National Bank of Canada at Scotiabank Financials Summit (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Meny Grauman - Scotiabank - Analyst : So maybe that's a good segue: the new team coming up, the next generation. What kind of bank are you leaving that next generation? What are its strengths and what are its key challenges? What are the key challenges that the new guy sitting in your seat in a few weeks is going to have to face, from your perspective?

Question: Meny Grauman - Scotiabank - Analyst : Speeding up into the current situation, or really looking ahead over the next few quarters. National Bank has put up some pretty remarkable numbers: 14% pre-tax, pre-provision growth for the year to date, 2% operating leverage over the same period. You have been rewarded by the market for those kinds of numbers. But the real question investors always want: what comes next? How sustainable is that, especially if trading slows down furthermore from here? So what is the outlook? Can you keep delivering at that high level? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2021 / 3:00PM, NA.TO - National Bank of Canada at Scotiabank Financials Summit (Virtual)

Question: Meny Grauman - Scotiabank - Analyst : We tend to compare the banks -- in many cases, it's a relative game. If we look ahead, there's question marks about National Bank on a relative basis. Will it underperform peers who have less exposure to capital markets, more exposure to cards, high rate sensitivity? How do you respond to that in terms of the outlook for National Bank relative to others?

Question: Meny Grauman - Scotiabank - Analyst : I wanted to dig into some of the key business lines. You talked about financial markets. I think it's well understood by now that your trading line tends to be less volatile than peers. But I don't think it's as well understood, the fact that the earnings power of the business is now higher than it was pre-pandemic. I think you touched on some of the components there. But I was just hoping you could explain the changes that have been made more recently in the financial market segment, and what that means for earnings on a go-forward basis.

Question: Meny Grauman - Scotiabank - Analyst : You mentioned ABA Bank before, and the entire international strategy with Credigy. Pretty remarkable performance through the pandemic. Do you view ABA specifically as a lucky bet, or is it more -- or would you characterize it differently? Is it really laying the strategic groundwork for less

Question: Meny Grauman - Scotiabank - Analyst : In terms of the moratorium on international M&A, is that still a reflection of the fact that you still feel the market is not fully behind the strategy? If I look at the results themselves, you'd think you'd want more of it and it should be a no-brainer. But is the moratorium really a reflection of the fact that you're still not convinced that the Street will give you credit for that? Is that partly what's going on here?

Question: Meny Grauman - Scotiabank - Analyst : Moving back to your home province, you talked in your opening remarks about always believing in QuTbec, and that's been -- that's worked out very, very well. I mean, even in the last few years, we've seen the economic engine of the country really move from West more into Central Canada. And QuTbec is certainly a big part of that, and likely to continue to be a big part of that. I'm just hoping you could remind investors of the advantages of the QuTbec economy. And more just as you look ahead -- in the past calls, you continued to reiterate the advantages QuTbec has in terms of its housing market, consumer debt levels. Do you see any dynamic changing? Or is it pretty much all moving in one direction to the advantage of QuTbec over the next quarters and years?

Question: Meny Grauman - Scotiabank - Analyst : I wanted to shift gears a little bit and talk about risk-weighted asset growth, and a pretty big divergence between National Bank and the peer group. Since the start of the pandemic, your risk-weighted assets are up 11%. The peer group is down 6%. So how do you explain the divergence? And can you specifically comment on your decision to double down on commercial lending early in the pandemic, and the dynamics there around your commercial lending portfolio in particular?

Question: Meny Grauman - Scotiabank - Analyst : Just on a related point: should investors be worried that National Bank has one of the lowest CET1 ratios among the big six?

Question: Meny Grauman - Scotiabank - Analyst : As we're coming to an end, I thought I'd talk about Flinks a little bit. But maybe even more broadly -- we talked about it a little bit on the call -- but I'm wondering if you see it as a model for large fintech investments of the same kind, is this something unique? Or is this something where you can say, things are changing, and we can expect more of these kinds of investments at National Bank, and even more broadly across the sector, as you see it?

Question: Meny Grauman - Scotiabank - Analyst : Louis, we are out of time. But again, I want to thank you for being here today. I want to congratulate you on your retirement. And it's certainly a big track record of achievement, and something tells me you're going to continue to make more of an impact in boardrooms rather than the golf course. So we'll see how that develops. But best of luck, and it's really been a pleasure. So, thank you so much.