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
: Just a clarification, Raj, you said $20 million of earnings from the 25 basis point rate hike that's like -- that's a quarterly figure across the region kind
of comment?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Okay. Sorry. My other question is for Daniel Moore, just a numbers question for me today. Stage 2 classifications. So the higher risk of the performing
portfolio, I guess, that moved up, what is it, 6% or so quarter-over-quarter -- or 12%, sorry? Mostly in the mortgage book, can you -- how much of
that was model driven? Is there anything regional or otherwise, that explains that increase?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: So by model driven, what was -- is it international? Is it Canada? Is it -- what's the characteristic of the portfolio that caused the increase?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: I wanted to clarify 1 answer and then ask a question (inaudible) Raj, the 25 basis point rate sensitivity that you gave for the international banking
net income after tax, I mean is that basically assuming all of Colombia, Chile, Mexico, Peru were going to bump by 25 basis points. Is that the way
to think about it?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: Okay. And that was about $20 million of earnings after tax?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: Okay. Glen, I mean, obviously, another good quarter here in the wealth business. Maybe a bit of a tough question to answer, but is there any way
for you to try and attribute how much of the success that you're enjoying right now? You could tag back to the acquisitions that the bank made a
couple of years ago in this space.
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Another question for Daniel. You made an interesting comment there to one of the questions about consumer spending, returning to pre-COVID
levels and the people have 2 years of excess liquidity to burn through something along those lines, if you can maybe clarify that statement a little
bit.
But when I hear that, that doesn't make me think -- well, it sounds good, don't get me wrong, but it doesn't -- it raises a question about the rebound
in consumer lending that we're -- in international sense like it's going to come back starting Q4, it's going to slowly materializing in Canada, but it
seems like a big impediment to that outcome. Maybe you can shed some light on this issue?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Okay. So the demand and notice is going -- is up 53% in Canada, 20% in international and is disproportionately skewed to the lower end of the
credit spectrum?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: I just wanted to ask 1 of Jake here as well. Jake, another obviously, strong quarter here also in your business. I think once up on the time, we had
talked about maybe GBM having about 75% of its kind of earnings more stable and durable. But that's when we were talking about $400 million
to $450 million of kind of earnings contribution quarterly. You've been above $500 million. Any updated thoughts as to what the kind of durability
of your earnings is and how much of it right now is due to constructive markets? And how much of it is just sustainable going forward?
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