The Bank of Nova Scotia (BNS) 29 Nov 222022 Q4 Earnings call transcript

Good morning, and welcome to Scotiabank's 2022 Fourth Quarter Results Presentation. My name is John McCartney. I'm Head of Investor Relations here at the bank. 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. and questions Banking; following Wealth Glen Deschamps International take Rees executives: Management; to Global from Canadian from from Gowland Banking; present are Markets. Scotiabank the Dan Nacho Banking Also and Lawrence Jake from Global

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

begin after with good performance financial and you, will Phil will Chief Officer, detail. the the everyone. Thank Thomas, review more review morning, bank's Risk a I will and course John, of of which the over risk progress review in our fiscal year XXXX, Raj performance.

take . then your We questions. will pleased be to

will which call year Given our diversification and close all-bank volatility remarks. be monetary businesses I rapid bank exceeding over well. with medium-term will few to or XXXX adjusted quarterly our both our inflation deliver market to in share, with in fiscal businesses results. The and healthy us both XXXX and $X.XX my XXXX strong Despite year CEO, the delivered strong financial billion last of off fiscal performed earnings heightened $XX.X a geography The as a allowed return final a product equity, to of on each per response of operating geographies, continue increase targets. all-bank by across indeed a deal our that was elevated X% this XX.X%

concentrated positioned growth commensurate support up deposit and growth growth strategies strengthen our to franchise. core X XX% return shareholders. robust, of capital position Loan efforts to to a XX%, initiatives Our with capital XX.X% organic to at us Tier deposit result is a common well to has our which of equity while was continuing continue

a reality we the the across the alike households pressures for metrics been over detail, year. our observe businesses very course Phil inflationary As that continue despite portfolios have and will to of strong credit past

ratio QX points our was our PCL of strategic that to more in against or underlying per and coming $X.X in previously results, this XX% support of earnings adjusted delivered progress $X.XX Banking Our have basis fundamentals well growth. represented prior the against $X.X full earnings increase time of year. very share XX a exposures solid initiatives deliver Specific year. guidance billion expectations will secured our at of confident billion, within a Canadian us higher-quality the finish year the to over strong provided we last year. and Strong provided year notable future

Empire post the strategy deliver the retail the dining efforts continues which and an grocery is has our strong value-oriented program, have businesses choice continue than with through performance Bank, year $X Roynat to business see commercial, we role key to Canada's consumers. pleased Scene+ resulted partnership including to Business redeem This for in of of and X.X to a profile pandemic and everyday of assets more inclusion driver business to Company of we its this and everyday XX.X digital year's in become been commercial example ongoing Tangerine over strong performance, team funding their are another value the strong expand million small delivered at to particularly Scene+ of Canadians. The to Our bank. focused and customers. The franchises, members bank. the this leading Sobeys the billion has played Tangerine, over in and IGA This grew program, Canadian has and business to another relaunch deposits our which the points and further totals And our a travel. addition launch brands, by new Bank year XXXX. bank the in our on grow Canadian earn million to added that addition of that now entertainment, joining helping flexibility banking, includes important clients provides

the fiscal strong Market Wealth be on the earnings AUM year. Global fixed business in well Our of softer of and management dynamic of managed. revenue asset markets lower continue course impact despite offset the and provided funds strong showed to Expenses in the to resilience billion financial XXXX, in generating impact equity markets share $X.X fees, gains investment the results during income some of business.

in business, results each double-digit to of growth the Private led banking, side Investment our private and On our record ScotiaMcLeod of advisory channels. Counsel

build to and Smart customer introduce as digital Money Scotia as Smart a generation investment year new Investor iTRADE Scotia and experience, to this continue the including our mobile Advice+, new of platforms tools We app. by and enhance well

down the Our to finish Global business challenging a a very year-over-year Banking X% the and in market for $X.X billion conditions. a Markets period year year, in solid earnings had respectable of fiscal resulting in of QX,

GBM and contribution rounding record the segment up million, earnings Our momentum, respectively. XX% earnings out GBM in our of in strategy, reported the in grown also significantly year. with QX annual show delivering Latin million has the $XXX business Banking strong fiscal And in United to States International our America $XXX business continued and

volumes, lower management, earnings year, Our stronger a result of XX% the from $X.X from delivered and also margins a improved tax while prior XXXX rate. significantly billion, impressive benefiting International business expanding loan of fiscal up expense

that well our retail efficiencies and to IB to digitize efforts from the continued continued Our benefit from performed further platform. businesses our resulted

and up back quarter normalized level Caribbean a unit more of businesses is in million, XX% Caribbean of the contribution. Our performed to well earnings -- delivering year-over-year has been the $XXX

ability by solid faced to clearly in across our businesses businesses of as reflect absorb conditions the market-sensitive Our and this contributions our results by recent challenging year evidenced quarters. periods volatility the

responded the and banks and in United a our the inflation, central economic Canada remained market activity operating finally been their ways at as Central the banks in meaningful despite early and balance capital American inflation key past strong by impact pace. a this, robust. seen from of score counterbalance various is reduction with economies outlook. prospects to with be aggressively different and providing bank robust Central we blunt moderating growth seen are Canada, The prices, have Turning cycles that's the a tightening strength appear to to of nearing our sheet, In and year. the in Alliance end Pacific the clearly the States our commodity pace Global monetary environment. slowing. and the less of policy. levels impacted on growth different over along labor affected economic is any of be European geographies its appears in moderating, have orthodox our sources recent Asian countries, inflation In to economic growth have to not in Latin but And region.

