Royal Bank of Canada (RY) 26 May 222022 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to RBC's Conference Call for the Second Quarter 2022 Financial Results. Please be advised that the call is being recorded. I would now 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 & 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

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

by unfavorable in and largely Capital good moderating Markets partly you revenues, Management client excuse volume Canadian me, Wealth solid Asim, was of year. earnings -- share you, client-driven we conditions. due year-over-year, for per lower X%. $X.X This X% billion growth was everyone. given offset only Banking and to National from earnings strong growth market City modestly Expense activity. Today, today. and Revenues up last reported Thank us with joining morning, were Thank

geopolitical acknowledge share increasingly I Before on and this want our context environment. the I earnings complex macro quarter, to

mid-cycle supporting Central people the From last has growth, with perspective, effects, with drives diaspora the invasion added relief economic of continue invasion devastating of our Ukrainian a I and the inflation, profound policy, on challenges. the and the were we to a having and as From energy, chain further disruptions noted to both banks efforts activity. in growth. to macro and, effort without policy rapid closer actions the impact difficult elevated are to Ukraine ongoing shortages supply monetary constrain Russia's turn, Canada. to capital in Russia's markets as supply. monetary of well bond a impacting economic quarter that tightening while Ukraine in As complexity humanitarian region decisions existing consistent inflation we equity in Bank purpose housing of are facing manage impacting with Central stand markets of how and on increasingly impact labor in

In share help wages unemployment, the any sustained we generated and slowdown. I strong Given business ROE per will now strength to growth model, this balanced RBC's value underpinned diversified ingredients helped speak in mitigate liquidity, revenue low this financial drive believe a XX% place which growth key in and from elevated proven context, last These significant quarter, of of the year. book to streams rising capital by a are strategies. our deployment our position, XX%

sheet Our at giving grow points a to foundation in solid balance strong, the cycle. us remains all

allocated relatively combined repurchases. deploy of dividend. increase dividends manner, billion billion we announced our growth, this $X.X between $X in strong equally $X.XX enabled XX.X% Our And ratio with an or morning, us internal share a of RWA to generation quarterly capital X% nearly $XX capital client-driven billion a of balanced and CETX of in

This issuer wealth to including market the positioned this approved key the well are We working strong proposed foundation, to year. accretive strategic earlier bid of to the a conditions complete which changing continue executing With of advantage half of our also Brewin close Dolphin, course priorities, acquisition second take on shareholders in expect to transaction normal week. Management our we businesses advice franchises, our to sustainable UK We client complementary products, yet attractive Wealth breadth and look structurally forward advice combining high-quality vector adding value-added market. clients services provide while which another of to both acquiring to growing to complex of and our and banking a a base growth franchises. and offering criteria our a meets in

We our wholesale portfolio, loan also split year-over-year the sectors. to was between retail growth and balanced deployed diversified equally drive where growth capital in our

a Our commercial including Markets billion balanced good example how and across growth to real $XX the of estate was drive year-over-year but The well not diversified limited National. City and portfolio geographies growth. Capital is we in Banking, portfolio segments, Canadian

buybacks will acquisition our Brewin proposed remain Dolphin. even of CETX for accounting strong, share ratio above expect We XX.X%, and after continued the

us capital continues to flexibility Our in manner. deploy strength provide capital the to balanced our a

build, will and sizable client of increasingly increase on loans even COVID-related levels. prudent portion levels macroeconomic with liquidity in the delinquencies to challenging related While our our operate unemployment reserves the elevated environment PCL at Graeme impaired and as a we with speak low low at did we reserve release to

having Our results importance illustrate revenue the of diversified streams.

last years years, $XX interest of rate strategic gained than RBC investments we near-term we will year's businesses. roughly over alone, Bank We of higher rates deposit more recent is headwinds core have made of Vantage. million from the Canadian have expect to in over basis core XX of the In accounts. market-sensitive benefit the share benefit of including Banking The offset reflective in our Canada of launch the franchise market hikes some checking points the our many in last X

a as Canadian from significant will at Wholesale benefiting as and to City well businesses, higher shortly, speak our yields across our deposit National custody franchises increasing and revenue and short-term Banking Management should both Wealth our margins lift Nadine businesses. provide asset As rates rising in

we activities our was expect and to was the mortgage to up mortgage well now to in lows. in rates part the platforms in networks further XX% and mutual the lending XX% by above businesses. at offset hotels. improving seeing with trends and The year revenues. strong, April Our results franchise, pre-COVID housing noting so high With of in rates pressures year market-leading corporate buying we're partly transactions the year-over-year part clients. quarter, continue in remained year-over-year momentum May. In credit their increased natural the rise, carrying growth large second variable come base. invest growth increase travel bookings, compensation up to hedge in as market-sensitive are experience residential slowdown Expense seeing balance are anticipate debit from I'll visits and higher to our cost and in we utilization In XX% as mortgage also core Credit revolve our does of and the card off across revenues card at home to contained built-in single-digit last offset half restaurants this be businesses. on the loan highlight strong our for second lending straight commercial various business especially We and continue this confidence into slowing credit growth increasing of we the origination for trading quarter recent management, levels X% in banking fund as expand and slow higher growth from range for saw Global and year. we activity cards, as Banking, decreased, due growth Canadian of our were our airlines within investment market-sensitive strength leaders. business growth and interest

levels and business, million card Banking past from adding utilization adding but our will the RBCx margin of and saw Canadian including our additional further revenue in also commercial loan benefit add rates bankers nearly investments also not over current payment to drive our expansion, to platform. $XXX growing We potentially only balances pre-pandemic of Recovery time.

going base million best is differentiated continue strategic Vantage, client to as we banking XX beyond solutions, growing our our to drive services, innovative WestJet, However, doing Petro-Canada Rexall. including through including partnerships a and with through growth way and have been the RBC products

of and company by very Global we Despite this in ranked to movements rates. investment we advisers have and our the the the adviser advisory of seeing our these loans, the U.S., growth sales equity or our volatile RBC technology to City year-over-year, multipronged attract Management. year excluding limited last PPP to advice both add were $XX flat net Canadian wealth market portfolio Canada. includes AUA, Wealth vectors, relative Management long-term our including the largest In acquisition our firm net also clients. where and AUA I our quarter. Dolphin ultra-high sixth up strategy. in the and #X At largest growing growth Management our teams $X worth build-out and loans up continue revenue National, the In volatile Dominion retail bond attracted market largely Wealth was were to Securities billion while diversity U.S. to noted footprint benefiting experienced quality wholesale loan XX%, markets. brand. our environment, due continue or in are Turning despite of base the Retail markets, up in for was year-over-year, by mortgage from to the fund share platform. mutual has and attrition X% volatile RBC were Asset expanding mid-market nearly as lending further Canada, We will believe in strength And of high we the UK. stream to earlier, strong proposed growth XX% jumbo diversify our Brewin billion

