Bank of Montreal (BMO) 2023 Q2 法說會逐字稿

Please be advised that this conference call is being recorded. Good morning, and welcome to BMO Financial Group's Q2 2023 Earnings Release and Conference Call for May 24, 2023. Your host for today is Christine Viau. Please go ahead.

請注意，此電話會議正在錄製中。早上好，歡迎來到 BMO 金融集團 2023 年第二季度收益發布和 2023 年 5 月 24 日電話會議。今天的主持人是 Christine Viau。請繼續。

Thank you, and good morning. We will begin today's call with remarks from Darryl White, BMO's CEO; followed by Tayfun Tuzun, our Chief Financial Officer; and Piyush Agrawal, our Chief Risk Officer. Also present to take questions today are Ernie Johannson, Head of BMO North American Personal & Business Banking; Nadim Hirji, Head of BMO Commercial Banking; Dan Barclay, Head of BMO Capital Markets; Deland Kamanga, Head of BMO Wealth Management; and Dave Casper, BMO U.S. CEO.

謝謝，早上好。我們將從 BMO 首席執行官 Darryl White 的講話開始今天的電話會議；其次是我們的首席財務官 Tayfun Tuzun；和我們的首席風險官 Piyush Agrawal。今天出席並接受提問的還有 BMO 北美個人和商業銀行業務主管 Ernie Johannson； BMO 商業銀行業務主管 Nadim Hirji； BMO資本市場主管Dan Barclay； BMO 財富管理主管 Deland Kamanga； BMO 美國首席執行官 Dave Casper。

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 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.

如幻燈片 2 所述，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存在重大差異。我還要提醒聽眾，該銀行使用非 GAAP 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，並認為這兩者都有助於評估基本業務績效。 Darryl 和 Tayfun 將在其評論中指的是調整後的結果，除非報告中另有說明。

I will now turn the call over to Darryl.

我現在將把電話轉給 Darryl。

Thank you, Christine, and good morning, everyone. I'd like to begin by acknowledging the hardship faced by our communities in Alberta, impacted by the devastating wildfires that threaten their homes and livelihoods. We're committed to standing alongside our clients and doing our part to make sure that they get the help that they need.

謝謝你，克里斯汀，大家早上好。首先，我想承認我們在艾伯塔省的社區所面臨的困難，他們受到威脅到他們的家園和生計的毀滅性野火的影響。我們致力於與我們的客戶站在一起，盡我們的一份力量來確保他們得到他們需要的幫助。

I'd also like to welcome Nadim Hirji, Group Head, BMO Commercial Banking, who's joining the call for the first time. Nadim has a long track record of serving our clients, including leadership positions in risk management and commercial banking, where most recently, he was Co-Head of the Canadian Commercial Bank.

我還要歡迎 BMO 商業銀行業務集團負責人 Nadim Hirji，他是第一次加入電話會議。 Nadim 在為我們的客戶提供服務方面有著長期的往績，包括在風險管理和商業銀行業務方面的領導職位，最近，他擔任加拿大商業銀行的聯席主管。

Now let me turn to the quarter. Against the backdrop of a shifting environment, BMO delivered solid performance, including the benefit of a full quarter of results from Bank of the West. Earnings per share were $2.93 and net income was $2.2 billion for the quarter and $4.5 billion year-to-date.

現在讓我談談季度。在不斷變化的環境背景下，BMO 取得了穩健的業績，包括 Bank of the West 的整個季度業績。本季度每股收益為 2.93 美元，淨收入為 22 億美元，年初至今為 45 億美元。

Second quarter preprovision pretax earnings were up 7% year-over-year and grew $6.2 billion year-to-date. Our performance reflects the continued strength in our highly diversified business mix with good PPPT growth in our Canadian and U.S. Personal and Commercial Banking businesses, up 8% and 29% year-to-date, respectively, while our Wealth and Capital Markets businesses were impacted by weaker markets and lower client activity.

第二季度撥備前稅前利潤同比增長 7%，年初至今增長 62 億美元。我們的業績反映出我們高度多元化的業務組合持續強勁，加拿大和美國個人和商業銀行業務的 PPPT 增長良好，今年迄今分別增長 8% 和 29%，而我們的財富和資本市場業務受到影響受市場疲軟和客戶活動減少的影響。

While credit trends are beginning to normalize from historically low levels as expected, credit performance remains strong across our portfolios, reflecting our long-standing track record of superior risk management, a culture that is shared by our Bank of the West colleagues.

雖然信貸趨勢開始從歷史低位開始正常化，但我們的投資組合的信貸表現仍然強勁，反映了我們長期以來卓越風險管理的記錄，這是我們西銀行同事所共有的文化。

Our CET1 ratio of 12.2% remains very strong even after closing the largest acquisition in Canadian history. ROE for the quarter was 12.6%, while return on tangible common equity improved to 17.2%. We also announced a dividend increase of $0.04, up 6% from last year to $1.47 per share.

即使在完成加拿大歷史上最大的收購之後，我們 12.2% 的 CET1 比率仍然非常強勁。本季度淨資產收益率為 12.6%，有形普通股回報率提高至 17.2%。我們還宣布將股息增加 0.04 美元，比去年增加 6% 至每股 1.47 美元。

Since we spoke last quarter, the impact of persistent inflation, rising rates, a slowing global economy, and an increasing deposit competition on the industry has accelerated. We're not immune to these market forces, which are putting pressure on revenue growth and near-term operating leverage.

自我們上個季度發表講話以來，持續的通貨膨脹、利率上升、全球經濟放緩以及存款競爭加劇對該行業的影響已經加速。我們不能免受這些市場力量的影響，這些力量正在對收入增長和近期經營槓桿施加壓力。

After delivering 5 consecutive years of positive operating leverage, these factors, along with the higher efficiency of Bank of the West presynergies are now expected to result in negative operating leverage this year. We're focused on resetting our expense outlook in line with the revenue headwinds to regain positive operating leverage and continue the improvement in our efficiency ratio. Tayfun will elaborate on this in his remarks. Our commitment to positive operating leverage through time remains firm even in this environment.

在連續 5 年實現正經營槓桿後，這些因素以及西部銀行預協同效應的更高效率現在預計將導致今年的負經營槓桿。我們專注於根據收入逆風重新調整我們的費用前景，以重新獲得積極的經營槓桿並繼續提高我們的效率比。 Tayfun 將在他的發言中詳細說明這一點。即使在這種環境下，我們對長期積極運營槓桿的承諾仍然堅定。

The last few months have reinforced the importance of a strong foundation and the trust built over time with our stakeholders. Our bank is highly diversified by customer, sector and geography, and we fortified our balance sheet and significantly expanded our customer deposit base with Bank of the West.

過去幾個月強化了堅實基礎的重要性以及隨著時間的推移與我們的利益相關者建立的信任。我們的銀行在客戶、行業和地域方面高度多元化，我們加強了資產負債表，並顯著擴大了與西部銀行的客戶存款基礎。

Liquidity, funding and capital are all well managed and ratios are strong, well above both regulatory requirements and internal targets. The strength and stability of our bank that has delivered resilient performance through economic cycles is being noticed. We have a differentiated position in the U.S. market that's been enhanced with the Bank of the West.

流動性、資金和資本都管理良好，比率很高，遠高於監管要求和內部目標。我們銀行在經濟周期中表現出色的實力和穩定性正在受到關注。我們在美國市場的差異化地位得到了西方銀行的加強。

As a high-performing national U.S. bank, we rank in the top 10 of diversified banks with assets over $250 billion. Our combined U.S. segment has over $400 billion in assets and offers customers a full range of integrated banking, wealth and capital markets products and services with presence in leading markets and digital platforms that extend nationally.

作為一家表現出色的美國全國性銀行，我們在資產超過 2500 億美元的多元化銀行中排名前 10。我們合併後的美國分部擁有超過 4000 億美元的資產，為客戶提供全方位的綜合銀行、財富和資本市場產品和服務，並在領先的市場和遍布全國的數字平台上佔有一席之地。

Our clients further benefit from the strength of BMO's $1.25 trillion North American balance sheet investment capacity and the stability of a Canadian bank. We're advantageously positioned within a small number of large banks in the U.S. that have sufficient size, scale and a full range of capabilities, including our premium top 5 North American commercial banking franchise, a one-client approach and a North-South business model unlike any other bank. We believe that this will contribute to outsized gains in customer and deposit acquisition as customers seek to partner with banks who are willing and able to support them through the cycle.

我們的客戶進一步受益於 BMO 1.25 萬億美元的北美資產負債表投資能力和加拿大銀行的穩定性。我們在美國的少數大型銀行中處於有利地位，這些銀行具有足夠的規模、規模和全方位的能力，包括我們在北美排名前 5 的高級商業銀行特許經營權、單一客戶方式和南北業務不同於任何其他銀行的模式。我們相信，隨著客戶尋求與願意並能夠在整個週期中為他們提供支持的銀行合作，這將有助於在客戶和存款獲取方面取得巨大收益。

Since the market disruption in early March, leveraging our leading North American treasury and payment solutions and enhanced digital onboarding capabilities, we've opened several thousand new commercial deposit accounts and continued to add retail customers across our expanded U.S. footprint.

自 3 月初市場中斷以來，利用我們領先的北美資金和支付解決方案以及增強的數字入職能力，我們已經開設了數千個新的商業存款賬戶，並繼續在我們擴大的美國足跡中增加零售客戶。

Our U.S. segment has been a key contributor to our growth and success over time with a long track record of combining organic growth with successful acquisitions. The contribution of Bank of the West to BMO's performance is in line with our expectations, adding 10% to BMO's preprovision pretax earnings in the first quarter, and we are on track to increase that contribution as our run rate, expense and revenue synergies come through. We're well prepared and on track to convert systems and branding over the Labor Day weekend.

隨著時間的推移，我們的美國分部一直是我們增長和成功的關鍵貢獻者，擁有將有機增長與成功收購相結合的長期記錄。 Bank of the West 對 BMO 業績的貢獻符合我們的預期，第一季度 BMO 的預提稅前收益增加了 10%，隨著我們的運行率、費用和收入協同效應的實現，我們有望增加這一貢獻.我們已做好充分準備，並有望在勞動節週末轉換系統和品牌。

I remain confident that by the end of 2025, Bank of the West acquisition will add over USD 2 billion in run rate preprovision pretax earnings, as I discussed with you last quarter.

我仍然相信，到 2025 年底，西部銀行的收購將增加超過 20 億美元的運行率預提稅前收益，正如我上個季度與您討論的那樣。

This quarter, we also continued to make progress on our strategic priorities: to continue building a digitally enabled bank, enhancing customer loyalty and being our clients lead partner in the climate transition, benefiting from the investments we've made in technology, marketing and sales force expansion.

本季度，我們還在戰略重點方面繼續取得進展：繼續建設數字化銀行，提高客戶忠誠度，並成為我們客戶在氣候轉型中的主要合作夥伴，受益於我們在技術、營銷和銷售方面的投資力擴張。

We continue to support newcomers to Canada, launching industry-leading digital pre-arrival account opening capabilities through our expanded NewStart program. The combination of digital transformation and helping customers make real financial progress was recognized by Celent with 2 Model Bank awards.

我們繼續支持加拿大的新移民，通過我們擴展的 NewStart 計劃推出行業領先的數字預抵達賬戶開設功能。數字化轉型與幫助客戶實現真正的財務進步相結合，獲得了 Celent 的 2 項模範銀行獎。

Earlier this month, we announced the approval of our acquisition of the Air Miles Reward program, an opportunity to reinvigorate one of Canada's largest and most celebrated loyalty programs.

