The Bank of Nova Scotia (BNS) 23 Aug 222022 Q3 Earnings call transcript

Good morning, and welcome to Scotiabank's 2022 Third Quarter Results Presentation. My name is John McCartney, and I'm Head of Investor Relations here at Scotiabank. Presenting to you this morning are Brian Porter, Scotiabank's President and Chief Executive Officer; Raj Viswanathan, our Chief Financial Officer; and Phil Thomas, our Chief Risk Officer.

Following our comments, we'll be glad to take your questions. Also present to take questions are the following Scotiabank executives: Dan Rees from Canadian Banking; Glen Gowland from Global Wealth Management; Nacho Deschamps from International Banking; and Jake Lawrence from Global Banking and Markets.

behalf two speaking contains of regarding statements. on you I'll Scotiabank's start, forward-looking slide to our we of today, those refer caution Before presentation, which to will the And now that, I call with over Brian. turn

globally. Thank you, This announced a $X.XX quarter resulted third corporate X% market solid over trading The in $XXX challenged or another period to businesses morning, of year-over-year GBM $XXX down client of billion, due lower personal, share, in and morning, bank's banking commercial $X.X where within and Scotiabank earnings were per sensitive and and earnings year-over-year GBM John, million revenues good quarter-over-quarter activity. were everyone. representing a increase. quarter Strong LatAm activity million

and expense circumstances. confluence with year-over-year begin as for strength of quality, growth to of macroeconomic well bank positive, following of management, unique we the earnings key on strong prudent of growth. continued The economies In the stabilize our Canada, backdrop XX% combined see credit experienced remains Central market positions geographies Asset region to acted from inflation In the quickly the confidence. decisively consumer countries, impact Pacific to labor GDP as year. the inflation. counterbalance Alliance and post-pandemic recovery is rapid control last the moderating to-date an the banks growth somewhat in of the over important and have a

in trend experience. which of highly pre-pandemic portfolio. secured positively, write-offs terms than high-quality, continued a our credit outlook remains to result favorable, Our Delinquencies and are have our absolute lower

in this the pressure future current strength confidence conservative daily pre-pandemic Average of in and the We recent and for our in quarter. products by levels consumer impact gasoline in grocery above and term But strength a observable adjustments outcomes, early the response XX% made the overall division additions to with are customer behavior quarter, market-sensitive the impacted the signs in cost to categories. discretionary have resulting of business public spending fixed inflationary in with increases strong valuations international the balances deposit significantly possibility retail obvious stress we nearly led and employment, equity sheets showed income increases. remained spending up slowdown also of GBM our Plus rate prices. the and in reflect Canada Lower have markets higher PCLs results. and of in economic transactions portfolio, experience and closely Despite our customer impact higher of of financing wealth in year-over-year living. and market balance monitoring on

both in level banking however, in strong growth division our volume year-over-year. strong international earnings through held activity XX% Canadian quarter. risk the a delivered robust Banking businesses, commercial and domestically and delivered our of personal mortgage have growth Our line Residential with appetite.

a businesses in very and balances. efforts commercial sectorally contribution to we quarter, our continued again diversify and paying resulted this Our strong in and card auto a once saw grow recovery

strategies Importantly, momentum resulted up our QX. both deposit growth Canadian the our from X% quarter, matching loan in Banking deposit growth implemented in to improve

through rates revenue phone while months. in back growth, Sobeys, country adding offering, pleased the were the the covering across loyalty pharmacy. and SCENE program expanded managing the clear interest the rollout the in believe will customer The to in an is as The an We to higher off and acquisition. entertainment partnership. Banking also we continue brands, XX% solo be kicked platform [ph] offering Canada important Scene+ strong rollout. evolution lifestyle new Empire delivered The during from welcome SCENE International the driver earnings coming including rollout will added loyalty on Safeway redeem on last categories week, for up terms During earn points to the including more expansion announce spend, significant existing ability and the we of very the a growth, stages SCENE grocery members to the and of Atlantic an quarter, of bank just inflation. XXX,XXX and everyday

double-digit strongly now year-over-year, and that declines. Thoughtful control, experienced and more of a is a resilience, Wealth mitigate in international gains lower including advisory business modest banking share growth Caribbean and private markets and normalized earnings and Our and wealth reflecting equity considering debt Management recovering expense down markets. market equity helped impact showed of results the X% channels, income our fixed level contribution. good stability Global

we advice wealth loan for our MD Financial our build and through channels Banking our our quarter. growth these TranXact Robust for We activity of has trusted was strength. saw strong And extremely platform in a into launch trading. business. bolster for we Global strong strong with an brands. lending the was in deposit markets markets of further banking by of business and and continue business and the of our quiet delivering offset the on Scotia private announced Management Jarislowsky driven significant X% to issuance, goal our digital period the a and week, professionals Average capabilities to banking Markets The relationship capital continued for clients, growth deposit new acquisitions. by been integration client last comprehensive which ScotiaMcLeod, payments challenging solutions driver expect Fraser. quarter, growth

pressures, positive both to Canadian leverage. in Wealth Global generate people to our International and operating technology continue and of despite Banking, expense We each invest Banking continued businesses significantly tightened

