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
: First question, lots of pressure. Okay. The PPP balances there, that new disclosure, a $4.8 billion loss -- not new disclosure, but the $4.8 billion
balance at the period end, it fell about $4 billion from Q3 levels. Can you give me a sense of when do you expect that to fully run off? Is it going to
be next quarter? Or are you going to take 2? And would there be a commensurate or linear revenue impact as those are repaid?
Gregory B. Braca - The Toronto-Dominion Bank - Vice-Chair of U.S
I assume you want me to take that, Bharat?
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Okay. But like kind of an even -- if it's spread out over 2 quarters, is that similar...
Gregory B. Braca - The Toronto-Dominion Bank - Vice-Chair of U.S
Correct. It depends -- a lot of this depends on the customers coming into us and making sure the documentation is prepared. We've got to obviously
coordinate all of this with the SBA. They've got to give us final sign-off on it. So a lot of it has to be staged. But all things being equal, I think you'd
tend to see more of it get done in Q1 or Q2. But by the end of the second quarter, we should probably be out of it.
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: So I don't know how to interpret that.
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Okay.
Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst
: Is it unlikely that we have to wait until 2023? Or is that at this time possible...
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: Just a couple of maybe clarifying questions, maybe for Greg. Greg, I'm sorry if I missed it, but when you were talking about the PPP loans, did you
also mention what's the remaining unamortized fees on that?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: $100 million left to go. Okay. Perfect. And then just, Kelvin, from your perspective, you've -- I think you draw our attention to Page 27, I think, of
the slide deck, where you're talking about adjusting to get a kind of purer view of the pretax pre-provision, for example, earnings of the bank
adjusting for the partners' value and so on and so forth.
Fair to say you're going to continue to give this slide indefinitely. In other words, when things normalize, so to speak, on credit and the mechanics
with the partners' share, like we'll be able to see this on an ongoing basis. You didn't just conveniently give this to us like over the last number of
quarters and then you're going to take it away in the future when it may be a little bit more of a tailwind to the bank, are you?
Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst
: I think it would be a good idea to continue to provide it for an extended period of time. Bharat, just I guess to come back at Lemar's question. I
mean, in the past, I can think of historically, the bank not being shy about, I'll call it, transformative capital deployment, maybe going all the way
back to the acquisition of Canada Trust, and obviously, the Commerce Bank acquisition. Is it fair to say that if you find something that -- first of all,
are you in pursuit of something transformative? And then secondarily, if you found something transformative, do you think you will be able to do
it with resources on hand? Or would you be inclined to also go to your shareholders?
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