of in $X than a of challenging revenue light earnings the in environment. pre-provision, our recent diversified was business Markets pretax billion Capital Although market highlights quarters, lower of resilience

we as in increased consecutive consecutive lending quarter sorry, by underpinned investment continued had Our financing underpinned yields. the acquisition And in our a well second Banking gained Investment business. market more Global share year-to-date, mandates -- favorable second as quarter, business record including demand, reflecting

and important I throughout in This have XX hired days balance hire approximately year-to-date, It's and the X Despite addition Directors strengthening are also continue in losses noted prudent market we'll our recently, rest XX of having growth verticals, we MDs volatile Managing to last the over conditions, trading look As management. last year. key to hired X risk the have is years. we highlight the talent our year. to of between had to

people, client perform strong Nadine, you. including businesses. the headwind, And through services in While in positioned to are it's shareholders. creating business be to capital over cycle investments balance to conclusion, grow diversified returning driving proving are clients our still conditions a Markets XXXX more to Capital expect cyclical balanced markets volume deployment technology, continued we and strategy, value and capital to products across to sheet, our activity In stabilize. our our as We well continue model for given market remain our strong and our growth and

Thanks, Dave, on morning, start and Slide everyone. will X. good I

by Markets of X%. mutual than year up results slowdown expected X% As last growth revenue very investment were year-over-year with from more Expenses Revenues X% management reported earnings Dave earnings quarter, and X% offset we were this year. year. from last down an last volume were up down as strong per strong noted pre-tax earlier, and fund share from $X.XX Capital pre-provision, higher

provision for will speak losses, and release benefited net results credit which Our from a to shortly. Graeme

Our yet federal with to which our favorable tax those points rate such, rate from was legislation next comment basis down effective associated too mainly the last tax tax budget expect to changes, details of is changes adjustments. proposed has fiscal year, net XXX to on impact associated to due drafted, it with early tax we be and as the increase year. The

spend strategy, time deployment capital moving sensitivity I Before XX. will interest Slide balanced higher key segment on some on with to X on capital and expenses. to our our results, Starting focus broad-based rates topics: our

XX.X%, down XX ratio last from basis quarter. Our strong a CETX points was

drove quarter XX XX%, basis Our of ROE capital. points earnings this of generating a premium

both dividends bid and quarter. previously twice normal deployment midyear have completed growth, maintain year allocating payout evenly At and traditional increases. dividend buybacks. and we balanced buybacks, to policy over a the returned our of dividends We strategy, issuer our XX% announced course was capital a this to capital continue of total point, have our between Inclusive ratio half fairly

Capital National growth existing Our actively engage was and organic with financing Banking across by business both Markets, as strong and Canadian largely new driven we City clients.

year. the benefit the Brewin point end reforms to by early of from to anticipated third CETX proposed quarter Basel of which calendar the more the expect implementation Dolphin, XX XXXX we approximate offset impact than the ahead, the of this close is basis acquisition Looking in of

and NIM was relative offset higher to results, checking highest trading along the basis X of core the highest markets excluding on impact City our of Canadian continued since quarter, more XXXX. XX% up up record from was client-driven platform. was deposit XXXX, National impact by a NIM year-over-year. last decline and increase interest points spreads leading National's due lower year-over-year Banking to This to basis XX growth in impact X% the such Net QX XX. volume mortgage Strong with Slide City on was up rate of since points in last or partly Moving margins largely the spreads. Banking income offset low-beta quarter. up lending capital Canadian QX than growth revenue the

had floating National's roughly rising expected, loans. As its with a of interest rate balance relatively City impact half commercial sheet on rates asset-sensitive higher loans being

positioned Now benefit to approximately XXX remain expected better to We XX. to expected rising rates. visibility sensitivity rates, the To provide is income A a billion to to Slide benefit our higher shift benefit highlight year we rising provide to X. well the of basis $X.X XX interest year, parallel net interest hike. from a basis in rate point billion $X.X point in also first on

from a the client demand Banking in margins only months in We million additional normalization repo Asset million not in as as catalyst utilization Services estimate aggregate and deposit-rich should $XXX result we in wholesale we We serve Wealth increase also in positive and over see a revolve Wealth scenario businesses. see recovery a Over credit benefit but and be to spreads. rates growth, months, This a U.S. Management a our would XX next for should Management for well. a XX in curve Canadian rising to commercial liquidity repo our And surplus an businesses. Canadian anticipate card with flattening $XX coupled of revenue of for rates markets. could recovery

benefits impact to pricing of than and We to costs. these expect offset funding rising revenue pressures competitive the more

X% expenses expenses Slide to year-over-year. Noninterest on were Turning XX. up

Salaries costs were costs. year-over-year, controllable X% in compensation, up or nearly Our of representing more XX% up share-based the more were increase excluding over X%. and variable control our expenses,

normalization fees increase we controllable Dave we we travel of our clients as end another low salaries year. operational by drove and in meet of also regulatory increase costs capacity our meet year economies and to as The sales noted, represented the costs was the to of our the higher and drive improving XX% of as the invest increase our As costs adjacent to continue at for the of driven needs opened professional to tech last the compared in offered Part invest infrastructure. the needs to last Higher to clients of continue growth. nearly and future while marketing of XX% up. levels continue employees

the ensure to need our the even prudently remain cost well more risks we to we forward, operating of aware positioned Going are Nonetheless, strategically evolving invest to managing environment, provide to clients. inflationary including committed structure. our we and to remain value

the We for fiscal share-based range continue variable to expect of higher annual single-digit controllable expenses, year. excluding end low and full XXXX compensation, to the grow at the

spend on of costs all We salaries with half made efficiency And moderate to of Offsetting expect the XXXX going recall, we this to under fall of of year higher leverage our a number be growth second operating discretionary this continued we Canadian year we the check to year-over-year in Banking the historical costs to historic full forward, lows. ratio the year, across growth rising would the guidance. the in to off investments in XX% amortization to our higher Also and begin COVID look expect related to years, our as full even focus and we X% of and X% productivity. costs bank capitalization significant segment expect generate for end bank above controllable have flow.