Tier Best the bank was global a Best XXXX Our Awards Bank shareholders. Money as to to recent prudent our markets continues levels capital current continuing Scotiabank America's our Euro to Sustainability be common capital as for return Canada while named at Best Bank capital ended the the well as primarily quarter capital XX.X% Bank of as Excellence, and North we for as loan in the the environment. view we given At We organic to ratio and leader Chile. in appropriate Finance X operate. recognized growth, The equity support deployed current Investment

in are year's community the live and volatility partnerships support Impact and here management where perspective we Canada. stay turn continue We the results $XXX the work. help for to also in execute We communities Raj million school believe ScotiaRISE and markets inaugural in a businesses long-term review. small in risk we oriented first more detailed in QX the over our near-term XXX continue is use $XX results financial that, Recent and a on commitments globally. bank strategies well-positioned highlighting grassroots invest the level detailing call of in the newcomer with of to to pleased Overall, and programs community Canadian variable And Black-led from very regardless I'll growth million a economic outlook. to with investments at released include in report,

Brian, everyone. Thank good morning, and you,

the was I'd my results starting and on adjusted to are all that like the begin, the I bank year-over-year. note review EPS an Before bank slide earnings performance of equity reported Return for strong on on comments and of The $X.XX, this another $X.X quarter. diluted I'll increase on business billion in quarter, share X% five. basis. earnings quarterly line per an XX.X% of

interest revenues the primarily pre-tax interest than The Revenues all pre-provision increase in aggregate lower. decreased lines the four by X% point net non-interest business The net interest net the couple decreasing as business driven XX%, quarter-over-quarter. modest relating more With a for in interest X% increase strong loan with these of seeing year-over-year, pre-provision While are line earnings decline in of advisory pre-tax bank being rising an increased factors. year-over-year in income basis of rates. X%. during reprice expense rapidly, by margin were liabilities XX% trading income rates earnings growth one declined in Interest quarter key and was offset Central driven quite to across lines. Banks a a largely up revenue all we increased

Secondly, from two interest has offset customers deposits. The resulted rate term the the margin benefits during move to paying are higher the risk deposits management choosing of by in modest combination these quarter. compression factors towards initiatives

in a from assets. year-to-date XX.X% offset us represents on was this or ratio common revenues bank Tier to future as share XX%. organic XX%. pace growth provide million strong management was XX.X% risk-weighted the last in by of XX.X%, underwriting our declined income ratio Non-interest business spite revenues while declined entirely X% down and expect up points banking for an X.X%. our basis over in quarters. well The and reported that assets. and GBM repurchases. increased $XXX was earnings X organic expenses XX% of compensation repricing $XXX growth Trading by GBM of X%, leverage negative points support and Fee low revenues We productivity LatAm quarter, return capital X, as basis impact The X% by basis fees client markets down quarter. we by primarily activity. and or billion to On of offset Strong from million quarter, basis down XX and advertising in XX.X% asset X% approximately was or adjusted of were growth. wealth million the last X technology-related from income was as $XXX generation over and points modestly common excess driven $X the PCL equity points capital Slide higher and personnel and change XX driven by was XX level. the quarter, This fell up of Year-over-year, growth in an advisory commission share-based in of pick the nine a spend operating evolution both equity risk-weighted volatile ratio quarter ratio Tier the support costs The

During shareholders organically the capital of points basis organically bank to strategy The QX, approximately the capital RWA generated future will capital. bank million inorganic the has the with to shares, in points support our deployed that during of grow bank opportunistic to deploying on bank XXXX. generation. repurchased Year-to-date, all approximately XX X has being capital returning while line opportunities basis X deployed internal grow capital

In to used of XX excess bank points XX addition, capital year-to-date. repurchase million basis the shares approximately

economic organic deploy in support while to Our remains in face outlook. capital to capital the each a of prudently certain line, priority business managing initiatives less growth

fees exchange operating positive ratio points in was was increase remains partially billion, X%. Turning to retail now leverage was would XX% which year-over-year, last XX% line The X XX% the income higher mix the X%, anticipated Residential year-over-year. X Expenses XX%. benefiting but year. year-over-year. and Net deposit Net operating foreign We rate offset to partially income thus X% from of The that revenue the Deposit Slide the grew business by basis earnings line expanded of X.X%. recent equity PCL of pre-provision loans, Canadian reflected X% to last higher quarter-over-quarter year-to-date loans interest growth. note by and while is following growth technology, portfolio spreads driven to towards the at quarter, of XX% banking increases. grew growth with in the to year X. by expansion. advertising margin growth quarter-over-quarter modestly the generated earnings higher private commercial XX% increase, skewed quarter leverage fees. points support reported NIM also though an attributable margin moderated also the during beginning by volume in The earnings grew achieved compared prior income business associates, $X.X consecutive basis compared X.XX%, quarter of several and to X the and up as healthy revenues, the had secured Bank increased Canada declined personnel mortgages and costs lending driven growth basis segment strong quarters mortgage Pre-tax for prior business seventh expansion. year. offsetting from to by and on slowdown insurance interest impact Banking and increased Non-interest of of elevated year-over-year, results, points,

XX.X%, offset and partially as Earnings fee significantly income banking higher strong bond from $XXX year. revenue $XXX Turning income billion decreased lower now to private lower interest by Wealth headwinds. volume-related under depreciation. expansion. declined volume primarily productivity has The of ratio last of lower growth modest X. This higher from primarily are under improving quarters, management, Expenses equity partly $XXX and the compensation, by management despite quarter the by XX driven and administration support to market assets assets last leverage more. X% margin Revenue year-to-date in positive decreased trading were points while under XX X%, X%, X% operating division declined was leverage positive a that X.X% costs and offset billion, expenses, this operating due The volumes, year-over-year, to Global to due down on declined billion, $X initiatives. assets to to million impacted XX by slide generated Management primarily markets basis business was

lines the business model. Canada quality basis, essentially Canadian of saw on diversified several across International pre-provision of reflecting On a trading impact of and with in were the to Wealth quarter pre-provision saw retail year, prior benefits that Wealth strong trade, international growth wealth earnings This pre-tax business under with the impact market platform assets despite year-over-year. management, in grow continued X% earnings our up excluding the high line pre-tax volume moderation.