本月早些時候，我們宣布批准收購航空里程獎勵計劃，這是重振加拿大最大和最著名的忠誠度計劃之一的機會。

We're helping customers address the challenges of climate change through thought leadership, such as our participation in the UN-convened Nature Target Setting Working Group as well as the launch of our Greener Future Financing program to help agriculture businesses build future-ready, climate-resilient operations.

我們通過思想領導力幫助客戶應對氣候變化的挑戰，例如我們參與聯合國召集的自然目標設定工作組以及啟動我們的綠色未來融資計劃以幫助農業企業建立面向未來的氣候-彈性操作。

In BMO Wealth Management, even in a challenging market environment, our focus on client advice and product innovation is bringing net new clients and assets to BMO, including our continued leadership in ETF flows and an improved mutual fund market share. BMO Capital Markets continued to perform well despite muted client activity with record results in M&A and in our digital and liquid trading businesses reflecting the benefits of our diversified business model.

在 BMO 財富管理部門，即使在充滿挑戰的市場環境中，我們對客戶建議和產品創新的關注也為 BMO 帶來了淨新客戶和資產，包括我們在 ETF 流量方面的持續領先地位和共同基金市場份額的提高。儘管客戶活動低迷，但 BMO 資本市場繼續表現良好，在併購以及我們的數字和流動性交易業務方面取得了創紀錄的成績，反映了我們多元化業務模式的優勢。

All that we do is guided by our purpose to boldly grow the good in business and life and underpinned by our core values. We continue to be acknowledged for our ethical business practices, recognized for the sixth consecutive year as one of the world's most ethical companies by the Ethisphere Institute, the only bank in Canada to receive this award since its inception in 2007.

我們所做的一切都以我們的目標為指導，即大膽地發展商業和生活中的美好事物，並以我們的核心價值觀為基礎。我們的道德商業實踐繼續受到認可，連續第六年被 Ethisphere Institute 評為世界上最道德的公司之一，自 2007 年成立以來，加拿大唯一一家獲此殊榮的銀行。

Our resilient and tested strategy is designed to deliver sustained performance through the cycle. As we move towards finalizing the integration of Bank of the West, we're equally focused on continuing to drive performance in all of our businesses and are uniquely situated to offer integrated North American banking wealth and capital markets products and leading digital experiences that differentiate us from our competitors and drive long-term value for our shareholders.

我們的彈性和經過測試的策略旨在通過週期提供持續的性能。隨著我們最終完成西部銀行的整合，我們同樣專注於繼續推動我們所有業務的績效，並以獨特的方式提供整合的北美銀行財富和資本市場產品以及領先的數字體驗，使我們與眾不同從我們的競爭對手那裡獲得收益，並為我們的股東創造長期價值。

I'll now turn it over to Tayfun.

我現在把它交給 Tayfun。

Thank you, Darryl. Good morning, and thank you for joining us. My comments will start on Slide 10. Second quarter reported EPS was $1.30 and net income was $1.1 billion. Adjusting items are shown on Slide 40 and include Bank of the West acquisition-related impacts for the initial provision for credit losses on performing loans and integration costs, which decreased net income by $517 million and $545 million, respectively.

謝謝你，達里爾。早上好，感謝您加入我們。我的評論將從幻燈片 10 開始。報告的第二季度每股收益為 1.30 美元，淨收入為 11 億美元。調整項目顯示在幻燈片 40 中，包括西部銀行收購相關的影響，即對執行貸款和整合成本的初始信貸損失準備金的影響，這分別使淨收入減少了 5.17 億美元和 5.45 億美元。

The remainder of my comments will focus on adjusted results. Adjusted EPS was $2.93, and net income was $2.2 billion, up 1% from last year, including a $230 million contribution from Bank of the West. Excluding the addition of Bank of the West, net income declined due to higher PCLs. Revenue increased 3% and PPPT declined 4% reflecting good growth in net interest income from our P&C businesses, offset by weaker results in wealth and capital markets due to continued muted market environment.

我的其餘評論將集中在調整後的結果上。調整後每股收益為 2.93 美元，淨收入為 22 億美元，比去年增長 1%，其中包括來自西方銀行的 2.3 億美元捐助。不包括西方銀行的加入，淨收入因更高的 PCL 而下降。收入增長 3%，PPPT 下降 4%，反映出我們的財產險業務的淨利息收入增長良好，但被持續低迷的市場環境導致的財富和資本市場業績疲弱所抵消。

Total PCL was $318 million including a $75 million provision for performing loans compared with a total provision of $50 million in the prior year. Piyush will speak to these in his remarks.

PCL 總額為 3.18 億美元，其中包括 7500 萬美元的履約貸款撥備，而上一年的撥備總額為 5000 萬美元。 Piyush 將在他的講話中談到這些。

Turning to Slide 11. The acquisition of Bank of the West contributed $230 million to net income, $1.1 billion to revenue and $755 million to expenses. Results this quarter have come in line with our internal expectations. On closing, we recognized purchase accounting fair value marks on Bank of the West loans and deposits and discounts on securities on our balance sheet, which accretes to net interest income.

轉到幻燈片 11。收購西部銀行為淨收入貢獻了 2.3 億美元，為收入貢獻了 11 億美元，為支出貢獻了 7.55 億美元。本季度的業績符合我們的內部預期。交易結束時，我們在資產負債表上確認西部銀行貸款和存款的購買會計公允價值標記和證券貼現，這些都計入了淨利息收入。

As previously disclosed, to manage the exposure to the impact of higher interest rates on capital from changes in the fair value of the assets and liabilities of Bank of the West between the announcement and closing of the acquisition, we entered into interest rate swaps that resulted in cumulative mark-to-market gains of $5.7 billion. These swaps were largely offset from an interest rate risk perspective through the purchase of a portfolio of matched duration U.S. treasuries and other balance sheet instruments. On closing, the swaps were unwound and replaced with hedges which, in effect, crystallize the unrealized loss position on our balance sheet. The amortization of the fair value hedge is reflected as interest expense.

正如之前披露的那樣，為了管理在宣布收購和收購結束之間 Bank of West 資產和負債的公允價值變動導致更高利率對資本的影響，我們進行了利率互換，導致累計市值收益 57 億美元。通過購買期限匹配的美國國債和其他資產負債表工具的投資組合，從利率風險的角度來看，這些互換在很大程度上被抵消了。交易結束時，掉期被解除並被對沖所取代，這實際上明確了我們資產負債表上未實現的虧損頭寸。公允價值對沖的攤銷反映為利息費用。

The net impact of these 2 items increased Bank of the West net interest income in the quarter by $103 million and was recorded in corporate services. Going forward, we expect this discrete benefit to reduce as the legacy of Bank of the West securities portfolio is managed within the overall bank and replaced within our underlying earnings. Plans remain on track to complete systems conversion and brand unification on Labor Day weekend.

這兩項的淨影響使西部銀行本季度的淨利息收入增加了 1.03 億美元，並記錄在企業服務中。展望未來，我們預計隨著西部銀行證券投資組合的遺產在整個銀行內進行管理並在我們的基礎收益中取而代之，這種離散收益將會減少。計劃繼續按計劃在勞動節週末完成系統轉換和品牌統一。

We remain confident in achieving the previously announced USD 670 million expense synergies to be fully executed by the start of the second quarter in 2024, the same time line that we guided to at announcement. Overall, we are very pleased with what we have seen during the first quarter post-closing and excited about our opportunities associated with our expanded U.S. presence.

我們仍然有信心實現先前宣布的 6.7 億美元的費用協同效應，該協同效應將在 2024 年第二季度初完全執行，這與我們在公告時指導的時間線相同。總體而言，我們對交易結束後第一季度的情況感到非常滿意，並對與擴大美國業務相關的機會感到興奮。

Moving to the balance sheet on Slide 12. Average loan growth was 28% year-over-year and 14% quarter-over-quarter. Bank of the West added [$79 billion] to loan balances in the current quarter. On a constant currency basis, underlying business and government loans increased 11% from the prior year with good growth across all operating groups and consumer loans increased 8% reflecting diversified growth in Canadian P&C and Wealth.

轉到幻燈片 12 的資產負債表。平均貸款同比增長 28%，環比增長 14%。西方銀行本季度的貸款餘額增加了 [790 億美元]。按固定匯率計算，基礎商業和政府貸款較上年增長 11%，所有運營集團均實現良好增長，消費貸款增長 8%，反映出加拿大財產和意外險及財富的多元化增長。

Average customer deposits increased 25% year-over-year and 16% sequentially, including $86 billion from Bank of the West. On an underlying basis, deposits were up 8% year-over-year and flat quarter-over-quarter.

平均客戶存款同比增長 25%，環比增長 16%，其中包括來自西方銀行的 860 億美元。在基本基礎上，存款同比增長 8%，環比持平。

On Slide 13, we provide a view of deposit trends in our Canadian and U.S. P&C and Wealth businesses. In Canada, strong balance sheet growth continues, which reflects our continued success in capturing market share in our Personal and Business Banking business. Within retail deposits, we do see ongoing migration to term deposits as customers seek higher returns given the significant rise in interest rates.

在幻燈片 13 上，我們提供了加拿大和美國財產及意外險和財富業務的存款趨勢視圖。在加拿大，資產負債表繼續保持強勁增長，這反映出我們在個人和商業銀行業務中繼續成功奪取市場份額。在零售存款中，我們確實看到持續向定期存款轉移，因為客戶在利率顯著上升的情況下尋求更高的回報。

In the U.S., our underlying deposit levels remain well diversified and above pre-pandemic levels. Although we are not immune to the impact of quantitative tightening and rate competition from money market funds on bank deposits, BMO's size and stability continues to be an attractive offer for our clients. Our digital deposit platform in Personal Banking is now supported with a larger retail branch base as a result of the Bank of the West acquisition and our advanced treasury management platform capabilities position us well in this environment. We expect to see a return to sequential growth in the second half of the year as we continue to optimize our pricing strategy balancing growth and returns.

在美國，我們的基礎存款水平仍然非常多樣化，並且高於大流行前的水平。儘管我們無法免受貨幣市場基金對銀行存款的量化緊縮和利率競爭的影響，但 BMO 的規模和穩定性仍然對我們的客戶具有吸引力。由於收購了西部銀行，我們在個人銀行業務中的數字存款平台現在得到了更大的零售分支機構的支持，而我們先進的資金管理平台功能使我們在這種環境中處於有利地位。隨著我們繼續優化平衡增長和回報的定價策略，我們預計下半年將恢復連續增長。

Turning to Slide 14. On an ex trading basis, net interest income was up 36% and net interest margin was up 15 basis points from prior year driven by the Bank of the West, strong balance sheet growth and margin expansion in the underlying businesses. Year-over-year growth was partly offset by the impact of risk transfer transactions and higher low-yielding assets for liquidity purposes.

轉到幻燈片 14。在前交易基礎上，淨利息收入增長 36%，淨息差比上年增長 15 個基點，這得益於西方銀行、強勁的資產負債表增長和基礎業務的利潤率擴張。同比增長部分被風險轉移交易的影響和出於流動性目的而增加的低收益資產的影響所抵消。

Net interest margin was up 9 basis points from last quarter. The acquisition and net purchase accounting accretion benefit added 15 basis points and 4 basis points, respectively, while Corporate Services reduced the margin by 8 basis points, mostly due to lower earnings on equity held in advance of closing the acquisition.