and XX. was and line reported growth. offset earnings Banking was direct fees Higher Slide & Banking strong client Canadian revenue higher drove up of a income Personal performance, billion year. investing by from expect this earnings rewards X%, higher travel this were in negative $X.X was revenue increase well expense service spending quarter. leverage activity exchange income and the quarter from on Operating Partially was and our leverage to Canadian improve net business credit as on marketing year-over-year, of purchase balances the Year-to-date we increased. travel growth. were up pre-tax operating drove an segment were charges. second with commissions Higher and year. as X% offsetting X% X% volumes higher with securities Moving in card beginning volume Commercial from as Increased higher interest with by in bookings X% lower Banking up costs. redemptions. staff-related higher half growth fund mutual card to commensurate normalization brokerage client activity. consumer foreign up year-over-year driven this revenue cost it costs distribution Noninterest last pre-provision, technology credit higher

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sales income and products primarily investment-related due Net Turning recognized year to and and higher to growth Insurance $XXX most International business XX% from reported a Insurance Insurance Canadian annuity on growth favorable million longevity reinsurance. higher of experience. across Slide XX. increased ago, group business

offset year favorable and by adjustment income tax on interest Turning the higher remained as higher costs. legal Net from deposit prior client year-over-year technology-related flat in of was XX. higher $XXX sales I&TS a million costs, relatively Slide rates to higher revenue

Graeme. of the earnings we to revenue Capital syndication lower credit continue larger Pre-provision, issuers impacted strong credit spreads activity. were record our as earnings Corporate our In results. derivatives. kept strong results to volatility-driven revenues FICC declined M&A and down equities than robust down negatively was well balancing on billion loan business, commodities This To million. from to sidelines. on last franchise and diversified turn as deepen shareholders due solid, our our conclude, in record deployment are with building FICC, to origination client Investment FX activity from and of With and uncertainty with delivering Equities performance $XXX characterized from grow year's capital as to $X offset Markets Turning fees in and than primary elevated down value in continue more well trading interest, trading revenue the both volatility XX% for which from due reported X% positioned results year-over-year remain over which we clients. higher advisory to our from nearly and last pre-tax as more to higher were trading. flow was by XX% widening disciplined lending businesses Slide while last weaker revenue year that, XX. and activity Markets in Banking their and and benefits engagement it year, offset Global I'll although clients. macro investments

everyone. Slide you, Great. Starting Nadine, and XX. good Thank morning, on

lowest in quarter of X and stable $X.X years. Our billion impaired gross this loans level at are were their

impaired The New was increased $XXX remained our consumer below capital loan in each formations normalize other of experienced services, levels. markets the new mainly quarter-over-quarter where had last yet XX-year sectors. a increase pre-pandemic in of lows they quarter, as staple include from million we

impaired Slide on PCL on to XX. Turning loans

X rates across the as continue of portfolios, of recovery from benefit more strong and of very that unemployment measures from being labor to commercial clients have benefits with markets seen saw Canadian continue million] largely on Banking observed after PCL outcomes These all impaired an quarter Even loans doing loans rates quarter, reversals, by our government consumer at was impaired million well delinquencies consecutive on PCL elevated combination on the from on concluded, last lower is with compared this due PCL associated also the the impaired programs of points, quarter is with economic basis in Wealth QX expected, the In drove impaired impaired to which Provisions Banking though economic the by stable in portfolio. quarter. loans to the same down quarter, And growth. driven just loan savings, and and has levels primarily have level net This mid-stage recovery. In in [$X commercial has and or we newly the given balances performance $XX support delinquency portfolio, loans for Capital trade was million the sector, X impaired $XXX broadly with million came less clients below normalize provisions use, a reversal last strong core historic our loans PCL pandemic quarter, our provisions norms. were remaining. better-than-expected performance small impaired in GDP with last During loans overall the finally, with we in in resulted recoveries to offset primarily containment Markets, quarter low last as million sector. which in to on strong pre-pandemic taken discretionary $XX remained in quarter this portfolio strong. of consumer PCL relatively Canadian declining staples Management, remained than factors provisions $X on on also quarters this was sector.

Moving to allowances. on Slide I'll provide context some our XX,

of materially release uncertainty Omicron majority of earlier, in has be has noted associated our support the This the end of loans. with proven remaining As reserves performing impact and limited. of subsided the has COVID-related to on government resulted the

To sustained more invasion The as the by continued However, well by prudently pressures increases are we To previously and increased we Ukraine, substantive proving in of performing a adjusted are having prices. deteriorating account concerns exacerbated our has emerging. for have provisions are be horizon. new that pressures outlook, is been commodity interest on greater COVID-XX containment strong banks energy to loans. exceptionally have on the These economic anticipated. rates, which the inflation, measures have pace and than more central created macroeconomic expect Russian a impact on headwinds as recovery curb and of and inflationary China

case for has performing offset release. partially $XXX base drove COVID-XX-related growth, have the severity was and in the downside this which million likelihood positive While still $X.X net our our $X.X our result economic scenarios, increased a of quarter, on which call The loans a $XXX reserve we reduction allowance million credit loans release to of losses for on billion billion. provisions from both

basis releases through ACL as points of Our the growth ratio over reflects our in XX well pandemic. in reserve our portfolio shift last residential X driven quarters mix by a the as portfolio mortgage

we forward, are provisioned. continue macroeconomic monitor to will to evolving Going we the environment ensure adequately

comment Canadian and portfolio. me housing market now mortgage the Let residential our on

mortgages. some top mortgage There underwriting challenge notable been also in It quintile also the and quality we affordability highlights relation under the of rate to the we by seen standards have strong ongoing of to income base grow quarter at the proportion grow the our Following markets, during the bracket of the have Canada. This in interest mortgage on mortgage X/X cool just originations X investor and see we relative the stabilize started and markets variable underpinning of about origination rapid our the clients Aligned and trends Canada. accelerated consistent to an highlights years market in half. with from strong the with of also house and Bank we employ. have housing in prices client increases income appreciation, housing rate price rate heels our exceptionally relations the

more some our we segments Investor So on for Canadian account mortgages mortgage these Slide have color XX. residential of Banking XX% portfolio. on and provided

stringent apply For standards. this client we segment, underwriting more

higher a book lower Banking portfolio our residential the account borrowers the rate portfolio. greater mortgage Variable of Canadian mortgage XX% of score significantly such, grade mortgages FICO broader and As XXX. outperformed with with has impaired our than for proportion

the average XXX monthly borrower renewed remains of rates these or For year current with quality as time greater credit mortgage the the originated matures, of were XX%. and mortgages until The before majority an increase payment past payment FICO LTV of unchanged flexibility average increases. and interest providing their are of in these client's high a and mortgages,

to of of Finally, clients a into large we to have provides This rates. capacity our resilience mortgage our the our testing process, built origination that us portfolio review the in addition the stress majority higher continuously to absorb with confidence portfolio. rates, of other in interest pleased increases. stronger conclude, than prices this rate the and prices, the come performance Employment macroeconomic impact To oil variables we housing continue of further quarter. ongoing have to projected be our interest

As noted the impaired have we COVID-XX quarter, levels largely our factors on contributed in been I on impact more return the of to on the XXXX. loans later likely earlier, loans believe of normal PCL portfolio subsided. this lower-than-expected delayed to These PCL impaired has

see volatility risk increasing However, by during driven the macroeconomic heightened to quarter, the noted we continued earlier. market

increasing We are actively managing this economic uncertainty.

