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: Matthew James Lee - Canaccord Genuity Corp., Research Division - Analyst
: Maybe starting with ABA, PCLs in that business continue to be very low, and I think they actually saw impaired decline quarter-over-quarter. Can
you maybe just talk us through what gives you confidence in the current level of build for that business? And maybe what you're seeing in terms
of economic indicators in that market?
Question: Matthew James Lee - Canaccord Genuity Corp., Research Division - Analyst
: No, that answers that question. And then maybe on the financial market side, another good quarter and specifically called out DCM, but can you
maybe just talk about the visibility you have into C&IB pipeline going in the back half of the year?
Etienne Dubuc - National Bank of Canada - Executive VP of Financial Markets and Co-President and Co-Chief Executive Officer, National Bank
Financial
Sure. Thanks, Matthew, for the question. And it's been a great quarter for us on the advisory side. So maybe if I comment on what the quarter was
like, the star of the show was really DCM, where it was a great environment with Canadian borrowers being active on both sides of the border and
Canadian investors actively deploying and that provided a broad support for new issues in the rallying Canadian credit market. And then you have
the government side. Because of the increasing borrowing requirements, the pace of new issue has been robust as issuers took advantage of strong
demand in the fixed income markets and we see that trend continuing in the next quarter.
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MAY 29, 2024 / 5:00PM, NA.TO - Q2 2024 National Bank of Canada Earnings Call
It was also busier on the equity new issue market with significant activity, notably in the mining sector. So an encouraging trend there. And M&A
was also a bit busier in Q2, although a bit slower than last year, and we're looking for an acceleration during the second half of the year. So that's
really what we see. I mean, I touched on DCM. We see it getting quite busy on the equity side, especially in the last 2 weeks, and there was a lot of
cash on the sidelines and a lot of pent-up demand. And I think that, that provides a pretty strong picture for the second half of the year on the
advisory side.
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