and Now million, as in revenues by and to Global our referring were and line earnings results XX% Banking in and million solid flat customer to revenue growth XX% increased business markets entirely balances fixed-income loans quarter-over-quarter income quarter-over-quarter in income loans with X% and grew – slide offset down to US, by The in Client manage and while were accelerated Average partly the lower development, activity interest year-over-year. the generated costs lower engagement banking markets Sequential and income prior lower XX% modest $XXX loan fixed remain margins, and deposits X% the XX% year-over-year, capital respond there. X% billion to to quarter-over-quarter or positive to X% and both costs. down grew year, Expenses Markets or equities as increased revenue. market revenues. XX% growth expense to driven quarter were M&A the driven lack X. compared deposit growth loan X% this the to year-over-year, average equity to or are although improving trading and $XX X% States, XX%. business by in billion quarter Expenses XX% market acquisition performance Canadian issuances advisory reductions declined lower Non-interest strategy were down with the of and capital down Revenue considering $XXX mainly with XX% the and compared year-over-year. Capital XX%, prior mainly personnel respectively. slightly underwriting United support up due and of year. this activities, and business due technology advisory down and pipelines decreased by Canada increased was trading. Net the $X strong. due

steep and income. in point declined performance. a of Central My pacific to up The and interest slight the net by constant solid large banking this Pretax an Slide X% Revenue alliance. another XX margin credit which for also reported XX% economic continued non-interest grew while of driven quarters. Quarter-over-quarter, deliver net that loans basis XX%, conditions quarters in margin reported points we to as by XX% decline shows comments that a reported growth, and reflect in of Alliance. is and with and This America term by corporate bank deposits X% loans XX recovery business of points, first grow results. recoveries offset XX% increase net $XXX recovery basis. banking clients GBM $XXX up was LatAm, of partially Banking has faster mortgages the earnings higher grew the with lending margin international pricing personal Year-over-year earnings continued the which high which basis X% two basis deposit interest are capital with lower grew as of was rates, central loans activities PCL offset, XX%, has more higher The income adjusted to than net assets. and in eight book. expanded up consecutive Banking, the second of income, net cards million quarter, of X%. challenging commercial to in banking up year-over-year year-over-year the strong coal grew more delivered despite year-over-year, segment. business than Continued the recall Caribbean interest funds quality result million, earnings in a part highest X% interest modest credit to the X compression quarter from XXX driven weaker fee International the segment's than focused the a offset, net XXXX movement cost a markets was Pacific our follow on market the good earlier, up by in-line a improving results with referenced pre-provision steadily earnings International year-over-year. dollar

revenues were high prior and performance offset market-facing loss of to four by flat in ratio positive $XXX compared year, fee to The countries initiatives. businesses, the provisions lines, decline speak digital metrics briefly of was four key declined was due Peru Non-interest of progress total resilience The remaining benefits free points Although and year-over-year Slide investment year-to-date non-interest the business expenses year-to-date. Pacific commission highlight points. X%. up credit were the the mainly increases and lines business potential basis by like Chile, trading million, lower operating positive together to down grew again X%. has despite earnings while revenue mostly leverage XX generated of efficiency inflation the growth, segments. to XX% was from operating around lower Alliance and and year. On diversified despite higher and and I'd insurance leverage XX, once revenue in was related accelerated in pretax operating the last These This our which basis income X.X% with to segment X%, aggregate business provision for revenue for challenges gains XX

turn now the [ph]. to contribution lower management to taxes and that million modest a and that, prior expenses. loss flow significantly turning the the prior the a to lower cash million other We of by offset activities liability to result call of lower loss in the adjusted from discuss $XX and Now $XX net asset was quarter investment segment. Year-over-year, in I'll year. reported compared a million Phil $X change was of gain With lower noninterest over

everyone. Thank Good Raj. morning, you,

strong. evolved factors higher following outlook interest hikes credit our rate confidence us the has across the our moderating As GDP quality and macroeconomic give last Brian quarter. since remains inflation, highlighted, of forecast, Despite portfolio additional footprint. The

and improved low First, levels the formations and seeing our rates, favorable Deposit strong exhibit impaired remain of a to business customers customers management. high we delinquency deliver low mix prudent trends. financial health write-off are our continues and

loan high continue be quality. to all originations at across Secondly, portfolios

is we expectations increase credit accounts. watch trends, and driven forecast. these PCL less pressure Thirdly, central corporate about with primarily of our no differentiator, ratio rate exposures The bridge inflationary list material or a And increases. quarter favorable this by despite longer-lasting finally, thoughtful more is book in are macroeconomic bank the positive

retail this ACL With this few Canadian or years Our were we on the And favorable are will XX% they seeing a portfolio, for ratio. performance In compared high, are portfolios. coverage while outlook. higher ago. on points than spending of Delinquency pre-pandemic payment show the of half reflects backdrop, remains roughly improvement. was average, XX points to trends two-and-a-half pre-pandemic basis Customer levels. deposits, I our consumer remains days highlight XX-plus across what our

strong, score uninsured XXX. XX% Canadian LTVs of average with Our mortgage and FICO portfolio remained of an

see are mortgages, customers While fixed solid consumer towards credit with market, of balances sheets, a tight with growth accounts their in to to our unemployment the labor prime above strategy. portfolio, commercial is targeted note Supporting result high approximately of rate our preference These strong rate mortgage In higher of some all-time our variable quality XX% customers deposit FICO rate have we X.X%. compared also lows these XX% is we continue approximately scores remains at metrics of a that customers. variable and have XXX. balance

bank's X of focused continues to real on automotive. sheets commercial projects with balance made who estate, such supply. solid, remains We up strong favorable properties Tier as demand have exceed real developers and agriculture industrial where portfolio and with commercial estate The residential are fundamentals, industry sectors