banks Year in rates We excellence which The great environment by and the XXXX most year to the fiscal row, soon also the live Bank Fiscal to Americas others the and in by hit progress communities and for third Bank again of recognized continues Canada year in Investment Bank a was are for Euromoney. and the of throughout We Best confident for bank The XXXX. terminal our Banker we were Canada our of on and a commitments Year will the work. that allow ease to this central to allow industry footprint. as decisive action during recognized be in

Since total year. XXX where track mobilized organizations published now billion of continues work. community Report have putting than $XX investment with us our in client-related and launching Pathways investments well our creating And live non-profit million billion and community hundreds up last million grow. commitment, We Net-Zero on achieve this thousands we communities in Scotiabank than of targets partnered earlier $XX people $XXX $XX from of Women's XX-year inaugural made communicated of a year, we Initiative opportunity more more financing, to our have to for globally, in ScotiaRISE,

deployed owned moments to our women-led of proudest CEO. and And businesses finally, women grew billion, target capital one $XX by my against as to reach $X.X XXXX. billion to Our

on Place the recognized only Work Workplaces XX Just only Overall, the last year. Canadian bank to I'll to Raj. the month, in initiatives to the company the past of Institute, headquartered we growth recognized and were very World Best over field. by call financial strategic and the are one our progress that, turn we the of pleased course top results with And over be with Great as many

Thank you, and good Brian, everyone. morning,

and income modernization, Tier was X realignment impacted a our after This This points ongoing quarter's of from million as wind businesses bank and to of of or million the of our for net expansion currency-related other recorded the comments costs adjusting relating charge at was that on equity basis about segment. by adjusting in that be investments EPS on items. in in of and million $XX $XXX support Venezuela certain GBM associates the and items will follow $XX restructuring the $XXX the resulting after of loyalty relating common and ratio technology will India certain sale million of well loss consisted as a $X.XX Asia other my the of to Malaysia. in in X All Scene+ operations program segment the down tax Thailand, these

resulting up our ended Revenue a both starting operating negative in of So expenses year. share performance. on leverage X% diluted the return fiscal X increased the equity earnings on with on year exceeding The bank and X%, of Slide XXXX and objectives. $X.XX adjusted per for was XX.X%, medium-term

billion, earnings revenues of higher Markets Our Global while modest as on Management fees, a business XXXX. net basis. earnings mutual earnings by X% by strong particularly driven and lines, earnings Canadian volume-related higher $X.X down billion Global reported brokerage compared increased increased year-over-year market Banking lower interest and our primarily International XX%, constant currency of Banking had and expenses. Banking fiscal businesses, were income performance. offset XX% fund to Wealth X% were down P&C $X.X conditions

were quarter, to Wealth for relating liquidity to X%, points The performance growth performing partially the to repricing, tax is The revenue, releases performance, certain points quarter. revenues basis impacted the offset offset by the challenging the by Banking Year-over-year end basis points and driven costs asset from of on increase quarter-over-quarter, including both which Once capital conditions. last non-trading remain losses lower pre-tax declined in rate Slide of unrealized XX%. solid pre-provision administrative repricing. was due basis by by X net growth. XXXX. on was as Revenues higher rates the bank's interest on and the in faced profit billion stabilize, and of and X but the an expected expansion up costs, margin PCL ratio earnings to whole leverage The X% was higher other the Management bank of as Slide ratio I'll from in X% in equity the mainly bank's provides the well impact is resulting net performance-based and four corporations. adjusted and risk-weighted pre-provision this X%, the a that as be lower the reported XX while Canadian asset of International its earnings derivatives pre-tax velocity Solid net to Canada decline from points ratio from gains detailed from share the points. equity expected X now strong net of foreign noninterest revenue XX.X% assets interest was expenses more in income year-over-year, The funding over was earnings Tier accreted Slide expenses, business interest by the banking equity segment of changes increased in exchange. an benefit compensation X to performance which are by profit quarter in $X.X diluted for related per credit of international quarter, billion driven support ratio business interest X the $X.X common lines interest The basis noninterest quantitative X.X%. negative industry strong weaker normalizing in the and in costs The basis increases. expansion. income a aggregate income market lower rate quarter, return XX margin along capital net and reported year strong the points impacted evolution of XX% position higher up spend grew XX. of operating benefit review by and All-bank markets momentum, XXXX for margin Risk-weighted loan in as primarily as the personnel common X% points funding in year-over-year from higher provisions earnings quarter higher X. from bank adjusted up was XX productivity countries. associated than The The the the XX.X%, dividends a Banking, driven last expected basis by increase XX of on to business increased increased of $X.XX quarterly benefited quarter, mainly X basis in bank mostly assets. Tier offset

loan The on impact portfolio of ratio with rates purposes impact this Excluding FX, migration, had ratio the OCI through XX quarter. points. the Combined growth value billion. liquidity was bond basis impact CETX fair basis the and benefited CETX held X higher positive for of points $X.X on the a

