National Bank of Canada Q2 2019 Earnings Call Transcript

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

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : I just wanted to go back to the capital question again. Bill -- or Louis, when you had kind of talked about a 10.75%, I guess, that would have been a different -- I know it wasn't that longer, but it would have been a different type of environment. You are talking about something a little bit higher. I mean, since you probably put that 10.75% yardstick in there, OSFI has increased the domestic stability, buffer requirements, the semi-annual reviews coming up. Like is this in anticipation of probably just higher capital -- regulatory capital requirements coming at the industry?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Okay, fair enough. So Louis, just to be crystal clear, though, like I think the way I'm picking up the commentary, you expect more -- collectively, you expect more of the growth to come probably out of the corporate commercial as opposed to the consumer end of the portfolio. I think Bill has already highlighted that, that tends to be a little bit more capital intensive. So I suppose what you're saying is part of this buildup is in anticipation 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. MAY 30, 2019 / 5:00PM, NA.TO - Q2 2019 National Bank of Canada Earnings Call of just more capital-intensive growth. Although I would ask you, is this good growth, given the commentary you've provided around being -- every quarter being a quarter closer to the end of the cycle?