淨息差較上季上升 9 個基點。收購和淨採購會計增值收益分別增加了 15 個基點和 4 個基點，而企業服務部將利潤率降低了 8 個基點，這主要是由於收購完成前持有的股權收益較低。

In Canadian P&C, NIM remained stable as higher loan margins were offset by lower deposit spreads and the changing deposit mix reflecting continued flows into term deposits.

在加拿大財產險方面，淨息差保持穩定，因為較高的貸款利潤率被較低的存款利差和反映持續流入定期存款的不斷變化的存款組合所抵消。

In U.S. P&C, margins widened by 4 basis points sequentially due to a 5 basis point benefit from Bank of the West as well as wider loan margins and other favorable impacts in the quarter, partially offset by lower deposit margins reflecting competitive pricing.

在美國財產險方面，利潤率環比擴大 4 個基點，原因是西部銀行帶來 5 個基點的收益，以及本季度貸款利潤率提高和其他有利影響，部分被較低的存款利潤率所抵消，反映出具有競爭力的定價。

With the transitory impacts of pre- and post-close balance sheet movements behind us, which generated more quarterly volatility in our margin, especially in corporate during the first 2 quarters of this year, we expect our margin to remain relatively stable during the second half of the year.

由於收盤前和收盤後資產負債表變動的暫時性影響已經過去，導致我們的利潤率出現更多的季度波動，尤其是今年前兩個季度的企業利潤率，我們預計下半年我們的利潤率將保持相對穩定的一年。

Moving to our interest rate sensitivity on Slide 15. Rate sensitivity for the quarter has decreased quarter-over-quarter with the addition of Bank of the West's longer-duration assets and reduction of short-term liquidity balances that we held in preparation for the acquisition close. Our risk metrics now reflect a relatively neutral position consistent with our strategy, and we believe that we are well-positioned for the current environment.

轉向我們在幻燈片 15 上的利率敏感度。隨著西方銀行的長期資產的增加和我們為收購做準備而持有的短期流動性餘額的減少，本季度的利率敏感度環比下降關閉。我們的風險指標現在反映了與我們的戰略一致的相對中立的立場，我們相信我們在當前環境中處於有利地位。

Moving to Slide 16. Excluding the impact of Bank of the West and the stronger U.S. dollar, expenses increased 6% from last year, driven by the follow-through impact of targeted investments last year, including sales force expansion, technology and marketing as well as inflation. In addition, we incurred certain onetime expenses during the quarter, including legal provisions and severance, which added approximately $80 million or 2% to our expense growth. Sequentially, expenses declined 5% due to the impact of seasonal items in the first quarter and fewer days in the current quarter.

轉到幻燈片 16。排除西方銀行和美元走強的影響，支出比去年增長 6%，這是受去年目標投資的後續影響推動，包括銷售人員擴張、技術和營銷以及作為通貨膨脹。此外，我們在本季度發生了某些一次性費用，包括法律規定和遣散費，這使我們的費用增長增加了約 8000 萬美元或 2%。由於第一季度季節性項目的影響以及本季度天數減少，支出環比下降了 5%。

The impact of the acquisition and slower revenue growth have resulted in negative operating leverage for the quarter and year-to-date. We expect that expense growth will continue to moderate and operating leverage and efficiency will improve in the second half of the year as most of the follow-through impact of last year expense increases are behind us. While weakness in the revenue environment may persist in the near term, we have identified additional discrete expense management actions focusing on the entire expense base with a targeted reduction in our efficiency ratio.

收購的影響和收入增長放緩導致本季度和年初至今的負經營槓桿。我們預計下半年費用增長將繼續放緩，經營槓桿和效率將提高，因為去年費用增長的大部分後續影響已經過去。雖然收入環境的疲軟可能在短期內持續存在，但我們已經確定了額外的離散費用管理措施，重點關注整個費用基礎，並有針對性地降低我們的效率比。

Dynamic expense management, positive operating leverage, and improving our relative efficiency ratio continues to be management's priority focus. These actions, in addition to our confidence in meeting the targeted cost synergies at Bank of the West, are expected to result in meaningful positive operating leverage in 2024.

動態費用管理、積極的經營槓桿和提高我們的相對效率仍然是管理層的優先重點。這些行動，加上我們有信心在西方銀行實現目標成本協同效應，預計將在 2024 年產生有意義的積極經營槓桿。

Our capital position remains very strong with a common equity Tier 1 ratio of 12.2%. The Bank of the West acquisition reduced the ratio by 680 basis points, partially offset by internal capital generation, shares issued under the dividend reinvestment plan and the benefit from the implementation of the first phase of Basel III reforms this quarter. Lower source currency RWA primarily reflected the elimination of the capital floor in the quarter.

我們的資本狀況仍然非常強勁，普通股一級資本比率為 12.2%。 Bank of the West 的收購將比率降低了 680 個基點，部分被內部資本生成、根據股息再投資計劃發行的股票以及本季度巴塞爾協議 III 改革第一階段的實施所帶來的好處所抵消。較低的來源貨幣 RWA 主要反映了本季度資本底線的取消。

Our current capital position, which now exceeds our pre-COVID level after closing the largest bank acquisition in our history, complements the strength of our balance sheet and gives us a distinct competitive advantage. We remain confident that our CET1 ratio will remain above 12% for the remainder of the fiscal year.

在完成我們歷史上最大的銀行收購後，我們目前的資本狀況現在超過了 COVID 之前的水平，補充了我們資產負債表的實力，並為我們提供了明顯的競爭優勢。我們仍然相信我們的 CET1 比率將在本財年剩餘時間內保持在 12% 以上。

Moving to the operating groups and starting on Slide 18. Canadian P&C delivered net income of $864 million, down 8% from the prior year due to higher provision from credit losses with strong preprovision pretax earnings growth of 7%. Revenue was up 7% from the prior year. Net interest income increased 12%, reflecting strong balance growth and higher margins. Expenses were up 6%, reflecting investment in the business, including sales force expansion in technology and higher salaries and remained relatively flat quarter-over-quarter, in line with the broader trends in our consolidated results.

轉到運營集團，從幻燈片 18 開始。加拿大財產險實現淨收入 8.64 億美元，比上年下降 8%，原因是信貸損失撥備增加，撥備前稅前收益強勁增長 7%。收入比上年增長 7%。淨利息收入增長 12%，反映出強勁的餘額增長和更高的利潤率。費用增長 6%，反映了對業務的投資，包括技術銷售人員的擴張和更高的薪水，並且與上一季度相比保持相對平穩，這與我們綜合業績的更廣泛趨勢一致。

Loans were up 10% with 9% growth in residential mortgage lending and 12% in commercial loans. Deposits increased 13% year-over-year and 3% sequentially across both retail and commercial businesses with strong growth in term deposits.

貸款增長 10%，其中住宅抵押貸款增長 9%，商業貸款增長 12%。零售和商業業務的存款同比增長 13%，環比增長 3%，定期存款增長強勁。

Moving to U.S. P&C on Slide 19. My comments here will speak to the U.S. dollar performance. Net income was $638 million, up 37% due to the contribution from Bank of the West which added $163 million in the current quarter. Underlying results were up 2%, driven by preprovision pretax earnings growth of 11%, partially offset by higher provisions for credit losses compared with a recovery in the prior year.

轉到幻燈片 19 上的美國財產險。我在這裡的評論將說明美元的表現。由於西部銀行的貢獻在本季度增加了 1.63 億美元，淨收入為 6.38 億美元，增長 37%。基本業績增長 2%，這主要受撥備前稅前利潤增長 11% 的推動，部分被信貸損失準備金高於上年復蘇所抵消。

Revenue was up 9%, excluding Bank of the West, reflecting a 14% increase in net interest income due to higher margins and loan balances, partly offset by a decline in noninterest revenue. Excluding Bank of the West, expenses increased 7% due to higher employee and operating costs and were down 1% quarter-over-quarter.

收入增長 9%，不包括西部銀行，反映出由於利潤率和貸款餘額增加導致淨利息收入增長 14%，部分被非利息收入下降所抵消。不包括西部銀行，由於員工和運營成本增加，費用增加了 7%，環比下降了 1%。

On the balance sheet, Bank of the West added $55 billion to both loans and deposits. Underlying loans grew 3% from the prior year and declined 3% quarter-over-quarter primarily in commercial. Underlying deposits declined 5% year-over-year and 2% sequentially.

在資產負債表上，西部銀行的貸款和存款增加了 550 億美元。基礎貸款較上年增長 3%，環比下降 3%，主要是商業貸款。基礎存款同比下降 5%，環比下降 2%。

Moving to Slide 20. BMO Wealth Management net income was $285 million, down from $315 million last year. The Bank of the West added $26 million in the current quarter. Wealth and Asset Management net income was $222 million compared with $248 million in the prior year. Contributions from Bank of the West and growth in net interest income and new client assets were more than offset by weaker global markets, lower online brokerage transactions and higher expenses. Insurance net income was $63 million compared with $67 million in the prior year. Excluding Bank of the West, expenses were up 6% mainly due to the impact of investments made in the business last year and down 2% quarter-over-quarter.

轉到幻燈片 20。BMO 財富管理淨收入為 2.85 億美元，低於去年的 3.15 億美元。西方銀行在本季度增加了 2600 萬美元。財富與資產管理淨收入為 2.22 億美元，上年同期為 2.48 億美元。西方銀行的貢獻以及淨利息收入和新客戶資產的增長被全球市場疲軟、在線經紀交易減少和費用增加所抵消。保險淨收入為 6300 萬美元，上年同期為 6700 萬美元。不包括西部銀行，費用增長 6%，主要是由於去年對該業務的投資的影響，環比下降 2%。

BMO Capital Markets net income was $388 million compared to $453 million in the prior year. Revenues in Global Markets remained relatively flat as higher foreign exchange and equities trading revenue were offset by lower issuance activity and interest rate trading's revenue.

BMO Capital Markets 淨收入為 3.88 億美元，上年同期為 4.53 億美元。由於較高的外彙和股票交易收入被較低的發行活動和利率交易收入所抵消，全球市場的收入保持相對平穩。

Revenues in Investment and Corporate Banking were up 2%, mainly due to higher corporate banking revenues and advisory fees, partly offset by lower underwriting activity. Expenses were up 14%, including the impact of the stronger U.S. dollar, higher technology costs and the legal provision, and down 3% quarter-over-quarter.

投資和企業銀行業務的收入增長了 2%，主要是由於企業銀行業務收入和諮詢費增加，部分被承銷活動減少所抵消。費用增長 14%，包括美元走強、技術成本上升和法律規定的影響，環比下降 3%。

Turning now to Slide 22. Corporate Services net loss was $187 million compared with $111 million in the prior year. The current quarter reflects lower earnings on the investment of excess capital that is now being deployed in the business, partially offset by the net accretion of purchase accounting fair value marks. Per my comments earlier on the impact of pre- and post-closing activities, Corporate can experience some variability following an acquisition of this size, which resulted in higher net losses over the last 2 quarters compared with our normal range. We expect corporate to normalize in the second half of the year.

現在轉到幻燈片 22。企業服務淨虧損為 1.87 億美元，而去年同期為 1.11 億美元。本季度反映了目前部署在業務中的超額資本投資收益較低，部分被採購會計公允價值標記的淨增長所抵消。根據我之前對收盤前和收盤後活動影響的評論，企業在收購這種規模後可能會經歷一些變化，這導致過去兩個季度的淨虧損高於我們的正常範圍。我們預計企業將在下半年正常化。

To conclude, our operating performance this quarter reflects the benefits of our diversified business that is now operating at a larger scale with a strong balance sheet and expanded growth opportunities in North America. With a benefit of a $1.3 trillion balance sheet, the strength of our capital position and the scope of our diversified businesses, we are very well positioned in the current evolution of banking industry that favors scale participants. While we will always focus on long-term growth strategies, we are not losing sight of the need to align our operating performance with our long-term commitment to positive operating leverage.

