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 quick one on the formations and wholesale. Was that tied to the leverage loan book at all, the real estate loan?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Okay. My bigger picture question, great margin expansion this quarter. Could we see a similar increase in Q4? And then you also talk about the
importance of your deposit franchise, which is totally understandable. You've got a very large one. I'm just wondering about the deposit substitution
effect.
You talked about customers switching or putting $10 billion into GICs. Are you starting to -- is that something a trend that could accelerate where
you have customers moving out of 0 cost deposits into the term product and that might eat into your margin upside over the next year or so?
Maybe you can help clarify that?
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AUGUST 24, 2022 / 12:00PM, RY.TO - Q3 2022 Royal Bank of Canada Earnings Call
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: But just to reiterate, we could see similar margin expansion in the next couple of quarters. And then as far as the substitution effect, that's more in
the wealth business, either new money or out of the markets into GICs, but that's still reducing your funding cost overall.
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: I have just a couple of quick clarification type questions. I unfortunately got dropped out, so I may have missed this. Derek, just confirming, you're
not changing your strategy in Capital Markets because of these credit marks or kind of whatever the dislocation in the market over the last 3
months?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: Okay. Perfect. And just a quick one for Nadine. Nadine, I think you have this excellent picture or charts on the bottom of Slide 12, where you show
where the noninterest expense, excluding the variable comp and the like, has been trending. When you look at this, I don't know, maybe you kind
of have averaged around 6% so far quarterly growth year-to-date. Like is that the right sort of total bank on a noninterest expense growth trajectory?
Or do you expect that to moderate over the next, call it, 4 to 6 quarters?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: So taking the lead from the NII line more or less is, I think, what you're telling?
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