Bank of Nova Scotia Q2 2021 Earnings Call Transcript

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

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : I'd like to talk about the write-offs in international, and I appreciate the comment that we've hit a peak here. But the way I look at it is we've -- over the past couple of quarters, I know nearly $2 billion of the loans have been written off. How important is it to replace those loans for the segment to get back to its pre-COVID revenue run rate? And is there any possible change? I heard something about derisking the bank. Are you changing the way you approach these originations going forward? Or is there -- or did I misunderstand that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 01, 2021 / 12:00PM, BNS.TO - Q2 2021 Bank of Nova Scotia Earnings Call

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : And when you say retail rebound, you're talking about mortgages in the second half, not these cards and other personal loans?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Okay. And then quickly on the other segment, asset liability management activities, that NII line hitting a pretty big number there. What are you doing ALM wise?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Of course, if I can, Nacho, obviously, a tough operating environment in the Pacific Alliance region, in particular, over the last year. And I think you have done quite a bit of work, certainly around expenses. We're seeing the recoveries come through now. But I'm just curious to know what else is left for you to do besides waiting for that economic tailwind or the high tide that's going to hopefully raise all boats. I'm trying to understand what other levers are at Scotia's behest here to help push this forward and whether or not you can paint a picture of what your loan book may look like, for example, from a secured, unsecured retail versus commercial 18, 24 months from now and how that would compare to a pre-pandemic level. So I'm just trying to kind of get a feel for what is happening to the risk appetite, if anything, between now and when we get through it.

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : But Nacho, so not to put -- yes, go ahead, sorry.

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Sorry. I just wanted to just -- I appreciate that, Brian. I just wanted to get from -- but Nacho, there is no change in risk appetite. Is that the right way to think about this?