Bank of Montreal (BMO) 2022 Q1 法說會逐字稿

Good morning, and welcome to BMO Financial Group's Q1 2022 Earnings Release and Conference Call for March 1, 2022.

早安，歡迎參加 BMO 金融集團 2022 年第一季財報發布和 2022 年 3 月 1 日電話會議。

Your host for today is Christine Viau. Please go ahead.

今天的主持人是 Christine Viau。請繼續。

Thank you, and good morning. We will begin the call today with remarks from Darryl White, BMO's CEO; followed by Tayfun Tuzun, our Chief Financial Officer; and Pat Cronin, our Chief Risk Officer. Also present to take questions are Ernie Johannson from Canadian P&C; Dave Casper from U.S. P&C; Dan Barclay from BMO Capital Markets; and Deland Kamanga from BMO Wealth Management.

謝謝你，早安。今天的電話會議將首先由 BMO 執行長 Darryl White 致辭；其次是我們的財務長 Tayfun Tuzun；以及我們的首席風險官帕特·克羅寧 (Pat Cronin)。加拿大 P&C 的 Ernie Johannson 也在場接受提問；來自美國 P&C 的 Dave Casper； BMO 資本市場的 Dan Barclay；和來自 BMO 財富管理公司的 Deland Kamanga。

As noted on Slide 2, forward-looking statements may be made during this call, which involve assumptions that have inherent risks and uncertainties. Actual results could differ materially from these statements. I would also remind listeners that the bank uses non-GAAP financial measures to arrive at adjusted results. Management measures performance on a reported and an adjusted basis and considers both to be useful in assessing underlying business performance. Darryl and Tayfun will be referring to adjusted results in their remarks unless otherwise noted as reported.

如投影片 2 所示，本次電話會議期間可能會做出前瞻性陳述，其中涉及具有固有風險和不確定性的假設。實際結果可能與這些陳述有重大差異。我還要提醒聽眾，該銀行使用非公認會計準則財務指標來得出調整後的結果。管理層在報告和調整的基礎上衡量績效，並認為兩者都有助於評估基本業務績效。除非報道另有說明，達裡爾和泰豐將在其演講中提及調整後的結果。

And with that, I'll turn the call over to Darryl.

然後，我會將電話轉給達裡爾。

Thank you, Christine, and good morning, everyone. Before I begin, I want to acknowledge the humanitarian crisis taking place in Ukraine. The news of Russia's invasion of Ukraine and war in Europe impacts us all, but particularly the citizens of Ukraine, the citizens of Russia and Ukrainians around the world, including here in Canada. At BMO, we stand with our Ukrainian and Russian employees, customers and members of our community in this time of need.

謝謝克里斯汀，大家早安。在開始之前，我想承認烏克蘭正在發生人道危機。俄羅斯入侵烏克蘭和歐洲戰爭的消息影響著我們所有人，尤其是烏克蘭公民、俄羅斯公民和世界各地的烏克蘭人，包括加拿大的公民。在蒙特利爾銀行，在這個需要的時刻，我們與烏克蘭和俄羅斯員工、客戶和社區成員站在一起。

To help support global aid efforts, BMO has committed $200,000 to the Canadian Red Cross's Ukrainian humanitarian crisis appeal, and we are accepting donations on behalf of the Red Cross at BMO branches across Canada.

為了幫助支持全球援助工作，BMO 已向加拿大紅十字會的烏克蘭人道危機呼籲捐款 20 萬美元，我們正在代表紅十字會在加拿大各地的 BMO 分支機構接受捐款。

Turning to our Q1 results. Today, we announced another quarter of very strong performance as we continue to build on our operating momentum to start the year. First quarter adjusted earnings per share of $3.89 were up 27% from last year with pre-provision pretax earnings of $3.3 billion, which increased 18%. Results were driven by strong performance in Canadian and U.S. P&C, including double-digit commercial loan growth on both sides of the border, continued strength in BMO Capital Markets as well as good underlying performance in Wealth Management.

轉向我們第一季的業績。今天，我們宣布另一個季度表現非常強勁，因為我們將繼續鞏固我們的營運勢頭以迎接新的一年。第一季調整後每股盈餘為 3.89 美元，較去年成長 27%，撥備前稅前盈餘為 33 億美元，成長 18%。業績的推動因素包括加拿大和美國財產保險業務的強勁表現，包括兩國商業貸款的兩位數成長、BMO 資本市場的持續強勁以及財富管理業務的良好基礎表現。

Our growth is underpinned by our consistent risk and underwriting practices and continued strong credit quality. We're executing well on our strategic plan and the targeted investments we're making across our businesses in sales capacity, in marketing and award-winning digital capabilities are contributing to our stronger revenue growth, up 12% this quarter.

我們的成長得益於我們一貫的風險和核保實踐以及持續強勁的信用品質。我們的策略計劃執行得很好，我們在銷售能力、行銷和屢獲殊榮的數位能力方面對整個業務進行的有針對性的投資正在推動我們更強勁的收入增長，本季度增長了 12%。

Expenses remained well managed, up 2%, excluding higher performance-driven compensation as we're reinvesting the savings from the exit of lower return businesses. At the same time, we delivered strong operating leverage of 4.8% and improved efficiency by 250 basis points over the last year to 53.8%, supporting an ROE approaching 19%, and we remain committed to delivering positive operating leverage for the year. We continue to strengthen our capital position with a CET1 ratio of 14.1%, which positions us well for continued customer-driven balance sheet growth and the acquisition of the Bank of the West.

費用仍然管理良好，成長了 2%，不包括更高的績效驅動型薪酬，因為我們正在將退出低迴報業務所節省的資金進行再投資。同時，我們實現了 4.8% 的強勁營運槓桿，效率比去年提高了 250 個基點，達到 53.8%，支援 ROE 接近 19%，我們仍然致力於在今年實現積極的營運槓桿。我們繼續加強我們的資本狀況，CET1 比率為 14.1%，這使我們能夠為客戶驅動的資產負債表的持續增長和對西方銀行的收購做好準備。

Turning to our businesses. In Canadian P&C, investments we've been making in key customer-facing roles, innovative products and enhanced digital experiences positioned us well for the rebound in consumer activity. We're gaining share across core product categories and delivering sustained leading performance with double-digit PPPT growth of 19% this quarter, strong ROE and improved efficiency. U.S. P&C also had strong results with PPPT up 12%, continued positive operating leverage and ROE of 19.5%.

轉向我們的業務。在加拿大財產和意外險領域，我們一直在面向客戶的關鍵角色、創新產品和增強的數位體驗方面進行投資，這使我們能夠很好地應對消費者活動的反彈。我們正在擴大核心產品類別的份額，並提供持續領先的業績，本季 PPPT 成長 19%，強勁的 ROE 和更高的效率。美國財產與意外險 (U.S. P&C) 也取得了強勁業績，PPPT 成長 12%，營運槓桿持續維持正值，淨資產收益率 (ROE) 達到 19.5%。

We had strong growth in Commercial Banking on both sides of the border with balances up 10% in Canada and 14% in the U.S., excluding PPP loan paydowns, with almost half of that growth driven by new clients. In the U.S., we continue to grow our national presence, including recently expanded operations in the high-growth Florida market, where our teams provide clients access to BMO's full array of financial services and industry expertise. These expansion markets are now contributing approximately 25% of new client growth.

我們在邊境兩側的商業銀行業務均實現了強勁增長，加拿大的餘額增長了10%，美國的餘額增長了14%（不包括PPP 貸款還款），其中近一半的增長是由新客戶推動的。在美國，我們繼續擴大我們的全國業務，包括最近在高速成長的佛羅裡達市場擴大業務，我們的團隊為客戶提供 BMO 的全套金融服務和行業專業知識。這些擴張市場目前貢獻了約 25% 的新客戶成長。

BMO Wealth Management is key to our growth strategy, and we continue to have good underlying performance in traditional wealth. This quarter, we completed the sale of our EMEA and U.S. asset management businesses and are well underway in repositioning wealth to grow in North America, investing in advisers and private bankers delivering best-in-class client experience. As a result of our innovation and relentless client focus, we've been leading the Canadian ETF industry in net new sales for the past 11 years with an expanded suite of award-winning products.

BMO 財富管理是我們成長策略的關鍵，我們在傳統財富領域持續保持良好的基礎績效。本季度，我們完成了歐洲、中東和非洲和美國資產管理業務的出售，並正在順利重新定位財富以在北美增長，投資顧問和私人銀行家以提供一流的客戶體驗。由於我們的創新和對客戶的不懈關注，我們在過去 11 年裡一直在加拿大 ETF 行業的淨新銷售額方面處於領先地位，並推出了一系列屢獲殊榮的產品。

BMO Capital Markets had record PPPT of over $900 million, up 30% from a strong quarter last year, demonstrating the diversification and strength of our North American platform. We continue to benefit from investments to reposition our business, including enhanced operational efficiency and risk management, and we're now operating at a run rate well above where we were 2 years ago. We continue to accelerate our growth, taking the top spot in Canadian ECM in 2021 and in Q1 and in M&A this quarter as well.

BMO 資本市場的 PPPT 創紀錄超過 9 億美元，比去年的強勁季度增長 30%，展現了我們北美平台的多元化和實力。我們持續受惠於重新定位業務的投資，包括提高營運效率和風險管理，而且我們現在的營運速度遠高於兩年前。我們繼續加速成長，在 2021 年和第一季的加拿大 ECM 以及本季的併購中佔據榜首。

Performance across our businesses is supported by the execution of our digital-first strategy, where consistent investments are driving loyalty, growth and efficiency. We're continuously modernizing technology, building advanced capabilities and leveraging data and analytics to enhance the customer and employee experience. One great example that brings this to life is BMO Business Express, our industry-leading business onboarding platform, which has exceeded $2 billion in authorizations supporting over 33,000 businesses with rapid access to capital. In addition to reducing the onboarding process from days to minutes, a single system architecture supports the business customers on both sides of the U.S. and Canada border.

