flatten are stages months. closer

continue As to monitor imbalances across housing, the supply/demand country. we to it Canadian relates

limited the made the be term house inflation client number across drive to side competitiveness implement address supply, continue on all and working that risk long argued I'll all our supply have at problems the of of the creating accretive of opportunities more a businesses. jurisdictions market together We responsive We to levels which long-term across an driving to are government to must growth encourage increasing of expand the policies economy. to organic Canadian of price policymakers now longer demand. focused

last scale productivity, revenue invest to drive deploy in concurrently Nadine sales, continue mortgages this significant us our while Banking, across number adding leverage of up client positioning quarter speak enables Canadian nearly later. to And leading businesses us will Our billion we increasing which growth we the to value the over In years. to capital were made $X XX% technology, capacity to investments will and year-over-year have alone.

driven range, immigration, strong levels expanding capture increased and mortgage expect of continued to to We by in meant demand mortgage by the our investment continue in Canadian opportunity. pent-up this our high supply force renewed single-digit sales growth

overall XX% as in to continued ease restrictions January pre-pandemic February and across Canada. over side, late early consumer levels payment the On through spending was up

time We expect revolving credit continued and balances. of to reopening a economy increased steeper drive recovery credit Canadian card card the the in spend in

cards resulted new our and at mortgage strong to credit quarter over investments being capabilities digitally are in XX% digital this businesses these rates in of sold XX%. retention enhance exceptionally all Our

integrated even including We clients, solutions and more set of of to value have also to in RBC our Vantage. investment year's invested launch provide last banking a

have has seeing from X XX Canadian year. In investment with revenue we nearly franchise. in attract including years checking contributed new million a In addition, of our four We're have points deposits basis MyAdviser, of payment products, gained one share which two points number core our up clients nearly And last market of alone, retail clients in market client added over the nearly to in in Banking million years last investments enhance of and share continue and billion now $X X made engagement mortgages. just our digital the XX proposition value increased gross to clients. basis to

utilizations in lending to higher persistent labor from our driven levels growth adjust disruptions line credit desire also expect business supply shortages. and the clients' of commercial chain stronger light rebuild inventory and We in models by

verticals. management RBCx, up reimagining our We account and our owner commercial teams services to life products and this platform chain, are tech growing science and value and including expanding to entrepreneurs client help RBC capture Venture changing and and scale our

franchise to Turning acquired the to loans up levels from City PPP nearly billion, year XX% grew have last and process high next further excluding infrastructure of City phase in We're retail banking National's the deploying XXXX. loans, including technology and loans, quality in growth, Loan investing balances improved in from operational platforms. average National, lending US$XX X.Xx mobile of fiscal increased we the commercial this growth when with for XX%. the

accretive strategy. mid-market industry expect US$X increasing continue content Looking our positioned franchise from two FilmTrack City to years. to and generate private over strong includes City added the have commercial led of strategies in growth multi-pronged through alone past billion well division. entertainment mortgage in loans National programming. the original benefit Furthermore supported to is banking expanding our National's trend acquisition growing This investment by leading through and These our capabilities forward, we growth

year-over-year, and Management Global management to these respectively. momentum. on over high basis. XX% increased nearly of the increased Canadian three-year Asset RBC from $XXX X% a with XX% AUM last AUM And on outperforming Management billion year XX% our Wealth benchmark our to America, ROE and in franchises continuing current asset growth wealth across businesses U.S. and AUA North broader drive building Turning we're to

Management. forward, Looking our to team we X,XXX will Canadian over continue of in expand Wealth existing advisors

strong technology. to advantage are our have growth invest This expected remain start strong million in securities generated nearly the focused These Management, drive adding US$XX integrated lending technology the in in by we new new over platform. average. year. coupled per with XXXX advisors platform attracted on our in bring help we advisors Investments client-first products US$XX fiscal billion nearly made is revenue billion products XXXX, advisor of differentiated Since of new are the industry U.S. In leading leveraging advisor XX% organically above scaling we that in and hired resulted US$X investment in experienced alone. productivity, generating financial culture and of our to revenue of portfolio AUA. the expertise, advisors who technology lending Our over past Wealth over our Canadian and

growing investments and momentum resulted people considerable in has Our at technology, in markets franchise. our capital

corporate demonstrated investment record revenue As quarter. our by this billion $X.X banking of

of some Banking, and and Investment investments most win our key directors U.S. We as technology attractive healthcare our positioned RBC active well the including forward ninth going group. league increasingly These in to talent as the sectors. especially in have to mandates strengthened Markets global Capital have in adding, verticals, propelled in M&A managing tables us in sectors, the

above times. $XX we markets We've helping pre-tax AI-based provided of traction, trading own per We capital of execute towards in investments sustainable have in power to Aiden, billion these on clients up through believe our during platform And volatile continued the earnings XXXX. their strategies. $XX quarter in target We billion to gain and enhanced our billion our pre-provision, by supporting from earnings has our XXXX, $X billion electronic finance building franchise, $XXX these global are continue structurally also sustainability drive clients expect XXXX. markets XXXX, to

this economic to desire given accelerate own outlook to banking increased Our strategies. near-term In look capital investment their clients plans context, we capital will pipeline our up, largest the partner. into growth an underwriting remains continue to franchises. deploy started markets, on healthy commitments and as from continued across support rely global have momentum to trusted our we innovative strong including To with continue for and XXXX sum as us an

products continue deliver client our significant clients new Our people, for in to results investments differentiated and and services by existing to value and relationships. technology attracting reflect

investment to Ahn will fund continue Dave morning, positive $X.XX driving good clear and value revenue, XX% balanced as manner. all capital X. Slide Nadine on year-over-year, We well pre-tax per last We a from and earnings and increased by of fees. will long bank operating management focus leverage. strong Revenue in Nadine start mutual up everyone. this driven was benefiting year. fees deploy advisory I on you. earnings to Pre-provision reported strong shareholder growth share over term M&A from a also have as Thanks quarter X%

earnings mix. XXX rate of mainly tax from and last to changes adjustments due increased in effective net points the impact Our tax year, basis

back expect rate normalize year. forward, our to XX% the of Going the effective through XX% to rest we fiscal towards tax

and results, spend capital on time to CETX I sensitivity, ratio some down basis Slide Starting deployment, rate topics, our was three with XX discuss Before key segment XX.X%. our X, will our on expense outlook. I points, sequentially capital