Our non-existent, exposure to appetite. Russia risk is nearly consistent and with strategy our

any the experience defensive trading trading and not during quarter. days with business our a losses did made position to continue in We

inflation outcomes. portfolio We provisioned yet macroeconomic believe we severe rate continue our prudently we and risk, to and stress more test capitalized and for stand to interest plausible are

associated expect materialize with We these that likely to not XXXX. any headwinds costs are credit emerging until elevated macroeconomic

our of this and operating base lines environment. macroeconomic evolving risk through supporting help remain manage steadfast As our prudent With client products and approach quality clients our Q&A. position us that, the let's management complex insights always, navigate the to in well We backdrop. commitment the and believe to to open and for our them delivering we advice increasingly operator,

Instructions] Poonawala Bank Ebrahim first of America. question is [Operator from The from

capital get to just process allocation. around your wanted thought Dave, guess, I

extremely is environment macro the think uncertain. I

peers, banks all have impact, your words as war used you most central adding on a you the other excess think hand, profound I such Ukraine of having increased capital. the complexity, but

Brewin probably will that IV changes Basel to impact offset I think the Nadine mentioned more than the capital.

lean hear maybe down of become think how worse looking Or get to think about terms and you M&A things dry leave in powder would ex at months organic go-forward the about allocation? as to because you capital in Do XX growth, deals? do So you a basis, you road? and more on like love X opportunistic could some back do hold

question. great a Thanks, Ebrahim, it's

we've right your view significantly and valuations central have trying demand. think cycle a that already therefore, impact banks benefited mid-cycle, And signals think of predict point, of really struggle to impact change. it's contain on inflation being difficult we're point. inflation, as obviously, rates a And and to macro from of the on to meet late of the present we're economy to to I your many as I but to that and patient, balanced services demand they by the hard, to demand demand combined now perspective with hit lack

that it's the are struggling from kind it could of are of economy, today strong absorbers predict how the our we do a way, economies So to are that there is, to we tenants to Having recession. And go either I employment with slight land markets message perspective, it that, therefore, think absorb good full uncertainty. XX-XX. shock or said and of underlying there liquidity land

to pretty hit banks central we're GDP will the However, demand forecasting and hard, Canada. roughly year X% be -- next demand or in

posture, around and we out balanced plays comment heard this speeches therefore, your point has in that from buybacks our really you think around want trajectory time? see and on been remain little credible us bit Or someone to patients as you So a at which you up with do think being want growth, perspective, you about further? to else's So rewarded, all opportunistic, a do dividends. how I to share in line RWA that pick this around point, in

to us continue those creating, through mechanisms. see think, value, focus on premium shareholder from TSR So I that balanced X we think shareholder perspective,

referenced, because changes, now. that such And always capital you'll patients our excess think be think have still you of, significant opportunistic and expect organic to upcoming significant as -- we strategy rewarded. then therefore, be we look, I because right capital the regulatory will have we bill first as

clear think Management as I the and Wealth Dave, Brewin follow-up you to And a Europe you that, were quarter talked when obviously, you very in announced last acquisition. about U.S., then interest

stuff Is to that more be to digital? or do interest, it If of would Europe? payments, you sort helpful. is of had Any would be to X it perspective something down things X still pin in on

having with, that We're #X full-service I we Yes. excited the rate player excited highly synergies presents of significant think, high over we attractive strategy complex therefore, we And on net value as into a to of continue first At we're for make there then creating opportunity worth. -- Dolphin foremost -- there. wealth get synergies, an and an It in fully structural ultra-high XXs our the is in Monday. are And a the to but our clients shareholders is objective needs, -- pursue high our obviously consolidations integrated the to as clients that, UK, a when with end approval complex on worth, we the approved us further Brewin day, opportunity. market net the execute fragmented and time, market. about very

needs. estate that North to look obviously, America those same the our therefore, So comments we have portfolio continue stream, and opportunities real At diversified balance sheet. clients we a diversify have the real our time, Europe commercial high my because in in net to uniquely diversified we worth for diversify estate revenue around have sector,

We have globally. capital estate have needs clients markets real that

why Canadian the of asset just also revenue have a to risk. not balance clients. that's great continue seize diversification and from diversification sheet, build We therefore, but a and through we sheet balance our a us, and and to this is business, cycle And

think medium-sized a I to small at to creation acquisitions same we and very there And of consumer time, you acquisitions accelerate we sector in franchise. therefore, important. and once acquisition We acquisition. wealth your technology an At at, to continue continue make that value fintech are doesn’t to are So the grow looking commercial, find look our it continue if world, needed, those. to in client a questions attractive the lot we all have need capital

Great yes both. to So, question.

Grauman is from Meny question Scotiabank. next from The

take up be has of of, thoughts Just how terms for you in on anything operationally, your prepared low of be to you'd CETX you terms following your Again, Curious Dave, your on comments in environment, macro would on go? there the how prepared that. complex that low sort ratio? given changed to

it any significant buffers on and and potential given would depending acquisition, strong plus you buffer. with type regulatory could add kind we Therefore, minimums Obviously, like and the type to servers above we our of threshold the capital a anything? you regulatory of work have on acquisition. down to and ability capital that, have Nadine, take buffer to generation of

it, covered right, Dave of think over I you $XX at recommended. I we levels I Yes. what the Dave. think And billion, mean, said at

sufficient we with decisions I what's opportunities make comments the environment, So around happening some speech than that, around macroeconomic as associated positive the referenced realistically, that strategic impacts the at think we I to to in I think around many capital looking in still are well. Basel III, prudency have your point

of put buffer to it, basis in like XX a a point finer would on acceptable even be kind this environment? just point XX%, And

but Yes. higher, little not But you're zone. right a lot. the significant, in a Maybe not

Markets Are issues if even of in Got it. related impairments inflation? those is anything business, then? able more Cap those? in terms way about loans you're impaired idiosyncratic, to And or of Any we're there interesting then those disentangle chain complex new supply any in of to the just sort the talking about

Sure. Yes. Graeme. Meny, it's

I Just don't through gone we've kind really no would where just loan Markets impaired basically a couple new formation. had a Capital of there. year we accounts. mean of yes, comments comment we've I client-specific here on say, in

to the we just up of positive all there marry I you out those look it's of with that in that anything point time, credit X dramatic at scoreboard accounts across either. wouldn't this signals. anything I of of say, would the X. draw kind if early wouldn't or extraordinary that continue the be very indicators, all So X and I at -- was our fact have

as this treat will. against wouldn't that, I something if so And you

next The Financial. question from from Gabriel is Bank National Dechaine

the big performing net about I the provision and want ask release. release to

from the it's your and your than there or start had GDP like at looks note, quarter I case last that bit unemployment become showing last graphics base a -- the assumptions what the So all of more conservative see you end for of year.