我們的數位優先策略的執行為我們整個業務的績效提供了支持，持續的投資正在推動忠誠度、成長和效率。我們不斷實現技術現代化、建立先進功能並利用數據和分析來增強客戶和員工體驗。 BMO Business Express 是實現這一目標的一個很好的例子，它是我們行業領先的企業入職平台，已獲得超過 20 億美元的授權，為超過 33,000 家企業提供快速獲取資金的支援。除了將入職流程從幾天縮短到幾分鐘之外，單一系統架構還可以為美國和加拿大邊境兩側的企業客戶提供支援。

Personalized digital services like these drive above-market growth with business banking balances up 15% and create efficiency, freeing up valuable time for our colleagues to provide one-on-one financial advice. We're also making significant progress on our cloud modernization journey to enhance scalability and security while driving innovation and efficiency. For example, we recently migrated our transportation finance business to the AWS cloud, leading to annual cost savings of USD 10 million and enabling profound changes in how our business operates, competes and creates value for our customers. Turning to our U.S. segment. We've been executing against our proven strategy to steadily deliver growth and grow our presence both organically and by building on key acquisitions. Performance remains strong, contributing 39% of the bank's total earnings with an efficiency ratio of 53.9% and a return on equity of over 18% in the quarter, both right in line with the overall bank. The announced Bank of the West acquisition will meaningfully increase our scale and growth potential of our already high-performing U.S. segment when it closes. As we laid out in December, Bank of the West is a well-run, well-performing bank with a competitive position in leading U.S. markets complementary to our own, including the highly attractive California market. Their businesses are also highly complementary, 60% commercial and 40% retail, and we see significant opportunities to grow together.

此類個人化數位服務推動了高於市場水平的成長，商業銀行餘額增加了 15%，並提高了效率，為我們的同事騰出了寶貴的時間來提供一對一的財務建議。我們也在雲端現代化之旅上取得了重大進展，以增強可擴展性和安全性，同時推動創新和效率。例如，我們最近將交通金融業務遷移到 AWS 雲，每年節省成本 1000 萬美元，並深刻改變我們的業務營運、競爭和為客戶創造價值的方式。轉向我們的美國部分。我們一直在執行我們行之有效的策略，以有機的方式和在關鍵收購的基礎上穩步實現成長並擴大我們的影響力。業績仍強勁，貢獻了銀行總獲利的39%，本季效率率為53.9%，股本回報率超過18%，兩者與銀行整體水準相符。在宣布的西方銀行收購交易結束後，將有意義地擴大我們已經表現出色的美國業務的規模和成長潛力。正如我們在 12 月所闡述的那樣，西方銀行是一家運作良好、業績良好的銀行，在與我們自身互補的美國領先市場（包括極具吸引力的加州市場）中具有競爭地位。他們的業務也高度互補，60% 為商業，40% 為零售，我們看到了共同成長的巨大機會。

Integration planning is well underway, and we remain highly confident in achieving the identified cost synergies we talked to you about last quarter. We continue to expect the acquisition to close by the end of calendar 2022 and look forward to welcoming the Bank of the West employees and customers to BMO.

整合規劃正在順利進行，我們對實現上季與您討論的已確定的成本協同效應仍然充滿信心。我們仍預期收購將於 2022 年底完成，並期待歡迎西方銀行員工和客戶來到 BMO。

Our purpose-driven strategy is achieving strong financial performance that enabled the bank to invest in improving the well-being of our employees, customers and communities. This quarter, we launched Business within Reach, the BMO for Black Entrepreneurs lending program, committing $100 million in loans to help Black-led businesses start up, scale up and grow. And later today, we'll be announcing new expanded support for women entrepreneurs. Recently, we became the first Canadian company to announce that we will join the Breakthrough Energy Catalyst, whose mandate to accelerate clean technologies and climate solutions critical to getting the world to net zero carbon emissions strongly aligns with BMO's commitment to mobilizing capital for a sustainable future.

我們以目標為導向的策略是實現強勁的財務業績，使銀行能夠投資於改善員工、客戶和社區的福祉。本季度，我們推出了 Business inside Reach，即 BMO 黑人企業家貸款計劃，承諾提供 1 億美元的貸款，幫助黑人領導的企業創辦、擴大規模和發展。今天晚些時候，我們將宣布擴大對女性企業家的新支持。最近，我們成為第一家宣布將加入突破性能源催化劑組織的加拿大公司，該組織的使命是加速清潔技術和氣候解決方案，這對於讓世界實現淨零碳排放至關重要，這與BMO 為可持續未來動員資本的承諾高度一致。

Next week, we'll be publishing our annual sustainability reporting, which will include the 2021 BMO climate report. In recognition of our leadership, we were named to Corporate Knights' 2022 Global 100 Most Sustainable Corporations in the world, ranked as the most sustainable bank in North America for the third year in a row.

下週，我們將發布年度永續發展報告，其中包括 2021 年 BMO 氣候報告。為了表彰我們的領導地位，我們被 Corporate Knights 評為 2022 年全球 100 家最具永續發展企業，連續第三年被評為北美最具永續發展銀行。

Looking forward, while the current environment clearly poses a number of macro risks and uncertainties, high risk -- high levels of household savings and demand is supportive of continued good GDP growth in Canada and the United States. Our clients have proven their resilience throughout the pandemic, and we continue to support them in navigating challenges, including supply chain disruptions and higher inflation. With our diversified and advantaged business mix and our strong operating momentum, we are very well positioned to perform in any environment.

展望未來，雖然當前環境明顯帶來了一些宏觀風險和不確定性，但高風險——高水準的家庭儲蓄和需求將支持加拿大和美國的 GDP 持續良好成長。我們的客戶在整個大流行期間證明了他們的韌性，我們將繼續支持他們應對挑戰，包括供應鏈中斷和通膨上升。憑藉我們多元化、優勢的業務組合和強勁的經營勢頭，我們在任何環境下都處於有利地位。

I'll now turn it over to Tayfun.

現在我將把它交給 Tayfun。

Thank you, Darryl. Good morning, and thank you for joining us. My comments will start on Slide 12. First quarter reported EPS was $4.43 and net income was $2.9 billion. On an adjusted basis, EPS was $3.89, and net income was $2.6 billion, up from $2 billion last year, driven by record revenue of $7.1 billion, up 12%. Expenses increased 7%, impacted by higher performance-based compensation in line with strong revenue growth. The divestiture of our asset management business in EMEA and the U.S. this quarter and our private banking business in Hong Kong and Singapore last year reduced total bank revenue by approximately 2.5% and expenses by 4% with a nominal impact on net income.

謝謝你，達裡爾。早安，感謝您加入我們。我的評論將從幻燈片 12 開始。第一季報告的每股收益為 4.43 美元，淨利潤為 29 億美元。調整後每股收益為 3.89 美元，淨利潤為 26 億美元，高於去年的 20 億美元，主要得益於創紀錄的 71 億美元收入，成長 12%。受收入強勁增長和基於績效的薪酬提高的影響，費用增加了 7%。本季我們在歐洲、中東和非洲和美國的資產管理業務以及去年在香港和新加坡的私人銀行業務的剝離使銀行總收入減少了約2.5%，費用減少了4%，對淨利潤產生了名義上的影響。

We have now delivered double-digit PPPT growth for 5 quarters in a row with particularly strong performance in our P&C and Capital Markets businesses. Credit continues to be benign. This quarter, we had a recovery in the provision for credit losses of $99 million. Pat will speak to these in his remarks.

目前，我們已連續 5 個季度實現兩位數的 PPPT 成長，其中財產保險和資本市場業務的表現尤其強勁。信貸持續良性。本季度，我們收回了 9,900 萬美元的信貸損失撥備。帕特將在他的講話中談到這些。

Before getting into the details of the performance in the quarter, let me take a moment to go through the adjusting items related to the announced acquisition of Bank of the West on Slide 13. Under purchase accounting, the difference between the purchase price for Bank of the West and the fair value of its assets and liabilities at close is recorded as goodwill. Since goodwill is deducted from capital, changes in fair value, relative to the assumptions at announcement, will impact our capital ratios at close. The fair value of fixed rate loans, securities and deposits is largely dependent on interest rates. If rates rise, the fair value declines and goodwill increases. However, the fair value of floating rate assets and liabilities and non-maturity deposits are accounted for at par, providing no natural offsets. Between now and closing of the acquisition, we are taking actions to proactively manage the exposure to capital from changes in the fair value with the goal of creating an economic and risk neutral outcome. As part of these fair value management actions, we entered into interest rate swaps that rise in value as interest rate rise, resulting in mark-to-market gains and higher capital to offset the impact of the higher goodwill.

在詳細介紹本季業績之前，我先花點時間回顧一下幻燈片 13 上與宣布收購西方銀行相關的調整項目。在購買會計下，購買西方銀行的價格與收購西方銀行的價格之間的差額西及其資產和負債的期末公允價值記為商譽。由於商譽是從資本中扣除的，因此相對於公告時的假設而言，公允價值的變化將影響我們最終的資本比率。固定利率貸款、證券和存款的公允價值很大程度上取決於利率。若利率上升，公允價值下降，商譽增加。然而，浮動利率資產和負債以及非到期存款的公允價值以平價入賬，不提供自然抵銷。從現在到收購完成，我們正在採取行動主動管理公允價值變化所帶來的資本風險，以期創造經濟和風險中立的結果。作為這些公允價值管理行動的一部分，我們進行了利率互換，其價值隨著利率上升而上升，從而產生按市值計價的收益和更高的資本，以抵消更高商譽的影響。

Since the swaps create an exposure to interest rate risk, we purchased a portfolio of match duration U.S. treasuries to maintain a risk-neutral position As shown in the illustrative example on the slide, together, these transactions aim to mitigate the impact of interest rate changes on the fair value, goodwill and the equity needed at close. In addition, this structure also allows us to maintain the accretion projections that we shared with you in December. The associated revenue impact from the management activities are treated as adjusting items and the impact to our Q1 results is shown on Slide 14.