XX excess client-driven RWA generate quarter, to credit basis capital by Our points basis of added and shareholders lowered used through XX basis share points return capital included $X capital growth. repurchases. XX capital earnings RWA dividends this to of well of billion. points Balanced Net deployment of in migration

Slide Moving Canadian year-over-year on of growth impact up to X, Banking income offset to City as strong continued was and in net the X% net National margins. interest lower volume interest client-driven

to net the competitive interest persist, of XX, to was Now of nature low the X the while mortgage of of margins impact both spreads market franchises Canadian in Slide rates down the asset drove basis see on Banking point we sides started continued stabilization border. banking NIM as to a lower. interest our sequentially,

paycheck accounting These up see last most NIM impacted continue by quarter. points A revenue. going National's last program was NIM expect increase. with forward. an offset to that mortgage to X were relative the lower prepayment partially of quarter factors basis to loans trend benefits contributing We from City moderate protection we adjustment

of loan expect and provide that was driven rates by context approximately rates. across deposit asset interest off important by National. yields City spreads impacting Canadian our lower Banking our portfolio reduced To $X interest the This rising billion. revenue to to partly largely to It's year on remember end. lower PPP XXXX impact run sensitivity and our XXXX cumulative lower We by

Banking $XXX Going well-positioned rates that from We in benefit over forward, scenario in Management additional rates. U.S. interest we and rising could the of over XX of million months a Canadian increase are estimate businesses. our Wealth result short-term to in revenue XX interest likely point basis

from by We to over as to higher this rate asset the volumes a and environment recover. hikes At pricing time. be by mix expect same compounded higher competitive economies benefit yielding time, impacted the in towards the be we benefit assets shift expect

XXXX the deposit expect and we our slowly normalization of in deposit $XXX An Reflecting levels. have beta levels hike cycle. surplus liquidity be of repo beneficial markets historical significantly business environment increase, from time. higher banking we previous franchises will rates and trends towards interest over in wholesale interest a increase experienced declined rate repricing As to retail would low where rates spreads billion our

year-over-year of expenses was on across excluding to U.S. X% the X% expenses and and up in support for variable to to non-interest the release and legal partial compensation. our Salaries backend operations Turning our Slide in compensation invest share-based the X% businesses, excluding Adjusting and Wealth provision as up of in were stock-based growth benefits variable we impact X% increasing many or and Management XX, expense sales verticals. activity client growth continue year-over-year. capacity were

how an increase you to levels saw Slide XX first marketing travel The about half think an in also and we expenses. of top costs compared idea the in XXXX. We of the gives of

run our have the and governance including bank. run is operational continuum costs risk foundational systems. to a would part costs, including spend technology large total to group the and We of core management a across also costs related bank regulatory categories, include costs, our key the of These

opportunities these areas, productivity investing innovating efficiencies We future. to act continue and in on the and to while for drive

to this leverage scale our nature. inherent and expect We base, growing is less cost generate variable which relatively revenue operating over in

has Our up new opening advice delivering account to capacity time and advisors experience for client for XX%. by focus This reduced freed relationships. value-added the deepening clients to on average has retail completion nearly our digital

generation look teams Dave are capabilities represent that there costs, XX% new structure, our AppDev generating drive flexible development There's reuse. earlier. And cost which to a which investments Our which investments approximately and which revenue, of improvements. add base. as automation including and next productivity products where Markets and largely growth lastly, are and are our pay facing are to such generating for bucket up have another is efficiency generated, These of to spoke through utilizing platform, execution, drive with that we costs Management cost where performance. or trade our revenue variable in platform, will client commission scale non-compensation sales our There are force down we employees costs, also Capital to Wealth

share-based Now expense compensation. excluding expectations, our to and variable the bottom for of the slide

We expect higher which costs, higher committed the of partly structural year, this costs impact realization the to to previously with due inflation, along be of is salaries.

in technology, our curve, we excluding to segments We partial priorities. recognize force drive end the release across benefits compensation, of initiatives strategic forward will in expect in and to banking grow streamline at the under annual we in and XX% includes the This spend the and expect And Canadian simplify higher Wealth to and legal efficiency scale share-based our subsequent In continue client-facing of to recognition provision the our range low the fall ratio continue invest our and that single-digit full largest in marketing variable to our our forward to invest Management. sales add XXXX. expenses, we aggregate, year XXXX. U.S. operations And processes. we will efficiency as of

X% Moving strong Growth balance volume Commercial growth spreads. was volumes with quarter, to by in up billion earnings sides our of & partially income Canadian as performance, year-over-year beginning Banking business this Slide net offset business XX. of both $X lower segment on up was on from Personal the sheet. last year. Banking XX% interest reported strong

X% revolve year-over-year. balances X.X% balances Canadian higher While also card near operating to to card fund did lows. mutual largely up with contributed remain this credit transactor rates increased, higher generated expenses Higher fees. of was distribution noninterest due higher credit as leverage income Banking pandemic spend as

last over Wealth net to of growth $X markets Turning assets, positive RBC of this sales client quarter's The billion and higher the revenue leverage reported after Asset and positive Canadian Slide Management from generated operating U.S. GAM Global net release XX% XX. sales. RBC partial adjusting Management, favorable $XXX legal reflecting last year. up earnings of generated quarter. benefited from million, Wealth provision. for even Wealth Management equity Management fee-based segment

at fixed retail than offset volume Canadian revenue prior December, partially City due spreads. growth volatility. double-digit of Wealth However, income the which sales to partly in heightened continued saw funds, were benefited National, also year, lower market from redemptions by especially out lower U.S. Management

Net Slide higher favorable a X% to saw also reflecting ago, experience experience. investment-related X% impact I&TS by contracts. claims On net and higher Lower to from results on were ago. The growth longevity million, Insurance decreased partially from $XXX the earnings XX. year due and of quarter These deposits funding $XXX income million, first Slide year technology-related lower to were new factors income XX. services of current revenue quarter decreased from higher reinsurance largely client mainly offset of liquidity, Turning costs. and asset and record a business businesses.

