Bank of Montreal (BMO) 2022 Q2 法說會逐字稿

Good morning, and welcome to the BMO Financial Group Q2 2022 Earnings Release and Conference Call for May 25, 2022. Your host for today is Christine Viau. Please go ahead.

早安，歡迎參加 2022 年 5 月 25 日舉行的 BMO 金融集團 2022 年第二季財報發布和電話會議。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 Pat Cronin, Our Chief Risk Officer.

謝謝你，早安。我們將從 BMO 執行長 Darryl White 的演講開始今天的電話會議；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)。

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.

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.

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。

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.

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。

Darryl and Tayfun will be referring to adjusted results in their remarks unless otherwise noted as reported. And with that, I'll turn the call over to Darryl.

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。然後，我會將電話轉給達裡爾。

Thank you, Christine, and good morning, everyone. We continued to deliver good financial performance this quarter, driven by broad-based customer loan growth in our North American P&C and wealth businesses and solid results in our market-sensitive businesses.

謝謝克里斯汀，大家早安。在北美財產險和財富業務廣泛的客戶貸款成長以及市場敏感業務的穩健業績的推動下，本季度我們繼續實現了良好的財務業績。

Second quarter adjusted earnings per share improved to $3.23, with continued positive operating leverage and strong pre-provision pretax earnings growth of 6%.

第二季調整後每股盈餘提高至 3.23 美元，營運槓桿持續保持正值，撥備前稅前收益強勁成長 6%。

Year-to-date, PPPT is up 12%, driven by strong revenue growth and continued expense management that includes targeted investments for future growth. With operating leverage of 3.3% and an efficiency ratio of 54.7% year-to-date, we are delivering on our commitment for positive operating leverage for the year.

今年迄今為止，在強勁的收入成長和持續的費用管理（包括針對未來成長的目標投資）的推動下，PPPT 成長了 12%。年初至今，我們的營運槓桿率為 3.3%，效率率為 54.7%，我們正在兌現今年實現積極營運槓桿的承諾。

This morning, we also announced a dividend increase of $0.06 to $1.39 per share, an increase of 5% over last quarter and 31% over last year. We continued to strengthen our capital, including executing the planned equity issuance and are well positioned to support both client-driven balance sheet growth and the Bank of the West acquisition. ROE remains our key area of focus, guiding our strategic investment decisions as we manage the bank on our businesses for sustained profitable growth.

今天早上，我們也宣布將每股股息增加 0.06 美元至 1.39 美元，比上季增加 5%，比去年增加 31%。我們繼續增強資本，包括執行計劃的股票發行，並做好充分準備來支持客戶驅動的資產負債表成長和西方銀行的收購。淨資產收益率仍然是我們關注的重點領域，在我們管理銀行業務以實現持續盈利增長時指導我們的策略投資決策。

Year-to-date, ROE was 17.2%, up from the same period last year as we continue to drive initiatives to improve the profitability of our businesses.

年初至今，隨著我們持續推動提高業務獲利能力的舉措，淨資產收益率為 17.2%，高於去年同期。

These consistent results demonstrate the ongoing value of our advantaged business mix, including strong contribution from our U.S. segment and the dynamic execution of our purpose-driven strategy.

這些一致的結果證明了我們優勢業務組合的持續價值，包括我們美國部門的強勁貢獻以及我們目標驅動策略的動態執行。

Our strategy is designed to deliver sustained performance through the cycle, including disciplined capital allocation decisions. Our ongoing investments in talent and technology have delivered resilient performance through the pandemic and we believe will drive sustained performance in a rising rate environment.

我們的策略旨在整個週期內提供持續的業績，包括嚴格的資本配置決策。我們對人才和技術的持續投資在疫情期間實現了富有彈性的業績，我們相信這將在利率上升的環境中推動持續的業績。

The current backdrop presents both risks and opportunities for our customers and for the bank. In the face of some economic uncertainty, our long-standing track record of superior risk management through the cycle has proven to be resilient in protecting and growing the bank. It's underpinned by a strong risk culture and consistent risk appetite with a well-diversified commercial portfolio that is 85% secured, the vast majority of which has a sole or lead customer relationship.

目前的背景為我們的客戶和銀行帶來了風險和機會。面對一些經濟不確定性，我們在整個週期內的卓越風險管理的長期記錄已被證明在保護和發展銀行方面具有彈性。它以強大的風險文化和一致的風險偏好為基礎，並擁有 85% 安全的多元化商業投資組合，其中絕大多數擁有唯一或主要客戶關係。

Now with pandemic restrictions largely lifted, the economy is growing and businesses and consumers continue to adapt. Investments in our North American growth strategy, in climate transition and in digital advancements position us to capture these opportunities as we support our customers in navigating the changing environment.

現在，隨著疫情限制的基本解除，經濟正在成長，企業和消費者也持續適應。對北美成長策略、氣候轉型和數位化進步的投資使我們能夠在支持客戶應對不斷變化的環境時抓住這些機會。

As the eighth largest bank and a top 5 commercial lender in North America, we're uniquely positioned to advise our clients on both sides of the border as the trend to re-globalization accelerates.

作為北美第八大銀行和北美前 5 名商業貸款機構，隨著重新全球化趨勢的加速，我們擁有獨特的優勢為邊境兩側的客戶提供建議。

As supply chains shift North American businesses are investing, automating and building back inventories.

隨著供應鏈的轉變，北美企業正在投資、實現自動化和重建庫存。

With double-digit commercial loan growth in both Canada and the U.S. this quarter, we're already seeing these dynamics play out. We further -- we're further benefiting from ongoing investments to expand our commercial presence, to add talent and extend product and digital capabilities that are attracting new clients and strengthening existing relationships. Our capital markets and commercial banking teams together are accelerating efforts to successfully partner to deliver world-class capital market services to our mid-market commercial clients. Our one client, one bank approach is a clear differentiator for existing and prospective clients.