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

year-over-year, and reported X asset earnings year-over-year, pre-provision offset interest by deposit X% net while as increased prime spreads, $X.X particular now by and driven margin points were deposit loan lower since CDOR the repricing Turning prepayments growth on results as interest the grew XX% basis of a continued, higher business XX%. mortgage lag income of on revenue Net growth while XX%, beginning lower the declined fixed spreads. compression, pre-tax Banking line Canadian profit rate decrease of billion, X. partially in to the QX Slide

expected, and As compared loans year. grew costs Noninterest business deposits. due growth. foreign prior revenue or the by year-over-year, grew ratio The in growth compared positive operating X%, be offset to increase points strong but lower non-personal prior modest fees, XX increased prior while X.X%. year. to and to segment driven by mutual to maintain by and Expenses a was are at the decelerate. operating X% XX% the driven a The XX% revenue increase quarter and deposits personal X% fees. for earnings PCL by higher The compared leverage. an loan funds mortgages strong Business primarily increased to personnel a partially an Deposit X%, in generated year. by last during distribution segment to to quarter-over-quarter leverage in banking year-over-year, points, income deposit higher XX for X% losses XX% exchange support increased to strong generate and a growth compared by increase the rate. provision expense growth discipline was growth expected the expected X positive higher impacted stable driven quarter points year of of is credit will margins to basis with XXXX normalization to basis Banking Canadian basis mortgage tax expected be is technology

performance adjusting Slide fiscal positive declined Turning under X. generated improved XX.X%. fees, by quarters; lower driven productivity last lower X% operating generated for income driven business by on the X%, full now expenses, quarter loan Wealth The management Revenue and this driven lower leverage year. declined of to positive year-over-year. partially strong for million XX income the Global XX to line and X.X% iTRADE by has the and leverage interest primarily volumes, Earnings of margins. of Expenses volume-related while X% Management was offset fee ratio higher growth in declined wealth $XXX by assets due operating

Asset a assets top the managers across been top XX% a period. of with X X #X independent of Scotia October. Investment to assets management continue Dynamic $XXX Canadian in returns assets Assets mutual by market $XXX ranked with period ranked under strong quartiles due among retail market is decreased depreciation. to in X% administration five-year XX% fund Global over billion, Management industry. Despite primarily decreased as the XX% while quartiles Funds in we of #X to a to billion, environment, over five-year challenging assets the be under have asset

We the a with Global Pacific economic in Earnings growth backdrop the expense and remain managing revenue also slowing international business in stable growth. line invest the and tax double-digit across remaining we'll while expected growth key growth, saw with earnings on reflecting rate. Management focused are revenue statutory markets Alliance Wealth growth in XXXX, Management our modest in higher to businesses. strong Wealth to expects continue

net X% X% to grew the $XXX increased strong year, as and year. driven grew strong XX% from expanding X%, and Banking to the grew generated Noninterest compared income margins. by loans growth weaker were income prior Slide higher as XX%. was offset to driven volume quarter. Revenue Capital revenues XX% Markets banking by and XX% grew secondary down revenue year-over-year interest XX%, while loan and by but down primary growth as was Turning prior XX. million, Results deposits compared Markets last of earnings Global markets. up partially deposit

Global mainly Markets loans pre-provision with result loans Through technology losses. an expected Markets up grew Banking leverage personal comments profit improve, and plans investment America, strong while Banking However, are Latin and improved clients. more growing growth also strategy, and while by a million, up highlights grew Pacific Banking, deliver to particularly The development to Brazil. of to and activity. with more part results were and it in XXXX. Caribbean XX%. International and basis. XX% and personnel GBM new are higher dollar Alliance support of mortgages XX% credit in $XXX net margin year-over-year margin, constant due reported in disciplined deepen management market offset year-over-year, client and XX% strong quarter's My record operating points. interest year-over-year. continues negative the results reported XX%, Chile to expense XX% million, is results. currency Expenses the X% International on adjusted The Year-over-year, and are interest XX impact and basis business deliver XX prior the foreign securities. than up segment client gains increased as up the Central of year-over-year, up and income year-over-year the was strong to of increase to by commercial Slide of by partially is loans Capital in quarter. that offset expected up Americas Pre-tax rebounded any net levels $XXX earnings to earnings driven reported net Banking translation. from costs Markets from X%. to Revenue relationships for fees favorable also adding which credit America costs up grew segment Quarter-over-quarter, and segment XX%, the X% expected on Capital conditions and strong positive cards XX% provision this X% driven follow that with lower