總而言之，我們本季度的經營業績反映了我們多元化業務的優勢，這些業務現在規模更大，資產負債表強勁，在北美的增長機會擴大。憑藉 1.3 萬億美元的資產負債表、我們強大的資本狀況和我們多元化業務的範圍，我們在當前有利於規模參與者的銀行業發展中處於非常有利的地位。雖然我們將始終專注於長期增長戰略，但我們並沒有忽視使我們的經營業績與我們對積極經營槓桿的長期承諾保持一致的必要性。

I will now turn it over to Piyush.

我現在將其轉交給 Piyush。

Thank you, Tayfun, and good morning, everyone. Our risk performance continued to reflect strong risk management discipline across the bank this quarter despite market volatility and economic headwinds.

謝謝 Tayfun，大家早上好。儘管市場波動和經濟逆風，但本季度我們的風險表現繼續反映出整個銀行強大的風險管理紀律。

Starting on Slide 25. The total provision for credit losses was $1 billion, including the initial performing allowance of $705 million related to the Bank of the West purchase portfolio. Adjusting for this onetime charge, total PCL was $318 million or 20 basis points, up 5 basis points from prior quarter. Impaired provisions for the quarter were $243 million or 16 basis points, 2 basis points up from prior quarter, consistent with the expected trend to more normal loss rates.

從幻燈片 25 開始。信貸損失準備金總額為 10 億美元，包括與西部銀行購買組合相關的 7.05 億美元初始履約準備金。調整這項一次性費用後，PCL 總額為 3.18 億美元或 20 個基點，比上一季度增加 5 個基點。本季度的減值準備金為 2.43 億美元或 16 個基點，比上一季度高 2 個基點，與損失率更正常的預期趨勢一致。

Moving to Slide 26. Excluding the initial provision for Bank of the West, the $75 million provision for credit losses on performing loans for this quarter reflected portfolio credit migration, model changes and economic uncertainty, partially offset by a modest improvement in some macroeconomic variables over the forecast horizon. We remain comfortable that our $3.3 billion of performing loan allowances provides good loss coverage over 4x coverage on trading 4 quarters impaired losses and approximately 2x coverage against 2020 losses.

轉到幻燈片 26。不包括西部銀行的初始準備金，本季度 7500 萬美元的履約貸款信貸損失準備金反映了投資組合信貸遷移、模型變化和經濟不確定性，部分被一些宏觀經濟變量的適度改善所抵消預測範圍。我們仍然感到欣慰的是，我們 33 億美元的履約貸款準備金提供了良好的損失保障，超過 4 倍的交易 4 季度減值損失保障和約 2 倍的 2020 年損失保障。

Turning to the impaired loan credit performance in the operating groups. Canadian Retail impaired loan losses was $163 million or 32 basis points, up from 26 basis points in Q1. In U.S. retail, impaired loan losses were $41 million or 32 basis points, up from 24 basis points in the prior quarter. This PCL increase in retail was due to continued normalization in both insolvencies and on delinquency rates in unsecured loans and credit cards.

轉向經營集團受損的貸款信用表現。加拿大零售減值貸款損失為 1.63 億美元或 32 個基點，高於第一季度的 26 個基點。在美國零售業，減值貸款損失為 4100 萬美元或 32 個基點，高於上一季度的 24 個基點。零售業 PCL 的增長是由於無擔保貸款和信用卡的破產和拖欠率持續正常化。

For residential real estate secured lending, we continue to view the risk from higher rates as modest given our high credit quality borrower base and low LTVs. As you can see on Slide 31, the riskier segment renewing over the next 12 months is nominal given our portfolio quality.

對於住宅房地產擔保貸款，鑑於我們的高信用質量借款人基礎和低 LTV，我們繼續認為較高利率的風險是適度的。正如您在幻燈片 31 中看到的那樣，考慮到我們的投資組合質量，未來 12 個月更新的風險較高的部分是名義上的。

In our commercial and corporate businesses, we continue to see strong credit performance. In Canadian commercial, impaired loan provisions were $10 million or 4 basis points, down 3 basis points from previous quarter. Our U.S. commercial business had impaired loan provisions of $25 million or 6 basis points, also down 5 basis points from last quarter.

在我們的商業和企業業務中，我們繼續看到強勁的信貸表現。在加拿大商業中，減值貸款準備金為 1000 萬美元或 4 個基點，比上一季度下降 3 個基點。我們的美國商業業務減值貸款準備金為 2500 萬美元或 6 個基點，也比上一季度下降了 5 個基點。

Our Capital Markets business had very strong impaired loan results as well with impaired losses of 1 basis point. The strong impaired performance in our corporate and commercial businesses remain below historical averages. And given the environment, we do expect corporate and commercial losses to normalize from these low levels.

我們的資本市場業務有非常強勁的減值貸款結果以及 1 個基點的減值損失。我們公司和商業業務的強勁受損表現仍低於歷史平均水平。鑑於環境，我們確實預計公司和商業損失將從這些低水平正常化。

On Slide 27. Bank-wide impaired formations at $843 million increased $322 million relative to Q1. The formations rate remains below our pre-pandemic experience. Gross impaired loan balance was $2.6 billion or 41 basis points, including an increase of $436 million related to the acquired Bank of the West portfolio. Although slightly up over prior quarter, the gross impaired loan rate continues to be well below pre-pandemic levels.

在幻燈片 27 上。與第一季度相比，全行範圍內的受損資產為 8.43 億美元，增加了 3.22 億美元。編隊率仍低於我們大流行前的經驗。總減值貸款餘額為 26 億美元或 41 個基點，其中包括與收購的西部銀行投資組合相關的 4.36 億美元增加。儘管比上一季度略有上升，但總減值貸款率仍遠低於大流行前的水平。

As you see on Slide 30, we are providing additional information on our commercial real estate portfolio given investor interest. Our portfolio is well diversified across geographies and property types. Although the higher interest rates and office vacancies are a headwind for the sector, we have maintained consistent and disciplined underwriting standards and client selections throughout market cycles. The office subsegment exposure represents only 1% of our overall loan portfolio and is monitored closely. We have reviewed a large part of the portfolio on a deal basis and are comfortable with our exposure.

正如您在幻燈片 30 中看到的那樣，鑑於投資者的興趣，我們正在提供有關我們商業房地產投資組合的更多信息。我們的投資組合在地域和房地產類型方面非常多元化。儘管較高的利率和辦公室空缺對該行業不利，但我們在整個市場週期中保持了一致和有紀律的承保標準和客戶選擇。寫字樓細分風險僅占我們整體貸款組合的 1%，並受到密切監控。我們在交易的基礎上審查了大部分投資組合，並對我們的風險敞口感到滿意。

Overall, our commercial real estate portfolio quality is strong. And while we have seen expected migration in the portfolio, impaired formations and losses continue to be modest and in line with expectations. This was a significant quarter as we closed the Bank of the West acquisition.

總體而言，我們的商業房地產投資組合質量很高。雖然我們已經看到投資組合中的預期遷移，但受損的結構和損失仍然是適度的，符合預期。這是一個重要的季度，因為我們完成了對西部銀行的收購。

On Slide 29, we provide an overview of the Bank of the West legacy portfolio, which further diversifies our portfolio across segments, sectors and U.S. regions. The Bank of the West portfolio fair valuation included a credit mark of $1.1 billion. The $705 million initial allowance provides additional provisioning on this portfolio.

在幻燈片 29 上，我們概述了 Bank of the West 的遺留投資組合，這進一步使我們的投資組合在細分市場、行業和美國地區多樣化。 Bank of the West 投資組合的公允估值包括 11 億美元的信用標記。 7.05 億美元的初始準備金為該投資組合提供了額外撥備。

Looking back at the quarter, we have seen both intended and unintended consequences from the pace of monetary policy tightening. The failure of some U.S. regional banks added to market volatility this quarter. While we continue to closely monitor, our risk management approach and strong liquidity position resulted in solid risk performance throughout the second quarter. As we look ahead, we are cautious about the economic environment. Together with the Bank of the West portfolio, we expect impaired loss rates to trend towards low- to mid-20 basis points. Given the quality of our portfolio, high allowance coverage and strong risk management capabilities, we are well-positioned to manage current and emerging risks.

回顧本季度，我們看到了貨幣政策收緊步伐帶來的預期和意外後果。一些美國地區性銀行的倒閉加劇了本季度的市場波動。在我們繼續密切監控的同時，我們的風險管理方法和強大的流動性頭寸導致整個第二季度的風險表現穩健。展望未來，我們對經濟環境持謹慎態度。連同西方銀行的投資組合，我們預計受損損失率將趨向於低至 20 個基點。鑑於我們投資組合的質量、高準備金覆蓋率和強大的風險管理能力，我們有能力管理當前和新出現的風險。

I will now turn the call back to the operator for the Q&A portion of the call.

我現在將把電話轉回給接線員，以進行電話的問答部分。

(Operator Instructions) Our first question is from John Aiken with Barclays.

（操作員說明）我們的第一個問題來自巴克萊銀行的約翰艾肯。

Not surprisingly, there's a lot of interest in the U.S. deposits. And Tayfun, you did a great job in terms of demonstrating the flows. But I was wondering if we could have someone talk to the performance of Bank of the West-specific deposits during the quarter. And then secondarily, the performance of your digital deposit platform through the quarter, please?

毫不奇怪，人們對美國存款很感興趣。 Tayfun，你在展示流程方面做得很好。但我想知道我們是否可以讓某人談談本季度西部銀行特定存款的表現。其次，您的數字存款平台在本季度的表現如何？

Let me just make a very brief comment, and then I'll turn it over to Ernie, John. I think we are obviously very excited about having Bank of the West expanded branch network and the ability to connect our digital banking platform with their physical presence, and they're doing quite well. I think we had the opportunity to obviously work with them early after we closed. And Ernie and her team are focusing on bringing their operations to the same targets that we have.

讓我做一個非常簡短的評論，然後我會把它交給厄尼，約翰。我認為我們顯然對西部銀行擴大分支網絡以及將我們的數字銀行平台與他們的實體存在聯繫起來的能力感到非常興奮，他們做得很好。我認為我們有機會在關閉後儘早與他們合作。 Ernie 和她的團隊正專注於使他們的運營達到與我們相同的目標。

So I'll turn it over to Ernie for her comments on how that's going.

所以我會把它轉交給 Ernie，聽取她對進展情況的評論。

Thanks, Tayfun. Just a couple of comments on the legacy Bank of the West franchise. They did experience -- we did experience balances deteriorating largely due to some pricing and product choices that existed at that time. Remember now, they are not on our core platform. That will happen in September. But regardless of the fact that we're not on our platform, we are able to adjust a few things in the franchise, and we were able to adjust some pricing, some product offerings, some campaigns, and marketing to be able to introduce some changes that are more effective for that marketplace, and in fact, I've seen very strong results as a result of those changes.