由於互換會帶來利率風險，因此我們購買了匹配期限的美國國債投資組合，以維持風險中性頭寸。如幻燈片上的說明性示例所示，這些交易旨在減輕利率變化的影響公允價值、商譽及交割時所需的股本。此外，這種結構還使我們能夠維持 12 月與您分享的吸積預測。管理活動帶來的相關收入影響被視為調整項目，對我們第一季業績的影響如投影片 14 所示。

In Q1, higher interest rates resulted in mark-to-market gains of $517 million recorded in trading revenue. We recorded $45 million of net interest income on the treasuries. The after-tax impact was $413 million, which increased our capital ratio by 13 basis points. We have also entered into foreign exchange forward contracts to mitigate changes in the Canadian dollar equivalent of the purchase price on close. These qualify as accounting hedges with changes in the fair value of the contracts recorded in other comprehensive income until the close of the transaction. Upon close, the foreign exchange gain or loss recorded in accumulated other comprehensive income will be recorded as an adjustment to goodwill. Details of the adjusting items for the quarter are shown on Slide 37, which include impacts related to divestiture of the asset management business. The remainder of my comments will focus on adjusted results.

第一季度，利率上升導致交易收入以市值計收益達 5.17 億美元。我們記錄了 4500 萬美元的國債淨利息收入。稅後影響為 4.13 億美元，使我們的資本比率增加了 13 個基點。我們也簽訂了外匯遠期合約，以減輕收盤時等值加幣購買價格的變動。這些符合會計對沖的條件，合約公允價值的變動記錄在其他綜合收益中，直到交易結束。結算時，計入累計其他綜合收益的外匯損益將記錄為商譽調整。本季調整項目的詳細資訊如投影片 37 所示，其中包括與資產管理業務剝離相關的影響。我的其餘評論將集中在調整後的結果。

Moving to the balance sheet on Slide 15. Average loans were up 7% year-over-year and 3% quarter-over-quarter. Business and government loans increased 8% year-over-year and 6% quarter-over-quarter, excluding the impact of the continued wind down of our non-Canadian Energy portfolio, and deconsolidation of our customer securitization vehicle, reflecting strong commercial loan growth in our P&C businesses. Consumer balances were up 9% from prior year, reflecting growth across our P&C and Wealth businesses.

轉到投影片 15 上的資產負債表。平均貸款年增 7%，季增 3%。商業和政府貸款年增 8%，環比增長 6%，不包括我們的非加拿大能源投資組合持續縮減以及客戶證券化工具分拆的影響，反映出商業貸款的強勁增長在我們的財產與意外傷害業務中。消費者餘額較上年增加 9%，反映了我們的財產險和財富業務的成長。

Average customer deposits were up 8% year-over-year, with growth across all operating groups. Average loan growth in our P&C business is accelerating. Excluding PPP loans in the U.S., loan growth is expected to average in the high single digits on a year-over-year basis.

平均客戶存款年增 8%，所有營運集團均成長。我們的財產保險業務的平均貸款成長正在加速。不包括美國的 PPP 貸款，貸款年增率預計平均為高個位數。

Turning to Slide 16. Net interest income was up 11% from last year and up 10% on an ex-trading basis, primarily driven by balanced growth in our P&C and Wealth businesses. Total bank net interest margin ex-trading, was up 2 basis points from the prior quarter. On a sequential basis, margin was up 5 basis points in Canadian P&C due to higher loan spreads, and higher mortgage prepayment fees. In U.S. P&C, margin was up 3 basis points, also reflecting higher loan spreads. We expect total bank NIM ex-trading to widen modestly in the second half of the year.

轉向幻燈片 16。淨利息收入比去年增長 11%，除交易外增長 10%，這主要是由我們的財產險和財富業務的平衡增長推動的。扣除交易後的銀行淨利差總額較上季上升 2 個基點。由於貸款利差上升和抵押貸款提前還款費用上升，加拿大財產和意外保險的保證金環比上升了 5 個基點。美國財產和意外險的利潤率上升了 3 個基點，也反映出貸款利差上升。我們預計下半年銀行淨利差除交易總額將小幅擴大。

Moving to our interest rate sensitivity on Slide 17. As shown on the slide, a 100 basis point rate shock is expected to benefit net interest income by $540 million over the next 12 months. The impact of a 25 basis point increase in short-term rates would add $124 million to revenue over the next 12 months. Our model sensitivity increased from last quarter due to updated assumptions on the behavior of pandemic-related deposit growth and includes approximately $160 million benefit assuming that a portion of surge deposits remain stable as rates rise.

轉到投影片 17 的利率敏感度。如投影片所示，100 個基點的利率衝擊預計將在未來 12 個月內將淨利息收入增加 5.4 億美元。短期利率上調 25 個基點的影響將使未來 12 個月的收入增加 1.24 億美元。由於與疫情相關的存款成長行為的最新假設，我們的模型敏感度較上季有所提高，並假設部分激增存款隨著利率上升而保持穩定，其中包括約 1.6 億美元的收益。

Turning to Slide 18. Noninterest revenue, net of CCPB, was up 12% from the prior year and up 16% on an ex-trading, ex-divestitures basis. Most categories have increased, including particularly strong underwriting and advisory fees. Sequentially, net noninterest revenue was up 15% or 7% ex-trading and ex-divestitures. Trading noninterest revenue was particularly strong, reflecting higher equities, interest rate and foreign exchange revenue, driven by higher client activity.

轉向投影片 18。扣除 CCPB 後的非利息收入比上年增長 12%，在除交易、除資產剝離的基礎上增長 16%。大多數類別的費用都有所增加，包括特別高的承保和諮詢費用。隨後，扣除交易和資產剝離後的淨非利息收入增加了 15% 或 7%。交易非利息收入尤其強勁，反映出客戶活動增加推動股票、利率和外匯收入增加。

Moving to Slide 19. Excluding higher performance-based compensation, expenses were up 2% from the prior year with targeted investments in sales force, technology and marketing, partially offset by the impact of divestitures. Quarter-over-quarter expense growth of 3% was driven by higher employee-related costs due to stock-based compensation for employees eligible to retire and seasonality of benefits that is recognized in the first quarter each year, which together added approximately $235 million this quarter. We plan to continue investing in our sales force expansion as well as technology and digitization projects. As Darryl mentioned, these disciplined and strategic investments have helped fuel our revenue growth and created efficiency gains in our businesses.

轉到投影片 19。不包括基於績效的更高薪酬，費用比上年增長 2%，其中包括對銷售人員、技術和行銷的有針對性的投資，但部分被資產剝離的影響所抵消。 Quarter-over-quarter expense growth of 3% was driven by higher employee-related costs due to stock-based compensation for employees eligible to retire and seasonality of benefits that is recognized in the first quarter each year, which together added approximately $235 million this四分之一.我們計劃繼續投資於銷售團隊擴張以及技術和數位化項目。正如達裡爾所提到的，這些嚴格的策略投資幫助推動了我們的收入成長並提高了我們的業務效率。

In Canadian P&C, our investments in digital, data analytics are driving top-tier digital sales that represents close to twice our brand share, enabling our customers to transact more digitally, including through our new global money transfer solution creates capacity for our branches and call centers to focus on advice. Combined with the expansion of sales roles, including mortgage specialists, financial planners and personal and commercial bankers, these investments are leading to market share gains across key relationship products, strong revenue growth, averaging 13% over the last 4 quarters and efficiency that is now below the peer average. We are achieving similar results across our U.S. P&C, Wealth and Capital Markets businesses.

在加拿大財險公司，我們在數位化、數據分析方面的投資正在推動頂級數位化銷售，這相當於我們品牌份額的近兩倍，使我們的客戶能夠更加數位化地進行交易，包括透過我們新的全球匯款解決方案為我們的分支機構和電話創造能力中心專注於建議。結合銷售角色的擴大，包括抵押貸款專家、財務規劃師以及個人和商業銀行家，這些投資正在導致關鍵關係產品的市場份額增加、收入強勁增長（過去4 個季度平均增長13%）以及目前的效率。低於同行平均。我們的美國財產與意外傷害、財富和資本市場業務也取得了類似的成果。

With the constructive economic background and building on our recent success, we plan to continue to reinvest for growth. We estimate that the combined impact of these investments and some inflationary pressures on compensation will result in full year expense growth of approximately 1% to 1.5%, excluding the impact of performance-based compensation and including the full impact of divestitures. Since we began increasing our investments in the second half of last year, the year-over-year expense growth should be lower in the second half of this year compared to the first half. We continue to expect positive operating leverage for the year.

憑藉建設性的經濟背景並在我們最近的成功的基礎上，我們計劃繼續進行再投資以促進成長。我們估計，這些投資和一些通膨壓力對薪酬的綜合影響將導致全年費用增長約 1% 至 1.5%，不包括基於績效的薪酬的影響並包括資產剝離的全部影響。由於我們去年下半年開始加大投資，今年下半年的費用年增率應該會比上半年低。我們繼續預計今年的營運槓桿將為正值。

Moving to Slide 20. Our capital position continued to strengthen with a common equity Tier 1 ratio of 14.1%, up 40 basis points from the prior quarter, reflecting strong internal capital generation, the sale of our EMEA asset management business and the impact of actions related to the management of fair value changes that I mentioned. Source currency risk-weighted assets were higher, reflecting strong growth in our commercial lending businesses. We now have $10.3 billion in excess capital to our 11% target and continue to project the same capital generation and issuance estimates that we shared with you at the time of the acquisition announcement of Bank of the West in December.

