The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Gabriel Dechaine. (foreign language) So I appreciate all the growth strategies outlined, that's very important, of course. But the questions I'm
getting from investors these days and -- and mortgage -- the housing market and mortgage growth has been a big thing, obviously, in the industry
for the past couple of years. What can you tell us about some of the underwriting risk management strategies you implemented or enforced or
whatever over the past couple of years when interest rates were low, housing prices were going up. And then what kind of granularity could you
give us on the growth, whether it's exposure to investor-owned mortgages, any special underwriting standards you applied to variable rate
mortgages and I'm pulling a Darko here, a third question.
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: It's one question. Have you stress test the mortgage book for potential payment spikes or for borrowers that are facing renewals or have floating
rate mortgages, anything of that nature would help. And I'd ask these questions of any banks just...
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Is it safe to say the -- well, not safe, but is it logical, I guess, to say that the payment shock type scenario that people get concerned about. That's
not until 2025, 2026 time line as opposed to your variable rate borrowers aren't getting hit today with a higher payment, correct?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: A couple of questions for Hratch. Your expense trajectory there were structural low single digits with the investments, it brings you to the mid-single
digits. In the current climate -- and then you also suggested that you could toggle that investment if need be. In the current climate, how much
are you thinking about toggling the investments to drive expense growth lower than the next year or so because we have a few quarters behind
us where expense growth was relatively high?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Okay. A similar question, but on the capital, you're in and around your management target, 11.5%. You got the rising rates, which could actually
work against capital generation. Loan growth in low RWA density categories like mortgage is slowing, but you're still getting good growth in
commercial and higher RWA density stuff. Do you expect to be accreting capital over the next year? Or do you move -- expect the bank to move
closer to that minimum level of 11%?
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