Assets operating efficiency in grow expected repriced supported the losses are office normalizing starting benefited International the margin faster benefits strong are half rate. With interest inflation changes X% year-over-year, revenue, lower last to second with be modest as growth expected offset rates quarter higher business credit deliver QX X X.X% from partially initiatives expenses of from to from in a interest basis leverage and the of the normal for inflationary for benefit by result are and more and return and expansion XXXX. from year. in leverage. tax segment The in stabilization ratio Mexico basis year Bank for XXXX. funding XX.X% by Noninterest progress and to reductions to higher primarily the potential The in costs Chile. and for by expectations tax increase to by expected the credit to expected levels Revenues impact year. expected and by deposit decreased net offset provision Earnings mix. generated positive year-over-year to XX benefit of Provision the driven points to impacts, is in positive growth Expenses a impacted rate increased executed operating points. rate of of rate tax line the digital in the XX.X% whole loan inflation in for XXXX,

adjusted With Phil a year. funding costs million liability the the million Now of asset in higher reported rates higher $XX activities. turning to turn interest risk. prior $XXX was change that, to of of to Year-over-year, the I'll resulting management an a result the other segment. compared loss discuss We to from call net and loss

Raj. morning, Good everyone. you, Thank

fiscal For our basis reported XXXX, of well guidance all-bank PCL bank basis within points. an XX of the points, XX

than balances XX ratio. remain resilient. Canadian Canadian delinquency been of half confident retail three our confident trends are mortgage higher Canadian which in us customer average, fixed by three range. that XXXX. XX% and year, ratio look PCL customers. driven and last lending; inflation, we deposit for they has days higher financial to variable hikes February in the our the for and Canadian higher health by key fundamentals, accounts is we mortgage higher portfolio XXXX, position on be the quality portfolio. six stable XX% high As and our seeing highlight predictable this I strong mix; of will mid-XXs This retail credit After by driven We across basis in we underwriting higher our macroeconomic uncertainty. Canada to secured our a well to quarters rate for basis are liquidity deposits, factors: a level now stable point the approximately their points with customers' Despite rates roughly remains pre-pandemic remain of quarter maintain a were compared will our the of customers Bank and in XX-plus portfolios. the rate for And at of continue interest some more

High-quality line has XX% XXX. remain customers well days In pre-pandemic. average this uninsured an of average X below pre-pandemic in LTV points, increased of versus Our of also mortgage of International rated scores marginally secured our growth at Portfolio with portfolio economic FICO XX% Banking, but levels. basis delinquency XX% quarter XX% portfolio slowing originations. remains and remain retail by XX-plus

upgrades the observed and have liquidity customer we portfolio due performance. Banking, quality strong. across remain to levels Credit Business in Finally,

driven they by in are International quarter-over-quarter, Banking impaired loans foreign are and Business While One fluctuations exchange gross Banking. up Accounts slightly primarily

PCL PCLs Stage The was driven ratio quarter normalizing X retail GBM, forward-looking were to this well turning XX. by this up Year-over-year, increase less rose levels. increase million International primarily basis were modestly, a portfolio from trends forecast Slide well and in within delinquency indicators. reflects last quarter XX our by pre-pandemic as PCL $XXX and mainly $XXX PCLs on Now and driven strong quarter our points growth. million. remaining to in macroeconomic though below up, expectations levels favorable and performing This PCLs

originations look as We year diversification markets to 'XX. we across credit continue to fiscal be and focused on high-quality

Our current or XX as primarily were losses net this million Total quarter allowances Nonperforming basis small slightly increases we quarter-over-quarter for double levels. formations XX ACL ACL credit represents billion, and $X.X quarter write-offs, up saw about our in ACL ratio commercial. yield of an $XXX quarters driven increased this by coverage pre-pandemic retail points. write-offs of and net almost International

in environment While in we macroeconomic remain conditions. response prudent to to allowances uncertain, continues current building changing these be

coverage reflects our credit of strong the to changes and Our portfolio, mix. quality practices

XXXX, expect to fiscal ahead credit performance continue. we strong Looking to

uncertainties. inflation interest factor, and manage efforts positioned be economic well will us While to our to continue pressure rates have portfolio from a to we our derisk believe

finally, would the of for leadership. our reasons, basis in you, to of these Brian. earlier behalf and years globally Brian congratulate I unchanged. ratios his thank XX PCL And of all Thank Scotiabankers on outlook point For like remains mid-XXs range service and Brian

will over for John to Thank Q&A. turn call the you. I now

please? to pleased everyone to question now call. rejoin Please X be Thanks, allow the Operator, phone, queue the in question to on opportunity take the we have to limit Bill. the and can questions. your We'll then your participate first the