謝謝，泰豐。只是對遺留的西方銀行特許經營權的一些評論。他們確實經歷過——我們確實經歷過平衡惡化，這在很大程度上是由於當時存在的一些定價和產品選擇。現在記住，它們不在我們的核心平台上。那將在九月發生。但不管我們不在我們的平台上，我們都能夠調整特許經營權中的一些東西，我們能夠調整一些定價、一些產品供應、一些活動和營銷，以便能夠引入一些對該市場更有效的變化，事實上，我已經看到這些變化帶來了非常強勁的結果。

We've reduced the attrition rates or migration out of various products, being able to support growth of dropping reductions by 30%, 40% because we've offered out different products at different price points. And that's been continuing through March to April and even through the past few weeks as we continue to monitor that. And we're impressed by the receptivity of the market and to the colleagues in the field that are able to present these offers to customers and be able to retain balances and grow at the same time.

我們已經降低了各種產品的流失率或遷移率，能夠支持下降減少 30%、40% 的增長，因為我們以不同的價格提供了不同的產品。這種情況一直持續到 3 月到 4 月，甚至在我們繼續監測的過去幾週內。我們對市場的接受度和該領域的同事印象深刻，他們能夠向客戶展示這些優惠並能夠保持平衡並同時增長。

Bank of the West represents about a 50% increase in the overall retail balances that we have in the U.S. And just a point back to the digital deposit taking. BMO stand-alone as a business or branch network performed very well over the past quarter, growing quarter-over-quarter and outperforming the market in terms of retaining balances.

西方銀行代表我們在美國擁有的總體零售餘額增加了約 50%，並且只是回到了數字存款吸收。 BMO 獨立作為一個業務或分支網絡在過去一個季度表現非常好，環比增長並且在保留餘額方面優於市場。

We have not yet fully deployed our digital deposit-taking capabilities across the 50 states. We've done a slow ramp-up. We'll continue to ramp that up over the remaining quarters as necessary, and that is proving to be very profitable, at the same time is driving balances into the franchise. So more to come on that front, but I'm really encouraged to see what's possible in the Bank of the West franchise with partial capabilities that BMO brings in and it only gets strengthened as we move past September through the conversion time period. So good overall strategy in the U.S. between the 1,000 branches we now have and the digital capabilities. So hopefully, John, that answers part of your question.

我們尚未在 50 個州全面部署我們的數字存款吸收功能。我們已經完成了緩慢的提升。我們將根據需要在剩餘的幾個季度繼續提高這一點，事實證明這是非常有利可圖的，同時正在推動特許經營權的平衡。在這方面還有更多的事情要做，但我真的很高興看到 BMO 帶來的部分能力在西方銀行特許經營中有什麼可能，而且它只會在我們經過轉換時間段的 9 月份後得到加強。在我們現在擁有的 1,000 家分支機構和數字能力之間，美國的整體戰略非常好。約翰，希望這能回答你的部分問題。

Our next question is from Meny Grauman with Scotiabank.

我們的下一個問題來自加拿大豐業銀行的 Meny Grauman。

There are a lot of interest in the outlook for your U.S. business, broadly speaking, the U.S. P&C business. Is the U.S. still as attractive a market as it was when you first announced Bank of the West back in December '21? What's your perspective on that?

人們對你們美國業務的前景很感興趣，從廣義上講，就是美國財產和意外險業務。美國是否仍像您在 2021 年 12 月首次宣布成立西方銀行時那樣具有吸引力？你對此有何看法？

Thanks for the question, Meny. My perspective is unambiguously yes. We play the long game, as you know. Look, the U.S. is the largest and most profitable banking market on the planet. And do we -- you have to make a decision, I suppose, in the first place, do you want to play there or not? And if you do, our view is that if you have a meaningful presence and you execute against that as we have for the last several years, you've seen us run a P&L that runs the same ROE and the same efficiency ratio in the U.S. as Canada, then you want to grow that. And it will go through cycles and some cycles will be a little bit more difficult than others.

謝謝你的問題，梅尼。我的觀點是明確的。如您所知，我們玩的是長期遊戲。看，美國是這個星球上最大、最賺錢的銀行市場。而且我們 - 我想你必須做出決定，首先，你是否想在那裡玩？如果你這樣做，我們的觀點是，如果你有一個有意義的存在並且你像我們過去幾年那樣執行它，你就會看到我們運行的損益表在美國運行相同的 ROE 和相同的效率比。作為加拿大，那麼你想要發展它。它會經歷一個週期，有些週期會比其他週期更難一些。

But my view is through time, and I think you're going to see it's going to get particularly exciting as we ramp up the next few quarters. The answer to your question is, emphatically, yes. And when you step back from it, Meny, -- when I step back from it, let me tell you, if I were to clean sheet it, I would say, what would you want in terms of your positioning in the U.S. market? You'd want to operate at scale. And so there, I'd refer you to Page 6 of our presentation where we show that we're in a pretty unique category of participants in the industry structure, number one. Number two, you'd want to be in markets where business is good and you can grow and you're good at it, and we point out that we're in 3 of the 5 largest markets in the U.S., 50 states digitally, that is differentiated. I give you my word on that relative to most of our regional banking competitors.

但我的觀點是隨著時間的推移，我認為隨著我們在接下來的幾個季度中加速發展，你會看到它會變得特別令人興奮。你的問題的答案是肯定的。當你退後一步時，梅尼 - 當我退後一步時，讓我告訴你，如果我要清理它，我會說，就你在美國市場的定位而言，你想要什麼？您希望大規模運營。因此，我建議您參閱我們演示文稿的第 6 頁，我們在其中展示了我們在行業結構中處於非常獨特的參與者類別中，排名第一。第二，你希望進入業務良好、可以成長並且擅長的市場，我們指出我們在美國 5 個最大市場中的 3 個，50 個數字州，那是有區別的。相對於我們大多數區域銀行業競爭對手，我向您保證。

And thirdly, ideally, you'd like it to be fully integrated into a bigger and broader North American business and balance sheet. And that's what we bring. And so in the Bank of the West, that's a general comment, I suppose, Meny. In particular, when we look at the comment I made to you last quarter when we had this conversation that the expectation is that we would deliver an incremental USD 2 billion of PPPT by the end of 2025, it's as a result of all of those things as we combine those businesses. And so far, keep in mind, we've owned that business for 79 business days, including U.S. weekends and holidays. And as I look out to fully synergizing the expenses by the end of only 3 quarters from now, first quarter of 2024 and then starting to build in the revenue synergies as we go through '24 and '25, I couldn't be more confident. I would say, I'm more confident today despite the environment. I'm more confident today than I was when we made the acquisition announcement.

第三，理想情況下，您希望它完全融入更大更廣泛的北美業務和資產負債表。這就是我們帶來的。所以在西方銀行，我想這是一般性評論，Meny。特別是，當我們看一下我在上個季度進行這次對話時對您發表的評論，即期望到 2025 年底我們將交付 20 億美元的增量 PPPT，這是所有這些事情的結果當我們合併這些業務時。請記住，到目前為止，我們已經擁有該業務 79 個工作日，包括美國周末和節假日。當我期待在從現在開始的僅 3 個季度末，即 2024 年第一季度，完全協同支出，然後在我們經歷 24 和 25 年時開始建立收入協同效應，我再自信不過了.我會說，儘管環境惡劣，但我今天更加自信。我今天比我們宣布收購時更有信心。

Understood. And just a follow-up, just on the regulatory side, which is definitely a concern for investors, it seems pretty reasonable that the Fed is going to have a regulatory response to the crisis that we've seen. So I'm just wondering how you view those risks specifically for BMO? There's regulatory uncertainty, but do you have a sense of how impactful the regulatory blowback, if you want to call it that, will be on BMO?

明白了。只是在監管方面的後續行動，這絕對是投資者關注的問題，美聯儲將對我們所看到的危機做出監管反應似乎是非常合理的。所以我只是想知道您如何看待 BMO 的這些風險？存在監管不確定性，但您是否了解監管反沖（如果您想稱之為反沖）對 BMO 的影響有多大？

Yes. No, I know what you're getting at, Meny. I would say as we've said to you, we are moving to a category 3 bank in the U.S. I'd also take you back to the fact that we've said we were always built in the U.S. for more scale and more customer throughput and more assets, and that's what we've brought to it. So whatever regulatory implications there are with the current environment, I feel very confident that we're built to be able to handle them as they come. I don't think you're going to see a radical shock to our architecture in the U.S. at all. In fact, we think we're built for it in the first place.

是的。不，我知道你在說什麼，Meny。我想說的是，正如我們已經對您說過的那樣，我們正在向美國的第 3 類銀行轉移。我還要帶您回到我們說過的事實，即我們一直在美國建立，以擴大規模和吸引更多客戶吞吐量和更多資產，這就是我們帶來的。因此，無論當前環境對監管有何影響，我都非常有信心，我們能夠在它們到來時應對它們。我認為您根本不會看到美國的建築發生根本性的衝擊。事實上，我們認為我們首先就是為此而建。

Are there any regulatory changes that you're expecting?

是否有任何您期望的監管變化？

None particularly, but it's always an evolving -- I mean I don't have any announcements to make on behalf of the Fed if that's what you're asking.

沒有什麼特別的，但它總是在不斷發展——我的意思是，如果你要問的話，我沒有代表美聯儲發表任何聲明。

Our next question is from Gabriel Dechaine with National Bank Financial.

我們的下一個問題來自 National Bank Financial 的 Gabriel Dechaine。

I'd like to follow up with that line of questioning, I guess. I know you can't talk about future regulation, if you have any thoughts there, I'd love to hear them. But just the FDIC levies that were announced a couple of weeks ago. I get to about USD 250 million cumulative impact of BMO, was that in the ballpark? You're also saying you're moving to the category 3, you're already built for that, that would suggest that you don't need to build additional liquidity.

我想我想跟進那一系列的問題。我知道你不能談論未來的監管，如果你有任何想法，我很想听聽。但只是幾週前宣布的 FDIC 徵稅。我得到 BMO 的累計影響約為 2.5 億美元，這在球場上嗎？你還說你正在轉向第 3 類，你已經為此做好準備，這表明你不需要建立額外的流動性。

And then finally, on Bank of the West, I'm just looking at the total balance sheet, loans plus deposits, I net out the fair value marks on loans and deposits. I'm still coming, I guess, 4% to 5% below where you expect it to be at least in the Q1 slide deck. Is that in the ballpark? And if so, how does that affect your accretion outlook?

最後，在西方銀行，我只是查看總資產負債表，貸款加存款，我扣除了貸款和存款的公允價值標記。我猜，我仍然會比你預期至少在第一季度幻燈片中的水平低 4% 到 5%。那是在棒球場嗎？如果是這樣，那將如何影響您的吸積前景？

Gabriel, this is Tayfun. So a series of questions there. In terms of the impact of the proposed FDIC assessment, that's probably going to be closer to $300 million. And in terms of any expected changes on liquidity management, et cetera, related to new regulatory restrictions; look, we operate our balance sheet as a $1.3 billion balance sheet and our liquidity management approach is really not based on only our U.S. presence. And I don't believe that there's going to be a significant change in the way we manage liquidity, whatever may come our way.

加布里埃爾，這是 Tayfun。那麼一連串的問題就出現了。就擬議的 FDIC 評估的影響而言，這可能會接近 3 億美元。以及與新監管限制相關的流動性管理等方面的任何預期變化；看，我們的資產負債表是 13 億美元的資產負債表，我們的流動性管理方法實際上不僅僅基於我們在美國的存在。而且我不認為我們管理流動性的方式會發生重大變化，無論我們的方式如何。

In terms of the transition from a category 4 bank to a category 3 bank, there will be some investments mostly related to operational readiness because there's going to be a change in the frequency of data transfers, there's going to be a change in the way we track single counter-party credit exposures, et cetera. So those will require some operational investments, but we know what they are, and we are well prepared to do that.

