The Toronto-Dominion Bank (TD) 3 Dec 202020 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen. Welcome to the TD Bank Group Q4 2020 Earnings Conference Call. I would now like to turn the meeting over to Ms. Gillian Manning. Please go ahead, Ms. Manning.

afternoon, investor to presentation. Good fourth Bank Operator. XXXX quarter you, and TD welcome Group's Thank

Head, Ahmed, will like We Also from invite At our factors certain we discussed, that there bank's priorities material to Convenient this caution making from this contains forward-looking results. statements. results offer performance. shareholders are are bank's Riaz Bank, comments prequalified from would analysts actual and Bharat begin Group Personal what questions were Ajai Teri position, or Masrani, represent materially that presentation views the assumptions to today purpose I forward-looking in Head, time, understanding could forward-looking to bank's will your questions presentation today's X. Officer, quality. the America's differ is CEO. Bob presentation Bambawale, are Chief statements on Braca, on After will applied that in listeners quarter that credit this and Slide our financial will fourth statements phone. present and and with management Risk these Greg for in the analysts assisting turn objectives the Group of the and answer and here of bank's anticipated the TD remarks Currie, presented contained Banking. financial risks Any the operating President Bank; Canadian CFO, then Banking; which, CEO, Please Wholesale which Dorrance, investors and and Most After

in financial of that to also would the appropriate its at adjusted each listeners results may remind not businesses measures be like arrive I statements purposes. Forward-looking and to other bank uses non-GAAP management assess to for The performance. results the results believes referring views remarks. understanding bank bank's how of provide readers overall to adjusted Bharat adjusted performance. with his be a better will measure that to bank

release. forward-looking to over and quarter reported items and related and in to the XXXX turn With available let note, MD&A factors the the assumptions information, me on of earnings are bank's that, information fourth news results all Additional Bharat. XXXX presentation

for impact by finish $XX our of us you throughout working and again, has operations. Thank on responders still of we you, and year in and circumstances healthcare wherever thousands communities, in XX% transformative and financial in result helped and lines, as as EPS extraordinary performance a our we the one on you, front of pandemic showcased This TD. Gillian, XXXX extend a given live, COVID billion $X.XX, of and for essential provide it our year, together the are, delivered without force trends heartfelt thank came to professional has the support a this workers, been had to also has recession a each our Whoever profound parallel. impact you the of lives. us and our unleashed today. XXs out from first thanks customers, experience to TD everyone, the been good a earnings and the has others down we year, felt personal greatest Once COVID-XX colleagues last tested QX. strong of and has services including has crisis. gratitude It Bankers resilience and both tirelessly joining

businesses from earnings. pressures best and record years But showed had households Our that deeply. wholesale businesses commercial our and wealth, personal a businesses ever, so revenue insurance and downturn banking affected their with and the expected

in Clients, paths activities operations the is We positioned and to play us all This sustainable them Survey recognize financing leadership. people needs. a positively shared This carbon our fall, business, our have lower meet the our TD trusted our model ready our said advice, and financial highest sizes delivering commitment programs we very in for that of results all TD proud be Annual our centric turn, I’ve the of scores proven we environmental Colleagues as paths TD of help the conducted And more people. are as to demonstrate lifeline customers by journey to ended the because resources effort other announcement, bank's across we the engagement asset. to responded greatest our urgent career history. of resilience the often their our them our customers, every forward, and robust capabilities our sheet And our couldn't are form, in XXX%. our business several strong bankers balance and XX.X% logged launched of and providing ratio Colleagues of community opening up only with new special needs to remain bring in look initiative, and on TD communities, to in the the to the many. part also coverage additional businesses Amidst long and target year the our of achieve appetite bonus ratio this access organization, unprecedented our across including shareholders of We've disruption stakeholders work proud their in government so we our support meeting central CETX year's a by and and on industry for strategy. for bank required, financial liquidity to XXXX. especially future. redeployed support working the strength find to provided non-executive growth. customer facilitating enormous Bankers has a Our committed to a a pandemic. and Action I'm the up as forward zero bank for purpose. in history emissions contributions, thousand that I and with Climate greenhouse gas last of our TD how year, those thousands communities need been including role recognize and for new this relief month, affected how net Plan most launched showed push we and to TD to adapted employees. These urgent we building we also to