Stage release. second moving XXXX. in XX% the this, classified the one then you And it hand, loans number started a higher-risk deterioration, standpoint, Can performing quarter-over-quarter. performing since like release looks then clearly million I X, from pieces On provisioning cycle whatever, category, That's not. here? the the biggest up see ACL Your but $XXX as help me understand

Certainly, to competing Yes. Sure, Graeme. factors. the speak that. on Gabriel, I'll it's

positive terms got on still comments lot right my looking forward cash bring of upgrades a very results, now, notes, of utilization into of We're made strong seeing performing credit economic signals translating I in levels. And out right? Stage that, seeing in kind downgrades, low and we're As performance that's we've rates. certainly, at delinquencies X from strong low balances, still

points still up have those the kind shutdown, back But we that But and X we of And consequences was on One parts. the really we light in early gradually largely we're support I the XXXX that tied the what's earlier, And the for concluding we driving that, came would going release and the to XXXX of in say government XXXX. if environment. on following to that about of kind kind saw we with into referenced going pre-pandemic were was I then is, kind to uncertainty obviously And we data of happen negative reserves an of of credit at year, were not to in based it of signals to to to end. society we've we was On learn significant as near-term would worried or points we kind Again, a were created think through XXXX. the wanted through government top with seeing mean was and another you we've very got nonetheless, us. here, the back in we've end we've in support I going are around that. that when see put and kind the to live driving support. the what reopenings. in we released of facing. -- of those that, resilient One uncertainty outcomes of to roller if kind uncertainty proof economic kind into there the I of So hold XXXX, kind were X the been of it still significant back coaster extraordinary the government we this to remade seen to strong Omicron. whether and on not earlier levels economy really will, facing be of that here, we I in of environment reserves Omicron back has we going this and break shutdowns complete fall, open

that can't place in really so issues, said and we've Having out and kind the chain in take of just constrained pressures, the And out we're kind that, spot of the supply there. pandemic. together that you very mindful there. ongoing the of relation that headwinds the we points emerging puts those X to thought we're seeing markets inflationary of justify new we kind proof a had labor really overlays The

reserves. And weight put you And monitoring did said, our attach into so by we of greater we more scenario. those. did those factor to scenarios, our we and into We downside case our as base way that severity

them more do a certainly So severe we economic and growth baseline scenarios downside as but scenario, have those those made positive our reflecting still weighted headwinds. we kind of

on that we X X the X. that factors to undertook those $XXX are so release offsetting ultimately led million stage the And and

clear. That's very Okay.

indicators, toggle does occasions matter? Where yourself primarily that mean question GDP -- the talk economic forward-looking technical risks forecast, your I shortages wondering economy. factor on it's about the Dave to would -- that for just at to I've not are see and a like guess. a that that And it's where on obvious these Where challenges the reflected? that these inflation, major something I Just that’s labor numerous outlook, though. When I -- own heard there, I it the on in? does look all

Yes.

say, into of number through kind that The itself our widening transiting certainty loan factor that So environment, that's and spreads, is which yield, loss around variables one see, another we factor; our rising on we're kind inflation, so which of considerations. impacts the credit would Really that's rate a variable. the we to higher that of a macroeconomic interest that of a creates is of GDP factor; factor. rates, direct another kind direct is

decide we bear So as other our bring allowances. drive to our of if into all translates and our analytics that will, we kind on it indirectly, loan you variables, models loss do those which

Paul from question Holden, next CIBC. The

different go to I but angle to to a back it. of discussion around capital bit want little a the allocation,

appetite Just to broad your respect basis light specific economic pulling changed risks, at in whether of there like back view a loans, respect or all your to underwriting capital risk? balanced allocation with is organic on you're on areas with that's risk more new

look high-level long-term Maybe that. after view of we at you if cycle with strategically Graeme, We it jump Certainly, know, in a client and take don't I'll approach, a start to right? through we how want I approach relationships.

You can't time markets.

out on there a the are can't client while. clients books You pulling for of once the deals

our through on kind So risk and strategy. consistent based cycle a of is business client overall therefore, strategy our

of when change other don't we tweak we that, and looking obviously, how because you we deterioration nor you're approach and materially do of seeing the where that credit and lending certainly, in miss certainly So and that, sectors more not call now deals you're is competition significant kind of at market things, end-of-cycle number spectrum. but practice in the of spectrum, everywhere I a pockets credit some may across

Graeme, behavior, did pricing structure, on to obviously to today. you happening is condition lending elaborate end-of-cycle and terms which cause end-of-cycle consistent seeing that? that want you a You're with And miss deals behavior. could But

Yes.

for think key effectively cycle. I phrase, persistent risk that through support approach. kind appetite know through our the is We've can cycle hit designed we our operate and that very we client the and can that which so that that base of be the consistent

when not out there on the gas we're good, hard pedal. So stepping are times

from be to clients if I reviewing testing critically resilient feeds and are the support kind think important. I is when make earlier, support quickly sure the get that constantly the and Dave the that, as and diversification into value to not just to We importance And and you line, other but on are plays difficult and provider, we lend we that have that's consistent that more the of into is through of stress our top that our for that will, kind our portfolio think mentioned ability that into piece cycle. continue we in the that periods

right. All

in second then liquidity potential respect management shift with And Okay. of and question deposit to is trends.

