National Bank of Canada Q3 2022 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 : Just want to ask about Credigy. We did see the assets grow 10% year-over-year. I'm wondering if some of the disruption in credit markets is getting you guys more optimistic about the growth at Credigy in coming quarters because it seems like that might be the case. And if it is, maybe where you're seeing those opportunities?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Okay. The Wealth business, we saw a big increase in NII in that segment, highlighting the rate sensitivity there. I'm just wondering if -- since we had the 100 basis point rate hike at the midway point of the quarter, is there going to be a similar bump in Q3? And maybe if you can talk about further down on the outlook, what the deposit beta dynamics are in that business, if any? Martin Gagnon - National Bank of Canada - Executive VP of Wealth Management and Co-President & Co-CEO of National Bank Financial Thank you, Gabriel. Look, we have a very large platform of AUA with $621 billion, and that brings all kinds of opportunities for deposits. There's 3 main categories of deposits. Broker deposits is by far the most important to our net interest income. And -- but they each have dynamics, the high REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 24, 2022 / 5:00PM, NA.TO - Q3 2022 National Bank of Canada Earnings Call interest cash performers at different dynamics, and we also raised GICs for the bank through the brokerage channel. So there's a lot of counter effects. But in general, you're right, in Q3, we had rates increase through -- in the middle of the quarter, and we're going to benefit from this in Q4, for sure. I don't want to go any further in that. But I'll just tell you this that we've been working on net interest income optimization for years where there's a lot of optionality built in our model. And this quarter is a good example of this optionality.