Banking on Moving International to Retail.

than was credit pre-pandemic. better Our positioned quality is it

Our XX% year-over-year International portfolio versus XX% is Origination mortgage now to pre-pandemic, secured improve. by driven quality Banking. of XX% growth in continues

XX% a result XX-plus decreased high Portfolio originations practices. XX has on days credit versus Our delinquency of pre-pandemic. customers to of XX% as remains credit basis focus pre-pandemic and of increased points versus quality prudent rated

$XXX last by quarter PCL higher turning or million macroeconomic quarter to PCL and lows. remain and were and XX was basis $XXX quarter The driven favorable loan to million Now growth $XXX million, historical PCLs up points. were outlook. increase primarily performing from last at this million Impaired XX. from quarter, XX a $XXX down this due on page less PCLs,

in continue Canadian both We levels and to low Banking. International see of delinquency

of net current billion health. low relative or were reflecting to our Our quarter coverage points. ratio for to ACL in of quarters line and our almost In write-offs, product-by-product an historically continue is basis, for retail basis about credit the represents Non-performing double ACL most On strong XX levels, a this Total with loss write-offs. environment. customers exhibit pre-pandemic net financial pre-pandemic allowances clan ACL XX $X.X current products stable, summary, yield levels. formations higher

offset Our XX in was lower weighting to business pre-pandemic by all-bank forecast. of to points of favorable basis change additional related macroeconomic our versus favor PCL in mix by products less driven risk ratio a secured downside

credit headline repositioned call current to the despite and concerns, the of I With portfolio practices. the we confident for remarks. quality Brian closing prudent back turn Lastly, macroeconomic will remain in that, our

in fiscal our Thank Despite overall facing performance the heightened a the bank deliver impact in on businesses, XXXX. and market on you, recent remains track the resulting to months Phil. volatility strong

growth, on remain intact. management return maintaining while a our expense such, earnings deliver commitments and prudent equity balance to sheet, As strong

conservatively have light a we taken less action outlook. of provisioned are appropriate ensure economic in We certain to

and or than closely project customers grade deferrals secured our or softening undertaken of confidence is higher organization health The for not demand We customers Greater seen driven in of attractive as investment impact is to XX% typical or performance economy with to have markets product costs continue operating just related framework. pleased our lower, than we summary, demand in uncertain growth corporate side from business loan suggests customer been geography by corporate changes present. with commercial data on the consistent the high-quality monitor will availability we this of retail by trending and they capitalize the real risk completion rather this we've have segments indicators The very borrowers. repositioning Any In exposure year-to-date as of growth bank concerns. financial wide to recent customers. our investment our and are to labor double-digit quarter. prudence profile represents our commercial and the businesses the years bank set and portfolio

by are potential growth resilience we markets and the of the encouraged We where operate.

We our support earnings secured in to businesses provisions. through expect P&C high-quality growth loan international will loan to Canada and that continue stable grow loss

by SCENE We expansion loyalty this program quarter customer are pleased of of terms the and the the acquisition potential our that in growth. presents supporting and

businesses very resilient with the of are management We the markets performance contraction double-digit of equity pleased and wealth this the fixed quarter. in face in income

diversified money well-positioned that capture to motion product offering. are We our with is in the

We times, customers, expect deposit through for loan results pipelines remain our on business highly and confident the of that bounce and businesses to our risk are And long-term and all Origination challenging We QX. strong. focusing the M&A especially meeting key in the diversification back of our yield will GBM needs business prudent rebounding strong remain model, management, stakeholders.

you, Thank Brian.

be will first to questions. We the pleased your phone, on please? [Operator Operator, we can take the question have Instructions] now

Thank you.

Poonawala The first go ahead. of from America. question is Please Bank from Ebrahim

Good morning. one question. the guess first I maybe

sense do you see that's on your NII, for we going margin for see Central outlook, few -- terms secondly, terms the just the the could Banks end margin the before of understanding expansion Banking, the international, margin could if to where stop ongoing. in the And Raj? quarters? and you. of consolidated do International program you a state IB? need see hedging in could, international? both Thank us spend that we What in rate international of One, over And us If NIM, we the you talk margin? in some in next Just time give do to trajectory of been for the segment be Canadian margin expectations hikes

and Sure. for Ebrahim thanks and the good Thanks morning question.

business know, you the is move clients rapid modest an and XXX all the compression increased and margin wholesale my countries. increase the just faster which in get lines to stronger-than-anticipated for offered few funds, referenced in markets. a quarter Colombia, points deposits, What at this both both in I as level, seen example. the rate as cost to of referenced. I'll as Pacific in deposits then corporate, we the Canada that's I'll countries. best in the also paid is term in what obviously Brian impacted across administered repricing in growth funding call ongoing, for all get not of lower Let deposit two commercial results in in This point from bank points we've a Alliance me And to would a reasons. one address basis The margin rates is saw the I market. remarks, products repricing asset was and also you asset prepared the referenced well Significant then that's mortgages, deposit pricing. increase, term out changes basis

as a But rates, know, referenced, the lot expanding. of the came the not two banks and hedging we and you of US necessarily explanation level. margin, typically you improve CAD specifically saw side. you we from continue. talking result to because we you all that Pacific that the it Canadian deposit But the for frankly, And have bank of Alliance referenced, at all I'm business the to hedge modest the you hedge. kind for the ability should lines repricing have interest the don't A basis about margin expect looking the one that's in the future So, asset quarters. compression, the And margin point. benefits forward, That now.