隨著本季加拿大和美國商業貸款的兩位數成長，我們已經看到這些動態正在發揮作用。我們進一步 - 我們進一步受益於持續的投資，以擴大我們的商業存在，增加人才並擴展產品和數位能力，從而吸引新客戶並加強現有關係。我們的資本市場和商業銀行團隊正在加緊努力，成功合作，為我們的中端市場商業客戶提供世界級的資本市場服務。我們的「一客戶一銀行」方式對於現有客戶和潛在客戶來說是一個明顯的區別。

We've also positioned ourselves for the unprecedented investments that will be needed to catalyze climate action and shift to a cleaner energy production.

我們也為推動氣候行動和轉向清潔能源生產所需的前所未有的投資做好了準備。

We're leading key financing activities, leveraging our climate institute and energy transition teams to be our clients' lead partner in achieving their energy transition goals and our collective ambition for a net zero world.

我們正在領導關鍵的融資活動，利用我們的氣候研究所和能源轉型團隊成為客戶的主要合作夥伴，以實現他們的能源轉型目標和我們對淨零世界的集體雄心。

BMO Capital Markets is a Canadian leader in sustainable financings, including ranking as the top underwriter of ESG bonds and the #1 sustainability structuring agent.

BMO 資本市場是加拿大永續融資領域的領導者，包括排名第一的 ESG 債券承銷商和排名第一的永續發展結構代理商。

In addition, our agreement with Export Development Canada will bring innovative sustainable finance solutions to Canadian exporting businesses and help them transition from carbon-intensive operations to those that can eliminate or significantly reduce emissions.

此外，我們與加拿大出口發展局達成的協議將為加拿大出口企業帶來創新的可持續金融解決方案，幫助他們從碳密集型業務過渡到可以消除或大幅減少排放的業務。

And as the market share leader in ESG ETFs in Canada, we continue to expand our innovative suite of products, including a climate-focused solution and are also seeing strong flows in our sustainable mutual funds. We're innovating for the future with an intentional digital-first strategy poised to capture the shift to advanced digital experiences. We've laid the groundwork with sustained investments in technology that are driving loyalty, efficiency and growth by delivering leading employee and customer experiences that power real financial progress.

作為加拿大 ESG ETF 市場份額的領導者，我們不斷擴展我們的創新產品組合，包括以氣候為中心的解決方案，我們的永續共同基金也出現了強勁的資金流動。我們正在透過有意的數位優先策略為未來進行創新，準備抓住向先進數位體驗的轉變。我們透過對科技的持續投資奠定了基礎，透過提供領先的員工和客戶體驗來推動真正的財務進步，從而提高忠誠度、效率和成長。

For example, we're continuing to roll out enhancements to our online banking experience in Canada, making it faster and easier to use. And we recently ranked first in the Insider Intelligence Canada Mobile Banking Emerging Features Benchmark for 2022. The ranking reflected the strength of select emerging features offered on the BMO mobile banking app with top marks in the categories of digital money management, account management and alerts.

例如，我們將繼續增強加拿大的網路銀行體驗，使其更快、更易於使用。我們最近在2022 年Insider Intelligence 加拿大行動銀行新興功能基準中排名第一。該排名反映了BMO 行動銀行應用程式提供的精選新興功能的實力，在數位貨幣管理、帳戶管理和提醒類別中獲得最高分。

We continue to modernize our technology through cloud. For example, we're converting to a proprietary platform to support risk management analytics, which makes forecasting loan loss scenarios 10x faster, more integrated and cost effective. Our people are key to our success and our winning culture. Early adoption of technology and innovation has given us the ability to attract and retain the talent that will transform banking and create efficiency for modernizing our platforms. We're actively growing in key technology hubs in Canada and the U.S. including in cities where the Bank of the West has locations. Bank of the West will further enhance our natural advantages with complementary retail, wealth and commercial businesses; a strong, sustainable lending team; digitally active customer base; and dedicated, talented employees. Tayfun will provide more detail on our integration planning process and the revenue synergies that our combined businesses are expected to deliver.

我們繼續透過雲端實現技術現代化。例如，我們正在轉換為支援風險管理分析的專有平台，這使得預測貸款損失情境的速度提高了 10 倍，更加整合且更具成本效益。我們的員工是我們成功和致勝文化的關鍵。早期採用技術和創新使我們能夠吸引和留住人才，從而實現銀行業轉型並提高平台現代化的效率。我們正在加拿大和美國的關鍵技術中心積極發展，其中包括西方銀行設有分行的城市。西部銀行將進一步增強零售、財富、商業業務優勢互補的天然優勢；強大、可持續的貸款團隊；數位活躍的客戶群；以及敬業、才華洋溢的員工。 Tayfun 將提供有關我們的整合規劃流程以及合併後的業務預計將帶來的收入協同效應的更多詳細資訊。

As we continue to grow the bank, we're steadfast in our purpose-driven commitments to a thriving economy, a sustainable future and an inclusive society. We're proud to have been recognized by the Ethisphere Institute as one of the world's most ethical companies for the fifth consecutive year.

隨著銀行的不斷發展，我們堅定不移地致力於實現繁榮的經濟、永續的未來和包容性社會。我們很榮幸連續第五年被道德村協會評為全球最具道德的公司之一。

This quarter, we announced a $5 billion commitment to support women business owners in Canada, recognizing the impact they have on our communities and the importance of helping them access the capital they need to grow their businesses and through them, our economy.

