EQB Inc Q1 2023 Earnings Call Transcript

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

Question: Etienne Ricard - BMO Capital Markets Equity Research - Analyst : On funding, could you please remind us of the initiatives and assumptions supporting a pickup in deposit growth at EQ Bank in order to meet the guidance for 20% to 30% growth in 2023? Just curious, is the funding levers [that's there]? Or is there some of what work is happening under EQ Bank to support that growth that led to...

Question: Etienne Ricard - BMO Capital Markets Equity Research - Analyst : Yes, just the -- more broadly, the initiatives and assumptions underpinning your guidance for 20% to 30% growth in deposits at EQ Bank?

Question: Etienne Ricard - BMO Capital Markets Equity Research - Analyst : Understood. On the topic of banking stress in the United States, I recognize this is an evolving situation, and it's happening in a different jurisdiction. That being said, in Canada, how do you think about potential regulatory implications on the risk weight, liquidity requirements and also insured limits at CDIC?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Just wanted to go back to the multiunit residential, your view on terms of being elevated. Is that a function of just higher market activity? And is that more new apartment construction versus sales of existing properties, but also 2, is it also a function of taking market share? Because I know you talked about also having more capacity to be able to do more through aggregators and whatnot?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : And just my other question is, as we're heading through the spring housing season and your comment of seeing some prices and we're seeing that in the market go up. Are you seeing anything from the competitive standpoint, whether or not in the prime or the [alt] space on rates and to the extent in certain parts players could probably play with amortization periods to try and drive new business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 03, 2023 / 12:30PM, EQB.TO - Q1 2023 EQB Inc Earnings Call

Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst : Just wanted to follow on that commercial loan growth team. Conventional commercial loans look like they've declined quarter-over-quarter. Can you talk about what's driving that decline sequentially?

Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst : I was thinking more on the mortgages, like the conventional side, and it sounds like there's nothing strategic there, just some lumpiness in that business rather than anything where you're maybe more concerned about the conventional commercial loans or otherwise, something like that. Is that...

Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst : Still in the commercial side and thinking about multi-units, do you have any initial thoughts or views on any potential impacts if the federal government decides to fold in CMB funding? Are there any impacts on that gain on sale line, not thinking necessarily on liquidity for commercial loans, but more on the gain on sale line. Is there any potential knock-on effects from that?

Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst : And then last one for me is on the OpEx. It looks like OpEx this quarter increased more or quite a bit more than what just like an extra month of Concentra would have implied. So hoping you could outline what are some of those drivers that are driving that are resulting in that larger increase? And is there anything seasonality-wise, onetime, like marketing is coming off next quarter? Like how should we think about this level of OpEx at $120 million in the quarter over the next few quarters?