start would and term, I should should then Asset and margins rising medium are rate term environment in lower, to we Bank. compared International say, seeing in start in Bank. have you the asset this repricing expect as to through short-term, in or the slightly that medium the rate say, margin Canadian applies It's Canada. The increases expand by the same rapid exponentially been in only the of different thing

XX So, a margin progression But and same the there, quarter one to quickly basis point That same impact impact bigger from we the expansion the quoted, co-deposit of I until banking my modest of margin in business we That's to points. start what in in banks, happening conversion you're is of rebounded margin. for that line to the in the X.XX% is the QX basis see remarks see deposits expanding. seeing thing margin X.XX% applies the moving We not International call prepared of I'm Pacific happening Ebrahim. faster, the going going back Banking would say in which I as go deposits reasons to some countries to all through the Alliance. should international pretty are well. to quickly term last

maybe expect But I expansion November, looking and think stable. XXXX, Banking should states QX we that in will speak forward well. an International likely the detail see more in remain would we in as into we'll

That it. I much if you I'm of expansion it. missed in what How consolidated expect just expect And helpful. the NIM Did talk near-term? terms about of you just fourth Got -- all you bank for sorry quarter? was

because we think Central Yes, I think the as all are coming International stable, effects. to as I Ebrahim, being should with fairly be know, trying NIM it inflation Cost fairly not are funds down Banks Banking of deal stable. quickly

bit as I modestly more. say, a Canadian deposits the think would margin expand margin little will, I contributed

you be say line other. one or I'd it's basis way in what X, quarter, X maybe So expected the point likely with or saw to this

you. Thank requeue. I’ll it. Got

Thanks, Ebrahim.

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

switching like fashion in see term any the effect. more start to I It from a chance wondering that we a then that on have cost client And segment, just morning. the quarter? comment international that some your importantly, it sounds in zero seeing there deposit you in deposits. question Canada? And Thanks. you're just Good in accelerated get are Is quick substitution more put activity one the GBM, see numbers. with maybe frame to characterization. starting just in more can to it reverse you the -- a on current if I'm I

short about is between expected the seen Sure, Specific that, banking Gabe. in similar And is question a Banking, increased to international or specifically. the the Central we've it's But stuff specific if and have in might billion. term say, the the And not on actually I that This relatively so continue showing in as both happening moved to rate is conversion, already of trends Bank sure core you businesses deposit to do base $X international it I'll business. would I That's to a billion significantly numbers, not start, call core the other can version in in to the we seen this been too. Dan from stock, have take term so larger, it's think Internal want showing Canadian the about I it's actually as until This Bank up banking $X to speaking, say GBM? answer. I'm big space Jack, deposits. is space.

two in For our same at sure. in And seen the about issuance framing dimensions out, decline that, the a markets We've that in your on any quarter some thanks you've in markets those markets. of are it, lowest Thanks, these talk largest US. Raj. around seen or levels the and frame I'll you those to in for Canada debt question. ECM we've the of of in north point After And US. give issuance past capital side, two those that's north issuance five To both Gabe, further Canada markets, market in years. the XX% and the decline seen

fee issuance the whether that's hedging also of capital activating obviously but trading contribute important activity, to because it's markets, And then impacts or it it's secondary so those some the lines, et whether cetera. new

material the a impact quarter. have does So in

early only It's where QX. still started seeing all rebound. a have we weeks of business were level a stronger In we throughout at terms ECM than in, of QX. but We're outlook, already see we're it our in to few

as there DCM Canada markets those key are here. so in US, ECM and the work that hope in and favorably we're QX signs rebound in including the happening some So disposed we it. I answers of through

declines -- in all loans, lines same I see stuff Yes. margin thinking DCM like more it's the don't we've it's along ECM, brokerage and of I lines. thinking lines,we that, the I the along of as was whether prime probably seen, business some the clearly but or was guess activity more other

happy too. to around add that, We're coloring Sure. some

quarter, So VIX you shoot the saw during up. obviously

saw saw funds, up. quite move with Raj You also as that, come alluded down. and cost volatile equity And to, be we of indices

pressure to you Spreads effects time, financing businesses their had two and would at trading and same narrowing on seen the market. downward so in a clients exposure And you happening. margins, have de-growth in

would our down thoughtful that taken And you we've and on assets so been would trading trading which But in securities structure. quarter, have seen. the have balance sheet

So our side has primary sheet loan growth equity, balance the as and able been our come debt down and or grow that whether we've market, client clients support there. been have not to the accessing it's

and seen so in good the focused like you've growth markets loan growth to deposit continued at day. the of seen And you've our Canada, that the and US continued fund end strong

the well got definitely So, and spreads their clients, Also, in sideline. to as trading activities narrow, and corporate as see portfolios. investment saw financing in as de-growth both clients more institutional with move reduction businesses

of Thanks. summer. And best your of for luck rest

Thanks, Gabe.