本季度，我們宣布承諾提供 50 億加元支持加拿大的女性企業主，認識到她們對我們社區的影響，以及幫助她們獲得發展業務並透過她們發展我們的經濟所需的資本的重要性。

To conclude, we have a proven dynamic purpose-driven strategy for growth that is underpinned by superior risk management and robust capital, and we're well positioned to deliver sustained performance in any environment.

總而言之，我們擁有經過驗證的動態目標驅動成長策略，以卓越的風險管理和穩健的資本為基礎，並且我們有能力在任何環境下實現持續的績效。

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 10. Second quarter reported EPS was $7.13 and net income was $4.8 billion. Adjusting items this quarter are similar to last quarter and include revenue of $3.6 billion pretax from fair value management activities related to the acquisition of Bank of the West to mitigate the impact of higher interest rates on the expected goodwill and capital at closing.

謝謝你，達裡爾。早安，感謝您加入我們。我的評論將從幻燈片 10 開始。第二季報告的每股收益為 7.13 美元，淨利潤為 48 億美元。本季的調整項目與上季類似，包括與收購西方銀行相關的公允價值管理活動的稅前收入 36 億美元，以減輕利率上升對預期商譽和交易結束時資本的影響。

The details of adjusting items are shown on Slide 36. The remainder of my comments will focus on adjusted results.

調整項目的細節如投影片 36 所示。我的其餘評論將集中在調整結果上。

On an adjusted basis, EPS was $3.23 and net income was $2.2 billion, up from $2.1 billion last year, driven by strong pre-provision pretax earnings of $2.9 billion, up 6%, reflecting good year-over-year revenue growth across our diversified businesses and disciplined dynamic expense management.

調整後每股收益為3.23 美元，淨利潤為22 億美元，高於去年的21 億美元，這主要得益於撥備前稅前盈利29 億美元，增長6%，反映出我們多元化業務的年比收入成長良好業務和嚴格的動態費用管理。

Efficiency improved to 55.6% and return on equity was 15.7%. Total PCL was $50 million, and Pat will speak to these in his remarks.

效率提高至 55.6%，股本報酬率為 15.7%。 PCL 總額為 5000 萬美元，帕特將在演講中談到這些問題。

Moving to the balance sheet on Slide 11. Average loans were up 9% year-over-year and 3% quarter-over-quarter. Business and government loans increased 10% year-over-year or 13% excluding the impact of declining balances in our non-Canadian energy portfolio and deconsolidation of our customer securitization vehicle reflecting strong commercial loan growth in Canada and the U.S.

轉到投影片 11 上的資產負債表。平均貸款年增 9%，季增 3%。商業和政府貸款年增 10%，不包括我們的非加拿大能源投資組合餘額下降以及客戶證券化工具分拆的影響（反映出加拿大和美國商業貸款的強勁增長），同比增長 13%。

Consumer balances were up 9% from the prior year, reflecting strong growth in our Canadian P&C and wealth businesses. Average customer deposits were up 7% year-over-year with growth across all operating groups.

消費者餘額比上年增長 9%，反映出我們加大財產保險和財富業務的強勁增長。隨著所有營運集團的成長，平均客戶存款年增 7%。

Looking ahead, we expect continued strong loan growth in our P&C businesses in the high single digits on a year-over-year basis reflecting strong diversified pipelines.

展望未來，我們預期財產險業務的貸款年增將持續維持高個位數強勁成長，反映出強勁的多元化管道。

Turning to Slide 12. Net interest income was up 9% from last year and up 12% on an ex-trading basis with growth across all operating groups. Adjusted net interest margin ex trading was up 5 basis points from the prior quarter, reflecting the impact of rising rates, declining excess liquidity levels and lower low-yielding assets in capital markets.

轉向幻燈片 12。淨利息收入較去年增長 9%，除交易外的基礎上增長 12%，所有營運集團均實現增長。調整後交易淨利差較上季上升 5 個基點，反映了利率上升、過剩流動性水準下降以及資本市場低收益資產下降的影響。

On a sequential basis, margin was down 2 basis points in Canadian P&C and up 1 basis point in U.S. P&C, reflecting higher deposit margins, offset by lower loan margins and loans growing faster than deposits.

與上一季相比，加拿大財產和意外險的保證金下降了2 個基點，美國財產和意外險的保證金上升了1 個基點，反映出存款利差較高，但被較低的貸款利差和貸款增速快於存款所抵消。

In the second half of the year, NIM in both our P&C businesses and at the all bank level is expected to widen given the rising rate environment.

下半年，鑑於利率上升的環境，我們的財產保險業務和整個銀行層面的淨利差預計將擴大。

Moving to our interest rate sensitivity on Slide 13. Overall, our interest rate risk management approach has worked very well, protecting our NIM in the low rate environment. And now we remain well positioned for the rising rate environment. A 100 basis point rate shock is expected to benefit net interest income by $635 million over the next 12 months.

轉到投影片 13 上我們的利率敏感度。總體而言，我們的利率風險管理方法非常有效，在低利率環境下保護了我們的淨利差。現在，我們在利率上升的環境中仍處於有利地位。預計未來 12 個月，100 個基點的利率衝擊將使淨利息收入增加 6.35 億美元。

Although still early in the rate hike cycle, to date, our deposit pricing and stability has tracked in line with or better than our model assumptions.

儘管仍處於升息週期的早期，但迄今為止，我們的存款定價和穩定性已符合或優於我們的模型假設。

If deposit betas are 10% lower than what we have assumed, then the benefit under a 100 basis point rate increase would be higher by approximately $50 million.