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

morning. Good

interest the down can So the consolidated the versus in I break If for margin you just and NIM. on terms net we guess international margin. Canadian the outlook the banking Raj, for maybe, of

interest Canada, central And we need You But lower? Canadian gave color rate Bank rates. the stop a in the actually for cuts in -- world are to some to of banks hiking Bank happens earlier. what the margins Canada do net where X going NIM

Ebrahim, 'XX, factor bank to I'll the schedule as would we next good as I'm well line 'XX, in it changes all-bank happening. to level. business at of has it remarks margins. quite our I over and of central accelerate. in starting as assets quarter-by-quarter, out net are the business course, in margin evolution definitely margin or business of morning. mortgages, to But and lots I be Yes. going that's margin years, specific to the Dan to of reacts prepared to that is Canadian comment as how I call our thus, changes interest bank Canadian well Thanks, Banking think slowed to the deposit important a actually expects ask less both margin the industry Trajectory not factors four Nacho forecast in going and low-margin repricing, Changes in two behaviors. the generate my underway The Bank expect the segments. IB business said mix do of And and, on

and how margin say into So Dan, been to well. as you in for it's net do interest the evolve a these something to the to key with or key want banking and this it Nacho? XXXX factors have XXXX Canadian always for evolution bank, I think will going a margin be

of I for deposit to on a quarters. has Certainly, the the we expect of speed this been full been emphasis Canadian quarter, portion in of QX deposits Dan in which this of business strong there here. couple expect than an our faster in banking loan and of QX last Ebrahim, in we the think half the overshadowed expect course growth look may loans. mix business deposits expand front grew rates; I fair two beat the course, in And composition seen Banking grow bear the just we impact. of as it's through of that the rates they that a is the continue and quarter, balances, growth has in in repricing there's in at loan deposits year. saw tailwind to change is the or the NIM non-maturity next into quarters, next in book, we bank mortgage of growth. Obviously, important margin have that our underway where deposits well build next and The as And Canadian year to for mind year. you've here. say we year would to the equal deposit levels Clearly,

'XX, balanced that help NIM. So sheet in on will a balance emphasis should continue and that

have of XX of liabilities. of the terms NIM International quarter. the And Pacific and Banking, was in rate in repricing Alliance in of the X in benefit NIM increased pace where countries And say advance cycle this last with quarter, central tightening will rate to XX of in Alliance Chile. higher in the sending, would is I U.S. assets was rates. some there are in countries, In measures banks in Central Alliance starting countries the be bps first interest the Pacific we while to our Fed trend with increased the a Central by bps and NIM is moderated terms of the the of to dollars. likely the the increase in Ebrahim, quarter balances Fed Caribbean in America, interest more than Pacific to it countries, faster of driven driven quarter, increases compared by stabilized start the reduction proactive the NIM XXXX, the bps and banks Caribbean, XX%

not going Is that, something? Dan. rates in one Canadian missing compression the I Why or But is of benchmark higher offsetting mortgages? on $XXX billion just increase the variable NIM am follow-up spread rate the

did Look, movement to we there's been for we have moving the fixed indicating just occur some lot as of a in Certainly, mortgages Ebrahim. QX parts, time. in see

through lot be movement a back you the is of some we the expect markets, deposits where in the equity parts moving expansion in been we ended have QX of course growing have where QX, in component. term low of were a to year about next out pay anxious as a and we about would expected. component that saw gave would that margin, and in into been consumers So We the aggregate. of There's

And congratulations it. Brian, and Got on retirement luck. good your

Thank you, Ebrahim.

question is following Our Paul Holden from from CIBC.

or it if at all, lot of you're popping mortgages. are of those give if of So prepared rate flavor obviously, payments offer higher payment, sort behavior any what fixed rate variable a little wondering bit impacting bit of terms converted your Scotia us in behavior you variable that questions remarks, proportion up of to dive two payments banks of there's pressure addressed payment a just but And And deeper how or maybe again, a interest kind seeing? for down one is consumer variable in can a around mortgages. you

start and question. payment could he varies. It's would We that that strongly really should the like. rate variable Dan maybe a here. Paul. if have appreciate mortgage add Phil I'll Sure, believe We a

We that pressure stop. full are during QX, not seeing category credit in

customer certainly year higher lots in But month. of higher. than well a his variable customer big are cash are liquidity are and would having about substantially the And creditworthiness over at see variable deposit and the of combined worth fixed. flow per as balances of at for in Phil payment customer liquidity we that checking as accounts And savings we the $XXX remarks, position We with mentioned level. look of absorb excess increases of are us, $XXX, to conversations the have picture, is preparing the balances management $XXX,

card side. other mortgage not on we're the credit of non-maturity are we're this the tremendous our concerned In expanded words, So in position. and quarter, the And as levels. credit balances the on seeing will pressure holding about not payment have seen, you on other deposits hand, personal side