Thank ahead. go you. Aiken from Barclays. is The John next from question Please

Good morning, Jake.

for microphone the that saw same in FX, I the stay trade? and and trading trading Like, I volumes of trading spillover noticed client I the the the weren't trading down – to during a or losses amount there were ECM on what understand or but FX ascribed actually quarter. you can a two of DCM, If losses little specifically from generated? on just days see generate trading in impact able just bit is that to Was markets, you the downdraft this you just were impact to FX on from the second. surprised this a the specifically. the the Is was

then when and we actually on FX the as Raj. over in quarter-over-quarter key referencing you been page. I'll think categorize pass fairly Hey, And other, you're color other the is softpack I to to And good What or trading I John, related at I'll it FX. there. the think FX year-over-year. Jake what start. it is for has It's specifics additional look

not trading a NII products state into is I we goes LatAm That's we which a business, of And the you're that International the have derivative contributor. lot in it hedged is year-over-year. other it. of what for in seeing GBM would Commodity activities. the through And So lot what related the Banking. call that's have, which goes

you opportunities of because opportunities in know, some to other country not of the some And to as one Latin in we relates last That's sort political in compared both – had it QX some of of revenues. actually you're trading component what and American year, Peru XXXX. turmoil. quarter had space, We monetize to seeing this

So line, other do not time related and that FX you've could in what to want be it Jake, go would to you quarter, there's seen on that under as see relating not specifically, volatile trading to as to much but some time there call moments color I what that tends activities are FX? add there this line. you from but various in

Yes.

that answered not around material activity. question John, the well. we're real you've in any client current think seeing I period change FX And

any FX ascribed did comment way, elevated for due conditions any As the the bad quarter, Raj last request some back noted, And loss QX particularly it year was to material, your with in around, just broken a base have in some in we to bit nothing of business. days good piece we not platform. trades GBM market LatAm saw, specific in the – nothing the weaker two and there trading

the Great. color. Thanks re-queue. I'll for

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

Thanks ratio the mid-XXs total to outlook -- PCL Is Good change on about in fiscal quarter-over-quarter, in assess of you incrementally having call. morning. any like target materially trying incremental the for something that there? data credit. anything what intra-quarter? terms the on Maybe change talked our that's just prior inflation, XXXX for I'm Phil there points that your

question, in be some may now. for -- that helpful restate portfolios indicators to of I'll won't we're I what appreciate not it. Thanks the give I Scott. guidance 'XX you. But you for We're going our seeing to

rates, start lending look pre-pandemic, big really other if the lending. of half lines terms our our in somewhere our to you running to at of rates, move quality away we're current originations from half off, of first a net repositioned And the portfolio write-off the -- we've the of delinquency compare in think I I if there. our to secured international unsecured thing, footprint, of

that in this October of sale consumer our In Scotia, coming Peruvian through we'll year. have will addition -- to into the Credit the portfolio be finance

that a represent year. next also ID, will trend sort a our that holding same they're customers performing, our at we're of or a healthy – in deposit But their versus seeing and platform, account of tailwind really our still might us payroll accounts we're bit in we liquidity platform And in and perspective pre-pandemic consumers. heading in So how account when even international look into both PCL are customers Canadian Canada. we're from seeing, for

horizon. and just big key sort any reiterate, on I very, consumers seeing the not could all the we're of risk strong be headwinds if So, credit health continue positive. be of credit to the to very indicators And continues

hedging for sensitivity. negatively past all aspects And going rate if deposit of CECL activity curious, makes that it XX just your to your the expect is some contrary rate of some a significantly. is would way? XXX upwards I NII. couple benefit over The hedging that as one sensitivity noticed that or other sneak up It what offset Slide could of impact presentation, quick we in Raj. investor I the the will shift a quarters,

what well you're as our side. as balance thoughtfully and or of seeing we the sheet as the look on on deposit rate at it So the generation evolving extend construct side and to is balance our curve be how that's we'll the sheet continue asset

Okay. That’s you, much. Thank very helpful.

Thanks.

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

back we basis if specifically Raj, to Pacific the morning. Good could last so was the segment, up points. Alliance, quarter, International margin go X

deposit on sort there behavior? depositor deposit else activity over just Is trying related XX two-quarter points. was down understand type quarter, besides just in there that of on period. it going all, something duration. volatility Is to mentioned, of, to, a behavior, anything segment This behavior, you going and deposit basis I'm as else that extending or

Mario. extending duration, I'll Yes, answer first, is second which the part

two focused the all on quarters. in to extension to expansion ability of countries I'll generally we specifically have Alliance pass duration that's and seeing margin only Nacho CAD compression where and saw the the derivatives it that in to is on hedge stuff. Our compared to the he he’s quarter, speak about what this Pacific because relating US, to

increases Yes, central -- earlier. think, interest by in very This morning, Mario. is in In driven mentioned Good rates. Raj sure. I I our relation, NIM steep volatility bank

Colombia, the X% in quarter, X.XX% average it Alliance Pacific in Chile, X.X% countries, in in increase Just was Peru. X% last the in on

are So what repricing you happening seeing asset faster repricing. really deposit than

not two you Alliance you that but first up as the first second only quarter, two take Pacific quarters, we gave XX quarters, the this by bps mentioned, the if quarter. market However, expanded countries

as advance as margin soon mentioned, will we we compression then soon this to result, countries. And Raj expansion. margin as have in assets. And rates trend our picked temporary, net have are be expect, see repricing and the interest We to downwards, and as three because Peru raised Fed. in appears in the in of inflation region a to Central the other banks rates proactively stabilize

one which of four forward-looking interest XXXX In fact, positive the countries already inflation. rates by few, the have adjusted are real

retail, year-over-year, X% So if in Alliance XX% countries, we growth with our you commercial. asset strong X% Pacific this the expansion X% very in combine loan book in are trend, in seeing the of quarter,

to be trend. cost trend downward this positive when then of a stability eventually, So revenue see growth will our in and funds we

book book well? International maybe loan in earning asset and Alliance maybe Pacific then about duration the you talk of the and as Nacho, average generally Okay. Banking could the

I'll start, Mario. Sure.

