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
: Just a couple quick questions, one on the international business. The -- trying to peel away onto the organic growth here. It looks like Asia had a
big quarter. And I'm wondering what is underlying that.
And then the other one is on the corporate side. You were helpful in your commentary on what's behind the negative carry item, and you said it
could persist. I'm just trying to figure out which sections of the yield curve I should be looking at and what your outlook for that drag to persist is
and if there's anything you can do about it in the interim.
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Okay. And then while I have you on the international, for the Mexico -- if I look at one of your disclosures, it shows Mexico was down year-over-year.
I know Stage 2 additions were part of that. Is that the main issue?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: If the yield curve doesn't normalize, is there anything you can do? Could you just reduce liquidity? Is there an impact that, that causes anywhere
else?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: Just wanted to stay with international, again with Nacho. Nacho, the international expense-to-revenue ratio has improved steadily, and now you're
just around 50% or maybe a trifle below that. Is this the byproduct of building scale? And how sustainable is it as you kind of think through over
the next 12 to 18 months?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: And I guess maybe a question for Brian. Just when you stand back and you think about it, Brian, I mean, obviously, the acquisitions have helped in
international. But the growth -- the earnings contribution growth in international even on -- based on the Investor Day targets is larger, greater
than domestic banking operations. I guess domestic is slowing. Is there any limitations as to how much of the overall bank can come from International
Banking over the medium term?
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