XX% Turning to Capital earnings helping billion higher revenues revenue. down record reported impacted as rate. again loan debt were billion, underpinned elevated origination and pretax by growth. Corporate effective strong tax higher contributed benefit surpassed to also Slide from year, In last including lending last the and of value FICC fees last to and contrast, book XX. were rates. year. origination levels To a Global from X% earnings volumes Markets spreads and X% this which are we Pre-provision revenues of continued of and equity Markets revenue fees, impact X%, from well interest down and both growing conclude, moderate revenue, record repo narrower $X.X stronger higher syndication M&A year continue robust, Equities record $X revenue down $X drive strong reported to higher from our client-driven but Investment respectively. quarter, Banking results fees, positioned billion, over

and I'll delivering and over for Looking focused continue balancing Graeme. value our it remain forward, cost capital to we our shareholders that, clients. deployment turn on management to disciplined With

from unchanged write-offs performing good XX. reserve credit on continued release quarter, last releases our provisions outlook everyone. loans of on with and higher reserves on loans losses Allowance This largely for fifth remained on reflecting consecutive and in our $X.X of Slide Nadine, in improvement performing you, and quality by portfolio. loans, billion, were loans. on Starting impaired the Thank credit offset macroeconomic of quarter morning, our marks as nearly

of inflationary uncertainty magnitude pressure releases and I last the related wave this quarter, pandemic, noted interest the the Over COVID-XX of the rate Omicron scale the namely tempered economic quarter to pace anticipated increases. the by were headwinds and of the

with impact Reserve now quarter earlier, impacts expected wave inflation the largely this million persist. rising are Omicron total rates As to $XX subsided, noted our and has while Dave releases bring of XX% the of of levels combined XX pre-pandemic approaching of billion XXXX. to points. the growth our the portfolio since is of $X.X ACL years, last release ratio now When of start considerable basis two over

Turning to Slide XX.

Our of loans gross our billion, $XXX quarter. points three down during the impaired loan balances were $X.X million major businesses. or Impaired again across basis decreased once all

at economic New lowest formations the reflecting recovery programs. ongoing benefits were almost their from level government clients continued accumulated years, support significant pandemic, XX the liquidity to of the $XXX in million, over the and

Slide points below to basis with of most on $XXX XX. below points, but Turning $XX was up loans levels basis our averages. long-term increases Banking up quarter-over-quarter, PCL products. modest or impaired was Retail impaired across million and on million remains PCL our In portfolio, two nine loans quarter-over-quarter, well pre-pandemic Canadian

to during delinquency of the historic We the the factors, delinquencies Overall, These remain also programs few rise levels certain quarter. saw support to to down begin beginning winding more be seasonality, below revert norms. client increases pre-pandemic levels. to behavior government a including and can attributed

see two in this the Despite Our market is we a list this largely was a recoveries which Capital portfolio. million quarter Banking on continue as up with liquidity. net reduction we portfolio Commercial and in to portfolio, a on constructive operating and impaired In consecutive net million this credit recovery positive migration provisions quarter, is environment which larger PCL in $XX benefit strong by increase Capital fourth $XX the Canadian impaired had driven accounts. quarter-over-quarter, to continues from in exposure watch on loans Markets, quarter, the loans Markets,

the on Slide Wealth last Management, I'll in National. $XX in now provision sector loans risk at decreased largely on Finally, technology quarter the impaired PCL a to due to City of million quarter-over-quarter, XX. information turn market briefly taken reversal

policy, peak, inflationary effectively During the to to the no geopolitical and our The as Central the volatility market tensions Bank and Russia the in market we rose increase. there days pandemic course Ukraine forefront. Notwithstanding Omicron quarter, on wave pressure we at trading of in were losses the its manage the quarter, monetary market reverse increased with saw came risk profile. volatility, net started

wave geopolitical Looking driven ongoing largely persist, has ahead, likely pressure. of tensions to monetary subsided, is while the volatility policy, market uncertainty impact the around by and Omicron inflationary

supported to performance We risk resiliency continue To our a to consistent prudent with through appetite portfolios market be of environment. a conclude, and of the risk take credit the by we pleased and approach to a pandemic. continue and control ongoing strong our operations the counterparty

ratio quarter, norms to impaired back this last the noted XXXX still losses on towards start pre-pandemic as of XXXX. was quarter we loans PCL our anticipated levels. and historic increase course the to in As We for into return expect to trend PCL

base prudent risk As always, the our quality management client uncertainty. of to manage and our well us any through approach positions

the remain our our help evolving environment. operating navigate commitment steadfast to insight in and we supporting and products clients macroeconomic delivering Importantly, them and to advice,

lines that, the Q&A. with operator, let's open So for

Thank now from We'll telephone Please [Operator first And go John questions Barclays. ahead. Aiken from Instructions] question take you. the lines. from is the

more look questions whole a those that a expenses, is one this and generate versus of generation, the Good host terms at morning. and on the expenses Or is for possibility you. different variable to there function outlook sales we know advice factors. within the XX. of expenses that Quick thank of to expenses? bucket, Slide Nadine, within When is leverage there more one But the I encompasses the of for for revenues? operating on in revenue positive discussion – you

our particularly way mentioned comments tools we force, work. deployed objective. they That when are and the productivity we’ve in efficiency around some John. terms Thanks, that them I the their increase in at how the look of we to we – sales that – is When

the support would staff. I that of groups is that with the component frontline is that travel other the The say part also also of

optimization every through a we’re number programs, revenue. cost, more generate that dollar looking that drive of to of such we so dollar also for much And there we’re of

as And potential follow force, mortgage great. That’s sales to are with what residential David costs the grow you on, mentioned a downsizing. associated that continue frictional

if because we be that the of buildup slowdown see – of a what how So the and on when efficiency the of marketplace, lag much salesforce? would a housing in the ratio

maybe. Neil, to Turnover

mean, don’t to be based think looking that thanks at I really scenario commission we we contemplated are we I really question. These a truthful. would people. where – are sales to the Yes, haven’t variable

looking on think, factor So for part, slim would most would down the our the really we at go I for them something outlook force, that and to it’s volume and be friction out would to I the be not we continue to needed that for compete into if op cost sales lev. margin, mean, negligible.

