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: Nikolaus Priebe - BMO Capital Markets Equity Research - Analyst
: I just want to start with the question on the 1 larger commercial mortgage that you called out that defaulted in the quarter. Andrew, it sounds like,
from your comments, it was a mixed-use property. I think you mentioned it was 90% leased. So I was just wondering if you could kind of give us
some insight on what factors contributed to the default there?
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MAY 10, 2019 / 12:30PM, EQB.TO - Q1 2019 Equitable Group Inc Earnings Call
Question: Nikolaus Priebe - BMO Capital Markets Equity Research - Analyst
: Okay. Okay. That's good color. And then just on the impaired ratio, if we exclude the impact of Bennington as well as that 1 commercial mortgage,
it looks like the ratio ticked up slightly, which -- it sounds like it was attributable to some retail and smaller commercial loans. And I realize that ratio
remains low by historical standards, and it's coming off a very low base. But I'm just wondering if you could give us some color on the reasons for
the uptick there, excluding Bennington and the commercial mortgage piece.
Question: Nikolaus Priebe - BMO Capital Markets Equity Research - Analyst
: Okay. Okay. And then just shifting gears, I just had one final question on guidance as well. It looks to me like Alt-A growth expectations were edged
up by about 2% relative to the guidance that was established last quarter, and then the NIM outlook has also improved somewhat. It looks largely
related to declining funding costs, but the net interest income is still expected to increase by 25% to 30% for the balance of the year. So are there
any factors that might offset net interest income growth that I have overlooked there?
Question: Geoffrey Kwan - RBC Capital Markets, LLC, Research Division - Analyst
: Just wanted to just go back to that commercial loan impairment. So you mentioned, it's kind of 90% leased. Did I hear right? I guess on the mixed-use
part on the commercial side, there might have been some vacancy issues. And then are you able to say like was this right in the core of Vancouver?
Or was it in maybe one of the subgroups?
Question: Geoffrey Kwan - RBC Capital Markets, LLC, Research Division - Analyst
: Got it. Okay. And then just -- you talked about some -- of the market commentary and what you're seeing on this residential segment. You talked
a little bit on the commercial, but anything to add on the multi-res side of your business?
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