a little deposit quarter-over-quarter, guess, because obviously good growth given a higher I bit. retail pullback customers, liquidity? QT you and pressures of you deposit But et thinking of deposits saw management the are you can U.S., Maybe inflationary cetera, about betas. an bit So on address of risk of and how that in the

question, excellent an Paul. That's

expect something it's Canada, per at think that I they about mature we that the year. bonds I Bank everyone I mean at with as start with base, deposit allowing mean would our some When would we XX% looks. quantity of But their to of announced from was from trying have think I of it on have of that expecting to deposits. effect withdraw given that the do expect over not we're it dampening liquidity really and some we material will to modest a the impact our system because a franchise time. occur look overall,

slowdown but deposit another will, seen growth a our you you if growth, is have in event. slight what So still in

of slowly deposit bit the in we been grow and fact asset I'll in But that expected given liquidity, a deploy NII particular, advantage in would part down the to a in not we But evaluating getting different strategic think fact up to we I deposit say I over start beta Fed how we move our over Canada, basis to reference do start it to in that that and also on dynamic. did we beta that's very as the our material anticipate the has our see a think also that to in a base before. deposit overall overall I the the that that have the impact, relates that funding it up to strong is may has transition definitely beta time to be how have funding you deposits. how in take it's U.S. only deposit ramp XXX slowdown advantage roughly expect evaluating hikes I support a liquidity mentioned, up. that but that base period We there a overall. accelerating those quarter higher we as don't that, into mind with advantage the only an is period low complement been think still I In U.S. it has a will mean economy of time. the that in gone and through would Canada asset saw to up do around big both rate either when consideration deposit saw ramp but overall paying in that the moment, given the XX% that we our surplus when U.S., growth, before So the into that of keep but our points a U.S., the and growth,

from Capital The is next question Young Doug Desjardins from Markets.

X% you're for -- the target fiscal where your in from gets where that's I you driving And mix think, -- I you to leverage 'XX. just ratio talked think year-to-date. But in X% what about Nadine, quarter, new to X%, news. we being mentioned negative fiscal going is also op get I curious more think leverage or below year? Canadian next operating area are where to I'm to although which think or XX% 'XX, But today you don't to above Banking remarks, under you X% to about range just prepared your this historical

start then Neil. and over turn Maybe it I'll I'll to

as our the expansion, benefit going on basis, continued the rate interest around increases. and we points low is XX we're lot that start of growth beta, increase expect volume rate run I that deposit not a see, from of but I would particularly the quarter-over-quarter really interest so was a the driving and think to up we to only what strong see margin strong lot you started see in this rates, that off our growth. mentioned, base of a coming of basis to And quarter continued

levels some over we've increasing expenses, -- difficult but just of low Neil, of it digital of can marketing addition, a where very but talk around and that in a which not initiatives been productivity some also year, areas the management and we're our base. of in we the on a only of last improved also technology, in that helping some on that as we're very well we've our our very only year, I to also back number I'll mean the comparative not managing very force, but to QX sales last we off we've investments from are our increase expense in period from our but the hit perspective, spend, we frontline undertaken office side. come In in are turn obviously our low as

for over So that's Neil we're looking And I'll comments. the expansion why in leverage. operating turn for to it

mean Yes. our outlook couple for on X per I to the basis quarter next provided. little more is mean what X quarters. already just on color points I NIM of Nadine a

betas. So trajectory big low the and just deposits on market there. deposit will part, the gains spoke a dimensionalize share core to of we relatively play with the The kind about

drivers of of NIM. haven't The other direct much just for revolve we've down his I obviously, things the talked income, talked about as the things a about markets investing. we QX I of a a other thematically, card as comments, the rates line. that's book, credit in but mentioned that and couple talked Dave in one of year-over-year look normalization as equity getting with think about back in the there's funds, headwind, Mutual we prepared with or

an Our option. upfront experiences. available new cost the service experience take we from year, opened last And obviously when had card That's higher a lower bonus points. travel had dramatically acquisition credit card up as we benefited revenue not with being also redemption to we of redemption --

the purchase which So getting growth as see quarter. start we more forward the normalize We'd relatively sort to card services that was parallel of rates, about for $XX for flat quarter, into million revenue that XX% the volume for over were to QX. move

volumes. just those acquisition then things, and I some So the new think are and strong client of

So with platform. new those about almost volume in growth just onboarding XX% on really pleased how and collective business we're the clients

to then is think Perfect. you Graeme, you kind remarks, surface what's I'm to just in you likely behind get 'XX. your in get PCLs? And me thinking that Is of challenge going -- not mentioned what to that to wrong, if I'm think fiscal trying And Or secondly, a of I'm sense I that. meaning peak-out trying get correct a credit just sense the a you're of when you're here. in just

good a good So a question, there. follow-up

to make clarify. I sure Just

of was have talking last have obviously and cost. lows that's There's over So credit credit we'd think the very the outcomes actuals as on stronger anticipated. that Obviously, had I kind X of things. few like to the than we've XX-year reflective unemployment. I there's quarters in -- be about normalization things of of kind strong proven come

out of to credits kind look unsecured It's or of kind that And many see and than maybe but will longer of inflationary are of so just kind right? or XXXX. the sooner, kind small profile into businesses and rates an delinquencies profile we potential some deferred. over impact some I of of of impact costs. come and we're termed more the timing is extend of these that business could you Separately, probably see of you'd headwinds those the -- was some kind debt will XXXX seeing, -- into kind if will, So the emerging credit that the certainly kind start of impacts down deeper the starts those even, saying, environment, think the forward were those, been out. of impact Stage our that turn our certainly thought, to portfolios in return more for kind levels terms rising expect impacted to through. when I not so have of higher of loan will really on of X of that at getting like you thus, When more reference we of kind impairments has normal losses, profile I

portfolio mortgage emerging headwinds. more And of our to commercial the impacts or whether so our are even kind estate many due res of markets latent wholesale portfolio, there our portfolio, kind those real parts of probably that's capital

from is next The Lemar question Persaud Securities. from Cormark

Graeme back to Maybe flipping here.

at But actually today you think me it credit. there's like you're coverage this end QX looks ACL economic this some on than 'XX earlier an release, bank XXXX. But what at of covered a lot quarter's in following at the to pre-pandemic. of with off I below the end the uncertainty of now more responses had ratio

why mix coverage understand So I XX you're basis think, I comfortable help XX basis Slide could XXXX. points me of maybe the kind of the on XX Like at just think with it's you the the -- maybe end just points more in versus, IFRS just under you you're or high there's X uptiering period some overall now, through perhaps, level, at comfortable operating of business gone portfolio, given changes that a a in you've stress.