如果存款貝塔值比我們假設的低 10%，那麼升息 100 個基點帶來的收益將增加約 5,000 萬美元。

Turning to Slide 14. Noninterest revenue net of CCPB was down 3% from the prior year and down 9% on an ex-trading basis, primarily due to the impact of divestitures and lower underwriting and advisory fees given market conditions.

轉向投影片 14。扣除 CCPB 後的非利息收入淨值比上年下降 3%，除交易外收入下降 9%，這主要是由於資產剝離的影響以及考慮到市場狀況的承銷和諮詢費用下降。

Sequentially, net noninterest revenue was down 11% or 9% ex trading primarily due to lower underwriting and advisory fees, lending fees and securities gains.

隨後，淨非利息收入下降了 11% 或 9%（除交易外），這主要是由於承銷和諮詢費用、貸款費用和證券收益下降。

Moving to Slide 15. Expenses were up 2% from the prior year. We delivered positive operating leverage of 1.8% this quarter as we continue to reinvest savings from divestitures into targeted areas to drive revenue growth, including sales force expansion and technology.

轉到投影片 15。費用比前一年增加 2%。本季我們實現了 1.8% 的正營運槓桿率，因為我們繼續將資產剝離節省的資金再投資到目標領域，以推動收入成長，包括銷售團隊擴張和技術發展。

Sequentially, expenses were down 5%, primarily due to lower employee-related costs, driven by stock-based compensation for employees eligible to retire that are expensed in the first quarter of each year and the seasonality of benefits as well as the impact of 3 fewer days in the current quarter.

隨後，費用下降了 5%，主要是由於每年第一季支出的符合退休資格的員工的股票薪酬以及福利的季節性以及 3 的影響，與員工相關的成本降低。本季度天數減少。

As we look ahead, the moderation in our year-over-year expense growth is expected to continue into the second half of the year, including the impact of rising compensation expenses and after delivering positive operating leverage for 8 quarters in a row, we continue to expect positive operating leverage for the year.

展望未來，我們的年比支出成長放緩預計將持續到今年下半年，包括薪資支出上升的影響，並且在連續 8 個季度實現正營運槓桿之後，我們繼續預計今年的經營槓桿將為正值。

Moving to Slide 16. Our capital position continued to strengthen with a common equity Tier 1 ratio of 16%, up 190 basis points from the prior quarter.

轉到投影片 16。我們的資本狀況持續增強，普通股一級資本比率為 16%，比上一季上升 190 個基點。

As shown on the slide, the increase largely reflects the impact of the common share issuance and management of fair value changes related to the Bank of the West acquisition as well as strong internal capital generation. The cumulative impact of the fair value management actions of 90 basis points is expected to be offset by higher goodwill on closing relative to our assumptions at announcement. Source currency risk-weighted assets were higher, reflecting growth in our lending businesses and the impact of the Basel III capital floor adjustment in the quarter.

如幻燈片所示，這一增長很大程度上反映了與西方銀行收購相關的普通股發行和公允價值變動管理以及強勁的內部資本產生的影響。相對於我們在公告中的假設，公允價值管理行動90個基點的累積影響預計將被交割時更高的商譽所抵銷。源貨幣風險加權資產較高，反映了我們貸款業務的成長以及本季巴塞爾協議 III 資本底線調整的影響。

Before moving to the operating groups, a quick update on the Bank of the West acquisition shown on Slide 17. We look forward to closing the transaction by calendar year-end and our teams are making good progress in preparing for a successful integration.

在進入營運團隊之前，投影片 17 顯示了西方銀行收購的快速更新。我們期待在年底前完成交易，我們的團隊在為成功整合做準備方面取得了良好進展。

While we shared our cost synergy targets at announcement in December. Since then, we have been working to identify revenue synergy opportunities across our businesses. The opportunities identified reflect leveraging BMO's strengths in a larger, very attractive footprint including our digital first and relationship-based approach and an expanded product and service offering for our combined client base. Based on our initial expectations, we expect to be able to achieve pre-provision pretax synergy opportunities in the range of $450 million to $550 million over the next 3 to 5 years, with approximately 60% of that driven by our commercial and capital markets and 40% by our personal and wealth businesses.

我們在 12 月宣佈時分享了我們的成本協同目標。從那時起，我們一直致力於尋找跨業務的收入協同機會。所發現的機會反映了 BMO 在更大、極具吸引力的足跡中的優勢，包括我們的數位優先和基於關係的方法以及為我們的聯合客戶群提供的擴展產品和服務。根據我們的初步預期，我們預計未來 3 至 5 年內能夠實現 4.5 億至 5.5 億美元的預撥稅前協同機會，其中約 60% 是由我們的商業和資本市場以及40% 來自我們的個人和財富業務。

We are on track against the assumptions announced in December including capital generation and expense synergies.

我們正朝著 12 月宣布的假設（包括資本產生和費用協同效應）邁進。

Moving to the operating groups and starting on Slide 18. Canadian P&C delivered net income of $941 million reflecting pre-provision pretax earnings growth of 11%. Revenue was up 11% from the prior year. Higher net interest income reflected good balance growth and stable margins while noninterest revenue increased across most categories reflecting higher customer activity.

轉向營運組，從投影片 18 開始。加拿大財產險公司實現淨利 9.41 億美元，反映撥備前稅前獲利成長 11%。營收較上年增長 11%。較高的淨利息收入反映了良好的餘額成長和穩定的利潤率，而大多數類別的非利息收入均有所增加，反映出客戶活動的增加。

Expenses were up 11%, reflecting investments in the sales force and in technology with year-over-year growth expected to moderate in the second half of the year. Average loans were up 10% from last year, driven by continued strength in residential mortgage lending and 13% commercial loan growth. Deposits [were up] 7% year-over-year and flat sequentially.

