Toronto-Dominion Bank Q4 2019 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 : I just want to ask about your risk appetite, we've got margins coming down. We got the PCL ratios normalizing. And does that affect your risk appetite at all? I know a couple of years ago, you were talking about expanding fairly ambitiously in the unsecured personal lending space in Canada, has that changed at all? And what would need to happen for you to maybe balance that?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Okay. How about the glass half full perspective? And it's easy to get down in the dumps these days, but rates are down a lot. Bad for margins. We've all spilled a lot of ink on that. But from a credit risk standpoint, that should help, right?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Ajai, I just wanted to come back to you. We talk a lot about normalization of the credit. Is there any reason to believe lost content by product category, whether it's credit cards or other lines of consumer credit lines, the loss content as we go into the next cycle will be any more punitive or higher than may have been in prior cycles?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : But that's not something that is necessarily you've explicitly kind of factored into your -- into your buildup to that plus or minus 50 basis points? 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.

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : And not to belabor the point, but from what very limited stuff you've already seen, is there any reason to believe it's going to have a more severe loss content?