Thank you. Understood.

you. go Please next from America. The question ahead. Poonawala Ebrahim Thank Bank from is of

remarks markets geopolitical guess cross that growths, lot clearly to morning. wanted consumer of just spend a that attention bullish, back talked Dave, very everything your in inflation, terms sounds currents you I prepared including commercial risk. the go paying Good of to about mortgage to, lending,

Just love as transitory think cycle any insights things, we up give when you trends of might the downside around more economic of outlook? this? opening that the are we stronger, forward do to would the markets risks mid the immigration with not be you early things QX of do back some sense risk underlying are much the are moving growth Or more and caught mentioned us a [ph] outlook, the you see are at the in where terms maybe cycle, cycle, you look

growth? you’d is, the mean, solid out And question stage be the early would couple cycle. economy late is, growth It’s there at left are the we does consumer risk. lead lot years mixed because sitting a factors play and which capacity consumer commercial all consumer we’re that’s normal, ones look Those even here factors it cycle, cycle, an of they mid see the When for are we of hope risk, the of does is be are balance a economy inflation there. sheets outlook. all there’s immigration, where the say economic spending signals could the capacity and We Net-net returning so, watch liquidity the labor to mid of cycle, expect, policy of growth one are going cycle but solid, lack very the or to workforce. see out. those in the top or kind monetary good, geopolitical lead inflation, risk on a types would and of the important is how where utilization And we goods in services of would the And of more. of of balance to the a things to positive risk and consumption,

real think, I So the to the to what one of our inflationary and the pressure. is that we I Is way risks capacity billion more or to real liquidity, economic point kind of here your question, of by have United States watch growth, just are in inflationary economy. to X.X pressures or that your answers are Graeme’s question. it that hope the $XXX we just use trillion $XXX billion going to create GDP

I And think helpful. That’s follow-up. Yes. a just as

and when in acquire growth to looking are mentioned us looking segments, Royal. for things terms be that to that franchises talking you think capital I acquire quality to what or would potentially unpack attractive of about deployment,

You’ve not acquisitive. been very

the talked Would You’ve asset generation any past. dislocation seeing a correction we about asset markets? especially some capabilities in period public where the in love color, price, are in

and was the family looking with relationship It on on the auction of quality And obvious don’t in Goldsmith around as assets point for focused things was come built similar now. based we’re City years I for it. growth doing Russell Goldsmith very of National. number a And up right and growth The We’re type a National, with very no City there franchise reasons. we’re together. where high the to quality, over we future saw a auction high for

but expand of will their always predict, are when we to first call. The a and looking we want we the see. network. And to be assets they strategic is there number are So make exist hard to decisions obviously how attractive our timing really that

ultra wealth, going that continuing from are perspective, net have we’re and looking we dialogues, mean and think it maintain, commercial doesn’t and in things active the high are I happen. States United but to So we worth franchises Europe, for to

from at I organic continue So to works. that acquisition growth. Look perspective, the model growth continued City and it’s to National the outperform. think make to focus. accelerate that The an don’t We need

So it you made growth we to of long on we franchise organic and franchise, said And can This period National when right it a you acquisition, time. get make we has City grow other for the don’t enormous the when need acquisitions. potential. run

that. So many on a not if we are it. half you times, dissipates And misspend have said looking as I for It similar capital platforms like to does life. build only

about So it. smart we are being

You’ve seen that we and you returning growth some of to the capital share saw you our as numbers, buybacks. in are

Dave. clear. Very Thanks,

next Thank Paul from from Please you. is ahead. Holden go The CIBC. question

Thank morning. Good you.

feel in I of in any ask I because sanctions this question, impacts of we just Are thinking RBC? happening what’s first terms kind the So order magnitude to of have compelled, Russian about Europe. should be there and the

start, I’ll Graeme And you. let maybe with I’ll over in to then jump my perspective. and Graeme

are don’t the fact not have Russia of bypass, Ukraine. or the think I that those that we that's we like to with mean, markets point to first allows countries meaningful do that that, the kind make have any clients the appetite directory, in risk is a or I don’t us operate operate and sure. Yes, we I risk to mean high exposure that.

need flow indirect and economy. exporter through that those what more On our resources and is through. natural think certainly that ones effects Canada high that’s of commodity to think a prices, are kind have for levels is interesting net of could on we a that multiple impacts one I so hand, positive we’re focused And of the

are things those concerns hand, other inflation. of and to going the exacerbate kind to fuel are current like continue risk On

be concern of I so, these of us or again, areas against well happening concerns would that be And those appetite kind this the now we on environment. emerging in us position model in will Europe. are would right our serve that focused and But well risk operating think Eastern

to little bit is, of the There yield would you how investor global is seen I when volatility. at you’ve a from coming the thing effect have volatility of end on the at uncertainty, only react, The flight always tightening such long a you markets but curve. the geopolitical curve, quality as uncertainty, obvious add the look

that seen You’ve today.

invert in in we’ve at I as geopolitical long short end tightening historically curve of the the over that all tends risk volatile is be points quite time, can the to it temporarily. curve see think of does and but seen XX U.S. out about you the with term. What the smooth

to continue So capacity talked move the about, and all the this expect we to still underlying economy, used, for that monetary forward tighten, the of that still of rate economic continue to inflationary would to I are I form very some strength increase being pressures expect strong. drivers

which for… Okay. leads to That question, actually That’s me real my perfectly is in great.

get want You Nadine… to

on, more provide, of to is Nadine you’ve for factors be you sense – and go NII than those NII some lead you obviously what are might or variables a a and there prepared put What And that the us give magnitude? there’s that there are, certain of curious into number I’m of sensitivity disclosed sort in which Nadine talked what about order benefit particularly sort of sensitivity and your the that general may NIM of from rate kind factors if assumptions can remarks. of your into of sensitivities? a tightening

Sure.