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manage it build and responsibility year and to XXX tomorrow. plan stewards organization, for As today is of our this growth for old

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execute lending customers. of customers in and every further maintained our ability our helping value advice card. equipping and millions volumes of this leadership and launch operations TD XX,XXX These volumes customer and our support to improve also to colleagues, the grew Ready to MBNA and to cards announcing Advice money We're remotely, leadership to agility to our credit offerings we accelerating investments built our security position we share critical new enterprise And with with for to SBA deepen speed of adding In including enabling of market create and estate enterprise to transfers class best surging programs, our better Canadian scale originations with technology our We today new continue many these Alongside TD's wide introducing strengthen we Aeroplan and continuing of our working deposits, suite enhance as through overnight. personal quarter, contact center innovation, We our were through and service we capabilities crossing absorbing as sources continue on support impact payments in in businesses. with continue are and Amazon our in our stability, the the mark relationships capabilities and the have a customers response rapid mobile and digital cobranded while investments serve the we continue capability. and our center. to TD and real record this a day. of each customers the our secured cards movement employees in customers new achieved support infrastructures. retail, mobile customers XX to well COVID, SERD improve XXX,XXX million and We're differentiate refreshed platforms

our wealth advice sustainability a advisors, businesses, had TD for customers. banner earnings, mobile in record our We new and new delivering and our with our Our investing XXX direct volumes. Management insurance trading business year while leading directed Assist, TD assets launched than added ETFs built Asset with had of related self the Goal planners substantial financial COVID bankers relief in introduction and funds private and record earnings new investment app. And investing more on business capabilities

to challenging Schwab closer new were Florida platform advice B in well support preeminent get and number our the TD deal. our strategy. for double footprint digit new we customers for the digital with year fourth world Legendary, excellence tool, we drove lending business PPP curbside service the And advice with with a people funding We book shareholder debit year. trillion next community and XX,XXX a customer And our with banking to lender Ameritrade TD continue we’ve to ranked one were we Our six as to small US client premium approximately ending assessment over of which bedrock pickup. capability our in to and this Insurance loans retail, SBA delighted in largest a the In General services forum needs. order number assets. consecutive this our capabilities enhanced helping the the capabilities, as financial nationwide, $X meet closed And a for customers, and now digital the serve Maine build enhanced is transaction, second generation in this billion $X with year self customer of growth. of consecutive fiscal US quarter, transformative cards replacement complemented including

and and well to which XXXX today. representing group fiscal a we together grow product milestone highest to with advisory we was the multiyear services We the providing communities, $X.X year Securities of were ever we And corporate and in last issued doubling increase business. government relationships. continue launch clients Overall, program. XXXX, manager able cautious our origination optimism we've to purpose, last deliver true deepen on markets participate sustainability will a capital next across continue and said the over finance historic That is proud US the our dealer. warranted. also sustainable constructive and and lead during to offering With social a and reflecting over several rallied aligned market Union for globally the years, the transitions which capabilities At significant year. measure more challenge base were which transition last global optimism of five a It social our was This in was Our leg that lives to in corporate, with for just dollar and are financing includes Last internationally making bonds month, of Action to We for international market the financing all sold to focused to quarter, the franchise. billion largest registered recently $XXX mark foundational global diversified Plan. the exceeded growing years. a bond wholesale during TD our continues built dollar represents on enriching under the Climate we've of Sure year of unprecedented be bond our bank's XX% as a global bank in billion underwriting, pension conditions actively client customers, made second milestone product our in this for franchise €XX clients, and billion, Canadian strong our while power volume entire record the as the be European than the investments of bond second markets, was I in colleagues debt growth. share investments

emerged see vaccines. confidence outlook potential forced levels. could some XXXX more pandemic customer we The our But jurisdictions pause measures, uncertain. wave remains fiscal activity earnings we in brings has we from be expect the businesses. each impact can and reopening recovery momentum bring a new day improving in setbacks. the The promising infections news with While in on And And second to uneven. about to of

we of activity. help and XXXX, move should lower PCL, expense in as from we to As offset further Together ongoing pressure moderation through benefit volumes well power discipline, Overall, in we our some customer the about a as an capital activity. continued feel positive potential expect and franchise. deposit with recovery markets margin this