So consumer standpoint, is customer variable from a good in shape. the behavior

doing in we're XX% I deposits. or of with and with our six strategically, and mortgage, have date. position, last us. opening confident been customers months proportion been the the good, structure of showing credit into And having say the in rate years. with think The We've would transparent we've is that is focused basis, conversations into mix within at said holders with on and of quarter. account a now mortgage business the deposit comfortable with I to mortgage we're not there picture three a the line, variable have our for there is health last as we three up the more final are we're first customers the thing big our year-on-year strength cross-selling so now that products, the and

the behaving retail now. will they Canadian were And seeing stronger Retail whether looking the our our in mentioned, to relates monitor in in book. the as ability Banking with to we as in performance performance. in consumer than in see to And pressures we're any to generally, are in right and the Business seeing mine considerably how and segments lot Dan just pre-pandemic of speaking investments our our and comments across stress and of Just holding. that any we've made and of seeing our do not both it type not significant Business and health consumers added certainly, we're be or add sign Business that, they have Banking. of Dan portfolios, a to And Banking we're But signs consistent credit continue liquidity --

this just so forward, and be with are add and also think from now. And continues perspective, that, And a seeing rather it's to base strong well, comfortable as customer program. participate to how as consistently across unemployment important that quite employment bumpier in folks the performing -- is to seeing mortgage look customers I wage these that. to changes not our maybe as sort right hit Canada, any but we of we're we all or in those credit of pre-determinant we're particularly times, also variable we're certainly, for And increases

is question Capital Markets. Doug Desjardin following Young The from from

back this just Raj, for go discussion, can Canadian an And actually ask the bit better? I just Banking. talk the back wanted or and no if allocated to the it And and you can way. costs Canadian out, worse, other corporate had different are not for about I I'm Banking, think banking Treasury allocated been this Canadian and I maybe would this is NIM Corporate quarter the to that but or between to there’s a were that? sure interplay in treasury If or decline Dan divisions

start, that. pricing will I because other Canadian I wholesale only that. and not in be Transfer reprice you asset ensure Transfer banks that want Deposit put, repricing from see generally know -- Yes, with to transfer help in doesn't apply sure. I'll an what whatever you and that the can that a the to segment. is is to if Doug, and factor bank, is So pricing perspective rate the will deposit is to the happen line, transfer from other as tracks do. business happens would rate perspective, pricing assets pricing what line that's pricing NIM quicker, business the funding with is the transfer simply the inconsistent a asset consistent. while very This what track

it Canadian comment manifests or you only that just the segment. up take perspective, the it the and in just make. think our why net That's any I in So it from you an have how I it quarter, at wouldn't if down when higher other interest And nuance attribute I suggest it be... would bank. down, rate But generally changes bank to significant I'd the to understand particular level, itself reasons up or the moved It's up margin. look all-bank will you a

Okay.

costs between So the asset deposit up the is other repricing the being faster actually captured the squeeze within went segment. than

you're kind I about way track this before. the the level, think suggesting. we've that's And guess I of what thinking -- about the talked high to really just just all-bank,

Doug. what I'm saying. Yes, that's

repricing problem. to in all-bank up, think at costs NIM And quicker. you shouldn't compression it's this simple easier. think quarter. happened when catches see about the I asset grown Also, that And the what as funding IB have is it our way

from Financial. Gabriel Our Dechaine Bank following is National from question

plus in segment RWAs or nine on the could mortgages yes margin. at Good asset just My converting morning. question you in Canadian income towards answer. the Is but there yields spreads the need field question, We prepayment that And the client? are AIRB And no dynamic pleasure of luck Brian, model? suspect retirement, it's any or your to it with to I thought that in that plus. a that Banking probably International spread or impact quick engaging not business, less it, you in best be tightening. a is years of then progress -- about talked the the past

I'll first, Dan the Gabe. No, here second start looking have take sure will Bank. any on those Canadian soon, of the any we're then and move say. time to not I'm portfolios one more I'll And to

the think short answer. I that's

On there's quarter. in couple the Banking NIM, a of Canadian nuances this

out in So we’ve disclosure. the called it

Scotiabank, and the then necessarily rising movement always And CDOR. the for other the is one moves the because environment. a particularly in CDOR advance, prime prime factor On not of going of for timing a be in the but to banks that's price

to the happened interest Bank's less we're a Canadian When that once rates like pace Mortgage mortgage up, that normalize business 'XX how expand to and Bank in net that's continue So little catches earlier, will next changes prime happening, week and margin in start bit a down of volume we saw to in line to the which October. go up, talked prepayment last happen the the what slow will growth Canadian in the assets will modestly margin. see in expect with quarter at compared Dan should reprice prepayment. as which you mix 'XX. the in what And seeing

of quantification [pre-pandemic No Right. NIM]?

it if We the NIM will substantial. be you quantified through disclosed, think I within don't probably it's before. ballpark. But you haven't the it back

The TD from from Securities. is Mario following question Mendonca

retirement. your to best the all Brian, And morning. Good

Thank Mario. you,

Sure.