就從第 4 類銀行到第 3 類銀行的過渡而言，將會有一些投資主要與運營準備相關，因為數據傳輸頻率會發生變化，我們的方式也會發生變化跟踪單一交易對手信用風險等。因此，這些將需要一些運營投資，但我們知道它們是什麼，並且我們已做好充分準備。

In terms of the size of the Bank of the West balance sheet, most of that change occurred prior to closing day. And what happened in 2022 is, as you know, Bank of the West had significant excess liquidity on their balance sheet with their transactional deposits. They had no wholesale funding supporting the asset side.

就西方銀行資產負債表的規模而言，大部分變化發生在收盤日之前。如您所知，2022 年發生的事情是，西方銀行的資產負債表上的交易存款流動性顯著過剩。他們沒有支持資產方的批發資金。

So they basically were focused on maintaining and growing their margin, and they were willing to let go some of the deposits. That really is what constitutes the difference between their previous numbers versus the closing day balances. But again, from our perspective, that is not a huge impact. We're basically looking at similar type of expectations in terms of their overall performance and contribution to BMO. And as Ernie articulated, we now obviously have a much different focus going forward in terms of growing both deposit side of their balance sheet as well as the loan side of their balance sheet across all businesses.

所以他們基本上專注於維持和增加他們的利潤，他們願意放棄一些存款。這確實構成了他們之前的數字與收盤日餘額之間的差異。但同樣，從我們的角度來看，這並不是一個巨大的影響。我們基本上是在考慮他們的整體表現和對 BMO 的貢獻方面的類似期望。正如厄尼所闡明的那樣，我們現在顯然有一個非常不同的重點，即在所有業務中增加資產負債表的存款方面以及資產負債表的貸款方面。

Our next question is from Doug Young with Desjardins Capital Markets.

我們的下一個問題來自 Desjardins Capital Markets 的 Doug Young。

Just maybe to clarify on the Bank of the West versus last quarter and what we saw on Page 39. And the deposit side, I kind of get. The loan side looks a little bit lower than what you kind of threw in to last quarter slide deck. And so I'm just confused as to what the difference would be on the loan side?

也許只是為了澄清西方銀行與上個季度的對比以及我們在第 39 頁上看到的內容。我有點明白存款方面的情況。貸款方面看起來比你在上個季度的幻燈片中投入的要少一些。所以我只是對貸款方面的區別感到困惑？

So there is an impact on the mark, which is, I believe, a couple of billion dollars. And then in general, I would say there's really nothing unique or different about the loan side of their balance sheet, except that they're facing the same type of environment that we all are, a little bit of softer loan growth. And also, I would point out that transitions like these with large acquisitions, always tend to slow down new customer onboarding acquisition. So there's going to be a little bit slow out of the gate, but we expect that activity, especially post-conversion on Labor Day to normalize from the current level. So this is nothing unusual in terms of what we have been expecting.

所以對馬克有影響，我相信是幾十億美元。然後總的來說，我會說他們資產負債表的貸款方面真的沒有什麼獨特或不同的地方，除了他們面臨著與我們所有人相同類型的環境，貸款增長有點疲軟。而且，我要指出的是，像這樣的大型收購轉型，總是會減慢新客戶的獲取速度。因此，一開始會有點慢，但我們預計該活動，尤其是勞動節的轉換後活動將從當前水平正常化。因此，就我們一直期待的而言，這並不罕見。

Okay. I guess that's what I was looking for. And then, Tayfun, just on the hedge unwind and the impact and you walked through the details in your prepared remarks. And so maybe I'm a little confused on this. So I kind of get -- you get a negative hit from the unwind of the unrealized loss because you're kind of crystallizing that, but you're going to spread it over the period of time in which you flow through the marks. I thought that negative fit would be kind of closely matched with the loss -- or sorry, with the gain on the mark, but you're saying it's a net positive impact and it will...

好的。我想這就是我要找的。然後，Tayfun，就對沖放鬆和影響，你在準備好的評論中詳細介紹了細節。所以也許我對此有點困惑。所以我有點——你會因為未實現的損失的平倉而受到負面影響，因為你有點具體化，但你會在你流經標記的時間段內分散它。我認為負匹配會與損失緊密匹配——或者抱歉，與標記上的增益相匹配，但你說的是淨積極影響，它會……

Yes, it is -- it was a net positive this quarter. It will be net positive. It's probably going to get smaller and smaller as we go forward. And basically, what happened is the combination of the hedge position and unwinding those initial swaps, booking the gain against higher amount of goodwill and then overlaying new swaps against the treasuries that we had brought us back really to the day 1 announcement accretion numbers. So all that's left now for the next few years is for the net amount to accrete back. It's going to get smaller and smaller as the calendar moves forward.

是的，這是本季度的淨利好。這將是淨積極的。隨著我們的前進，它可能會變得越來越小。基本上，發生的事情是對沖頭寸和解除那些初始掉期的組合，將收益計入更高金額的商譽，然後將新的掉期與我們真正帶回第 1 天公告增長數字的國債疊加起來。因此，在接下來的幾年裡，現在剩下的就是淨額的增加。隨著日曆的推進，它會變得越來越小。

And can you remind me what the dollar figure you said, what was that dollar figure?

你能提醒我你說的美元數字是多少嗎？那個美元數字是多少？

It was $103 million pretax this quarter.

本季度稅前收入為 1.03 億美元。

Pretax. Yes. Okay. So when I think of the -- for Bank of the West, I think it was $317 million pretax pre-provision earnings from Bank of the West alone, that $103 million is embedded in that. Is that correct?

稅前。是的。好的。因此，當我想到 - 對於西方銀行而言，我認為僅西方銀行就有 3.17 億美元的稅前撥備前收益，其中包含 1.03 億美元。那是對的嗎？

Yes.

是的。

Okay. Okay. And then just clarification lastly, I apologize for the number of questions here. But negative operating leverage sounds like that's what you expect in fiscal '23, but I'm a little confused. So you expect to show some positive -- movement towards positive operating leverage toward the back half of this year or it's just going to be negative and in that fiscal '24 you're anticipating material positive operating leverage. Just want to get some clarification on how to think of it in the back half of this year.

好的。好的。最後只是澄清一下，對於這裡的問題數量，我深表歉意。但負經營槓桿聽起來就像你在 23 財年所期望的那樣，但我有點困惑。因此，您預計會在今年下半年表現出一些積極的積極運營槓桿，或者它只會是負面的，而在那個 24 財年中，您預計會有實質性的積極運營槓桿。只想在今年下半年澄清一下如何看待它。

Yes. So let me provide some clarification because with Bank of the West and without Bank of the West, these numbers tend to differ from each other. With Bank of the West in 2023, clearly, there is a larger negative operating leverage because of the dynamic of their expense base. And on a stand-alone basis, we still had negative operating leverage this quarter.

是的。所以讓我澄清一下，因為有西方銀行和沒有西方銀行，這些數字往往彼此不同。顯然，對於 2023 年的西方銀行，由於其費用基礎的動態變化，存在更大的負經營槓桿。單獨來看，本季度我們的經營槓桿仍然為負。

And overall, the expense trends actually are very much in line with what we expected coming to this year. We did actually say very early this year, we significantly curtailed sales -- headcount expansion. We changed the timing of some of our technology investments. So we anticipated that on a quarter-over-quarter basis this year, we would see either flat or declining expenses, and that's what we exactly have seen in the first quarter. Now in the second quarter, quarter-over-quarter, our expenses have declined.

總的來說，支出趨勢實際上非常符合我們對今年的預期。實際上，我們今年早些時候確實說過，我們大幅削減了銷售額——擴大員工人數。我們改變了一些技術投資的時間。因此，我們預計，在今年的季度環比基礎上，我們會看到支出持平或下降，而這正是我們在第一季度所看到的。現在在第二季度，環比，我們的開支有所下降。

What you're seeing in our negative operating leverage numbers is really the follow-through impact of the expenses that we added to our base last year. Once we -- when those are true, and they're going to be very shortly, we're going to be through them, our expense growth will decline towards low single digits and on a BMO stand-alone basis.

你在我們的負經營槓桿數字中看到的實際上是我們去年增加到我們的基礎上的費用的後續影響。一旦我們 - 當這些都是真實的，並且它們很快就會發生時，我們將通過它們，我們的費用增長將下降到較低的個位數，並且在 BMO 獨立的基礎上。

On top of it, you also now have the cost synergies that, especially towards the end of this year and to the first quarter of next year that are going to show up, which by itself has -- is going to create positive operating leverage. What we are now saying is, as we look at our expense base in a relatively weaker revenue environment, we also tend to make other expense decisions at BMO stand-alone in order to get back to our targeted efficiency ratio, which always was around 55%. We will continue to assess those. We'll make those decisions. And combined with the Bank of the West synergy pickup, these additional decisions that we are looking at we expect those to generate meaningful positive operating leverage in 2024.

最重要的是，你現在還擁有成本協同效應，尤其是在今年年底和明年第一季度將會出現，這本身就會產生積極的運營槓桿。我們現在要說的是，當我們在相對較弱的收入環境中審視我們的費用基礎時，我們也傾向於單獨在 BMO 做出其他費用決策，以回到我們的目標效率比率，該比率始終在 55 左右%。我們將繼續評估這些。我們會做出這些決定。結合西方銀行的協同效應，我們正在研究的這些額外決策預計將在 2024 年產生有意義的積極經營槓桿。

Our next question is from Scott Chan with Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 Scott Chan。

Maybe tapping just a couple of cleanup questions. I'm still going through it. But in terms of the Bank of the West contribution, they just hit your wealth management in U.S. P&C segment. Did that hit any other segment at all?

也許只需要幾個清理問題。我還在經歷它。但就西方銀行的貢獻而言，他們只是打擊了你在美國財產和意外險領域的財富管理。那有沒有擊中任何其他部分？

No, those are the 2 main points. And corporate obviously has some impact as well.

不，這是2個要點。企業顯然也有一些影響。

And just on corporate, I noticed the preferred equity dividend shot up to $95 million. In total, it was $127 million versus $38 million last quarter. Was that due to Bank of the West? And how do we see that going forward?

就公司而言，我注意到優先股股息飆升至 9500 萬美元。總計為 1.27 億美元，而上一季度為 3800 萬美元。是因為西方銀行嗎？我們如何看待未來的發展？

No. Actually -- yes, I think that really is dependent upon the frequency of the preferred dividend payments. Some of them are semiannual, some of them had different frequency. We actually are happy to share with you the details as to -- on a quarterly basis, what amount of preferred dividends we pay out. So we'll be able to give you the details for you to track that.

不，實際上——是的，我認為這真的取決於優先股息支付的頻率。有些是半年一次，有些頻率不同。實際上，我們很高興與您分享有關我們每季度支付多少優先股息的詳細信息。因此，我們將能夠為您提供詳細信息，以便您進行跟踪。

Yes, that would be super helpful. Just knowing nuances on every other quarter. And just lastly on capital. You talked about the first phase of the B3 reforms this quarter. Looking out to future quarters, do you have visibility if there's going to be net -- or negative -- net positive or negative impact on further phases?

是的，那會非常有幫助。只知道每隔一個季度的細微差別。最後是資本。你談到了本季度 B3 改革的第一階段。展望未來的幾個季度，如果對進一步的階段產生淨影響或負面影響，您是否能看到淨正面或負面影響？

So the next important date is the first quarter of next year. That's when the trading rules will come in. And then as you know, between now and the first quarter of 2026, the floor factor will go up by 2.5% every year. But the more important quarter of all for the next 3 years is probably going to be next year's first quarter, which is going to have a negative impact on capital and we will shortly share with you our assessment of what that may be once we conclude the work that's currently underway.