referenced retail called the the and typically the more pointed like slides U.S. I on Canadian franchise So of of is my in short out in impact and is banking remarks, looks both rising of so rates. think end focusing our curve flattening, in management business what on it the in we wealth the as would’ve I what the the the

well would to businesses, deposit expansion Capital As I have on Repo say spread base. business. one their the big and benefit did other the management, obviously other to from Canada as areas I relates remarks of you call margin wealth my out the will in relates it Markets that

balance points. and we about margins about have basis So saw there $XXX in compressed billion XX

that a as the So we margin up with two Those levels. the the expansion are drivers primary that well, coupled benefit elevated end from perspective. in as did obviously, off come balances I pure the business, to rate from rates some of interest with liquidity would start see fact primarily, that move would say short

for you. That’s Thank me? great. it That’s

Meny question Scotiabank. Please Thank you. go Grauman from from ahead. is next The

good Hi, morning.

on expenses. been You’ve your terms guidance of in very clear

bit are is some me are respect with commentary the to interesting there maybe you what’s larger expenses to think U.S. little to the way seem I that and does banks especially still talking between disconnect a be outlook. a about the their presenting

U.S. I’m say banks if large in terms let’s why some could structure the expense than you fundamental wondering reasons different So of your structural kind into of delve in is that or

you get that’s optimistic more So outlook basically of to is the trying how the and to on it your fundamental nature question. really expenses,

say that. Meny. components there’s I primary two would related Thanks, to

we’ve investing infrastructure acquisition technology client time, our front in portion for support it. of also both of significant really in sales office been noticed as off, First a arm staff, you that our would’ve or

Canadian have been and in long time scaling our we a investing technology businesses. for across So

will you’ve necessarily You’ll our the that thing base our also our that result talked to the that say over there, fixed have base, an of equally around cost inefficient notice of that so only been at more can other through extent spending cost depreciation referenced a we which options how time, drips be that looking about that end in technology more I I far and that be not we in over the to increasing to from but can time. sustainability chart start years. doesn’t efficiency productivity that would tools, deploy bit was in a tend that perspective the we the

work, can productive stop we So can it’s salesforce our in what there. we we work, addition become efficient, where more how and how be look in digitization We more processes, so. at of how twofold automation, we

that of the multiple out we generate expand we can the off we upon and how cost every So that. there revenue put seller

is time. part So over we’ve it over been consistently of a I of investing period think Meny really

others think with to the we investment the able focus that of continue to having in their to to I organization But growth. may across do and to it, is spend levels. on be catching arm we’ve up been, be consistently productivity addition, efficiency where increase

That's helpful. Thank you.

Thank Capital Markets. you. ahead. The next Please question is from Doug go Young Desjardins from

Good morning.

Just capital to the to discussion. back wanted go

the quarter. And we is you points, going? by opportunities? down XX basis you've excess growth organically XX ratio your ratio of so, the that Could that basis would substantial XX if really weighted question points been think you you XX work reduced can I risk we basis be I put see I'm opportunities, are CETX see this points is the your saw in where those such correction to asset where capital guess kind curious driving points, but and growth about ratio down what basis best I'm my clear RWA push growth

I in deploy seen significant the I think Yes. and mean in ability capital markets City see within both deploy around loan as able organic businesses ROE terms our of primary on we've hit good this higher-margin you continued capital and returns, looking to underwriting the the high ROE that businesses, there quarter book we growth. double-digit as it objective high and that have growth at the that with to it and National well in

that ability sales are So balance and the businesses, force we with up sheet. looking advancement we deploy the scaled frontline to particularly our in our of how

we saw changes respect So last to that year definitely an model RWA. of is opportunity. some the with Obviously,

which RWA improve III opportunity have the next So that year, again on to and coming brought horizon our Basel the we position. has down it

takes puts to continue on from look and deploy So but an obviously perspective. that, there to is organic we definitely

I'm like the I'm M&A do of what's get to And XXX back, buybacks And most but to foresee? I is all that what work can commercial would put card speculate card at like the then put trying what balances. opportunity are to it best the balance I on the credit basis be opportunities? know we is or is to organically? coming But you with opportunities points capital-intensive this going – at work RWA because guess this and where about the real everyone margin, talks and

putting I model model your think The and drives a that to work. RWA scale lot point. surplus efficiency self-funding is profitability generating we're our capital a beauty the it much we from so are of our of to and that

we we're growth, think I profitability. So growth, we can accelerate from funding lot are of a it the and is beauty accelerating

a right fashion work an in returning said, we shareholders, So, to comes optionality and the opportunity to us, inorganic as significant table. you're to to seeing when put capital capital I have strategic still the

great place. we're So in a

strong, driven investments a strong we've previous saw that growth You made. by

We invest. continue to

We organic are capital. generating

strategic We have optionality.

are a shareholder to to very premium continue We good place total drive return. in

Great. I Thanks. the color. appreciate

Thank Movahedi from is Capital The BMO from ahead. Sohrab Markets. next question you. Please go

capital or I and some – guess, businesses, that in markets start I'll be market two up capital as Or the would more also questions. so left think off. I several that I Is could in I the underwriting Maybe where traditional credit times, with deployment. of, source have be like? chewed Doug a Nadine capital banking risk? you've think, mentioned Dave, there good

Derek that? don't Why have we answer

Sure. Thanks, Sohrab. appreciate I the question.

across I business think the opportunities Banking both see now and Markets we the right Global business.

we are changes our due we Markets we've of but said, Nadine last sure the to over we ROE. seen with you've to due years, environment, see the But partially where moved as and trying business notably returns. initiatives we're only undertaken, up make to some focused As the the very on deploying Capital couple good strategic partially have capital of

to will are disciplined additional that mindful the supporting platform. to the both so in And also through right business, organically areas of remain the and and the grow capital the or ancillary looking so, although then banking of and across and has U.S. through And the opportunities that modest see is deployment through trading Europe, deploy opportunities different opportunities quite giving as loan in syndications our of we're think being different trading Clearly, or the platform There very environment of and is risk well. our about opportunities book prudent in I revenue benefit capital ancillary there as us non-lending out business, deploy otherwise. that. we pockets loan investment capital we we're markets underwriting some to

diversified right the side. investment led but probably more quite now, by banking and is the it So loan book

at clarify just to and And no appetite? Derek, even change real the with risk margin

