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: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: A bit of a detailed question. I'm just looking into, maybe for Graeme, I don't know, but when you provide the subsector for industry
breakdowns of your wholesale book, 3 categories kind of stand out to me that have been driving the year-over-year growth, actually
quite a bit of the growth going back to probably the last 3 years. They are what you referred to as financial services, financing products
and investments. Financing products are doubled from last year. Financial services are now second largest to real estate. Investments
up $5 billion or $6 billion.
Can you just talk a little bit about what sort of business would this be? Which one of your business segments would it be in support
of, maybe a little bit around the geography, the type of RWA that it attracts and, ultimately, the types of returns that these types of
businesses are generating? I mean, I think the 3 of them collectively are up about $50 billion year-over-year and now account for
about 20%, 21% of the wholesale loan book. And I think of them as really -- at least based on the qualitative description, these are
leveraged industries. So are you lending to the shadow market? Is that how I should be thinking about it?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: And geographically, this would be broad-based? Or would it be mostly -- most of the growth would be coming outside of Canada?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Just a clarification on City National. Excluding the equitable yield, it looks like margins are down 13 basis points quarter-over-quarter,
and I just want to clarify what you mean by the margin will be range-bound from that level, I assume? And then on I&TS, just to circle
back to that business, how -- you gave a good explanation of what 2 factors are weighing on that. How big is the negative carry, if
you will, in the Treasury business relative to the -- just the customer slowdown in the Investor Services business? And how big is that
liquidity portfolio? Last, I thought was...
|
