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
: Two questions, one on credit, one on capital. And Daniel, just start off with capital. You talked about the outlook for credit, you said it's going to
be elevated relative to your normal levels for the remainder of the year, pretty broad statement, I get it. I just want to kind of get a sense for how
you're visualizing it? We got a big spike this quarter. Are we going to have a couple more quarters like this one? Or does it moderate as some of
the performing provisions migrate into impaired provisions and that kind of leads to more of a grading down from this level?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Okay. It was only $20 million off in my provision forecast. I'm happy. So the capital question. I might be early as well, of course, but you're doing a
whole bunch of stress tests and changing your economic scenarios. Do you have any quantification you can provide on the capital consumption
that might come from credit migration?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: So even in an L shaped recovery, including migration and other factors, you're expecting a core Tier 1 to remain above 10%?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: Maybe, Brian, maybe I can go to you. I mean, you were pretty adamant about getting the bank ready to be downturn ready, if you will. I don't know
if you were forecasting this, but a derisking exercise and what have you, I think, has allowed you at least to come into this well prepared. I'm curious
to know how much of your time and the Executive Committee's time right now is still focused on blocking and tackling associated with this? How
much of it is basically consumed by which business segments? And are you yet ready to play offense? Or is this still in a defensive -- you keeping
the defense on?
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MAY 26, 2020 / 12:00PM, BNS.TO - Q2 2020 Bank of Nova Scotia Earnings Call
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