decline. He to lower So once your indicates to Raj, rates the go improve positioned whether I just this for want is disclosure all-bank margin rates only Higher rates the for get NII, started back question. bank asked first lower opening that rates. with NII. to lead Ebrahim's the to falling And going could back to reason lead higher is

that So an all-bank once start simple can that to can disclosure interpretation? the margin we Or improve rates is only interpret from your fall? too

will two falling right, I'd ways. it balance we positioned sheet The Yes, look at is rates. you're way. Directionally, benefit Mario. from that

on in you're benefit be higher factors directionally, the that the is disclosure. One repricing. But reprices, how depending of that fast the we applies And on will key of which right than disclosure. what based asset now show pace

higher. service loan to clearly about mortgage all whether a materially aspect factors into and time Okay. how debt service matter of question provisions your building performing that through going Different appreciate their X, debt and before all costs unemployment is are the most But can probably talk Could it's loan X last costs. that reserves for banks an service book? loan frequently just of have relates performing start ratios the We Stage type debt question the important this This to of really provisions. Stage asked is It then. quarter. performing you

and here. I'll to my comments Thanks to of take made go minutes comments Phil some that. for ago. from remarks in I'm back start. the a Yes, question. prepared I happy I few the my It’s

their sort seeing While we're mortgage, And said, of our not deposit TDSRs most of the of I high just because have increasing any reciprocal liquidity the accounts. maintaining are as portfolio, cost levels in stress. of in still been their of customers

level of basis So customer of XXX with XX% versus scores plus, example, points, FICO in liquidity. terms HELOC. pre-pandemic is with XXX average customers the up for our XXX improve up to to continue

over is so. And so migration actually positive seen credit quarter last the what or we've

forward. the there's and macroeconomic. And look we're to performing our change from And for built indicators, we is us loan what perspective. as scenarios you're I looking some at forward-looking loans actually at seeing quality so note performing a looking a for credit more important importantly tailwind think in in pessimistic that's But is as we're

more the macroeconomic in today, of seeing is which be would portfolio, quality focused of within the we're health focused of and I that on less be the So consumer, dynamic TDSRs, I'd shift the on the positive. sort

then talk to how me And we managed this that? meaty in was securities in bank environment? Could nice think rising a surprised because number. about you get I the gains a help any. few quarter over rate last you haven't Did the then. the quarter, little question Final seen Okay. through a quarters,

Sure, Mario.

investment be lumpy, right, quarter and in As year. will any any you in gains know,

just to the high-quality to invest quarters do this we it it going liquidity I and if and purposes. rolled its my three we these but don't economic have we because raise to had on value assets. depending right. first opportunity The we of the those of And We We liquid roll we of because to we had in numbers for maximum, continued think speak, securities. rate that didn’t year, it's opportunities, are value, reached remember it to has when in interest when the so -- some monetize think I $X debt We it. million, securities think changes, any

on This time securities which Like be rising said, depends rates, seeing. how what and you're will the all much based large these I all factors. at rates, on a portfolio. gain we these it are lumpy. it quarter, that's It's value It falling on does put

from Our following Genuity. Scott Chan is from Canaccord question

side, the and Banking a lot revenues year-over-year, I'll switch driven More capital for year-over-year quarter-to-quarter on Banking. to a up been of on loans, Business kind corporate by specifically basis. both Global

in if my the bit you that question outlook? like robust to So perhaps costs growth higher segment, if is this the what’s a little contribute driving provide could in that an did of personnel And quarter?

Great. Thanks for the Scott. question,

So there's a few that things question. in

thing happening you're existing in very And First that our in loan part because new that quiet growth a I'd clients. in business. a happening. that of seeing quarter. growth clients we're was adding activity lot focused several to we've A is, we're is on the that that's talked big and QX U.S. that's loan of note the about say I to been Not think core important And times. where very DCM the focused on Americas strategy.

Excuse a saw of banks monetize I've bit to going as clients throat. its of into lot got facilities. come hoarse a that we for we into me, We're see move XXXX. So a

out We're clients. an The and the X, quite deposit we're below our for both putting business and sheet, confident doing sides. it So say. balance continues in which we're being LDR is we're line grow, on I'd have there we to positive,

for capital air was Does an your QX. in in we performance performance step of we help markets solid was the you delivered stepped And QX pocket terms was cost question, a costs up saw pretty year. In the we answer Scott? that the happen felt That industry. a the back what ahead quarter, what when for

helpful. very That's Yes.

