Royal Bank of Canada Q3 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 : 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 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. AUGUST 21, 2019 / 12:00PM, RY.TO - Q3 2019 Royal Bank of Canada Earnings Call 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...