Bank of Nova Scotia Q1 2019 Earnings Call Transcript

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

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : A couple of quick ones here. Corporate loan book, you had the big growth number. I'm just wondering what the visibility or timing of ancillary fee revenue generation from that balance sheet growth. Then on the card fees, the expense -- card expenses, I guess they moved up higher. We also saw balances move higher. Is there a relationship there? And when do you expect the expenses to maybe moderate as maybe some promotions fade? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. FEBRUARY 26, 2019 / 12:30PM, BNS.TO - Q1 2019 Bank of Nova Scotia Earnings Call

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : I know, but on the expense line there, it's up quite a bit year-over-year, the card expenses. So -- but I don't think that's an IFRS 15 item, what you incurred on promotional and loyalty costs, is it not?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Maybe a timing promotion phase sort of thing? Anyway, well...

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Quickly, Jake or James. Since, I don't know, Q1 '14, let's say, quarterly -- 20 quarters, there's only been 6 or 7 quarters where the earnings out of capital markets has had a 3 handle on it. You've had lower quarters, but this is amongst the lowest ones. So why would you think -- how do you rejig? What do you see the earnings potential, call it, on a quarterly basis out of that segment?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Okay. And Brian, on the Thanachart, I mean, obviously, there are some earnings that will be disposed of, I assume, if the transaction transpires. Where do you see that earnings kind of being backfilled? And then can you maybe give a bit of a color as to how you see the mix of earnings then 3 years down the road, 2 years down the road between Canada, international and, I guess, GBM and wealth as well?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : So in international and -- I mean, just, Brian, not to be belabor the point, but how do you see the mix of business here? I mean, is the mix of business going to continue to be as is? Or do you see Canada becoming a smaller portion of the overall bank?