費用成長 11%，反映出對銷售隊伍和技術的投資，預計下半年年成長將放緩。受住宅抵押貸款持續強勁和商業貸款增長 13% 的推動，平均貸款較去年增長 10%。存款年增 7%，環比持平。

Moving to U.S. P&C on Slide 19. My comments here will speak to the U.S. dollar performance. Net income was $465 million, up 7% from the prior year, with 5% growth in pre-provision pretax earnings. Revenue was up 5% from last year, reflecting good growth in net interest income. Expenses were also up 5%, primarily due to higher employee costs and technology investments.

轉向幻燈片 19 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。淨利潤為 4.65 億美元，比上年增長 7%，撥備前稅前收益成長 5%。收入較去年增長5%，反映出淨利息收入的良好增長。費用也增加了 5%，主要是因為員工成本和技術投資增加。

On the balance sheet, excluding PPP loans, average loans were up 13% from the prior year, including strong commercial loan growth of 14%. Average deposits increased 4% year-over-year and declined modestly from the last quarter.

資產負債表上，不包括 PPP 貸款，平均貸款比上年增長 13%，其中商業貸款強勁增長 14%。平均存款年增 4%，較上季小幅下降。

Moving to Slide 20. Wealth Management net income was $315 million, down from $329 million last year. Traditional wealth net income was $248 million, with good underlying revenue growth of 5%, excluding the impact of divestitures, reflecting higher net interest income from strong deposit and loan growth and higher average client assets, partially offset by lower online brokerage transaction revenue compared to last year. Insurance net income was $67 million, reflecting more favorable market movements this quarter. Expenses were down 9% due to the impact of divestitures, partially offset by investments in the business.

轉向投影片 20。財富管理淨利為 3.15 億美元，低於去年的 3.29 億美元。傳統財富淨收入為2.48億美元，剔除資產剝離的影響，基礎收入增長良好，達到5%，反映出存貸款強勁增長帶來的淨利息收入增加以及平均客戶資產增加，但部分被網上經紀交易收入下降所抵消。去年。保險淨利為 6,700 萬美元，反映出本季更為有利的市場走勢。由於資產剝離的影響，費用下降了 9%，但部分被業務投資所抵消。

Turning to Slide 21. BMO Capital Markets net income was $453 million compared to $565 million in the prior year. Revenues increased from last year with investment in corporate banking revenue up 3%, primarily due to higher corporate banking-related revenue, partially offset by lower underwriting and advisory revenue. Global Markets revenue increased 1%. Revenues both in Global Markets and I&CB declined from the record levels in the first quarter, reflective of the market environment. Expenses were up 11%, mainly due to investments in the business, including higher technology and talent costs.

轉向投影片 21。BMO 資本市場淨利為 4.53 億美元，而前一年為 5.65 億美元。收入較去年有所增長，企業銀行業務投資收入增長 3%，主要是由於企業銀行業務相關收入增加，但部分被承保和諮詢收入減少所抵消。全球市場收入成長 1%。全球市場和 I&CB 的收入均較第一季的創紀錄水準有所下降，這反映了市場環境。費用增加 11%，主要是由於業務投資，包括更高的技術和人才成本。

Turning now to Slide 22 for Corporate Services. Corporate Services net loss was $111 million compared to a net loss of $120 million in the prior year.

現在轉向投影片 22 的企業服務。企業服務淨虧損為 1.11 億美元，而前一年的淨虧損為 1.2 億美元。

To conclude, we continue to deliver good operating performance across our diversified businesses and expect the dynamic management of the business in a changing economic environment will continue to serve our shareholders well and deliver long-term growth.

總而言之，我們的多元化業務將繼續取得良好的經營業績，並期望在不斷變化的經濟環境中對業務的動態管理將繼續為我們的股東提供良好的服務並實現長期成長。

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 very pleased with our risk performance again this quarter and saw continued improvement across many of our key portfolio metrics. This strong performance reflects the combination of disciplined risk origination from prior periods and strong risk management disciplines through time.

謝謝你，Tayfun，大家早安。我們對本季的風險表現再次感到非常滿意，並看到我們許多關鍵的投資組合指標持續改善。這種強勁的業績反映了前期嚴格的風險起源與長期以來嚴格的風險管理紀律的結合。

Starting on Slide 27. The total provision for credit losses was $50 million or 4 basis points, up from a recovery of $99 million or negative 8 basis points last quarter. Impaired provisions for the quarter were $120 million or 10 basis points. And while this was up from very low impaired provisions of $86 million or 7 basis points in Q1, impaired provisions remain well below pre-COVID levels.

從投影片 27 開始。信貸損失撥備總額為 5,000 萬美元，即 4 個基點，高於上季回收的 9,900 萬美元，即負 8 個基點。本季減損準備金為 1.2 億美元，即 10 個基點。雖然這比第一季 8,600 萬美元的極低減損準備金有所上升，即 7 個基點，但減損準備金仍遠低於新冠疫情前的水平。

Similar to last quarter, the strong impaired loan performance is due to low formations and low delinquency rates.

與上季類似，貸款表現強勁是由於貸款形成率低和拖欠率低。

We recorded a release on the provision for performing loans of $70 million this quarter. We did recognize the potential for economic headwinds by increasing the weighting of our adverse scenario as well as reducing parts of our economic outlook in our base case scenario. This was offset by positive credit migration again this quarter as well as a reduction in the judgment we have been applying specific to COVID-related uncertainty.