repricing the happens ability I one book, nuances every the have, is every positive, a which side of specifically, right, Banking of months quarter. you we to think, reprice. the have in three International Typically, commercial the

you You not to win. can price can to price win,

have the between duration on But $XX book look while it want side. commercial one-and-a-half is a flexibility The book to important to or be the of retail to our bigger average to on lot XX% just So retail years, that side size. will the you it International remember, in book be retail we billion, by depending XX%, our goes. tends than the It's to quarter there. commercial across almost be Banking, actually one lending portfolio, on it’s the if

but ability of well mortgages side. fairly is the sorry, of is still duration and mark. real reprice book, little which we then the two-year think on, within book to to commercial have I a on increasing that bit, quick so the on gets So -- side the lot And side the a it the

Okay.

see to half sounds to but the not it as your margin we of could XXXX, as in me, first then? Raj, put that So some expansion mouth, early words

Definitely.

to was two on of steep in Mario, IB. little Nacho margin What which IB first increase asset -- in deposit because what quarters, pressure in we expansion the bit the margins, offsetting under world, is think the what is said, expand is a I saw the now in rates.

So start as we think I asset do your hypothesis margins expect, back, to is which correct. come

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

the outlook margin up point. Raj, just about international Maybe provided you basis Thanks. at a all talk one could margins already little down wondering all-bank level, points versus is for an I but Canadian margin is sequentially, the divergence banking bit seven performance bank broadly. Like, at segments on basis that of appreciate I'm the you the the level if retail

that It that, up of bulk can isn't the the does all a NII. it. up appreciate doesn't bank Now make all bank I -- make

at do lower, weighed we bank continue level? the out see dynamic bank margin that something the in good this all you move just kind all to So that retail quarter margins of it playing is segments, see this or performance is but

and about talk say Hey, question. quarter. sentence thank bank, to something the And your how it take I'll Lemar, a works one is is bit Canadian the said, for you easy this segment little unique last you it which I'll as, speak the like yes, about. corporate between, the

side on side. transfer asset know, deposit the you pricing the both and works As

side. Canadian So we start for segment, charge repricing this bank quickly, and quarter corporate the them mechanically, when pay what the asset we you on the saw is deposits

So forward, margin, the means in bank offset so the margins start expanding be the see coming, bank Canadian will as asset see as but the all bank should to level. bank which a should be the at flat, we well, pickup look you'll headwind not as you the Canadian Canadian

component next be Banking that all Canadian should it the over of how help already expanding, margins bank exponential how you it the on asset of soon depends happen, will but stabilize. Now couple margin clear, start the soon Shouldn't happening, impact quarters. which see is will the margin, to

[ph] related of or starting could given for squeeze loan and you hesitation then with an if what then I if chunky And talk outlook offer the for environment. gains? quarter. then this And that. if going Was to with two maybe Thanks. I'm down to challenging wondering the any loan, just I industries appreciate show strong it maybe from? drill in growth one what Dan. borrowers this QX. Maybe growth I'm and business macroeconomic this one wondering could I'm to into provinces are came I signs share drove is. Okay. another market what guess,

our out on market Yeah. here. quarter. Look, growing you, this strategic played Dan business our It's Lamar. emphasis think position Thank again I in banking

That's referring very pleased but and this growth, funds, perhaps we're sequentially loan commercial. growth, the important segment You're in loans. more to because deposits sell deposit with including

as so Raj our ongoing deposits And emphasis we're mentioned, on see to in commercial expecting into QX. continue

this in undersized are We segment.

and investments Our growth of performance operating core the the is what's the teams driving rate.

for adjust line. up position, Thank more calling you five, our for the the starting in looks of you growth if the big our smallest think I meaning rate provinces.

we As a national in British in have are Quebec. growth -- above we're the I've growing They loans and rate, times, and said many both particular Columbia deposits. particularly opportunity

market our real that's reemphasize, steady And technology, teams to or share invested And the providing gains, provinces in So, them -- there. agriculture, expanding appetite those technologies. in sales we're contributing estate, better consistent. we to with with it's like important dynamics industries are our and and not pleased remains transportation, what's credit distribution. in whether We've

have the So, exposure balanced, more out previous. about. which couple calling now ago, or imagine year quarters a the two we pleased than you're you real has can estate been in that's of balanced more been main growth A driver much last of balance would as

invest investing will In term from over seeing borrowers the migration the the be the pressure in terms people, capital and continue the customers in outlook of assumption in utilization orientation, majority has and has invest to people, struggling product improving, good on medium not find term. economic medium and equipment, rates. our to find so outlook, from actually any been seeing they're struggling commercial tone that their hesitance land We're and business. any not to been we're to Credit and they're they're of

emphasis our our deposits. continue So, on there and will emphasis as well

thanks. Hey

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

one. good quick Hi morning. this is a Hopefully,

think put you Banking, the International back through last I over cost on year, reductions. when Just

you up You And capital the But growth figured as in And pre-provision been get kind Chile we'd into market next year. extra and guess picture expectation, up, what more And to pressured in realistic too into backing an sequential I start stake headwinds But to level, we headwinds or see big bit NIMs talked as point? earnings. I is picked the question that still go well. in pre-tax have just big of discussion expectations this realistic a taking a at maybe or your a really is, that expectation this the QX about are. I that is my year. are

being Q-o-Q in despite the NIM retail. X% growing -- we it's And think good but in and flat. relatively Actually, up I expectation. No, a saw realistic business are very growth revenues commercial both we momentum, seeing

So, we to growth deposit expect this loan and continue.