轉到投影片20。我們的資本狀況持續加強，普通股一級資本比率為14.1%，比上一季上升40 個基點，反映出強勁的內部資本產生、歐洲、中東和非洲資產管理業務的出售以及行動的影響與我所提到的公允價值變動管理有關。源貨幣風險加權資產較高，反映出我們商業貸款業務的強勁成長。目前，我們擁有 103 億美元的超額資本，可達到 11% 的目標，並繼續預測我們在 12 月宣布收購西方銀行時與您分享的相同資本產生和發行預估。

Moving to the operating groups and starting on Slide 21. Canadian P&C delivered record net income of $1 billion, reflecting pre-provision, pretax earnings growth of 19%. Revenue was up 15% from the prior year. Higher net interest income reflected good balanced growth while higher noninterest revenue across all categories reflects higher customer activity. Expenses were up 9%, reflecting investments in the sales force and in technology. Average loans were up 9% from last year, reflecting continued strength in residential mortgage lending and 10% commercial loan growth. Deposits were up 7% year-over-year.

轉向營運部門，從投影片 21 開始。加拿大財產保險 (Canadian P&C) 淨利潤達到創紀錄的 10 億美元，反映出撥備前稅前獲利成長 19%。營收較上年增長 15%。較高的淨利息收入反映了良好的平衡成長，而所有類別的非利息收入較高則反映了較高的客戶活動。費用增加了 9%，反映了對銷售團隊和技術的投資。平均貸款較去年增長 9%，反映出住宅抵押貸款的持續強勁和商業貸款增長 10%。存款較去年同期成長7%。

Moving to U.S. P&C on Slide 22. My comments here will speak to the U.S. dollar performance. Net income was $537 million compared to $456 million in the prior year, with 12% growth in pre-provision pretax earnings. Revenue was up 9% from last year, reflecting good growth in both net interest income and noninterest revenue. Expenses were up 5%, primarily due to higher employee costs.

轉向幻燈片 22 上的美國財產險和意外險。我在這裡的評論將涉及美元的表現。淨利為 5.37 億美元，而前一年為 4.56 億美元，撥備前稅前收益成長 12%。營收較去年增長9%，反映出淨利息收入和非利息收入均出現良好成長。費用增加了 5%，主要是因為員工成本增加。

On the balance sheet, excluding PPP loans, average loans were up 12% from the prior year. On a period-end basis, commercial loans, excluding PPP, were up 10% from the prior quarter. Average deposits increased 7% year-over-year.

資產負債表上，不包括 PPP 貸款，平均貸款比上年增加 12%。期末商業貸款（不包括 PPP）較上一季成長 10%。平均存款較去年同期成長7%。

Moving to Slide 23. Wealth Management net income was $316 million down from $344 million last year, reflecting the impact of divestitures, which reduced net income growth by 3% as well as lower insurance income. Traditional wealth net income was $262 million, with good underlying revenue growth of 12%, including strong organic growth in client assets, offset by the impact of divestitures. Expenses were down 2%.

轉向投影片 23。財富管理淨利潤從去年的 3.44 億美元下降到 3.16 億美元，反映出資產剝離的影響，資產剝離使淨利潤成長減少了 3%，保險收入也有所下降。傳統財富淨利潤為 2.62 億美元，基本收入成長 12%，包括客戶資產的強勁有機成長，但被資產剝離的影響所抵銷。費用下降了 2%。

Turning to Slide 24. BMO Capital Markets had a record quarter with net income of $712 million, up 47% from the prior year. Investment and corporate banking revenue was up 41%, driven by strong advisory and underwriting revenue, reflecting strong M&A activity. Global Markets revenue increased 14%, reflecting elevated client activity. Expenses were up 18%, mainly due to higher performance-based compensation and technology spend.

轉向投影片 24。BMO 資本市場季度淨利潤達到創紀錄的 7.12 億美元，比上一年增長 47%。在強勁的諮詢和承銷收入的推動下，投資和企業銀行業務收入成長了 41%，反映出強勁的併購活動。全球市場收入成長 14%，反映出客戶活動的增加。費用增加了 18%，主要是由於基於績效的薪酬和技術支出增加。

Turning now to Slide 25 for Corporate Services. Corporate Services net loss was $130 million compared to a net loss of $126 million in the prior year.

現在轉向投影片 25 的企業服務。企業服務淨虧損為 1.3 億美元，而前一年的淨虧損為 1.26 億美元。

To conclude, we had a very strong operating performance, resulting in record quarterly revenues and net income to start the year. The results demonstrate the benefits of our diversified business mix, the investments we have been making to deliver long-term growth and active management of the business through the cycle.

總而言之，我們的經營業績非常強勁，導致年初的季度營收和淨利創下歷史新高。結果證明了我們多元化業務組合、我們為實現長期成長而進行的投資以及整個週期內業務的積極管理的好處。

And with that, I will turn it over to Pat.

有了這個，我會把它交給帕特。

Thank you, Tayfun, and good morning, everyone. We were pleased with our risk performance again this quarter, with many of our key risk metrics continuing at levels equal to or better than pre-pandemic. This strong performance reflects the combination of disciplined risk origination from prior periods, strong risk management discipline through time and a solid economic environment in the markets we serve.

謝謝你，Tayfun，大家早安。我們對本季的風險表現再次感到滿意，我們的許多關鍵風險指標繼續保持在等於或優於疫情前的水平。這種強勁的業績反映了前期嚴格的風險起源、長期嚴格的風險管理紀律以及我們所服務的市場穩健的經濟環境的結合。

Starting on Slide 27. The total recovery of the provision for credit losses was $99 million or negative 8 basis points, down from a recovery of $126 million or negative 11 basis points last quarter. Impaired provisions for the quarter were $86 million or 7 basis points, flat compared to Q4 and remain well below pre-COVID levels.

從投影片 27 開始。信貸損失準備金回收總額為 9,900 萬美元，即負 8 個基點，低於上季回收的 1.26 億美元，即負 11 個基點。本季減損準備金為 8,600 萬美元，即 7 個基點，與第四季度持平，仍遠低於新冠疫情爆發前的水平。

Similar to last quarter, strong impaired loan performance is due to low formations and delinquency rates. We are pleased with these results, but do expect impaired provisions to return to more normal levels over time. We recognized a release on the provision for performing loans of $185 million this quarter that reflected reduced uncertainty around future credit conditions and positive credit migration, partially offset by balance growth and slight changes in the economic outlook due to Omicron. Given the consensus for continued economic strength and our specific forecast for impaired losses in the year ahead, we remain comfortable that our $2.3 billion of performing loan allowances provides ample provisioning against loan losses in the coming year.

與上季類似，貸款表現強勁是由於貸款形成率和拖欠率較低。我們對這些結果感到滿意，但預計受損撥備將隨著時間的推移恢復到更正常的水平。我們承認本季釋放了1.85 億美元的履約貸款撥備，這反映出未來信貸狀況的不確定性減少和積極的信貸遷移，但部分被Omicron 帶來的餘額增長和經濟前景的輕微變化所抵消。鑑於人們對經濟持續強勁的共識以及我們對未來一年減損損失的具體預測，我們仍對 23 億美元的履約貸款準備金為來年的貸款損失提供充足的撥備感到滿意。

Turning to the impaired loan credit performance in the operating groups. We saw unusually low loss provisions across most business segments. In Canadian P&C, Personal and Business Banking impaired loan losses were $79 million, flat relative to Q4. The U.S. Personal and Business Banking business had impaired loan losses of $4 million, down from $6 million in the prior quarter. This strong credit performance across our personal and business banking loan portfolios was driven primarily by low delinquency rates.

轉向營運集團受損的貸款信用表現。我們發現大多數業務部門的損失撥備都異常低。在加拿大財產和意外險方面，個人和商業銀行減損貸款損失為 7,900 萬加元，與第四季持平。美國個人和商業銀行業務的減損貸款損失為 400 萬美元，低於上一季的 600 萬美元。我們的個人和商業銀行貸款組合的強勁信貸表現主要是由於低拖欠率推動的。

In our commercial and corporate businesses, we also saw strong credit performance. In Canadian commercial, we reported impaired loan provisions of $21 million, up from very low levels of $12 million last quarter. Our U.S. commercial business had a net recovery on impaired loans of $1 million. This very strong performance in U.S. commercial, again this quarter, was driven by very low formations and a low loss rate on those formations.

在我們的商業和企業業務中，我們也看到了強勁的信用表現。在加拿大商業領域，我們報告減損貸款準備金為 2,100 萬加元，高於上季 1,200 萬加元的極低水準。我們的美國商業業務減損貸款淨回收額為 100 萬美元。本季美國商業廣告的強勁表現也是由非常低的編隊數量和這些編隊的低損失率所推動的。

Our Capital Markets business had excellent impaired loan credit performance this quarter with a net recovery of $16 million, its fourth consecutive quarter of net recovery on impaired loans. This performance was also driven by very low formations and additionally by reversals in the oil and gas sector.

我們的資本市場業務本季減損貸款信貸表現出色，淨回收額為 1,600 萬美元，這是連續第四季度實現減損貸款淨回收。這一表現也是由非常低的地層以及石油和天然氣產業的逆轉所推動的。

On Slide 29, impaired formations were $462 million this quarter, leading to a gross impaired loan balance of $2.2 billion or 44 basis points. Both formations and gross impaired loan rates continue to be below pre-COVID levels. And as you can see on Slide 31, there were no trading loss days this quarter and that trend has continued so far in Q2, including through the events of last week. Given the geopolitical events of last week, I would also note that we have no direct credit exposure to Russia or Ukraine. And as a result of the Russian invasion, there should not be a factor in our PCL in the coming quarters.