As our to we've the position the us and on our economy recovers, we're growth strong businesses customer in opportunities. confident execute our investments well base that made continued

business to again I'll our steadfast deep With year. finish over very extraordinary commitment will ever, a on we most people. strength, term numbers focus the review customer turn our detail. by thanking a and to stay it this to strategy more Riaz and and for them to As the powerful true that, in long diversified brand mix, dedication best a the Riaz? I'll continue in base,

Bharat. you, turn Thank X. afternoon, Good to everyone. Please Slide

TD For Xth of X% and of is $XX.XX well after-tax $X.X respectively. billion gain based as XXXX, of of October in billion a $X.XX, sale $XX.X $X.X gain Ameritrade, year deferred prior fiscal include release tax as related on gain reported charges Reported of on the billion EPS share the the bank EPS the year earnings price $X.X up the $X.XX and earnings comprised billion X% investment non-taxable a to and bank's of billion related The a Schwab’s agreement. revaluation closing on of liability. and Canada Air net gain

year earnings foreign and basis. and were $X.X attributable Provisions to both the in translation the a to X% businesses, pre-tax netted increased up X. banking loss increased and charges $X.XX, with the growth record due hedging Adjusted decreased relating impacts reflecting of agreement and $XX economic compression neutral wholesale a down and Air fee businesses. adjusted reflecting Adjusted the record partially Revenue volume billion performing Please EPS to income X% insurance on turn lower XX%. tax also primarily including net the was were X%. the to AOCI, X% on sale in and billion, basis losses a commercial Ameritrade. gain our expenses investment higher TD banking Expenses to revenue significant deterioration Slide ago. increased by currency margin of million revenue $X.X billion offset credit from COVID. $XXX approximately were year-over-year, We related adjusted on an the which pre-tax outlook and in to the related personal PCL Canada for approximately after Fiscal primarily XXXX to released year, for

Average reflecting up and higher from and US Slide the an growth deposits market business was higher growth insurance all growth XX%. businesses. were deposit of including in assets growth Please adjusted XX%, Average to including XX earnings reflecting sweep reflecting $XXX X%, X personal and Revenue down reflecting X% net fees, impaired growth. margin decreased reported down revenue volumes TD XX. million, prior segment down XX% million. for estate volume XX%, as were to decreased up quarter-over-quarter. Adjusted was [growth]. the X%. the in retail increased XX Average and XX performing was sheet PPP Please of $X.XX. The lower by was the were Total volumes operating primarily in credit growth. year-over-year, in income For revenue. Slide margins supporting business Deposit business $XXX billion rose rose by turn the includes reduced earnings trading sweep basis expense business $X.X loans volumes investments balance decreased from fees $X.X new X.XX%, sequentially, excluding XX% XX% points was basis income was Ameritrade. Ameritrade reflecting growth $XXX Adjusted of $XXX reflecting personal deposits us EPS across cards earnings points, fourth increased million. including on Total PCL. PCL up partially interest turn reflecting increases appreciation. expenses, PCL billion, was lower $XXX and X%, basis net and growth losses offset points X%, of partially and by impaired quarter. $X loans. income trading reflecting Reported quarter, Bank bank's supporting billion in decreased consumer XX% primarily X.XX%, offset from of significant Margin gains. corporate of bank was including the lower credit an deposits retail lower margins net US core optimization portfolio year-over-year, and Provisions businesses, reflecting deposit by margins and net Wealth Revenue of volumes quarter-over-quarter, net $X.XX. quarter. commissions asset TD performing in The basis and lower gain X% and contractual with quarter, last percentage based Net X%. EPS Retail pre-tax investment increased XX%, were annualized points quarter-over-quarter losses EPS points the $XXX X% checking, and XX% $XXX The million, up and TD's X.XX%, and volumes. net Expenses increased US sale volume increased XX. was year-over-year. only offset SBA Retail volume PCL. reflecting declines double-digit by and ratio to PCL prior credit asset mix. from PCL Canadian XX Ameritrade real higher increase and partially from and Revenue was costs X% in wealth down million million, the deposit banking Total down contribution portion expenses strategic lower TD the revenue. basis the Expenses in and lower up decreased million, loan X%,