我們記錄了本季 7000 萬美元履約貸款準備金的發布。我們確實認識到了經濟逆風的可能性，透過增加不利情景的權重以及減少基本情景中的部分經濟前景。這被本季再次出現的積極信貸遷移以及我們對新冠相關不確定性的判斷的減少所抵消。

Given the strong credit profile of our current portfolio and our forecast for impaired losses, we remain comfortable that our $2.29 billion of performing loan allowances provides adequate provisioning against loan losses in the coming year.

鑑於我們目前投資組合的良好信用狀況以及我們對減損損失的預測，我們仍然相信我們的 22.9 億美元履約貸款準備金可以為來年的貸款損失提供充足的撥備。

Turning to the impaired loan credit performance in the operating groups. We saw low loss provisions across all business segments again this quarter.

轉向營運集團受損的貸款信用表現。本季我們再次看到所有業務部門的損失撥備都處於低水準。

In Canadian Personal and Business Banking, impaired loan losses were $79 million, flat relative to Q1. The U.S. Personal and Business Banking business had impaired loan losses of $1 million, down from $4 million in the prior quarter.

加拿大個人和商業銀行業務的減損貸款損失為 7,900 萬加元，與第一季持平。美國個人和商業銀行業務的減損貸款損失為 100 萬美元，低於上一季的 400 萬美元。

Consistent with prior quarters, strong credit performance across our P&BB businesses was driven by low delinquency and insolvency rates.

與前幾季一致，我們的 P&BB 業務強勁的信貸表現是由低拖欠率和破產率推動的。

In our commercial and corporate businesses, we also saw strong credit performance. In Canadian commercial, we reported impaired loan provisions of $7 million, down from $21 million last quarter. Our U.S. commercial business had impaired loan provisions of $34 million, up from a net recovery on impaired loans of $1 million last quarter.

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 700 萬加元，低於上季的 2,100 萬加元。我們的美國商業業務減損貸款準備金為 3,400 萬美元，高於上季減損貸款淨回收額 100 萬美元。

Our Capital Markets business also had strong impaired loan credit performance this quarter with impaired loan losses of $1 million.

我們的資本市場業務本季的減損貸款信用表現也很強勁，減損貸款損失達 100 萬美元。

On Slide 29, impaired formations were low again this quarter at $333 million, leading to a gross impaired loan balance of $2.1 billion or 41 basis points. Both formations and gross impaired loan rates continue to be well below pre-COVID levels.

在投影片 29 上，本季受損貸款餘額再次處於低位，為 3.33 億美元，導致總受損貸款餘額為 21 億美元，即 41 個基點。貸款利率和毛減損貸款利率都持續遠低於新冠疫情前的水準。

Despite some challenging market conditions, trading risk performance was good again this quarter, with 1 lost day as you can see on Slide 31. Despite continued volatile markets, our trading risk performance so far in Q3 has been consistent with Q2.

儘管市場條件充滿挑戰，但本季的交易風險表現再次良好，如幻燈片31 所示，損失了1 天。儘管市場持續波動，但我們第三季的交易風險表現迄今與第二季保持一致。

In terms of the outlook, while the pandemic is not over, the economic impacts continue to diminish, which along with our strong credit performance makes us confident that we can manage through current or emerging headwinds.

就前景而言，雖然疫情尚未結束，但其對經濟的影響持續減弱，加上我們強勁的信貸表現，使我們有信心應對當前或新出現的逆風。

With that said, our base case economic forecast is for continued economic growth. And should that transpire, there remains modest room for continued releases of the performing loan provision.

話雖如此，我們的基本經濟預測是經濟持續成長。如果這種情況發生，繼續釋放履約貸款準備金的空間仍然不大。

As I have previously guided, 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, given that the current portfolio credit metrics remain quite strong, I would expect that normalization to start towards the end of this year or into fiscal 2023.

正如我之前所指導的那樣，我們確實預計我們受損的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，但鑑於目前的投資組合信貸指標仍然相當強勁，我預計正常化將在今年年底或 2023 財年開始。

During the past 2 years, we have continued to strengthen our risk management capabilities, including automated and data-driven risk mitigation and management processes.

在過去的兩年裡，我們不斷加強風險管理能力，包括自動化和數據驅動的風險緩解和管理流程。

In the face of macroeconomic and geopolitical risks, these capabilities, together with a strong current risk profile, strong liquidity and capital levels, a well-diversified portfolio and an adequate allowance, we're confident that we can continue to both manage future risk and support future growth.

面對宏觀經濟和地緣政治風險，這些能力，加上當前強勁的風險狀況、強勁的流動性和資本水平、多元化的投資組合和充足的準備金，我們有信心能夠繼續管理未來的風險和支持未來的成長。

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)

（操作員說明）

The first question is from Ebrahim Poonawala from Bank of America.

第一個問題來自美國銀行的 Ebrahim Poonawala。

I guess a question, Tayfun. So one, you mentioned margin expansion in both P&C and consolidated bank, if you could quantify that a little bit for us? And then in particular, just talk to us a little about U.S. deposits in terms of is there any subset of the growth that you've seen in the last couple of years where you expect deposit outflows? And just how do you expect the behavior of deposits? I mean you mentioned about deposit betas, but given just the magnitude of rate hikes we're going to see in the U.S. in the second and the third quarters. Just give us a trajectory of where you think -- how quickly do you think deposits begin to reprice and how you are thinking about just the risk of deposit outflows on the back of that.