So would any thoughts helpful. be there

a good Thank question. that's Yes, you.

hit adjust higher XX% mix, we So there, right? than we were in XXXX. on of I would think X% one mix, which key And the where for back so about is points you you still be if to

for is growth, So don't I of a that's I ratio of kind from Most the which lower think the the it. last on know, has a key balance variable. X mortgage over coverage of come sheet years the residential one portfolio,

cards obviously, this obviously are and not balances earlier, much do Neil which ratio high is other and more balances On towards there the of on risk end business, the revolver, have coverage -- the is alluded transactor profile. a a the have to spectrum, we the even business, we the lower lower and which

So cycle. would the mix to were getting end to back we go we of we're that. say if is our a XXXX, I because contributor towards then significant feeling were also, building you reserves

to with we concern, obviously of already, playing different into of more in Obviously, ourselves were back now, And certainly earlier. I we factor any but kind we about prudent related are as our magnitude do reserves environment, whole a loan $XXX-plus a to facing XXXX our get presented million non-COVID loss XXXX. kind and reserves by it's back of our So framework, I into uncertain think, kind increase as considerable in of level talked factors, those of that we an posture certainly, norm. late

we right are taking to these the of actions reserved make are so headwinds. new for sure truly kind And we

bank, customers talk How sequential QX much think of Commercial increase Canadian just Slide at [XX.X] want of in I I helpful. where come that paydowns, you the Because X, by of the other new from That's factors there, [XX.X] about 'XX Banking. the in then to et back to driven kind utilization And Okay. was utilization? to there's cetera.

So just wondering if we could just for utilization. isolate the

Yes.

it's question. -- utilization just just speak the I'll I'll maybe So Neil. to

up. trough, say, say, not to halfway So begun only from even, we'd trough has back where utilization, it's tick we would has of -- it's But I pre-pandemic. were sort to the to

started a the last sort the in finance loans of that book. month operators think has in versus But I just leader only differentiated in is, and drivers of lenders couple we're So just and automotive there, come other back. plan floor demand to the diversified business a

negative of So growth pandemic. basically entire we're the for actually book in the the

believe, We higher one of count we that customer, lines. the just still confidence putting operators leaning as business with, them to we comfortable So opportunity and out feel to using room a would areas risk-rated operating then having into go. those

the the X.X what went looks like Okay. is, utilization [XX.X] It at I'm points. That's up [XX.X] But to sequential. helpful. specifically, is getting

how that from would do of like points billion of utilization you that $X So QX? X.X much

is then break try to given quickly much I've but have of to is patiently. through, can exposure new of and here, everyone's the We're utilization think, break down as that get to I to been number. or X utilization. we tick how going that how we'll much questions out circle waiting the Yes, and up, back X

please. question, Next

from So Markets. Capital BMO Sohrab be from the next question Movahedi will

net hoping order just like provisioning of during put like much have or going have X you drivers two, reserves more And one. happen now so been And is reactionary anticipate reopening. I'm understand I lot contributed that reversed? is just X I to And is, would forward think just economy mean has explaining excellent you. and now, was job the result the key to COVID number to you've to what a bank's done decision would would more that looking? X. transpired? well, I aside the IFRS to come the what I I that that did wanted number And I Graeme, of to I back to just, providing what to for what have under guess, than than than guess, of provisions how becomes understand I'd guess not challenges a magnitude?

the over is be of forward will, extraordinary found And had largely consider looking. of forward-looking, based to inherently, it So real shut kind reactionary IFRS your that you down, where a our other pre-pandemic, that kind we ourselves where drove on brought fundamentally what of situation of we X of the macroeconomic off very mean broad variables. that of When forward kind is kind analytics in consequences to was to of if economy other had intended bear pandemic, series it. whole projections comment that. I on the we introduced, is is versus and lenses,

go but we forecast is the I kind that of X. think seen the around of piece that indicators, of, because X did the is the as on continue than of brought kind and factor recovery Certainly, that? And ratio it through IFRS XXXX with and was degree that the saw to slower trying as rate to of a you jurisdictions, what forward-looking are we huge that that and again, strong level uncertainty was period. IFRS recover, the that's baseline it hold pandemic on support them. And negative in through our economy the outcomes just is government the versus pushing broad of at back despite what we uncertainty. down did And expectations, heads truly down get your you into these there's back would was factors around to bring the have really at wrapped other that in time. that mitigating There's credit what X kind kind really a

the see government end And to off the support really kind so we was I of concluding. wanted of what that earlier, mentioned points proof come back

with uncertainty the X And and big to are X X that don't the months say, have steps factor we of and same had taking that place further why in is kind so kind of ago. that of we we pandemic now a

as coming vaccinations The now allow treatments, tools on the need that sitting to other with in we remain facing wave Omicron and see subsequent was, going huge these economy this be to to at ways. we're of open here and kind we're in or we QX, the going us, place obviously again, a we new one have to And back are roller-coaster.

needed proof this and we've back on in to forward. going us were of the the had insights kind view, uncertainty that we of factors. those back big focusing kind towards you And variables need give more in kind of we And X, X that so now on going place had comfortable macroeconomic that trend that's we a competing that kind of if reserve, to spot points more my get we big will,

to going disagree if all are corporate back corporate I -- but assessment? back saying, going away. like Higher point, mean yes, say, up. not see I with high. that Or XXXX, But but to an could costs leverage margins the how corporate later. you're we Like of do argue if that and factor borrowers. our what the or compliance rates it buffers Interest do to for I not for until you ESG argue mean costs maybe in? deteriorate. about consumer belabor I'll And you going but corporate you labor so I worry borrowers Higher for would Canadian with say your Higher that all-time not costs your buyers. eat at energy profit funding yes,

with disagree don't I the assessment.

exactly those kind think into I our ingredients reserves the $XXX we that of increased go the over are million. reason

uncertainties if will, we're whole there There that said the different set latency one I magnitudes coming of that's uncertainty that why new leasing in view, we are So XXX. but got we've this, coming isn't you pandemic off our of said, in into we've the as hand, have way, just and play. a same

on taking the XXX On hand, other over that. we're in

And yes, risks to outlining are you factor that into them of kind go into And would that about credit a will. our say, things all though, a those of worried, drivers forward pounded if you get the do certainly, of talking estimates ratings that's attaching matters the are will, set to, core fundamental will, our higher kind if you greater and you're if and a are our that about, outcomes are credit our environment, have but processes. into risk. so These kind you we're recessionary baseline, the of processes, losses. of weight we I

Next Mario Securities. question from Mendonca from TD

quickly. If not insurance relatively the answer IFRS material, is, Any these enough through good on go the me. impacts can XX results? it's for of We that's

what to Yes, no. not material we today, know have

Okay.

next your $XX line, Another the we saw time this quarter. quarter? Last next just activity, bounces there caused QX decline the Can 'XX obviously quarter? this to some was thing. hedging certain me a it appropriate sharply back and other on pretty other mark-to-market through very down The were but losses is quarter. bounced -- And assume investments you back million, it from revenue, last in back what lot it in when the that take

to I referring want the to Right. just confirm, you're other, other...