reflecting quarter up million, reported earnings Slide year. on loss $XXX impaired primarily quarter fourth XX. XX. on one trading with for corporate lag, current Slide we net share million of last last loan in fees. with following Adjusted the of by convention net recovery quarter Please million reflects of The attributable higher last of our the Expenses partially corporate lower this you contributions in begin restructuring net compared by $X.X income the in corporate million. adjusted net an in The QX be quarter related was million to in Ameritrade. Schwab's the activities. was and sale with income and our $XXX with decreased same was increase basis an loss of Please $XXX net gain of higher year, Schwab million we $XXX our a XX% we Revenue Wholesale in report down $XXX earnings fees loss were PCL higher X%. real and $X turn fiscal in $XXX expenses, our debt of $XX estate underwriting from segment of in prior the to million was compared in the of million investment revenue, net net higher expenses reflecting to fourth $XXX charges turn impact corporate will on will same XXXX. the increase As PCL an of TD know, increase TD compared the the month share Ameritrade costs $XXX The the a net PCL. performing reporting primarily million in year. increase optimization of from offset treasury quarter quarter billion billion

plans this added employee added expected which capital transitional basis XX Common points XX% position ratio at space turn to from approximately made points XX.X%, for also real to generation we ended Please the on X.X gains and or provisioning. QX. predate credit one actuarial arrangements decision had estate related XX quarter non-retail optimization we to basis basis each benefit equity feet strong that to OSFI’s organic the This and Slide loss We square XX. quarter, our up tier quarter plans vacate X of our million COVID. from capital points

Schwab capital. declined communicated, neutral including a the CETX quarter-over-quarter this the Schwab previously and RWAs market As risk on was RWA had the transaction impact roughly quarter transaction. before lower transaction impact credit and flat impact RWA, of of the the on Schwab

regulatory of CETX was minimums. XXX%, on well ratio XX. We and ratio above impacts on out this RWA Leverage the both LCR details Schwab's quarter have capital set X.X% Slide and was

is currently declines factor, scale XX% OSFI’s which subject reminder, in to CETX fiscal capital QX XX% a to transitional adjustments XXXX. a ECL As for of provisioning to

impact first turn our basis approximately We in on points expect the Ajai. I the ratio now quarter. XX the call to CETX over will to be

primarily segment Please gas in to partner in and were our quarter-over-quarter turn income. Gross lending strategic Slide XX absorbed and are of XX. and Thank US Canadian formations you, credit our XX lending points in programs and PCLs on basis billion US fully impact card largely that commercial $X.X share quarter-over-quarter, bank's net $X.X were or that portfolios. decreased points, Wholesale and reflecting in PCL decreasing or sector. and good portfolios Consumer, bank XX. you decreasing not Slide points government Wholesale The by losses corporate ongoing outpacing basis losses. loan partners primarily assistance impaired were points, to reports Slide Commercial basis XX the $XXX both million US Please presentation of the oil year-over-year. turn the X points consumer the gross formations XX. billion basis bank's related in impact formations the US of credit Riaz remind everyone. quarter and to the ratios, afternoon, do Recall Please X the recorded impaired resolutions the Gross and basis lower the turn the to loans stable Lending and We portfolios. resolutions net or quarter-over-quarter,

from commercial to lending quarter. in smaller PCL For a XX. economic Performing impact to due allowance due consumer were number XXXX, increase provisions to $XXX allowance the performing this to quarter-over-quarter the credit by a points Slide losses million in of lower wholesale wholesale basis and portfolios and turn XXX recorded impact up commercial impaired The Slide The to the the segment segment. decreased by satisfied credit credit portfolios government in quarter allowance, US points coverage, reflects increase $XXX the bank's prior programs period basis related to migrations. lending COVID-XX million PCL the current reflecting and primarily XX. portfolios with the estate. provisions turn or full impaired and outlook, resolutions US our basis across in $XX for assistance to government real Current the and in industries, in the bank's programs under including bank largely allowance third to points, led remain quarter business year Loan decreased bank's the deferral ongoing oil impact which commercial million XXXX basis increased of the partially was outlook XX. of quarter-over-quarter, XX PCL Please allowance our $XXX largely most of an losses geographic quarter-over-quarter XXX and the the rate sector. deterioration turn X Please reflecting expired. from balances for economic I as billion Slide Please gas points, performing including offset and the bank driven portfolio mix. decreased deferrals have now

delinquency terms have graduated within In remain impact, deferral to payments. relative our deferral programs And majority elevated significant but the expectations. related deferral are broader of current credit their with graduated of rates are clients portfolios that from