在投影片 29 上，本季減損貸款餘額為 4.62 億美元，減損貸款餘額總額為 22 億美元，即 44 個基點。貸款利率和總減損貸款利率都持續低於新冠疫情前的水準。正如您在幻燈片 31 中看到的那樣，本季沒有交易損失日，而這一趨勢在第二季度持續存在，包括上週的事件。鑑於上週的地緣政治事件，我還要指出的是，我們對俄羅斯或烏克蘭沒有直接的信用風險。由於俄羅斯的入侵，我們的 PCL 在未來幾季中不會有任何影響。

In terms of the outlook, we remain cautiously optimistic given the solid credit performance we've seen in the last year. While uncertainty remains related to the pandemic and potential headwinds such as inflation, supply chain concerns and geopolitical tensions, assuming economic growth continues in line with consensus estimates, we would expect further measured releases from our performing provision. As I said last quarter, we do expect our impaired PCL rate to drift slowly back up to a level more consistent with our pre-pandemic experience, which was consistently high teens to low 20s in terms of basis points. While it's difficult to predict the timing of when that level will be reached, based on what we're seeing today, I would expect that normalization to start in the second half of the year and continue through fiscal 2023.

就前景而言，鑑於去年我們看到的穩健的信貸表現，我們仍然保持謹慎樂觀。儘管不確定性仍然與疫情和通膨、供應鏈擔憂和地緣政治緊張局勢等潛在不利因素有關，但假設經濟成長繼續符合共識預期，我們預計我們的績效準備金將進一步有節制地釋放。正如我上個季度所說，我們確實預計受損的PCL 率將緩慢回升到與我們大流行前的經歷更一致的水平，就基點而言，這一水平一直在十幾歲到二十多歲之間。雖然很難預測何時達到這一水平，但根據我們今天所看到的情況，我預計正常化將於今年下半年開始，並持續到 2023 財年。

I will now turn the call back to the operator for the question-and-answer portion of the call.

我現在將把電話轉回接線員以進行電話問答部分。

(Operator Instructions) Our first question is from Ebrahim Poonawala from Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的 Ebrahim Poonawala。

Tayfun, just a question around your outlook for the margin for the back half. I think you mentioned it should gradually see expansion -- modest expansion in the back half '22. Just talk to us, one, in terms of what you're baking in, in terms of rate hikes as we think about both the Canadian and the U.S. segment margins? And then when you think about the deposit franchise today, any differences that are meaningful today versus back in 2016 when rates were going up, that would lead you to have a lower deposit beta compared to back then -- ex Bank of the West, obviously?

Tayfun，只是問一下您對後半段利潤率的展望。我想你提到它應該逐漸看到擴張——22 年下半年的適度擴張。請與我們談談，一，就您正在考慮的問題，就升息而言，我們考慮加拿大和美國部門的利潤率？然後，當你考慮到今天的存款業務時，與 2016 年利率上升時相比，今天的任何有意義的差異都會導致你的存款貝塔值比當時更低——顯然，前西方銀行？

Ebrahim, in terms of the rate outlook, the number of increases and the timing of increases, we typically use market expectations. Obviously, they're a little bit different in the last couple of days based on the Ukrainian crisis. But up until last week, the market was expecting about 4 increases probably maybe -- depending upon the day, both in the U.S. and in Canada. The last one probably at the very end of the year, which would make a big difference. So that was the underlying assumption; we always update that in our modeling.

Ebrahim，就利率前景、升息次數和升息時間而言，我們通常使用市場預期。顯然，由於烏克蘭危機，過去幾天他們的情況有些不同。但直到上週，市場預計美國和加拿大的房價可能會上漲 4 次左右，具體取決於具體日期。最後一次可能是在今年年底，這將產生很大的影響。這就是基本假設；我們總是在建模中更新它。

In terms of the different businesses, P&C businesses, a couple of items. If you were looking at individual NIMs, we need to keep in mind that in the U.S., we had a very strong PPP contribution last year. And given the fact that we're down to about $0.5 billion in loans. This year, we will not have the same. So on a year-over-year basis, we will feel the impact of that. And against that, we have expanding loan spreads, both businesses in Canada and the U.S., have done a very good job in maintaining pricing discipline, as you can see in this quarter's numbers. But given the fact that PPP is going to have a fairly large impact, I would expect in the U.S. somewhat of a down drift in NIM. And in Canada, again, we've done a great job in maintaining spreads. You may see some lower impact from mortgage prepayment rates. And then in both -- on both sides, just remember, as loan growth is picking up and exceeding deposit growth, that by itself is going to have some negative impact on individual business NIMs, which, in turn, is actually a good thing from the consolidated perspective because we're using existing cash to fund loan growth. So that will help consolidated NIM and that was the basis for our -- in our forecast that it will be expanding through the second half of the year.

就不同業務而言，財產與意外險業務有幾個項目。如果您查看單一淨利差，我們需要記住，在美國，去年我們的購買力平價貢獻非常強勁。考慮到我們的貸款已減少至約 5 億美元。今年，我們不會再有同樣的情況了。因此，我們將逐年感受到其影響。與此相反，我們的貸款利差不斷擴大，加拿大和美國的企業在維持定價紀律方面都做得非常好，正如您在本季度的數據中看到的那樣。但考慮到購買力平價將產生相當大的影響，我預期美國的淨利差會下降。在加拿大，我們再次在維持利差方面做得很好。您可能會發現抵押貸款提前還款率的影響較小。然後，在雙方方面，請記住，隨著貸款增長加快並超過存款增長，這本身就會對個體企業的淨息差產生一些負面影響，而這實際上是一件好事綜合視角，因為我們正在使用現有現金來為貸款成長提供資金。因此，這將有助於鞏固淨利差，這也是我們預測淨利差將在今年下半年擴大的基礎。

Got it. So the year-over-year decline, but we should see sequential expansion ex-PPP going from here?

知道了。所以同比下降，但我們應該看到不包括購買力平價的連續擴張從這裡開始？

If you're talking about consolidated, yes, you should see year-over-year expanding NIM in the second half of the year.

如果您談論的是合併，是的，您應該會在今年下半年看到淨利差逐年擴大。

Got it. And just one quick follow-up on Capital Markets. I know that Darryl, you've talked about structural changes at KGS-Alpha and Clearpool, but PPPT extremely strong. Just if you don't mind, remind us if this is how we should think about the run rate? Or was this an unusually stronger quarter even relative to what we've seen over the last year?

知道了。這只是資本市場的一個快速跟進。我知道 Darryl，您談到了 KGS-Alpha 和 Clearpool 的結構變化，但 PPPT 非常強大。如果您不介意的話，請提醒我們是否應該這樣考慮運行率？或者說，與我們去年看到的情況相比，這個季度是否異常強勁？

Yes. Ebrahim, I'll start, and I'll actually ask Dan to pipe in on this question because it's an important one. The markets are and have been constructive. I think we've performed relatively well as compared to peers even in those constructive markets.

是的。易卜拉欣，我要開始了，我實際上會請丹插話這個問題，因為這是一個重要的問題。市場現在和過去都是建設性的。我認為，即使在那些建設性的市場中，與同業相比，我們的表現也相對較好。

Your question on where do we go from here, I think what's really important to remember is that this isn't the business we had going into the pandemic. We have invested in it with some of the features that you just summarized. We've also focused the business more tightly, and we really do have a new expectation for the run rate going forward. Why don't I ask Dan, you to come in on the question more particularly?

你問我們下一步該何去何從，我認為真正重要的是要記住，這不是我們在疫情期間要做的事情。我們已經投資了您剛才總結的一些功能。我們也更加專注於業務，我們確實對未來的運作率有了新的期望。我為什麼不請丹，你更具體地談談這個問題呢？

Sure. Thanks, Darryl. And as you said, Ebrahim, we've had great investments, and then it's very rewarding to see that performance come. The performance over the last quarter and the last year has been very diversified across many of our businesses. Quarter-to-quarter, there's some variability, but what we've seen is just outstanding performance for most, if not all our businesses as we go. We've had the opportunity through the cycle to invest in technology and people, new products, new clients. And so we're reaping the benefit of that as we go. As I mentioned last quarter, we see guidance for PPPT, as we look forward, in the mid-600s, maybe even high 600s as we go forward. Those dynamics continue to play out as we go. We continue to invest. We continue to build our businesses. And so I'm looking in the long term to continue to see positive growth and positive outlook on the business.

當然。謝謝，達裡爾。正如你所說，易卜拉欣，我們進行了巨大的投資，看到這樣的表現是非常值得的。我們許多業務上一季和去年的業績都非常多樣化。每個季度都會有一些變化，但我們所看到的是大多數業務（即使不是所有業務）的出色表現。在整個週期中，我們有機會投資技術和人員、新產品、新客戶。因此，我們正在從中受益。正如我上個季度提到的，我們看到了 PPPT 的指導，展望未來，在 600 多歲左右，甚至可能在 600 多歲高位。隨著我們的發展，這些動力將繼續發揮作用。我們繼續投資。我們繼續發展我們的業務。因此，從長遠來看，我希望繼續看到業務的積極成長和積極前景。

Following question is from Scott Chan from Canaccord Genuity.

以下問題來自 Canaccord Genuity 的 Scott Chan。

So you talked about like a lot of modernizing with tech projects. And I think you just talked about on the capital markets side. I was just wondering just an update in terms of if you're spending more on projects now versus pre-pandemic basically looking just for an outlook over the next 12 to 18 months on that front?

所以你談到了很多現代化的科技專案。我想你剛剛談到了資本市場方面。我只是想知道最新情況，與大流行前基本上只是尋找未來 12 到 18 個月的前景相比，您現在在項目上的支出是否更多？

So Scott, this is Tayfun. As I mentioned, based on the results that we are seeing from our investments over the past 4, 5, 6 quarters, both in technology and in sales force, we will continue to invest. Technology investments have resulted both in helping us grow revenues and take market share as well as create efficiencies in our businesses, and the results are fairly self-evident. And we will continue. Those expenses are built into my guidance of 1% to 1.5% expense growth year-over-year.