Yes. Yes.

Yes.

Okay.

plan, a plan. to is couple in have of what relates relates to this one from what's that may you we accumulation our, primarily, also I there call, things which think seen -- wealth before, related stock So our there's in there though,

the price. our volatility with that's associated share So

in were there And losses there as mark-to-market well?

Yes.

relates Management -- I the that on then NIE seeing, have and what the that in that was other the Wealth we in plan. accumulation that, but offset provided that exactly. noncore that by That's slide in primarily, to That's the So Mario, you breakdown exactly wealth for sale affiliates, you're National and City our we partially offset some gains it the pack. for of of the yes, to referenced our

QX like 'XX. what that things right? to So quickly. Is happened tend much relatively very in These bounce back

It's market share how of our price, value so... the based on

on fees. syndication QX it credit levels down thing that on final an activity QX. market in has declined Maybe just down U.S. trend sharply It's but from then syndication in unique sort continue to the outlook Okay. is And the snap-back? or the not to Royal, of

take Maybe Mario, it's I'll one. that Derek.

continue in did couple pronounced I through That part April. think, through markets, we've and through in the obviously, March early May. last quite an credit fairly gone of the of months, adjustment

loan that second in last new little see activity and impact We a in are to starting syndications days, bit did so the volumes of the stabilization of just few quarter.

get activity obviously is approach loan greater pipeline to that prudent obviously, cautious, take and with little I so we we're robust think clarity. ongoing syndication and until bit still both we're seeing a activity, to but very uncertainty, leading on very a market trying reasonable that more a new M&A backdrop clients against the to risk are

you're against So a and XXXX still the QX slowdown in saw little bit seeing very persist this but first was what that relative robust active, a certainly quarter we a year. of of to

Rizvanovic is question next The from Stifel GMP. from Mike

Just a quick Graeme. one for

deposits on excess your Just wondering provide on currently insights you can the that if retail. any are for book

insolvency Are to in of people get mention you towards borrower. it's held that excess as I how trending did seeing that mean deposit the you, sense by I normally it's the base? You mortgage on meaningful income deposits portfolio through PCLs. an something I'm much excess reason similar an higher would not impact. trying of if is anyway, go The maybe ask not a

provide would you be there So thoughts helpful. any can

Graeme Mike, of account. it wants Neil. and terms start growth I off consumer of still I we're add the it's year-over-year, book, anything. XX% deposit terms mean growth the seeing double-digit I'll mean if in see Yes, in checking then to

still strong, savings slowing side. growth seeing very growth, and we're still albeit the So on

speaks consumer Maybe just just the that of made. that some color comments So in a on is terms to little deposits. more I of where think Graeme kind of put the

And increase becoming mortgage book of of seeing to picking a done think about in of business seeing be some a issue given does is homebuyer the the commentary able income income underwriting prices just that terms Graeme's but the bit just a a I first-time that portfolio. markets. standards, up in our it that our in people sad are are some mortgage the the underpin able of time. a overall into the under confidence lenders portfolio. There less that over these is worth I think that guidelines, and isn't D-SIB part it bit But be and of buyer and overall just home less of non net may mortgage to worth we're that a the and systemic being of We young get net points is

add we more classes. look question see that elevated just we thing I by elevated to across savings deposit risk and those there, Yes. your Mike, only at The was specifically all and going balances class, when just -- persistently was risk to stratified

you income you rated just will, to So will. clients, and it's highest highest if if kind not of the narrow,

consumer that and And haven't elevated flatten, of draw liquidity still. we to to maybe so back just relative it but levels points to a have them started pre-pandemic the there of of seen those lot out kind gain down to certainly kind there's available

then we to a breakeven should And I'm Okay. sort basis? sort to with be just showed I Appreciate gain corporate we of that rate. we know you had color. quickly expect -- think tax run big segment back on that previous Can to that Nadine. at as I the go-forward roughly onetime-ish continue level corporate still guessing quarter. the this that's in up of the get

other note there we that don't both wealth the is made volatility in mean in Yes. in revenue elements the We of I tend that our to comment the support. corporate expenses. distribute We Mario corporate with has and other in associated keep out accumulation plan support, there. there,

expect think forward. see do in one normally did have a keep the your you tax run it thing so there, what from can going you to referenced was that our I change. we you provision So rate, point, you income that But

Scott last Genuity. Canaccord Chan So from from the question will be

every Nadine near-term to that forward? back just it Board dividend say would at going dividend with something increase, I'll look Is other to growth, that trying EPS since the I Dave, quarter keep RBC especially the going to the one. just maybe dividend, heard confidence, increase. dividend X% above-average signal

Yes.

to me feel the -- is all we dividends, about strong as and Our up internally. heard just confidence I sets into but things, rate cycle see historically wrap to year process the you volumes. been reasons you for twice a let great you think how and that our do we'll a look It continue absolutely -- at to has to that's does signal

core funding particularly You the significant strategic is the and starting and And focused see We've a the really in saying a do part. south the of and you're see in gathering important outperformance keep border, deposit that on on future. to lift. deposit. deposits the margin or very deposits north imperative I

You're lift. starting a the start to really are pay. you to to going see those think deposits NIM decade finally And after heard I

the revenue heard lift. You

You heard to the operating going growth continued leverage along come that that's from that. asset with

yes, you we all So at $X.XX, that perspective, of heard and felt confidence elements it from that year. and look we why the would we move a twice

So thanks for questions. your comments and great questions,

growth. had, volume up, markets business tough Just as We saw on some quarter-over-quarter expenses. of great Nadine comp mentioned, a our year-over-year to a sum capital particular and we our

and the You return margin NIM to predicted. way saw we the return the start

basis very and well continue probably quarter-over-quarter Neil Nadine to we You quarter quarter. as again, coming following City the least at secular through revenue growth, from expect heard from the from strong both that XX over benefit to and and the good margin margin improvement closer National we improvement as next rate points increases,

ability lending the drive We're shareholder value. through improved we've growing capability our an those very diversified So to impact. create growing managing in also All leverage, leverage operating but operating made confident cycle. a and of having investment deposits, and that's our

all you and your much quarter. forward thank again very talking So look Thank we questions, to operator. you, next for

lines welcome. at your now you. your thank you thank ended. has and You're The we for And conference Please disconnect participation. time, this