Correct.

for then Neil. you. second question my And is Thank

way, on Neil, deposit I any revenue the initiatives? is think I talked attribute consistent you've and there pickup. could – kind gains, you that market you some how and in the Dave I actually of both checking did provided of think, much think of share Is emphasis checking Ventures statistics, stuff the mortgages because RBC around –

we've point drivers, I I point, flow just we share just quite market that – for a professionals. those to thinking a Yes. in maybe there. time, about investments to Ventures up about talked made, digital, about to leads the force, in Thanks long how those start on really finding investing Nadine's back sales to question. picking the I our mortgage just wouldn't would We've for, processes, franchise think, as mortgages. investments point driver with front market

tools and a bring put of investment of belief some on checking clients of on rewards core proposition, ability to double back felt structure which needed But business, really been, really that's that us A the and to and we reduction a business. in on down business, a the That put was, in takes in came technology to great core example points use a off deposits our our to ability open core steady some year, the one there. into more of bit those the hadn't us, back it's said core strategy accounts. mortgage with their touched the different our technology when that a So we last to we to refreshed for had proposition investment away reciprocity think, pay relationship deposits we value to the really time the really I we whereas paying amount product. – value I reduce to little our it also fee tying and their consistent Nadine think, make and sort we where of we're strategy reciprocate investments them of off. seeing underlying the the business it debit

on and business. driver we'd that proposition particularly investments would you're deposits So types seeing value marketplace for – of that in shift be say the those the the in that the advertising

you. Thank

Bank is next The Gabriel question from ahead. Dechaine from you. go Please Thank National Financial.

the does outlook? a year, becomes of to very gas, At your morning. that and you outlook it over X% months X% X, a of paying standpoint, for is of inflation to thinking growth a problem? inflation compels like, it more TVs there course in business more U.S. other point your And does become for consumption, way credit revenue to talked when from the over whatever and about But inflation a they're are X% know cars your gas something at range start as headwind. Thanks. and X, that we've as simple what and Good that through I Canadian X adding people stuff models to provisions? paying then look that opposed affect is,

start Sure. itself, rate that Thanks, on but I in side. position a where I of with very Dave a are factor with strong there, certainly a very set it's rising on our credit by we as environment as a and Gabriel. noted think cash we center Maybe is liquidity a earlier. I'll us are have credit and Certainly, backdrop in of and inflation obviously certainly – start with that balances, kind kind risks front we of clients the of that. would would combine certainly mindful something strong books

an mindful strong of higher inflation. of had that long for underwriting you operating I think fact the environment a standards higher are we've combine persistent very rates a very and time that underwriting,

of and these standards. I something our consistent are the kind as about always through a And don't cyclical of And this that we worry so be we underwriting build and events think surprise do into considered, talk and we about but that look shouldn't we at cycle. being prudent kind

portfolios be different will different impacted times. at think I

fact portfolios. portfolios of long that and we rates that's think maybe I and than related would duration in a revenue impact our the talking there largely to in build in is impact And lines. mortgage about credit of that inflations is get terms see kind we there the Many latency resiliency portfolio our our will Neil that. just of expense on probably good into more

refinance turning clients both would there over higher clients higher a and of having environment. cost there there is rate a capacity so have and timeframe into to a lot – see before you And

forecast higher and that's I think those that back over by But don't as our of leading time are costs. about. will since those are the views I our think changed talked elsewhere side to I we credit So into there it's QX. offset don't see kind previously think be headwinds my credit largely positives we original But on why comment, we accrue considering will on revenue haven't

a you to out make might is which point maybe would there an to, you which it at a Royal adjustment? point bank, and signaling there's every have have affect So at but I know,

a Are you credit adjustment? referencing

Well, yes, yes.

lot to we say Again, assessing cost adjustment. We quality, come credit in build we and are I'm you process. them lot equity rises rate in to that there's capacity. work that. our not of for their and of rises sure door, a at credit And clients when – the in Again, the their clients again, with give with constantly a if capacity their portfolios, us reassessing you origination capacity – look on built-up

constantly said, as reserving So our our change. really I and to credit into though are designed work reflect strides, through models. won't the these cycle that factors We

And as say So, some let's headwinds government these into off that's with that had certainly, uncertainty play. coming we support. coming we've are things about, Omicron are and new some talked like

constantly we right so to say increase and reflect now say time headwind would those there our And models. all of soon. a we But wouldn't quarter and we'll coming that's that I that expect that each that reassess an any reserving into indicate

Okay.

inflationary with have therefore, you ratio. cash watch out only visibility it, it or is benefits risk I your salaries to aren't your sort because keeping if think of To up and and the challenges question, pressures for flow

cash in $XXX versus inflation of keeping we that how have tracking of over So And you sheets sitting are and where now disposable that all but to we're position we have and watch. billion lot most spent economy. of have salaries the pressure, how in and up that's what consumers' income for. that unique But gets the balance to is drives what we're mitigate seeing inflationary out watch to on a this growth,

So I get that's watching at to. think what that's what you're trying and to for we're

Okay. Well, thank you.

go next Thank Mendonca Mario Please from ahead. is question from TD you. The Securities.

rather and XX and and basis Canada yields, has we're It specifically, – points by a increase It you move the a you period, recent. seeing XX I'm been the Page be it's – how that little just here. loan than yields? your I see about that the in five-year Can the have might five with when basis years translate a five of all would might be years yield bank we Bank asset bit seeing looking years morning. thought presentation, last – the increase But points take mix dropped that just speak loan at that the timing. I'm in higher might into over months. five I up yields. XX matter in that Good to loan start of Over of to to XXX of will time could

though the competitive Dip] some right, you. a of mortgage that you're the is. overall of how about and that talking around Sure, have higher rates at into mean rates, book I to bit roll you're Mario. think have is we it we the Thank there from mixed be rates those up. expressed comments But as I pricing going five-year looking [Audio it part had overall started seen go as to we're

you inflection timing? actually we are in a terms will of exhibit we actually see have in So you're loan yields for XX, this see to Page that. starting Do might sense when saying on – the

we again National. City for it's Mario, a the full and to across as you, it disclose because, I said, bit markets capital have Yes, book

could it, bit bit to rise, on to position it's a a expect get get rates difficult as would it. you So back of more you but probably bring let's a and you and detail

role be might of Canadian City National a National distort City short talked number – much it. do the that a we've versus the impacted with plays about – in part the curve, the of significant long have compression that long probably at end yield the how to given would end it's that nothing

you… to driver So driver. on, off in mortgages waterfall we'll and Canada be one roll – we will do We'll have another a at for look can on roll be the

five-year the rate. …in

is five-year, I not the at as as Canadian, as much obviously, well, but... up looking the Canadian maybe U.S. Yes. but five-year the was

our to States the But don't where oriented in is of end the the of many balance long-term short the United sheet completely Dip] short have we end. [Audio assets curve

the driving that's what's yield... So

actual that We'll need rate before see Okay. see margin we to Bank tick increases Central might right. up