斯科特，這是 Tayfun。正如我所提到的，根據我們過去 4、5、6 個季度在技術和銷售團隊方面的投資結果，我們將繼續投資。技術投資不僅幫助我們增加收入、佔領市場份額，還提高了我們的業務效率，其結果是不言而喻的。我們將繼續。這些費用已納入我的年比費用增加 1% 至 1.5% 的指導中。

The following question is from Meny Grauman from Scotiabank.

以下問題來自豐業銀行的 Meny Grauman。

If I look in the Capital Markets segment, average loans down 1.5% quarter-over-quarter. That's different than what we're seeing across peers. And I'm wondering what's driving that decline sequentially?

如果我看看資本市場部分，平均貸款較上季下降 1.5%。這與我們在同行中看到的不同。我想知道是什麼導致了這種連續下降？

Go ahead, Tayfun.

繼續吧，泰豐。

Yes, I was just going to note that in that number, Meny, there are 2 items. One is the continued decline in our non-Canadian Energy portfolio. And the second one is the deconsolidation of the customer securitization program. That happened at the last day of the year last year, so therefore, the quarter-over-quarter comparisons will reflect both of them.

是的，我只是想指出，Meny，這個數字中有 2 項。一是我們的非加拿大能源投資組合持續下降。第二個是客戶證券化計畫的分拆。這發生在去年的最後一天，因此，季度環比的比較將反映兩者。

And if you ex those out, what would you say is that underlying sequential loan growth adjusting for those items?

如果您排除這些項目，您會說針對這些項目調整的基本連續貸款成長是什麼？

For Capital Markets, I don't have that right in front of me, but we'll get back to you on that, Meny.

對於資本市場，我目前還沒有這個問題，但我們會盡快回覆您，梅尼。

Yes, I actually have it, if you want Tayfun. It's something roughly 5% quarter-over-quarter in our core loan growth.

是的，如果你想要 Tayfun，我確實有。我們的核心貸款較上季成長約為 5%。

Sounds good. And then maybe just more broadly on the subject of loan growth. I think there's a little bit of discussion last quarter. But if we look at commercial loan growth, what we're seeing is very strong numbers. It doesn't look like supply chain issues are having an impact on those numbers. So I'm wondering why we're not seeing that come through? And are there specific portfolios still where if you dig in, you actually see that impact and I'm curious about that?

聽起來不錯。然後也許只是更廣泛地討論貸款成長的問題。我認為上個季度有一些討論。但如果我們看看商業貸款的成長，我們會看到非常強勁的數字。供應鏈問題似乎並未對這些數字產生影響。所以我想知道為什麼我們沒有看到這一點？如果你深入研究，是否還有特定的投資組合，你實際上會看到這種影響，我對此很好奇？

So Meny, this is Dave. The supply chain issues are real and they are still there. And despite those, we have had on both -- in both Canada and the U.S., really strong loan growth. As Darryl mentioned in his comments, the loan growth in the U.S. this quarter was almost half related to new business. So that means we're out continuing to grow. And throughout the pandemic, we've done that. And back to your question, our utilization in our core diversified businesses in the U.S. is still well below where it was pre-pandemic. So had that utilization been at the same level as pre-pandemic, our loan growth would have been probably more 75% existing clients and 25% new. So there's still untapped utilization that will come back. And it's specifically in some of our businesses like our floor plan business for autos, our floor plan for trucks, our asset-based lending business, which continues to grow. But still is not where we would expect it to be when the supply chain issues subside, which, by the way, I don't see necessarily happening in the next quarter or 2. I think this is still an area where we have issues. And despite that, we've had good loan growth. Hopefully, that helps and gives you a little more color.

梅尼，這是戴夫。供應鏈問題是真實存在的，而且仍然存在。儘管如此，我們在加拿大和美國都實現了非常強勁的貸款成長。正如達裡爾在評論中提到的，本季美國的貸款成長幾乎有一半與新業務有關。所以這意味著我們將繼續成長。在整個大流行期間，我們一直這樣做。回到你的問題，我們在美國的核心多元化業務的利用率仍遠低於疫情前的水平。因此，如果利用率與疫情前相同，我們的貸款成長可能會超過 75% 的現有客戶和 25% 的新客戶。因此，仍有未開發的利用率會回來。特別是在我們的一些業務中，例如我們的汽車平面圖業務、我們的卡車平面圖業務、我們的基於資產的貸款業務，這些業務都在持續成長。但當供應鏈問題消退時，這仍然不是我們預期的情況，順便說一句，我認為這不一定會在下一季或第二季發生。我認為這仍然是我們遇到問題的一個領域。儘管如此，我們的貸款成長依然良好。希望這對您有所幫助，並為您帶來更多色彩。

Yes. I mean so you're saying -- so there's still upside to loan -- commercial loan growth in your view?

是的。我的意思是，您是說——那麼貸款仍有上升空間——您認為商業貸款增長了嗎？

Yes. No, I believe there is as the supply chain issues work out. Now obviously, demand over time will have some impact but there's definitely clearly in our auto business for one, there's still very few cars on the lot that we finance. And at some point, that supply/demand will reverse itself and there'll be more there.

是的。不，我相信隨著供應鏈問題的解決，就會出現這種情況。顯然，隨著時間的推移，需求將會產生一些影響，但在我們的汽車業務中，我們融資的汽車仍然很少。在某些時候，供需關係將會逆轉，並且會有更多。

The following question is from Paul Holden from CIBC.

以下問題來自 CIBC 的 Paul Holden。

So going back to the discussion on loan growth, and this question applies to both commercial and retail -- I think one of the common questions we're starting to hear is the potential impact from higher interest rates on loan demand. So it would be great to hear your thoughts there, again, both on commercial and retail in terms of how higher rates might impact the demand.

因此，回到關於貸款成長的討論，這個問題適用於商業和零售——我認為我們開始聽到的常見問題之一是利率上升對貸款需求的潛在影響。因此，很高興再次聽到您對商業和零售業關於更高的利率可能如何影響需求的想法。

So this is Dave. I'll start and then Ernie will pick up. I would say it's going to have some effect, but not a significant impact. For most of our clients, they hedge themselves on rate increases, whether it's our real estate business or diversified. And the rate increases that we're forecasting, we don't think will have a significant impact on loan demand in the near term. So Ernie?

這就是戴夫。我先開始，然後厄尼接電話。我想說的是，會有一定影響，但影響不會很大。對於我們的大多數客戶來說，無論是我們的房地產業務還是多元化業務，他們都會對利率上漲進行對沖。我們預測的升息，我們認為短期內不會對貸款需求產生重大影響。那麼厄尼？

Thanks, Dave. And if I think of both the lending business and the retail side, I'll start with mortgages. We still believe that there'll be a strong mortgage market, particularly in Canada over the next little while, slightly lower than we've seen over the past year, but it's certainly going to be a market that's growing with immigration and some upside on some housing starts. So we're prepared for that growth in terms of our investments we've made in our mortgage specialists, our sales teams to be able to capture our share of that growth as we continue forward. I think about unsecured lending, we're starting to see a little bit of rebound on that as consumers get back into the marketplace. And credit cards would be starting off with consumer spending there. We're seeing the retail spend come up. We'll see the revolving balances take a little bit of time, but outstandings have been improving this year. For example, in Canadian P&C, we're seeing about 9% year-over-year growth, and we'll continue to see that change into revolving balances as some of the surplus deposits that get used up going forward. So overall, feeling confident that we'll be in a growth position in lending on the retail side.

謝謝，戴夫。如果我同時考慮貸款業務和零售業務，我會從抵押貸款開始。我們仍然相信，抵押貸款市場將會強勁，特別是在接下來的一段時間內在加拿大，略低於我們過去一年所看到的水平，但這肯定會是一個隨著移民和一些上行因素而增長的市場。一些房屋開工。因此，我們已經為這種成長做好了準備，我們對抵押貸款專家和銷售團隊進行了投資，以便能夠在我們繼續前進的過程中分享我們的成長份額。我想到無擔保貸款，隨著消費者重返市場，我們開始看到一些反彈。信用卡將從那裡的消費者支出開始。我們看到零售支出上升。我們會看到循環餘額需要一點時間，但今年的未償餘額一直在改善。例如，在加拿大財產和意外險方面，我們看到同比增長約 9%，隨著一些盈餘存款在未來被用完，我們將繼續看到這種變化為循環餘額。總的來說，我們對零售貸款方面的成長充滿信心。

And then sort of related question, going back to something another analyst asked earlier in the call just regarding deposit betas and I guess, particularly in the U.S. Maybe you can give us some updated thoughts on how you're thinking about deposit retention in a rising rate environment and how much of that might [had to] disclosed NII sensitivities?

然後是一些相關的問題，回到另一位分析師早些時候在電話會議中提出的有關存款貝塔的問題，我想，特別是在美國，也許你可以給我們一些最新的想法，說明你如何看待不斷上升的存款留存問題。利率環境以及其中有多少可能[必須]披露國家資訊基礎設施敏感性？

So as I mentioned, we have changed our modeling assumptions with respect to net interest rate sensitivity. I used to tell this audience that our numbers, prior to this quarter, did not include any retention assumption about the surge deposits. But we knew that we were going to retain a portion of them. So we now are actually including a portion of the deposits that we think we are going to retain. And therefore, our asset sensitivity has increased. In terms of betas, at the moment, I don't think that necessarily we are thinking that betas in this cycle are going to be significantly different than the previous cycle. I've seen some assumptions that were disclosed by U.S. banks that indicate that they are expecting lower betas now. We have not made necessarily that particular adjustment. Our betas are based on products, and they reflect the sensitivities, whether it's on the commercial side or the retail side, of the deposits that we actually have the ability to model. I would say that the range of the beta assumptions, both, I would say, in Canada and in the U.S., are very appropriate, I would say, maybe a little bit on the conservative side. But I think, given the potential steepness of the rate increases, it is worth maintaining a relatively conservative approach here.