我猜有一個問題，Tayfun。那麼，您提到財產保險和綜合銀行的利潤率擴張，您能否為我們量化一下？特別是，請與我們談談美國存款的情況，您在過去幾年中看到的增長中是否有任何您預計會出現存款流出的子集？您對存款的表現有何預期？我的意思是，您提到了存款貝塔係數，但考慮到我們將在第二季和第三季看到美國升息的幅度。請告訴我們您的想法軌跡—您認為存款開始重新定價的速度有多快，以及您如何考慮由此帶來的存款外流風險。

Thanks for the question, Ebrahim. So I'll start with the latter part of your question, and I'll come back to the NIM question. In terms of deposits, outflows as well as deposit pricing, we are pretty much on target on model with our expectations. In this environment, we have been expecting, first, the deposit growth has slowed down. And then starting in the U.S., we were expecting to see outflows. As both rates are increasing, we're still seeing opportunities that our clients have to place the money elsewhere in their commercial businesses as well as in personal banking. So you can see the numbers on a quarter-over-quarter basis, deposit growth either slowed down, flat or some declines in the U.S., very much in line with what we expected. I suspect that as the central banks continue to aggressively increase interest rates, deposit betas are going to move up. And it's difficult to necessarily move the dial all the way to the end and say whether they will end up higher than the last rate cycle, but it is likely that they will end up higher than the rate cycle based on what we see today.

謝謝你的提問，易卜拉欣。所以我將從你問題的後半部分開始，然後我將回到 NIM 問題。就存款、流出以及存款定價而言，我們的模型基本上符合我們的預期目標。在這樣的環境下，我們一直預期，第一，存款成長放緩。然後從美國開始，我們預計會出現資金外流。隨著這兩個利率的上升，我們仍然看到客戶有機會將資金轉移到商業業務和個人銀行業務的其他地方。因此，你可以看到按季度計算的數據，美國的存款成長要么放緩、持平，要么有所下降，這與我們的預期非常一致。我懷疑，隨著央行繼續大幅提高利率，存款貝塔係數將會上升。很難將錶盤一直移動到最後並說它們最終是否會高於上一個利率週期，但根據我們今天所看到的情況，它們最終很可能會高於利率週期。

But in terms of our numbers, what guided us when we said we see NIM expansion into the second half of the year, and I will extend that also into 2023, all of it is in line with what we have modeled. I do expect NIM to meaningfully expand from here in Q3 and in Q4. We may see something close to what we have seen this quarter in our ex-trading NIM, which was 5 basis points in the next couple of quarters. And then based on the rate increases that we're expecting, I think we will continue to see the expansion into 2023, which when you put it all together with our guidance of high single-digit loan growth this year, potentially moving into even next year, that bodes very well for net interest income growth. We had 9% growth year-over-year this quarter. You should see that number to remain very strong for the rest of the year as well as 2023.

但就我們的數字而言，當我們說我們看到淨利差擴張到今年下半年時，我也將把這一點延長到 2023 年，所有這些都與我們的模型一致。我確實預計 NIM 將在第三季和第四季開始有意義地擴張。我們的交易前淨利差可能會接近本季的情況，在接下來的幾季中，淨利差為 5 個基點。然後，根據我們預期的加息，我認為我們將繼續看到 2023 年的擴張，當你將所有這些與我們今年高單位數貸款增長的指導結合起來時，甚至可能進入明年今年，這對淨利息收入成長來說是個好兆頭。本季我們的年成長為 9%。您應該會看到這個數字在今年剩餘時間以及 2023 年仍然非常強勁。

Got it. And just one follow-up, Tayfun. So I understand the hedging to mitigate the goodwill impact at deal close. Does a larger goodwill also imply that the purchase accounting earnings will be higher than you expected? As a result, the EPS accretion, if you add that, will be meaningfully higher than what we announced or am I missing something?

知道了。還有一個後續行動，Tayfun。因此，我理解對沖是為了減輕交易結束時的商譽影響。商譽越大是否也意味著購買會計收益會高於您的預期？因此，如果加上這一點，每股盈餘的增加將明顯高於我們宣布的水平，還是我遺漏了什麼？

No, everything else equal, the higher rate mark will move more into the future quarters after we close the transaction.

不，在其他條件相同的情況下，在我們完成交易後，更高的利率標記將在未來幾季內進一步移動。

And can you quantify how much higher would that be if like things were -- at quarter end, if the deal closed at quarter end?

您能否量化一下，如果交易在季度末完成，那麼在季度末的情況會高出多少？

Well, assuming that we have a $3.5 billion pick up this quarter on top of about $500 million last quarter, assuming that basically is the change in the rate mark itself, all of that money would be accreting back to income, the rate mark will be higher by that much.

好吧，假設本季度我們的收入在上個季度約5 億美元的基礎上增加了35 億美元，假設這基本上是利率標記本身的變化，所有這些錢都將重新計入收入，那麼利率標記將是高出那麼多。

Got it. So that will come through the life of those loans. Got it.

知道了。這將貫穿這些貸款的整個生命週期。知道了。

The next question is from Meny Grauman from Scotia Capital.

下一個問題來自 Scotia Capital 的 Meny Grauman。

Just a question on Bank of the West. Bank mergers in the U.S. are facing more scrutiny. I think you have the hearing scheduled for July. I'm just wondering, is it reasonable to expect a delay here for the deal close, and why or why not?

只是關於西方銀行的問題。美國的銀行合併正面臨更嚴格的審查。我認為您已安排在七月舉行聽證會。我只是想知道，預計交易完成會延遲是否合理，為什麼或為什麼不呢？

Meny, it's Darryl. We don't expect a delay. I would say to you everything that we thought might happen over the course of the year when we announced the transaction on the 20th of December is basically playing out according to expectations, including our capital raise, including the submission to various regulators, including the process as we see it, the meeting that you're referring to in July is a public meeting. It's not a hearing. It's normal course. That was expected as well.