所以下一個重要的日期是明年第一季度。屆時交易規則將出台。如您所知，從現在到 2026 年第一季度，底線係數每年將上升 2.5%。但未來 3 年更重要的季度可能是明年的第一季度，這將對資本產生負面影響，我們將很快與您分享我們對可能發生的情況的評估，一旦我們結束目前正在進行的工作。

Our next question is from Paul Holden with CIBC.

我們的下一個問題來自 CIBC 的 Paul Holden。

A couple of questions for you. I guess, first, thanks for the additional detail on the CRE portfolio on Slide 30. And on that point, just hoping you can provide some more color around the exposure in California, just given the focus in that market, maybe you can give us a context of how much is office, how much might be more exposed to like San Francisco, L.A., sort of those regions that we're reading a whole lot about?

問你幾個問題。我想，首先，感謝幻燈片 30 上 CRE 投資組合的更多細節。在這一點上，只是希望你能提供更多關於加利福尼亞曝光的顏色，鑑於該市場的重點，也許你可以給我們有多少是辦公室，有多少可能更容易接觸到像舊金山、洛杉磯這樣我們經常閱讀的那些地區？

Sure. Thanks, Paul. So we've given the CRE portfolio overall, I would say is that on Page 30, you see 14% of our total CRE of $67 billion is in California. We haven't broken down within that specifically office or other areas, but I would say you can take a general mix of the broader portfolio of what we have. But when I step back, I would say that the strength of our CRE portfolio remains pretty strong.

當然。謝謝，保羅。所以我們已經給出了整體的 CRE 投資組合，我想說的是，在第 30 頁，你會看到我們 670 億美元的 CRE 總額中有 14% 在加利福尼亞。我們沒有在那個特定的辦公室或其他領域內進行細分，但我想說你可以對我們擁有的更廣泛的產品組合進行一般組合。但當我退後一步時，我會說我們的 CRE 投資組合的實力仍然非常強勁。

Within that, we've got a deep dive across all of our large properties and exposures and the office for BMO is 1% of the total book. So as you've seen in the disclosure, 10% of our CRE is office, which equates to 1%. We will, over time, obviously, provide more disclosure. But I think the jump-off point of the strength of the relationships we've built over the last 20, 30 years, both at BMO as well as at Bank of the West, actually, positions us very well. And so again, we added some California with the Bank of the West portfolios. But I feel very good about the quality. You can see that in our impairment book, there's a very normalized trend coming in. And we're watching the news and tracking with our borrowers, what's going on. So I wouldn't highlight any significant area of concern.

其中，我們深入了解了我們所有的大型資產和風險敞口，而 BMO 的辦公室佔總賬面的 1%。因此，正如您在披露中看到的那樣，我們 10% 的 CRE 是辦公室，相當於 1%。顯然，隨著時間的推移，我們將提供更多信息。但我認為，我們在過去 20 年、30 年中建立的強大關係的起點，無論是在 BMO 還是在西方銀行，實際上都讓我們處於非常有利的位置。因此，我們又在西部銀行的投資組合中增加了一些加利福尼亞州。但是我覺得質量很好。您可以在我們的減值賬簿中看到，出現了一種非常正常化的趨勢。我們正在觀看新聞並與我們的借款人一起跟踪發生了什麼。所以我不會強調任何重要的關注領域。

I would just also add that we've got the credit marks from the Bank of the West portfolio. We've got the opening provision. So despite a very high provision coverage overall, we have a significantly higher coverage on commercial real estate that we've been carrying for the past few quarters. So obviously, we'll track this. I think this is a topic which all of you and us are interested given all of the news. But where we are today, I feel very confident about the quality of our book.

我還要補充一點，我們已經從西方銀行的投資組合中獲得了信用標記。我們有開場白。因此，儘管總體撥備覆蓋率非常高，但我們在過去幾個季度一直在進行的商業房地產覆蓋率要高得多。很明顯，我們會跟踪這個。考慮到所有新聞，我認為這是您和我們所有人都感興趣的話題。但就我們今天的情況而言，我對我們的書的質量非常有信心。

Got it. Okay. Second question is with respect to commercial and corporate loan growth. It would be great to hear an update on how you're viewing or what your growth appetite looks like right now. Hearing a lot about regional -- U.S. regional banks pulling back in terms of credit underwriting standards. Wondering if you're slowing growth intentionally or if you're seeing less demand in certain pockets, maybe just a broad update there in U.S. and Canada would be helpful.

知道了。好的。第二個問題是關於商業和企業貸款增長。很高興聽到有關您的看法或您現在的增長胃口的最新情況。聽到很多關於區域性的信息——美國區域性銀行在信用承銷標準方面有所縮減。想知道您是否有意放緩增長，或者您是否看到某些領域的需求減少，也許只是美國和加拿大的廣泛更新會有所幫助。

Yes, sure. Let me begin and then maybe I'll ask Nadim to jump in from a business perspective. I think overall, you've seen our risk underwriting criteria. We're through the cycle lenders with deep relationships. And I think that continues the trend. We are not walking away from new lending or new relationship. It's really a function of the economy. And so you're seeing business activity slow down. So within that loan portfolio growth, there's a lot of recycling happening.

是的，當然。讓我開始，然後也許我會請 Nadim 從商業角度介入。我認為總體而言，您已經看到了我們的風險承保標準。我們正在經歷與深厚關係的貸款人的周期。我認為這會延續這種趨勢。我們不會放棄新的貸款或新的關係。這實際上是經濟的一個功能。因此，您會看到業務活動放緩。因此，在貸款組合增長中，發生了很多回收。

We are growing the book. I think growth will be slow coming off the back of all of the things you're hearing and seeing, probably in the mid-single digits, and then more focused on some of the other sectors, again, just from a balanced portfolio growth. But I'm pretty confident, just given the quality that growth will continue, albeit slower, just in line with any of the other banks.

我們正在發展這本書。我認為，在你所聽到和看到的所有事情的背後，增長將是緩慢的，可能是中等個位數，然後再次從平衡的投資組合增長中更加關注其他一些行業。但我非常有信心，只要考慮到增長將繼續的質量，儘管速度會放緩，但與其他任何一家銀行一樣。

I think with closing the Bank of the West acquisition now, you can see we are again in a position of capital strength. And so I think our relationship lending continues. And I think we've said to you in the past, 90% of those are sole bank, lead bank, and we expect we'll continue to capitalize on that.

我認為現在完成對西方銀行的收購，你可以看到我們再次處於資本實力的位置。所以我認為我們的關係貸款仍在繼續。我想我們過去曾對你說過，其中 90% 是獨家銀行、牽頭銀行，我們希望我們會繼續利用這一點。

Nadim, would you add something?

Nadim，你能補充點什麼嗎？

Yes, sure. I would say that if you look at the countries, North and South, U.S. is definitely slower than what we see in Canada. But we're still doing deals, and we're still doing loans. And there are pockets that when you look at agri, you look at food, we're still seeing good volumes there; dealer finance, media finance, there's good volumes in those as well. But areas where leverage finance or CRE, those are areas, of course, that have slowed down dramatically in the U.S. and will affect our growth. In Canada, those areas have slowed down as well, just not to the same degree.

是的，當然。我想說，如果你看看南北國家，美國肯定比我們在加拿大看到的要慢。但我們仍在做交易，我們仍在做貸款。還有一些口袋，當你看農業，你看食物時，我們仍然看到那裡的數量很大；經銷商金融、媒體金融，這些領域也有不錯的交易量。但是，在利用金融或 CRE 的領域，這些領域當然在美國已經大幅放緩，並將影響我們的增長。在加拿大，這些地區也有所放緩，只是程度不同。

So as Piyush said, we're still growing, we're still doing deals. The volumes are down as they would be in any cycle, but our risk appetite, as Piyush said, and I'll just back up one more time and say it, is that we go through cycles, we're not in and out of industries. But we are looking at capital, we are looking at risk optimization and return, and we are looking at long-term relationships, and that's how we get through cycles time and time again.

因此，正如 Piyush 所說，我們仍在增長，我們仍在進行交易。交易量在任何週期中都會下降，但正如 Piyush 所說，我們的風險偏好是，我會再備份一次，說的是，我們經歷了周期，我們沒有進進出出行業。但我們看的是資本，我們看的是風險優化和回報，我們看的是長期關係，這就是我們一次又一次度過週期的方式。

Our next question is from Mario Mendonca with TD Securities.

我們的下一個問題來自道明證券的 Mario Mendonca。

In the past, when a particular asset class came under some pressure, the banks have given us some outlook on the loss content in that particular asset class. Comments were around, hey, in a stressed environment, we could see X 100 basis points of loss content or some of that effect. Is there any way to size that in the context of commercial real estate as a whole and maybe office specifically? In a stressed environment, have you given some thoughts to what the loss content in those businesses could be? I appreciate that these are not massive parts of BMO's portfolio, overall loans, but it would be helpful to get some outlook there.

過去，當某個資產類別受到一些壓力時，銀行會給我們一些關於該資產類別損失內容的展望。周圍的評論是，嘿，在壓力大的環境中，我們可以看到 X 100 個基點的損失內容或某些影響。有沒有什麼方法可以在整個商業房地產（尤其是辦公室）的背景下進行調整？在壓力大的環境下，您是否考慮過這些業務的損失內容是什麼？我很欣賞這些不是 BMO 投資組合的大部分，整體貸款，但在那裡獲得一些前景會有所幫助。

Yes. Thanks again, Mario. It's Piyush. I would begin by saying that we've come off a very benign cycle. And so in the early parts of this year, we've been hinting to you or telling you actually outright that we're normalizing. And so these trends are really normalizing versus stress. Now having said that, from a risk management perspective, we have a good discipline of regularly stress testing our portfolios over time, when the normal loss rates have been 0 to 1 basis point in commercial real estate for us over the last 8, 10 years. And I just said, we are significantly over-provisioned compared to that loss rate. I feel pretty good about where we are headed.

是的。再次感謝，馬里奧。是皮尤什。我首先要說的是，我們已經結束了一個非常良性的循環。因此，在今年年初，我們一直在向您暗示或直接告訴您我們正在正常化。因此，這些趨勢確實是正常化而不是壓力。話雖如此，從風險管理的角度來看，我們有一個很好的紀律，隨著時間的推移定期對我們的投資組合進行壓力測試，而在過去的 8 年、10 年裡，我們的商業房地產的正常損失率為 0 到 1 個基點.我剛剛說過，與損失率相比，我們的供應嚴重過剩。我對我們的前進方向感覺很好。

So unlike some of the news items you hear, there is a large stratification within commercial real estate; the preponderance of multifamily, which is doing very well, single family. But yes, we have looked at office. Again, I'll reiterate, office is 1% of our book. Within the 1%, as you look at the disclosure between REITs and medicals that are doing extremely well. I can then segment down to certain office classes, A, B or C in urban and suburban, and we've done a deep dive. So in our stress test, we don't see any immediate worries now, but we know there is blood in the water. There will be impacts as rates rise, as cap rates change. And so in due course, we'll come back, and you'll see those in the results if there is something that is of a higher concern.