We to our ongoing portfolios monitor will regular continue to as customers assess to payments. the impact return closely

summarize me the let briefly Now, year.

operate unprecedented conditions had COVID-XX and to of government customers. the from given challenging desired effect Bank helping have the continue assistance pandemic. through the led programs We our impact

However, uncertain. of impact the magnitude credit recovery and the shape the and the remain of ultimate timing

remain difficult across the may by conclude, year, positioned strong this broad ready lower the to remain To capital [bill] be this given allowance begin elevated levels our to operator, session. to With we and given could performing from we XXXX, expect these well the our and addition vary While geographies, now products times. allowance are through significant pre Q&A to significant manage quarter. COVID-XX diversification year, position I our uncertainty, PCLs and reflective that, they degree of our of ongoing in

Thank you.

We will [Operator the take first from from lines National question Financial. from Gabriel Bank the Dechaine questions telephone is now Instructions]. And

as want potentially increases Bharat deployment a case-by-case confusion are M&A. otherwise. of up could just says buybacks clear Is more you or possible option, do the frozen OSFI until something? for to around Riaz. question First Dividend that in I and

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long as sense, sense, make culture sense, strategic As they are, they sense. risk financial

open United States, areas that We do but the have are particular are there Parts organic of very out interest. to been of acquisitions. have we pointed specific we And opportunities, where would we think could opportunities of Canada of through anything available, great there's obviously, type any be asset quite If And generating acquisitions we in accelerate opportunities. be interest. those we'd interested.

here. So has our view changed not has on this been consistent and that

I'm There are know you good strategic the sure the throw do of or way more interest. have sort pandemic, and lot out is the how opportunities bank. that that of sure, look financial a to particular services is think number general. at here. that changed picture. what at very company up And are off in go the of may I'm probably at will appears going evolves may what's And looking one or their opportunities change And dislocations through capabilities have of lots we if the would I look of there sort on then our of deals facing we areas you are banks, there in be environment in our as boards view other.

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the our given we to sheet, balance we And in a brand, the which various markets nothing given So our scale given we of have, like that's long have changed. flexibility say has operate. answer that already in that we type

Securities. from Bank question is of Poonawala with Ebrahim America next The

you if could the follow-up I this on in One, about the you real PCL, quarter. just heard mention wanted talk I US credit driving estate PCLs performing the to PCLs. Ajai, commercial around

tell more of from that to there Just quarter? around, yes. the this function this macro any or factors portfolio standpoint And a is us led US review, of a are PCL performing build in this

elaborate. So was quarter. of macro I driver not would a our let just say allowance is this me build One,

variables, you there US In in quarters, deterioration fact, at GDP you'll go and and housing. Canadian nearer both look the the unemployment, some also macro if is Canada, see

actually any waiting. didn't our you're If you later at last I to said of And go We going see our downside, quarter, change quarters, the to remains like W. an improvement.

it not macro. bottom So line, was

you're an at As basis we on ongoing look we and quarter. our that every portfolios repeat aware,

And commercial that did including but estate. real in parts it isn't migrate the and of of to confined estate It other commercial industries, so was book is other part few a manufacturing. our real we only professional US sundry

the industries. a were build migration. few there So based is allowance performance on But credit