正如我所提到的，我們改變了關於淨利率敏感性的建模假設。我曾經告訴聽眾，本季之前的數據不包括任何有關激增存款的保留假設。但我們知道我們將保留其中的一部分。因此，我們現在實際上包括了我們認為將保留的部分存款。因此，我們的資產敏感度有所增加。就貝塔值而言，目前，我認為我們不一定認為本週期中的貝塔值將與上一個週期有顯著不同。我看到美國銀行披露的一些假設表明他們現在預計貝塔係數會降低。我們不一定要做那種特殊的調整。我們的貝塔值是基於產品，它們反映了我們實際上有能力建模的存款的敏感性，無論是商業方面還是零售方面。我想說，貝塔假設的範圍，無論是在加拿大還是在美國，都是非常合適的，也許有點保守。但我認為，考慮到升息的潛在陡峭性，值得在此保持相對保守的態度。

The following question is from Doug Young from Desjardins Capital Markets.

以下問題來自 Desjardins Capital Markets 的 Doug Young。

I think Tayfun, you mentioned in your remarks on NIMs that Canadian mortgage spreads was a positive to NIMs in Canada, which I think is a bit different than what we've heard from others. So I'm just hoping to get a clarification of that and just to get more detail in terms of what you're seeing from a loan yield perspective in the mortgage market in Canada.

我認為 Tayfun，您在關於 NIM 的評論中提到，加拿大抵押貸款利差對加拿大的 NIM 是有利的，我認為這與我們從其他人那裡聽到的有點不同。因此，我只是希望得到澄清，並從加拿大抵押貸款市場的貸款收益率角度獲得更多細節。

Yes, Doug, it's Ernie. I'll take that question. As we look at our NIM, we're seeing some very strong performance across the various elements in NIM. One of those is the prepayment of mortgages. And you think about it, as Canadian consumers were looking at interest rates, taking an opportunity to be able to adjust their mortgage and taking advantage of that. That's part of our growth, but there's also been some strong pricing capabilities across our lending business and also deposit growth as well in that NIM. As I think about that prepayment, that will come down over time, just simply as rates level out and consumers have already made those choices. So as we think about the P&C NIM going forward, we'll see a little bit of downward pressure but anticipate as rates go up at the back end and have an impact on NIM, we might see a little bit of a downward and a little bit of an increase in the fourth quarter. That's how we're thinking about our NIM.

是的，道格，我是厄尼。我來回答這個問題。當我們查看 NIM 時，我們看到 NIM 中各個元素的表現都非常強勁。其中之一是提前償還抵押貸款。你想一想，當加拿大消費者關注利率時，抓住機會調整他們的抵押貸款並利用這個機會。這是我們成長的一部分，但我們的貸款業務以及淨利差中的存款成長也具有強大的定價能力。當我想到預付款時，隨著時間的推移，預付款將會下降，就像利率趨於平穩並且消費者已經做出了這些選擇一樣。因此，當我們考慮未來的財產和意外險淨利差時，我們會看到一點下行壓力，但預計隨著後端利率上升並對淨息差產生影響，我們可能會看到一點點下降和一點點第四季略有成長。這就是我們思考 NIM 的方式。

Okay. So that was more related to the prepayment. Have you disclosed what the prepayment -- it might be in your disclosure, I apologize if it is, but have you disclosed what the prepayment impact was in the quarter?

好的。所以這與預付款關係更大。您是否披露了預付款項 - 可能會在您的披露中披露，如果是的話，我很抱歉，但是您是否披露了本季度預付款項的影響？

No, I don't believe we have.

不，我不相信我們有。

Okay. And then second, just on the CET1 ratio. When I look at your capital supplement, it looked like the methodology and policy changes, there's some changes that happened on the AIRB side that was, I guess, a negative impact and then there was some positive changes that happened from again a methodology and policy perspective on a standardized basis. Just hoping to get a little color as to -- was that just related to the fair value adjustments or changes in the hedges related to the Bank of the West? Or is there some methodology and policy updates that went through on the calculation this quarter?

好的。其次，就是 CET1 比。當我查看你們的資本補充時，看起來方法和政策發生了變化，AIRB 方面發生了一些變化，我猜這是負面影響，然後方法和政策又發生了一些積極的變化標準化的視角。只是希望了解一點－這是否僅與公允價值調整或與西方銀行相關的避險變化有關？或者本季的計算是否有一些方法和政策更新？

It's Pat. Maybe I'll just jump in on that one. It's really a function of a model approval for a chunk of the portfolio that was previously based on standardized, it relates to the M&I portfolio we acquired. So that's been on standardized for a while. And during the quarter, we received approval to move that to AIRB. So that's why you see that movement.

是帕特。也許我會加入其中。它實際上是對先前基於標準化的投資組合的一部分進行模型批准的函數，它與我們收購的 M&I 投資組合相關。所以這已經標準化了一段時間了。在本季度，我們獲得了將其轉移到 AIRB 的批准。這就是為什麼你會看到這個動作。

And Pat, what was the net impact? I guess I could calculate that looking at the net positive impact that, that had.

帕特，淨影響是什麼？我想我可以計算出所產生的淨正面影響。

Sorry, in terms of the RWA?

抱歉，就 RWA 而言？

The CET1 ratio.

CET1 比率。

I would -- it's positive. I don't have the number in front of me, but it was a mild positive.

我會——這是積極的。我面前沒有這個號碼，但這是一個溫和的陽性結果。

And is there anything else that's happening from standardized to AIRB? I don't know -- I forget what's left, but is there anything else that could occur through the rest of this year that would be a positive impact or movement from standardized to AIRB?

從標準化到 AIRB 還發生了什麼事嗎？我不知道——我忘記了還剩下什麼，但是今年剩下的時間裡還有什麼可能發生的事情會產生積極的影響或從標準化到 AIRB 的變化嗎？

Yes. There -- I mean we always are looking at our models. There's nothing in the pipeline at the moment, nothing imminent to the next quarter or so that I would put in the material category.

是的。在那裡——我的意思是我們一直在關注我們的模型。目前沒有任何計劃，也沒有任何即將到來的下個季度或因此我將其放入材料類別中的內容。

Following question is from Mario Mendonca from TD Securities.

以下問題由道明證券的 Mario Mendonca 提出。

I would like to take you to your domestic retail segment. So Canadian P&C, specifically the other income. I appreciate that we're seeing a lot of growth there year-over-year, and it's been going on now for 4 straight quarters. And I think I understand that a lot of that just relates to how challenging it was last year in 2021 when we saw that come off. But it just seems to me like that growth is running at well above what I would have expected. And again, I'm referring to your noninterest revenue -- noninterest income in domestic retail. Is there anything in there that's outside your sort of normal fee income categories? What I'm getting at is things like, were there any real estate sales like the gains on which would be recorded in that line? Or is this mostly just lending fees really kicking in? How would you describe the strong pace of growth?

我想帶您了解您的國內零售領域。所以加拿大財產和意外險，特別是其他收入。我很高興我們看到那裡的同比增長很大，而且現在已經連續四個季度持續增長。我想我明白，這很大程度上與去年 2021 年我們看到這一目標的挑戰性有關。但在我看來，成長速度遠高於我的預期。再說一遍，我指的是非利息收入──國內零售業的非利息收入。其中是否有任何超出您正常費用收入類別的內容？我的意思是，是否有任何房地產銷售（例如收益）會記錄在該行中？或者這主要只是貸款費用真正開始發揮作用？您如何形容強勁的成長速度？

Yes, it's Ernie. I'll take that question. So as I look at the line, there's -- so overall, if you look at P&C Canada's revenue growth, really strong, NII, NIR. In the NIR line, in particular, as you're referring to, we're looking at really broad-based growth across all the categories, if you think of the mutual funds, consumer activity fees are there. A big portion of this is the return of credit card spend into that number as well. And so it's a very balanced growth. We obviously think that, that will come down a little bit over the next little while because it's a year-over-year factor with the credit card growth, and seeing a more normalized as we go forward. And in that number, as you recall, there are investment gains in that number as well that we include. But again, it was a broad base this year -- this quarter, I should say, mix across all of those elements of just general good strong business performance.

是的，這是厄尼。我來回答這個問題。因此，當我查看這條線時，總體而言，如果你看看 P&C Canada 的營收成長，NII、NIR 的成長非常強勁。特別是在 NIR 領域，正如您所提到的，我們正在關注所有類別的真正廣泛的增長，如果您想到共同基金，消費者活動費用就在那裡。其中很大一部分也是信用卡支出的回報。所以這是一個非常平衡的成長。我們顯然認為，在接下來的一段時間內，這一數字將會下降，因為這是信用卡成長的逐年因素，隨著我們的前進，這一數字將變得更加正常化。正如您所記得的，在這個數字中，我們也包括了投資收益。但同樣，今年的基礎很廣泛——我應該說，這個季度混合了整體良好、強勁的業務表現的所有這些要素。

And those investment gains, those are the ones that relate to what, co-investing with your accounts, with your customers?

那些投資收益，那些與什麼相關的收益，與您的帳戶、與您的客戶共同投資？

Yes. It's Dave. That's what those would be. And those are, I guess, if you annualize it, they're modestly higher than they might have been last year, but this is a lumpy business. So it's nothing that's outside of what we would expect.

是的。是戴夫。就是這樣。我想，如果你按年計算，它們會比去年略高，但這是一個不穩定的業務。所以這一切都沒有超出我們的預期。

Okay. So when I look at growth in that line, it's been like 21%, 28%, 26% this quarter, and these are all year-over-year. When the gains on co-investing with your accounts subside or return to normal -- presumably, they will, mean -- I guess what I'm getting at is how much of those really added to that revenue line?