因此，與您聽到的某些新聞不同，商業地產內部存在很大的分層；多戶家庭的優勢，單戶家庭做得很好。但是，是的，我們看過辦公室。我再次重申，辦公室占我們賬面的 1%。在 1% 之內，當你查看 REITs 和表現非常好的醫療產品之間的披露時。然後，我可以細分到城市和郊區的某些辦公級別，A、B 或 C，我們已經進行了深入研究。所以在我們的壓力測試中，我們現在沒有看到任何直接的擔憂，但我們知道水中有血。隨著利率上升，上限利率發生變化，將會產生影響。所以在適當的時候，我們會回來，如果有更值得關注的事情，你會在結果中看到這些。

If you go back to the 30-year history, our loss rates overall are 30 basis points across the portfolio. In that, some stresses here and there. But at the moment, I don't have much more to offer other than we feel very confident about our overall portfolio.

如果你回顧 30 年的歷史，我們整個投資組合的總體損失率為 30 個基點。在那，有些強調。但目前，除了我們對我們的整體投資組合非常有信心之外，我沒有太多可以提供的了。

Did you say 13 or 30 basis points of losses over the last 30 years in commercial real estate?

你是說過去 30 年商業地產損失了 13 或 30 個基點？

No, we said overall across the entire portfolio, it's 3-0, 30 basis points. And we're coming off the benign cycle, and so you're seeing our loss rate this quarter at 16 basis points unimpaired. So we are still a long way to the normalized average before we start thinking about stress.

不，我們說整個投資組合的整體是 3-0，30 個基點。我們正在走出良性循環，所以你看到本季度我們的損失率為 16 個基點，沒有受到影響。因此，在我們開始考慮壓力之前，我們距離標準化平均值還有很長的路要走。

Well, I don't want to put words in your mouth, but it sounds like what you're saying is that the loss content on your commercial real estate and on office based on the work you've done to date, the loss content is still very, very modest. That seems to be the message you're sending, unless I'm misinterpreting it.

好吧，我不想把話說到你嘴裡，但聽起來你的意思是根據你迄今為止所做的工作，你的商業地產和辦公室的損失內容，損失內容還是很謙虛的。這似乎是您要發送的消息，除非我誤解了它。

No, that is correct. The loss content from the performance we have seen and the formations and the early watchlist we have, we feel pretty strongly about it.

不，這是正確的。我們所看到的表現以及我們擁有的編隊和早期觀察名單的損失內容，我們對此感到非常強烈。

Our next question is from Lemar Persaud with Cormark.

我們的下一個問題來自 Lemar Persaud 和 Cormark。

Maybe just to start off, I just want to summarize one of the prior answers to the loan growth question. Would it be -- I'm going to ask you very directly, would it be fair to suggest that BMO has not changed any of its underwriting standards in the U.S. or Canada? And then if that's true, then would it be fair to suggest that in the commercial loan growth in the U.S., excluding Bank of the West, so that sequential decline, I think it was 4%, should reverse in future quarters because sometimes since we've seen commercial loan growth this soft excluding perhaps some like onetime negative impacts in the U.S. like PPPT runoff or et cetera. So I just want to be really clear on that part.

也許只是開始，我只想總結一下之前對貸款增長問題的回答之一。會不會——我要非常直接地問你，建議 BMO 沒有改變其在美國或加拿大的任何承保標準是否公平？然後，如果這是真的，那麼建議在美國的商業貸款增長中（不包括西方銀行）是否公平，所以連續下降，我認為是 4%，應該在未來幾個季度逆轉，因為有時我們已經看到商業貸款增長如此疲軟，可能排除了美國曾經的負面影響，如 PPPT 徑流等。所以我只想在這方面說清楚。

Yes. Piyush, again. I'd say that the risk appetite is a through-the-cycle risk appetite and our risk underwriting hasn't changed. Now in that, given seasonality, given cyclical trends, we'll tend to overstress more of the underwriting at origination. But this really is much more a function of the market than it is a function of us in that market. And so loan growth demand is slowing down. You're seeing that across the banks, you're seeing across sectors. And so as economic activity picks up, as there's more confidence in the market, I think we'll start to see more originations, and we'll be there for our clients.

是的。又是皮尤什。我會說風險偏好是貫穿整個週期的風險偏好，我們的風險承保沒有改變。現在，考慮到季節性，考慮到週期性趨勢，我們往往會在發起時過分強調更多的承保。但這實際上更多地是市場的功能，而不是我們在該市場中的功能。因此，貸款增長需求正在放緩。你看到跨銀行，你看到跨部門。因此，隨著經濟活動的回升，隨著市場信心的增強，我認為我們將開始看到更多的起源，我們將為我們的客戶服務。

We continue to, like I said, managed through the cycle in that risk appetite. We managed through our concentration risk management and all of those have held us in good stead over the many years, and we don't plan to change any of that.

就像我說的那樣，我們繼續在風險偏好的周期中進行管理。我們通過集中風險管理進行管理，多年來所有這些都對我們有利，我們不打算改變其中任何一個。

Otherwise put -- Lemar, it's Darryl, just to help on the question. I think in time, you'll be exactly right. The question is how much time will it take for you to be exactly right? Meaning, the vast majority of the catalyst for the decline in loan growth is, in fact, if not the entirety of it, is demand, it's the market. We haven't changed underwriting standards, and we don't change our approach to managing our clients.

換句話說——勒馬爾，我是達里爾，只是為了幫助解決這個問題。我想及時，你會是完全正確的。問題是你需要多少時間才能完全正確？意思是，貸款增長下降的絕大部分催化劑，事實上，如果不是全部，是需求，是市場。我們沒有改變承保標準，也沒有改變我們管理客戶的方法。

And so as we work through this phase of softening economic activity, that should be the outcome. As that phase turns, then you should see a return to positive loan growth for us, particularly in commercial. And as you know, our strategy has always been in good markets when loans are growing broadly in the industry and commercial in both Canada and the U.S. Our strategy is to outperform that market when that occurs, and that would be our intent today. No change.

因此，當我們努力度過經濟活動疲軟的這個階段時，結果應該是這樣。隨著那個階段的轉變，你應該會看到我們的貸款恢復正增長，尤其是在商業領域。如您所知，當加拿大和美國的工業和商業貸款廣泛增長時，我們的戰略一直是在良好的市場中。我們的戰略是在這種情況發生時超越該市場，這將是我們今天的意圖。不用找了。

And then my next question, I want to turn to U.S. P&C margins. If I'm looking at your waterfall on Slide 14, it seems to suggest that excluding Bank of the West, margins have turned negative on the stand-alone business, if you will. It looks like it was a rapid shift in deposit margins comparing this waterfall versus last quarter's. Deposit margins turned to a negative drag on NIMs. Was this directly related to the U.S. regional bank turmoil? And then could you talk to the outlook for U.S.-specific retail NIMs, just as a means for my modeling?

然後是我的下一個問題，我想談談美國的 P&C 利潤率。如果我在幻燈片 14 上查看您的瀑布，它似乎表明不包括西方銀行，如果您願意的話，獨立業務的利潤率已經變為負值。與上一季度的瀑布相比，存款利潤率似乎發生了快速變化。存款利差轉而對 NIM 造成負面拖累。這是否與美國地區銀行業的動盪直接相關？然後你能談談美國特定零售 NIM 的前景，作為我建模的一種方式嗎？

Yes. So there are 2 elements here. You are seeing actually what the Bank of the West contribution was to U.S. P&C NIM. We're quite pleased with pretty healthy contribution to our margins. The impact of faster deposit repricing clearly has an element of very strong competitive markets in the U.S. with respect to deposit rates. We try to sort of maintain a stable approach to how we price our deposits. But the market over the past 90 days has accelerated and we are feeling the impact of that on our margins.

是的。所以這裡有兩個元素。您實際上看到了西方銀行對美國 P&C NIM 的貢獻。我們對利潤率的健康貢獻感到非常滿意。更快的存款重新定價的影響顯然具有美國競爭非常激烈的市場在存款利率方面的因素。我們試圖在某種程度上保持穩定的方法來為我們的存款定價。但過去 90 天市場加速增長，我們感受到了它對我們利潤率的影響。

There's also an element of migration to term deposits, which looks a bit more stronger in Canada. But in Canada, it's actually coming slowly to an end. Probably, over the next couple of quarters, we'll run through the migration impact on Canadian margins. In the U.S., my expectation is that until the market achieves that balanced picture, we will probably continue to see more faster repricing of both commercial and retail deposits. I suspect by the end of this year, with also the Fed hopefully coming to the end of their rate increase cycle, that pressure will come off.

還有向定期存款遷移的因素，這在加拿大看起來更為強勁。但在加拿大，它實際上正在慢慢結束。在接下來的幾個季度裡，我們可能會經歷移民對加拿大利潤率的影響。在美國，我的預期是，在市場實現平衡之前，我們可能會繼續看到商業和零售存款的重新定價速度更快。我懷疑到今年年底，美聯儲也有望結束加息週期，這種壓力將會減輕。

So it sounds like then relative to that 3.96%, we could see that come down a bit. And then hopefully, switch course in 2024. Is that fair?

所以聽起來相對於 3.96%，我們可以看到它有所下降。然後希望在 2024 年改變路線。這公平嗎？

Yes, but not meaningfully. I mean, as I look ahead, both in Canada as well as in the U.S., we are seeing a fairly stable net interest margin in our P&C businesses and the same message holds true for our consolidated margin as well. So we're not expecting significant pressure on these margins.

是的，但意義不大。我的意思是，展望未來，無論是在加拿大還是在美國，我們的 P&C 業務的淨息差都相當穩定，同樣的信息也適用於我們的綜合利潤率。因此，我們預計這些利潤率不會承受重大壓力。

We have no more further time for questions. I will now turn back the meeting over to Darryl White.

我們沒有更多的時間提問了。我現在將會議轉回 Darryl White。

Well, thank you, operator, and thank you all for your questions. I have 2 important thoughts to close the meeting with. One is to remind us all that BMO's highly diversified business mix, strong foundation built on the strength, size, stability of our balance sheet, and fortified by our superior risk, liquidity and capital management is built to perform in any environment.

好吧，謝謝接線員，也謝謝大家的提問。我有兩個重要的想法來結束會議。一是提醒我們所有人，BMO 高度多元化的業務組合，建立在我們資產負債表的實力、規模和穩定性基礎上的堅實基礎，以及我們卓越的風險、流動性和資本管理所鞏固的基礎，可以在任何環境下發揮作用。

And second, before we close the call, I want to take a moment to recognize while he's here with us in the room, Dave Casper, who is retiring next month after over 40 years of service with BMO. Dave, as you all know, has been instrumental in BMO's growth, particularly, but not exclusively, in the United States and under his leadership, our commercial banking businesses have become a top 5 commercial lender on the continent. Dave has also played, as you all know, a very key role in the acquisition of the Bank of the West and has been a staunch supporter of all the communities we serve, but particularly the great city of Chicago. So I'll always be grateful for Dave's legacy of outstanding leadership at BMO.

其次，在我們結束電話會議之前，我想花點時間來認識一下戴夫·卡斯珀 (Dave Casper)，他在 BMO 工作了 40 多年，他將在下個月退休。眾所周知，Dave 對 BMO 的發展起到了重要作用，尤其是但不僅限於在美國，在他的領導下，我們的商業銀行業務已成為該大陸前 5 大商業銀行。眾所周知，戴夫在收購西部銀行的過程中也發揮了非常關鍵的作用，並且一直是我們服務的所有社區的堅定支持者，尤其是偉大的芝加哥市。因此，我將永遠感謝 Dave 在 BMO 出色的領導力。

With that, I thank you all for participating, and we look forward to speaking to you again in August. Thanks, everyone.

至此，我感謝大家的參與，我們期待在 8 月再次與您交談。感謝大家。

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。請此時斷開您的線路，我們感謝您的參與。