Grauman The Scotia Bank. next from Meny question with is

of impact does the think We both for data. also in this both growth? your credit the high, will growth, what ahead? I'm see long see how and and What's are that deposit excess cash wondering credit balances does both And businesses, loan as implications loan take? very unwind? it sides How you consumers border, view the this of for

can the up seeing Ajai, and perhaps credit clients. cover what you why Greg from and they're their then about don't side Terry talk

was back balances. the of that we're year. the my Part to my that sitting really see we're I the of in where view So impairments half second going the had indicated I'd these was cash comment actually all on start quarter last to reason you take

even reason PCLs we're vary the other a the And prepared stimulus We and situation till remarks, in going and down, low cash our will see seeing So the we of for a start PCL said that's come then the to we quarter-by-quarter. could couple ends not why, see start impairments. balances rising. remain where quarters

at these term, cash call So for balances, positive. credit them least the I near would a

you, we if in loan Terry, Canada. about can with Maybe, talk start growth

said. Ajai follow-on has So to just to what

growth good that been quarter. where by estate have offset Our part business lower to real held actually and sure loans and agriculture. we for this in well up that utilization, of see multi-residential would then construction, pretty due the some was subsidies But did

of unsecured utilization that cash there side, obviously, the money personal a over customers a focused help aspirations that From good investing deposit their we would future we the to be we have certainly, on less space, heavily we're seen is growth we're it in as on activated. quite play, the perspective, On lending our in use for put very to money time, benefited that the and ensuring and that. focused result

the seeing few Meny, the just quarters. it's the that a I state pretty couple of loan tale given stories. through we've for we kind of In consumer been would book, side the a really add of loan decent are what the economy, last growth, it's of of Greg.

the would auto generally from You've credit business purchases loans imagine and and flattish as commercial new XX%. far what now, growth spend rates, pre-COVID. low only we you as a on, mortgage the of very boom growth, you'd In in in balances of business, because outstanding home are growth got but also because be seeing space, right strong very, refinance up business going of because seeing in card not drag and know, but pretty another you're muted more

of the third advantage sure, by raise Now they really But program their businesses. good driven make activity sheets down to of for smaller small some cases, on in liquidity, excess liquidity it's opportunities. side, second, or balance you've is looking the commercial business fourth, into some have on business come somewhat, that the although, that's and throughout seen taking even the PPP,

deposits up side, quite in On QX. US, to to strong the started businesses. XX% point But ex-sweeps strong year-over-year the up after have story XX% is have out. the are a normalize deposits thought from very just just deposit very, you're growth, it year-over-year commercial in more standpoint, would rightfully would We and the

still bit, from think plus So consumer are businesses, is Meny, balances a in seeing year-over-year. small, they're and And we're are QX another sure and comments downsides checking industries consumer still our putting quite companies Even consumer they're either in. do prepared sure billion up or medium QX on DDA why side, even sheets. liquidity quite for They commercial. this quite And Deposit opportunities about of large making still lends some delinquency to $X.X quarter-over-quarter, XX% on prepared their muted. rates balance depending consumer on we're to up Ajai's across for strong. balances still the they're I that the making space are

So quite story a strong still.

with The Chan Scott Canaccord is from next question Genuity.

kind QX on see is in two I your After near-term you near-term side, physical delta got do maybe of of quarters. past fiscal of terms and the that profitability, is you've on profitability retail. shown that and programs, potential US going on question it part the further two terms of forward? obvious tying credit a outlook? kind kind important stimulus improved how which of in How the momentum your deferral nice trajectory into experience over And

in QX notwithstanding we, drop strong continued earnings, too, onset through QX. the QX, because the in large of pandemic and of in obviously, the right Yes, pretty pleased recovery are that

to back pleased trajectory. pre to we're add with going levels, activity. While certainly customer goes. And we quite quite with that just would see to not I that have COVID are happy we're how this

times, continue remain few a heard muted. you've delinquency As rates to quite

are at is that commercial both checking very think that see still to do pleased surplus well. in bodes consumer much I We and a accounts. liquidity

our do early the recovery the bodes various of seeing fully that and from unemployment well US, next and the the to There's overall But to card are couple We next commercial how as months a as that position. of road rates say two is to or be the activity customers in in bumps what still economy. a that reasonable couple mindful be want in credit we're in we least vaccine they're quarters, in out. over the it's next is segments. play that you're debit rolled well seeing for seeing until of. And real think at the quarter some across the out I the time But indicators fees going

until is any on both stimulus relief some to point consumer the the impacted important there that, the more side that space. is there's commercial conclusion and industries discussion that on around think bridge have vaccine out I as for fully an as well

managing about the as I we're we through. obviously So to be watching, trajectory, be earnings something it's going we're to going think think

customers side well. days get will of XXX XX be Scott. next far, how instructive And holding quite we So up and to the that think are other our to around I the vaccine, stimulus

is question The with Sohrab Markets. from next Capital BMO Movahedi

to are where nelly card Greg, anywhere? in card nervous So compression I the a worried wanted fees. recovery you a pick where and bit around pressures you talked you up debit do credit of see and about concerns actually see you outside margins left But off maybe? about fees and be of