好的。因此，當我查看該領域的成長時，本季的成長率約為 21%、28%、26%，而且這些都是年成長。當與你的帳戶共同投資的收益消退或恢復正常時——大概，它們會意味著——我想我得到的是其中有多少真正增加到了收入線？

Well, I don't have it right in front of me, but those go, as we said, they go up and down. it's been a part of our business though for the last 10 years. So you've seen it over a long period of time. But as you -- but to your point, I mean, these are -- oftentimes these are fair market value gains. So if the market would go down, you could have a decline offset against when an investment is sold. But it's really -- it's pretty hard to predict, but it's not a core part of our business, but it's an important part and it's there to support the growth in our commercial business.

好吧，我面前沒有它，但正如我們所說，它們會上下移動。但在過去 10 年裡，它一直是我們業務的一部分。所以你已經看到它很長一段時間了。但就你而言，我的意思是，這些通常是公平的市場價值收益。因此，如果市場下跌，您可以在出售投資時抵消下跌的影響。但這確實很難預測，但它不是我們業務的核心部分，但它是一個重要的部分，它可以支持我們商業業務的成長。

Yes, Mario, they were about the same as last quarter. So it's -- really quarter-over-quarter, we didn't see much of an increase; relative to last year's first quarter, they were only up about $10 million.

是的，馬裡奧，他們與上個季度大致相同。所以，實際上，與上一季相比，我們沒有看到太多的成長；與去年第一季相比，僅增加了約 1,000 萬美元。

Yes, they just have such a flattering effect on the domestic retail numbers. And we've seen this from other banks in the past when gains of this nature go away, it obviously doesn't look that good. But I think it's just -- it would be helpful to understand how important these are. So we're not surprised going forward.

是的，它們對國內零售數據產生了非常好的影響。我們過去在其他銀行也看到過這種情況，當這種性質的收益消失時，看起來顯然不太好。但我認為理解這些的重要性將會很有幫助。所以我們對未來並不感到驚訝。

I mean our total noninterest income, I think in Canadian P&C last year was $2.2 billion. This line item was just a little over $100 million.

我的意思是我們的非利息總收入，我認為去年加拿大財產和意外險的收入為 22 億美元。該訂單項的價值略高於 1 億美元。

Maybe one for Darryl. I found that very helpful that slide where you show that the equity raise doesn't change regardless of how the fair value changes unfold. That was helpful. But maybe going 1 step further, is there a scenario where the equity raise could be materially lower than what you've contemplated or maybe even 0. Is that conceivable?

也許是達裡爾的一個。我發現這張投影片非常有幫助，您可以在其中顯示無論公允價值如何變化，股權融資都不會改變。這很有幫助。但也許更進一步，是否存在一種情況，即股權融資可能大大低於您的預期，甚至可能為 0。這是可以想像的嗎？

Yes, it's a good question, Mario. Is it conceivable? Sure. The way -- I'm not predicting that, by the way, but I'm answering your question. Is it conceivable? Yes, I mean, it's conceivable. What would have to be true for that to occur, for example, relative to what we have modeled, we end up with less organic RWA deployment into the marketplace and more fee generating income and/or Bank of the West does the same, and we end up in a position where our CET1 ratio takes care of itself, and we don't need to top it up with the equity offering. The opposite could be true. We could go in the other direction, and we could need a little bit more. As we sit here today, we did that work both on the hedge as well as on our business as usual forecasting to give you the point of view that we've given you today, which is the assumptions we made a couple of months ago when we announced the transaction stand today. We don't have an updated point of view because we checked our math and it still is the same. But the answer to your question, could it move, is it conceivable? Sure it is. But things would have to change relative to our outlook.

是的，這是個好問題，馬裡奧。可以想像嗎？當然。順便說一句，我並不是預測這一點，但我正在回答你的問題。可以想像嗎？是的，我的意思是，這是可以想像的。要發生這種情況，例如，相對於我們所建模的情況，我們最終會在市場上部署較少的有機 RWA，而產生更多的費用產生收入和/或西方銀行也會這樣做，我們最終我們的CET1 比率會自行恢復，我們不需要透過股票發行來補充它。事實可能恰恰相反。我們可以朝另一個方向走，我們可能需要更多。當我們今天坐在這裡時，我們對對沖以及我們的業務照常預測進行了這項工作，以便向您提供我們今天向您提供的觀點，這是我們幾個月前做出的假設我們今天宣布了交易站。我們沒有更新的觀點，因為我們檢查了數學，結果仍然是一樣的。但你的問題的答案是，它能移動嗎？可以想像嗎？就是這樣。但相對於我們的前景，事情必須改變。

Do you have a timing outlook on the equity raise?

您對股權融資的時機有展望嗎？

Yes. No, look, we said at the time of the acquisition announcement that it was a year or so estimate to close. It's less than 3% of our market cap. We have had investors express some interest and say to us that they're there when we're ready. So we'll just take it all into consideration, and we'll pick the time that we think is best for our shareholders, Mario. I don't have a better update than that at this point.

是的。不，你看，我們在宣布收購時表示，預計需要一年左右的時間才能完成。它不到我們市值的 3%。我們已經讓投資者表達了一些興趣，並告訴我們，當我們準備好時，他們就會在那裡。因此，我們將綜合考慮所有因素，並選擇我們認為對股東馬裡奧最有利的時間。目前我沒有比這更好的更新了。

Our last question is from Gabriel Dechaine from National Bank Financial.

我們的最後一個問題來自國家銀行金融公司的加布里埃爾·德鏈 (Gabriel Dechaine)。

Thanks for the rate sensitivity disclosure change there, but I have had a question about the surge deposit. Like have you ever -- can you quantify that deposit base against which we're evaluating an additional benefit? And like how do you define a surge deposit?

感謝您對利率敏感度披露的更改，但我對激增存款有疑問。就像您曾經一樣 - 您能量化我們評估額外福利的存款基礎嗎？以及如何定義激增存款？

Typically, we define surge deposits as the net increase in the deposit base since the beginning of the COVID environment. And the change that we have made in our modeling really took only about maybe 1/3 of those and moved it into the more non-rate sensitive category. So it was not a big chunk of it.

通常，我們將激增存款定義為自新冠疫情環境開始以來存款基礎的淨增長。我們在建模中所做的更改實際上只花了大約 1/3，並將其移至對速率更不敏感的類別。所以這並不是其中的一大塊。

Okay. So as the total increase since the pandemic started, that's -- and a 1/3 of that amount is considered surge?

好的。那麼，自大流行開始以來，總增幅是——其中 1/3 被認為是激增？

No. Just remember, along the way, we have continued to make investment decisions. So I'm talking about basically what remains out of that. And it's not a big number, Gabriel. It's probably, I would say, in the teens in terms of billions of dollars. So it was not a huge number.

不。請記住，一路走來，我們不斷做出投資決策。所以我基本上談論的是剩下的事情。加布里埃爾，這個數字並不大。我想說，這可能是數十億美元。所以這並不是一個龐大的數字。

All right. And just to clarify on the -- this fair value and hedging kind of offset, you will see fluctuations in the core Tier 1 ratio. There's an important timing difference there, we should be aware of, I think, anyway, that you'll see fluctuations in the core Tier 1 ratio until you close when you have gains or losses on those swaps, but then the goodwill adjustment is the offset at close, whether that's up or down, like they move -- that's correct, right?

好的。只是為了澄清這種公允價值和對沖類型的抵消，你會看到核心一級比率的波動。那裡有一個重要的時間差異，我們應該意識到，無論如何，你會看到核心一級比率的波動，直到當你在這些掉期中獲得收益或損失時關閉，但隨後商譽調整是收盤時的抵消，無論是向上還是向下，就像它們移動一樣——這是正確的，對吧？

That is correct. The actions are designed to maintain the CET1 ratio at closing.

那是對的。這些行動旨在維持收盤時的 CET1 比率。

Okay. But it's important for investors to know that you'll not panic if rates go down and your core Tier 1 ratio goes down because there's an offset at the end of the line.

好的。但對於投資者來說，重要的是要知道，如果利率下降並且核心一級比率下降，您不會驚慌，因為最終存在抵消。

Yes, that's precisely why the hedge is in place.

是的，這正是設定對沖的原因。

Thank you. I would now like to turn the meeting back over to Mr. White.

謝謝。我現在想把會議轉回給懷特先生。

Thank you, operator. I'll be quick as I am respectful of the fact that you all have to go to another call. So I'll conclude with a very quick comment on the key themes: Number one, our results for the first quarter are very strong. In fact, they're peer-leading. ROE, EPS growth and operating leverage are all above our midterm targets. Number two, we're strategically investing, as you've heard, to deliver growth and efficiency. Number three, our superior risk management and improving credit quality remains a differentiator and we believe it will continue to be. And number four, we've got strong momentum and an advantaged business mix that's positioned for growth and performance in any environment.

謝謝你，接線生。我會很快，因為我​​尊重你們都必須參加另一個電話的事實。因此，我將對關鍵主題進行快速評論：第一，我們第一季的業績非常強勁。事實上，他們處於同行領先地位。股本回報率、每股收益成長和營運槓桿均高於我們的中期目標。第二，正如您所聽到的，我們正在進行策略性投資，以實現成長和效率。第三，我們卓越的風險管理和不斷提高的信用品質仍然是我們的優勢所在，我們相信這種情況將繼續如此。第四，我們擁有強勁的勢頭和優勢的業務組合，可以在任何環境下實現成長和業績。

So with that, thank you all for participating in today's call. We look forward to speaking to you again in May.

因此，感謝大家參加今天的電話會議。我們期待在五月再次與您交談。

Thank you. The conference has now ended. Please disconnect your lines at this time, and we thank you for your participation.

謝謝。會議現已結束。此時請斷開您的線路，我們感謝您的參與。