As managing well our very expenses. have you mentioned, been we

average Our inflation expenses XX% in despite year-over-year of the are high flat country.

execution with very by all year. charge we driven of is gains restructuring digital progress this and strong timely committed efficiency that So last the

leverage XXX bps. So, our year-to-date is operating

revenue management continue positive this we So, volatility and revenues, and good have also explained looking expect Central as Bank market-related forward, leverage with some growth to in momentum expect into to continue. today, driven rate we by and movements operating good normal translating I expense deposits interest

answered to think well. on add question Nacho I focus I the going just picture. I'm exceedingly something. macro It's And Brian. just the

is going is growth continue. strong. credit Asset The demand to for

commercial some have from the in fiscal basis idea basis continue then will commented are earlier, going gone rates asset we've are rates, of is We up the question businesses. and and balance The XXX not corporate there's how peaking. in through that in points on last happening a rates last now more points as have pipelines how forecast were the significant done. basis you dramatically. Chile. and one And points XXX increased the XXX repricing of to quarter, And months, nine whether XX. we answered retail give Central And base rates I'm to Banks But Colombia, improves, in it's to XX but rate

margin business. positions us the well of in that very our asset terms the growth So in pipelines and

X Got it. one just Maybe I quick for it. appreciate Raj.

in targeting positive I leverage you talked all bank fiscal XXXX. think about operating

quarter do you positive operating this you You're for year-to-date, negative one think still year? can as left to actuate go, leverage

that. me Let elaborate more than you a little give answer

as impacted of expected Wealth three off likely our It advisory negative. think slightly to operating due think strong be the lack Banking, fast is Canadian, positive client the business leverage. trading activity. quickly so QX. I in GBM for result well two don't to will revenue operating leverage years, will by and primarily unfortunately to that coming is lines deliver of correct going What are that will I not that's International be will bank, it lower Management. as

that. of negative it's will objectives term this is But our -- sorry, we're what it do like to growth, all point quarter think and course, other EPS meeting strong want be capital ROE, I medium out ratios I X.X% I believe year-to-date.

Thank you.

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

Dan. pre-provision? now mean row rebound, a [ph] question, for double-digit total pre-tax, outlook trying to to bank around Thank it, number the question, moderate quarters And much you. a has think a good a the compounds kind just for answers don't resilient to a results, the to of total for in $XXX want to I kind pre-tax, of get in on it plus kind have Banking to have suppose. but you some for of GBM XX% go still International international is to that bank this here mind the is but depressed when as of be other wealth the your is as Wanted growth pre-provision the you going that in for and what's only now. had your reversion presumably frontier say Canadian gets, it's Dan, keeping probably will segment I some, going segment I second side wealth of how results your of The quarter earnings. broader But of I GBM felony once I'll of depending of or guess, in question Dan segments, call flip feel back million is how Brian.

in performance the this in pleased terms general segment Sohrab. you, of Thank we're Obviously, outsized while PTPP for of in That with rates is double-digit now. little long-run growth industry. the and a

a would pleased of positive be certainly reasonable We're leverage. normalization published to some expectation. So operating have quarters seven

noticed for productivity a hovering XX% You've while now we're ratio. around

in the production So the confidence and the going PTPP forward, our much sales of rests digital on teams. of productivity and

economy the there fact are slow views that I from think, the some dramatically here. notwithstanding could that

on the that Our segment, better the system together the us fair a gives growth rate is fit we'll belief of into medium year. is the terms – confidence basis in of way of that the performance next PTPP outperform over the that term, including

And his to comments. next leave of for to I the here to next levels, terms it quarter. I'll outlook year for prefer pass Brian the – team projecting In think

Yeah. Thank you Sohrab. for question, the

wealth for see to of that results do prospects good – in said international, business. this great important million comment exceedingly LatAm great question, did another in as it we were there. buried That on we continues But The sometimes, is record. that which this quarter, a Raj second his quarter, and up Just to I trends $XXX I comments, detail. growth international business And that GBM highest profit well. I a think mention of gets think pipeline business produced is business. And in the have and the on earlier

said, the seen liability the as results. entirety. impact with in given customers. on we've division because, rate results – pleased very we the an So and her this increases I'm pleased the that I quarter the how our the I'm balance the sheet, of and was And rapid side business, with of really the international with responded out it's and with

So – will from re-pricing in and we asset benefit quarters. subsequent

already. we're starting that to see So

I very results strong. So would the and this is business, point last quarter the make Caribbean the were international

of We And we up, has business. as for picked haven't Caribbean benefit the you diversification expect our seen business that a while. strong for it shows and our tourism XXXX a

the international international, look forward strong So and outlook continued very we results. for is and bright improving to indeed,

sort Dan? negative – get operating one quick where do or just follow-up I be operating on Can revenue it. appreciate with room have Do if you you And could I shove, Okay. the leverage? case expenses, leverage? growth to what your push came can of if slowed down with

margin line. piece such Look, impact, big I the right? a of is has NII a think big

and portion I of total time and think we we've compared for Sohrab full a producing in a seen bank. represent haven't credit those now leverage pickup substantial said business significant revenues. We've the books cards. combined few prior a the two on that been to long In yet pre-pandemic operating automotive, quarters

difference. of makes beneficiary the a So obviously, Tangerine deposit of environment. is the larger total share that growing a big a becomes And

so And I to into with what operating year, continue year our ambition full to happens regardless positive quarterly year and expenses. think on this of next leverage print basis a is on certainly basis, but

Thank you. that. Appreciate

behalf QX team, went forward a call to again thank I in entire speaking participating day. call little want over. November. great XXXX Okay. look in we Have our to the bit at our of everyone I management today. a know, for I you with On

Thank you.