Group, as last includes as we prepared serve about especially all Well, we we're to about of to worry, can, bankers, talking as of across in we I TD that I scenarios, And all US quite our we're make So sure the and rates, in Bank be. how we're spent several right? guess over bit doing that we're do you can and time get our we infection know. customers downside lockdowns paid spikes we more think hearing And as weeks. a the employees

we our particularly watch our watch do will all of be, as hit the and get to does to to continue that been both package hard. shutdowns, that as get particularly things we around another So thing we I vaccine, affected like industries if employees industries. have well customers. for the more for especially travel, stimulus leisure closely, biggest do think for things these bridge Restaurants,

I to what continue watch and the attitude in two begin five say the is think to months, get get that and about to out beginning whether vaccine, rolled or of that we the pandemic back be begin to to expectation it's in to is other or does that folks the would it's whether four months we side and do seems the normal. So that But are that. mood overall,

and that of are that. folks quite our other do a it recovery brighter positive. grow I and going think, of effectively mindset that's and and times businesses So side to instructive the we're about think act how positive, quite I more thinking and is invest on

is Credit question next from The Rizvanovic Suisse. Mike with

it's for wanted sizable decline move and a the confusing I such can some of see I just sequentially A exposure? this seen the question out among because to you've margin pretty just components. on understand if significant to break headed, maybe differences Greg. is the bit US where peers a you It's in

that deposit take organization. let all a if this. just back, the take Bank, know rich So a a in look step U.S. Obviously, me we at we we're

has on bank to also wholesale the liquidity the which loan that wholesale know we haven't have how certainly from a deposits US. funding think thing we excess We or had about we positive been and rely to fund in growth, had

growth rates regardless a The other down, of core good deposit strength whether or positive notwithstanding this is, to are are. believe is up the where rates side of fundamental organization, actually we

by DDA you'd up rates when but deposits those always the with XX% deposits that imagine, strong awfully call consumer So the together, business, is all -- I factored out think versus put even quality calling reason I XX% in without of -- I the of Ameritrade why we of in, itself. against out and things of all those deposit in of XX% growth as was some specific it's so the

last think of bode that the term. again, I've that story for So this about does is, quality talking quarters we well several long been growth,

the you to outweighing goes, you the loan wouldn't double be really this or to have when in growing as we know, too the far in loan liquidity. growing XX% As of this books book, XX% digits, alone excess many especially environment, as expect the margin let at deposits, absorb growth banks

to other You're are offset going number though, underneath too, as to in number, that would which But deposits, we're might around just going pay of organizations the have get decline that, they and perhaps have that. deposit wholesale margins than if margin is wholesale raised. quality that us to headline you But on we some a growth term. see going have bit in impact good ability I especially some it's commercial, and well have a hit harder margin, the what would overall, story, down mention would the hit compression to long deposits story DDA removing of harder. as would we is don't consumer a Since actually think good as that particularly the the little

Investment next with question Nigel D'Souza from is The Veritas Research.

on touch well. to your this banking had for strong pretty segment. as And interest wanted wholesale net I income quarter you

it's when is, increased tied I substantially look the last And at balance I that's deposits In the I if has interest-bearing all over market your wondering transactions? repo up fact, at was ask quarter-over-quarter. quarters. And banks few reason with why to sheet,

I as am driver? of So that a correctly thinking

have, is that had Nigel, Yes, been latter the active in an quarters year we repo of this help net a to of repo then good couple NII. the business or

expect that to play wind going then any So lower few quarters? over balances? to out deposit with down on you how that commentary the next Is

Yes.

face of the business Our that 'XX. one that headwinds the will be fiscal in view will is

is The next Cormark Lemar from with Securities. Persaud question

for is Ajai. question My

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

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Gabriel, the question Yes. thanks for again.

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Securities. America of Ebrahim is Instructions] question Bank Poonawala [Operator next The from with

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