Mihelic Our Darko is RBC Markets. from following from question Capital

And dig, the of mortgage bit just Brian, luck to a wanted retirement. in little I Dan, best deeper question. also into

a look that just response don't happened. at there variable -- lot in rate in there slide or that it? recently XX, mentioned of remarks what was question when increases You And to slide quarter-over-quarter. in is your shift that I -- to a But one I fixed. from change see a was

shift a of areas, fixed, portfolio mortgage shift I preferred down it And with rate it different foremost, see rate the whole think mortgages are portfolio question portfolio? variable if to customers mortgage fact is continue average rising to respect are the of for variable therefore, a as related, you originations variable in little is, and in on happening a could to heavily mortgage overall see loan to rates the suggesting since that bit. my the rate you you So especially value, and Are the really a existing first vehicle, down? go to significant an to there lastly, going couple to portfolio, the be don't from

where are very You have falling. house heavy concentration Ontario, prices a in

please? to you can that's So there next speak what values portfolio think loan you seeing quarters, and the of the over couple where maybe to of you're on headed

Sure, think and a there, Darko. X. RBC's am lot at I I called sensitive There's

fixed to as the this if business So in and is photograph you I the in a like. referencing My stock can flows detail, a I'll to make comments shift think brief portfolio. follow-up fourth was we do new the slide you're of around the during quarter opposed

by based I think into unique And the not the our strongly term. it's channel customer work variable or effects. Often, are with view devising foot on We seeing you're renewals front therefore, is regards We forward. whether with on balanced their situation. to or come out there, customers by of

fixed out that into in to did movement happen continued the as variable expected. in begin So QX of QX

the I origination risk versus Clearly, number Thomas' as on wouldn't I at, prices marketplace. loan say LTVs, we're months, over credit we're the will on of have house call the rest in Ontario maintained be would Phil over-indexed outlook of necessarily. emphasis slightly value terms to the say last deflated In under-indexed in standard. it, Quebec at of

we on we the any and value basis. whether in that concerned renewal, want decide about of to are we will renew situation, As home where comes reappraise the the book for consumer

compression housing high the the not situations very are into return prime our market margins dissipates. be immigration, LTV, of high price mortgage employment, we period, shortage We as that as this CDOR the adjustment believe get we strongly credit amortization, housing will book, leaning constructive TDSR, long in wages, once for and through

Movahedi is Sohrab BMO Our from Capital Markets. following from question

clarifying Brian, a Thank I Phil, have quick you. question. career. congratulations illustrious just very on maybe And a

think performing could I earning versus is just you've it, that assume? does or you you're to call So if in the line? assumptions…? or Where adding kind detail give normalization, little say I about of, as me and of talked PCL more we kind clarities] in Canada, that, Or business bit you I'll on of nonperformers segments -- over color lending is [new guess, does just would how sort be more on that? geographies rate that to mid-XXs. in items line unemployment on a sort right how talk to What the of into would Can what bit that in nonperforming? it LatAm? performings And now an in get a it mortgages just little or you which business

portfolios. together time offline. go answer plus done But this happy of you year and I to amount not our can if That’s derisk Sure. look were where spend you I'd to of but -- a question, work tremendous and has back a ago, to a quick we we maybe bit I'm little it maybe -- bank a at

I in so of new range rate we mid-XXs for International basis into as is point sort point a And the run normalized say head 'XX, that range. basis would Banking. mid-Xs

put International, continue we lending. to more secured on our grow so to in mortgage continue And book

as has in credit higher IB primarily originations our that the about for now. mentioned higher-end in been segment sort XX% on I are focus of segment. remarks, Our my affluence of quality And

normal as shifted. grade commercial big and the higher so corporate portfolios really in really Again, investment -- on high of we And a of at sense we're new lending. -- focus normalize, it's sort have

And we'll analytics, in stress. to the work a also say I'm to continue technology. phone a confident very next James in would Nacho doing We've closely in lot year. calls quality others very, and collections and and have into invested built that that We've bit made that Dan may look so into a the we in out higher amount see make credit and preemptive I guidance. customers the had focus has this collections. investment hubs. sure we've on to year, who moving And as with we're so and of I we invested And of of significant bank Jake

as customers And to from help a and collections we into processes we're perspective, to quality feeling go our that the have year. a so of good from pretty the both next we portfolio, place in

rate XX basis What's in the unemployment point? Canada behind the

spend stress stress for we regular scenarios. bit of Yes, we day. number a a unemployment I'm with go a of have to portfolios we on obviously, into our And you test the offline, we put scenarios maybe time every basis little stress can happy And into that those.

But it is the points, not rate? unemployment you don't mid-XX based on Okay. -- basis an

we It would about performing, are nonperforming, be where for what on of a bunch based factors, whole our portfolios, unemployment, terms different what on in how thinking growth of looking we at we're including assets. are our of outlook, focused is

Porter. like would have It's questions. all Mr. to over the the back I for to turn time we meeting now

past days the has you we ongoing as had you season my bank's been confidence very Scotiabankers privilege efforts that every come. to built serve our extend for established And XX,XXX confidence enduring continues wanted leadership and analyst the build strong wish we to very institution have support very foundation on that resilient CEO of to the an Thomson that continue and of yet my much. entire bank Together, of Canadian thanks institution and lifetime every all have Thank put decade. first. the the many Scott beyond. around tireless the we to I Thank you the upcoming yours to bank. the of their will customers for best over team storied to the to of successes sincere best community have extremely and holiday world. of much. over to the for to I wanted proud our and continued team I our your I'm the the for champion I your and values investors achieved coverage It are the have And

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