Royal Bank of Canada Q4 2020 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 : A couple of questions for Graeme. This might not be a fair one. But I look at the 14 basis points loss rate in Canadian Banking, lowest it's ever been. Like what would that be, if not for all these support programs? And then relatedly, you added $147 million to your performing provision. Is there a debate at all? Like if you were just going by your models as you set them. Would you be releasing reserves at this point? Or do you see that as a scenario that's worth considering? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 02, 2020 / 1:00PM, RY.TO - Q4 2020 Royal Bank of Canada Earnings Call

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Yes. I guess, we're just all trying to figure out what these ratios look like when all the support programs roll off and it sounds like everybody is struggling with that.

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Question for Neil. Obviously, good mortgage volume growth. Neil, can you give us a sense of how the mortgage spreads are on the new business versus the old business that's rolling off. My understanding is mortgage spreads are higher. So I'm just trying to kind of circle the square on why you continue to feel this margin pressure in Canadian Banking?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : So can you comment on what the new business coming on, how the spreads on that compares with the business that is rolling off, if you will, or getting renewed?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Neil, back to you. Just want to get a sense of given the margin outlook that you have for this segment, and I know there's been a good amount of discussion around total banking expenses. But do you see a way forward for you where the segment efficiency ratio can improve without the net interest margin turning around?