Right.

the on longer sensitivity has of short the Canada way the end the is because gave the big quite we you the flat. curve impact and that's a with U.S. us it end And and of move the for curve

care Okay, cash liquidity bank of front, that got question. significantly Slightly you're – also average securities the looking resources, pandemic on off repos, different building a every increased lot ex-trading. the taper those balances hit very liquidity when started I then. type what recently. because it. It Obviously, was until doing increased at the very – to about

dynamic quarter? a in about seeing the securities. we're example, increase specifically significant market this Could in the repos dynamic really Now increase such repo a on again that big to would from cause you for of quarter sort talk last repos, and –

you? could Derek,

things. of a sort seeing Mario. or I'll there what a Quarter-over-quarter, Sure, of refer of big the just timing is is couple It's part What seasonality to Derek. year. that of as you're

that of period and that support a market just for with they head period our really timing opportunities through our of to good global a the in providing they're liquidity the quarters intra-quarter on year-end. of year-end in creates peers step many And because because so often fiscal will many period calendar our XX, around our around year-end, back them liquidity on us and fiscal calendar for versus pull December as often the of clients year-end us, that's multi-week operating into the are

business to clients our a can balances support and element often there's time our back that repo to then seasonality down. we so through period those bring And where increase

in the terms the notable of impact. of market earlier and been that's what all into but Central to years, a Nadine the liquidity things quarter-over-quarter. put definitely volumes, come brought over is saw that down, the the and like by financing part So had of this has it's Longer-term you with has that demand our through spread Banks also couple for repo last down referred

of increased as in liquidity I will for financing, time early we that business. we the would starts us. starting first very helpful modest demand be for market, where we we're over say out see a client spreads would, think to expect an being But the into uptick we I'd would expect This which was saw pulled that days to also spreads. that. see and translate higher And quarter in

higher that to liquidity system, would the comes business. we rates go help but and as time, take out normalize expect of does it spreads will that So in

Thank you.

The from Persaud next question go is from Lemar Cormark. Please ahead.

is My Great. question for Nadine. probably

of heard in think captured on expense – I waterfall the suggest expense that expectations I So inflation expectations part is the you Slide slide structural XX.

not costs here. just range Then there that So flexibility much Could inflation? it? that by say to suggest impacted some it growth is to higher in maybe costs that? Or deferred? about that be more X% clarify of being assess fair the guidance possibility were I'm would significantly spend investment structural trying your and just volume really the in that could come above

be thoughts helpful? So would any

you. Thank Sure.

a increased it of under where one-third be some we have About year, to So business two-third fact of of inflationary related inflations pressure. start But the volumes. is we recognizing component of that. the that the the parts more that's and would were X% does at structural the had to salaries about that related scalable

of et a So that large referenced and component the a also for the sub-custody, is you cetera, investment actually in talent. in seeing example, travel. of The investment, TRADE X, of bit X% pickup

spike as of that or was in of we've to the groups be of just frontline of a note would from of part if things tools. in just would terms significantly So there. some inflation certain of that, bit Lemar, of as already a expectations through rest it perspective we're those little well, say incorporated in to as well investing as inflation push around couple a I

So we through of across-the-board already have some put base. full our it into salary

to be our The not number is of base it of immediately by that impacted a will nature. some of costs inflation. fixed cost other have going We piece in be actually is do

cost. For example, occupancy is already our predetermined

side that app-dev that spend historical through that and from of on it scale is have further, future, to that, continue to area standpoint. And technology pulls in depreciation an it's we the play do productivity an actually investment well. to some heavily from the is referenced although as was on the able or that if Secondly, area opportunity our in to there also as related efficiency we're into we to spent persists NIE continue an with We that to focused but on to inflation continue at can invest. be look our investment lever

it. Thank you. Got

The from Please next you. question ahead. Rizvanovic Thank Mike from Stifel. is go

probably question for Good morning. A Neil.

points you lost But gains residential looking a So among big do mortgage the I just six, to in that three the have in discussion over see And share market past, I and maybe quarters. some pricing each and dynamics horizon. of share you've from some competitive in had, aggressive past market I'm spreads referring know longer-term had the the peers. the around you balances the

expect on to wondering might when outlook what your So you losses share abate? I'm those be market near-term

sure and kind some of converted decision the Since we the been the mid-year market. last in we're more think of just to height making year year. then, lose just was I hard I'd out of terms of when a those. we've what to We've last say, margin very made appreciate the of We bit the competing, comfortable at a all of taking of didn't we any volume feel very make market were kind like, little take about in question. comments volume pipeline. I Yes,

get I think different the CBA one of there's you need into them. each share of the after-market to market data, between share underneath difference is things and the inputs

driving we've back part one something don't some trends our a the and owning been in And one the at is I think purchasing which referring channel. So wholesale to do. what's to differences of just the we believe of mortgage funding being of we of competitors, least strategy, you're gets just is our

able back relationship to strategy. own We client of to We all it have ties to the kind a owning proprietary sales be the and cross-sell.

I So us our have we mortgage don't in share business. think losing on sights market the about anything

And remaining single-digit just guidance range. follow-up earlier mortgage color. the appreciate a Dave's growth that in on then high I on maybe

comment believe, this For year, to. I what the was the of rest referring

looking we've So mortgage in all sort about rate just recent trends to including down them – of been the And I'm originations, some at of the hikes lately, saw it got growth that seen digit. we the just that pushed to variable. the the XXXX, that back like of XX% low-single way have you've thinking

I think around X%. it at troughed

do wondering like range get looking growth? pricing right terms XXXX of in in now, of in would to So best rate I'm we the range outlook market your low at what hikes, is mid-single-digit the if something bond something be X%

the it's Neil again. take Yes, I'll question.

the of year guess give towards that bit comment would be a mortgage you the outlook. to end outlook So high an I of single extended digits. made the Dave

cool activity, rates As we slowing see market, that end into get we'd come see mid-single XXXX.. some to up, the in naturally digits down

helpful. for Thanks the That’s Okay. color.

ahead. Thank you. The from Scott Canaccord next Genuity. Please question go is Chan from

struck wanted side. Canadian Good to me National thing book XX% to but grew kind growth City was morning. P&C, you And out been the kind A year-over-year, has of Canada. and on mortgage I lot that the on focus asked leading the the one similar retail called of

is wondering Anything higher be it update strategy this an on the on would U.S. growth could just assume that differentiated? was the Canadian year side? Thanks. the And fair higher or – be there? I maybe So to

I'll with make very a the result We're Dave. our our key as on pointed of both cross-selling the expanding accounts. well our deposit years, and the as hiring it's jumbo core to for bankers capability I've markets, C&I So been you some jumbo National investment on Commercial those into mortgages about City strategy. in growth, It's happy comments. mortgages, consumer talking side private out side.

strongly for you're it's out and to starting the of of growth. and very acceleration entertainment just play us, the by the investments seeing strong So now. fastest-growing strategy Followed line our business

Our There's my I global speech, content out an into investment, of production. pointed as amount content enormous inter-containment busy. are in clients

production management. entertainment in capability banking core have fantastic We a from talent to through

real an seeing that, in a us estate commercial, on our IP acquisition entertainment think and I FilmTrack progress So great side to our play bigger we're was role the And for in important C&I from core the industry. mid-corporate.

almost growth think there of $X at billion already. we're I

mortgage exceptional investment ability as franchise happy bringing new territories, that proven And an again, mid-corporate organically that franchise has decades jumbo clients it that whether we're the it new building or extend and markets, core strategy, extend out high-quality has and with seeded of segments, clients teams customer-centric that level. at to it in into progress. a execute new proven geographically, This over customer So in. growth can very move we commercial brings into new by seeing we're very, can be

Thank you Dave.

One more get question and will off. it we

Thank you.

Capital from ahead. Movahedi be Please last question BMO will Markets. go from the So Sohrab

which Okay. Thank I got include, the Guzman, just wanted Doug that responsibilities to actually go you've well. think, you. I Doug, overall, Great. now to expanded

can should think you top you we opportunities As across line talk focused efficiency geographies the a you little the more about be maybe the there, as And on be or thinking will well? bit improvements?

Yes. Thanks. Sure.

Wealth you Brokerage our been U.S. The centralized business, of the Management and a Wealth throughout. have so had sense to Businesses, parts First strategies expect made brokerage businesses I that and all. be all, these think Canadian Wealth operations of across should at their new also model, don't radically have business

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in on have really in but I'd Canadian advisers, businesses investments the and Wealth those the businesses. that don't So optimistic. U.S., growth the in FAs, we've U.S. the side I in had Very growth, Both big and pick U.S. revenue attractive technology good Management for destination think expense strong controls Brokerage. we're between shown financial on expense, throughout and

to the You competition. us continue see outselling

and had number share. where a growth. out Fund Global our we've it's Asset success actually two, great Retail in attracting Similarly, sales underlying exceed market gapping Management expense market and share our Mutual Management low remains Wealth Canada XX% direct and the in Our advisers above business very because

in market Historically, we home been our in can't think market, like but kind considerable on we've sheet advice caveat, well. and consistent, we've control that for our as markets, delivery. disruptions course, longer-term life that got to There of markets. on remain working and both. we've move customer positioned able investments and because I We eventuality. of to in a individual So we're content The cash balance is feel of cash higher level to retail their we're planning, benefited any remains for needs

So we all feel pretty just bits about the covered. good I

engines is Doug, don't about?. this. any for organic just you think you're clarity, And on crystal capital inorganic This you talking for need all

emphasis The hiring We side in don't the growth on management inorganic. distribution wealth need been has domestic for people. capital

past, and on than the don't have open don't in investment scale people while side. . gain we Canada. in to to capabilities. We're market to deliver need we're markets, in to that the to our the Similarly in protects building expense, it, that's So fees anything And need continuing we're acquisition we that's share. customers and on able time. more more reason a over do other We relationship

Thank taking my question. follow-up you for

I'd like over to McKay. conclude Mr. This to back Dave will question-and-answer session. the the turn meeting

customer jumbo Management the across the we growth is And up . And new higher the today all happy high in CNB year. way fueled producing theme wanted completely you entertainment, for The expansion I'd XX% really on lot of that gains. investment consistent a mortgage as million Markets, that billion today, I value businesses like our strategy has an strong profitability strategy to to growth investments our worth with adding focusing expand of of to it's growth proposition Capital manage our questions the core on with very to touched thank care and estate sectors real bringing Wealth we in $X delivering revenue. to, growth industry technology, health again, strong approach the and now flexibility started great line all questions CNB high-quality franchises. really really whether all strategy sum U.S. led that technology hiring impact message revenue by share just growth MDs and ROE, continue as like an banking pointed and is the high-opportunity private driving and environment. acquisition and long-term strong And executing lending against is portfolio of to of your everyone $XX That customers. there. mid-market building with many results, focus net was strategy your the high-growth, to and the Vantage secured and Banking hear. that's we platforms. really the sight the market coverage, have the on quarter, questions. and launching banking a our driving investment and And Canadian want uncertainty the is we're across and leave of inflationary noninterest consistency with expanded around the and new we our

have levers. We

questions, us. have year You've we of touched on much those an feel we and levers your exciting ahead like with very

Be very seeing you questions. forward Look you well. to your for QX. much thank in So

Thank now participation. you Please thank has disconnect for your ended. lines you. this and at your The time, conference