梅尼，我是達裡爾。我們預計不會有延遲。我想對你們說的是，當我們12月20日宣布交易時，我們認為這一年中可能發生的一切基本上都是按照預期進行的，包括我們的融資，包括向各個監管機構提交的文件，包括流程在我們看來，你提到的七月份的會議是公開會議。這不是聽證會。這是正常的過程。這也是預料之中的。

So as we sit here today, we don't really have any -- it's kind of boring for you, I know, but we really don't have any update relative to what we've said before, things are playing out as we expected to -- as we expected them to and our best guess remains exactly what we said when we announced the transaction, which is that we would close towards the end of the calendar year.

所以，當我們今天坐在這裡時，我們真的沒有任何消息——我知道這對你來說有點無聊，但我們確實沒有任何與我們之前所說的相關的更新，事情正在按照我們的方式進行。正如我們所期望的那樣，我們最好的猜測仍然是我們宣布交易時所說的那樣，即我們將在年底前完成交易。

Got it, Darryl. Yes, boring is -- I guess, boring is good, all considered.

明白了，達裡爾。是的，無聊是──我想，綜合考慮，無聊是好的。

But just a question on capital, partly as it relates to the deal. When you announced the deal, you talked about 11% or higher, given how the world has developed since then, should we be thinking about the higher part as being more operational now? How are you thinking about capital [if the deal closed]?

但這只是一個關於資本的問題，部分原因是它與交易有關。當你宣布這筆交易時，你談到了 11% 或更高，考慮到世界自那時以來的發展情況，我們是否應該考慮更高的部分現在更具可操作性？您如何看待資本（如果交易完成）？

Meny, I'll give you my sense and Tayfun might want to complement here. We did say that. We said that we expected based on our models at the time that the first quarter post closing, we would be at 11% or higher. As we look at the developments over the 5 months that have followed and we look at our models going forward, we stand by that. In fact, if anything, we might be a little bit ahead of that by some of the capital actions, including the equity issuance, which was a little higher than we went out for. And when we look at where we are at closing and then post closing, that 11%, as I said, we stand by it. And in fact, it could be a little better than that, it could be 11.5% in the first quarter or something like that. Tayfun, would you add to that?

Meny，我會告訴你我的想法，Tayfun 可能會想在這裡補充。我們確實這麼說過。我們表示，根據我們當時的模型，預計收盤後第一季的成長率將達到 11% 或更高。當我們回顧接下來 5 個月的發展以及我們未來的模型時，我們堅持這一點。事實上，如果有什麼不同的話，那就是我們在一些資本行動上可能稍微領先了一點，包括股票發行，這比我們的預期要高一些。當我們查看收盤時和收盤後的情況時，正如我所說，我們堅持這一 11%。事實上，可能會比這個好一點，第一季可能會達到 11.5% 或類似的水平。 Tayfun，你能補充一下嗎？

Yes. I mean, but those are just going back to your question, they really don't relate to necessarily our world view of what the world will look like at the time. That's just where we see our capital ratios to be looking at the movements today. So we have not necessarily increased our capital target -- management target at this point.

是的。我的意思是，但這些只是回到你的問題，它們實際上並不一定與我們對當時世界的看法有關。這正是我們今天看到的資本比率變動的地方。因此，我們目前不一定要提高我們的資本目標—管理目標。

So just to clarify, if you were at 11%, you would be comfortable with that. The regulator would be comfortable with that as far as you understand it?

所以澄清一下，如果你的比例是 11%，你就會對此感到滿意。據您了解，監管機構對此會感到滿意嗎？

Yes, that would be our expectation today, yes.

是的，這就是我們今天的期望，是的。

The next question is from Scott Chan from Canaccord Genuity.

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

Sticking to the Bank of the West theme or update. Tayfun, you talked about PPPT of $450 million to $550 million over the next 3 to 5 years with commercial and personal. I assume that is all majority incremental revenue. And is that cumulative as you kind of already talked about the expected cost synergies within the transaction?

堅持西方銀行主題或更新。 Tayfun，您談到未來 3 至 5 年內商業和個人的 4.5 億至 5.5 億美元的 PPPT。我認為這就是大部分增量收入。正如您已經談到的交易中的預期成本綜效一樣，這是累積的嗎？

Yes. So this is -- Scott, it is net revenue synergies. So there is going to be some expenses associated with it, but this is a net number that we are projecting and we are projecting that to be a run rate increase after 3 to 5 years. So it's not necessarily over a 5-year period of time, a cumulative number. When we get to towards the end of that time period, we expect to add net revenues between $450 million to $500 million -- $550 million.

是的。這就是——斯科特，這是淨收入綜效。因此，將會有一些與之相關的費用，但這是我們預測的淨數字，我們預計這將是 3 到 5 年後運行率的增長。所以它不一定是5年時間段內的累計數字。當我們接近該時期結束時，我們預計淨收入將增加 4.5 億美元至 5 億美元 - 5.5 億美元。

And just 1 more comment. As you can appreciate, because of legal restrictions, we don't have full access to their client information and data. Our teams have done a lot of work around our products compared to their products, their markets, et cetera. So this is actually a very good perspective on the uptick in our performance as we expect. But I have to say that I am optimistic that once we actually get full access to their client base, this number has potentially more room on the upside.

還有 1 則評論。如您所知，由於法律限制，我們無法完全存取他們的客戶資訊和資料。與他們的產品、市場等相比，我們的團隊圍繞著我們的產品做了很多工作。因此，這實際上是我們預期的業績上升的一個非常好的視角。但我必須說，我很樂觀，一旦我們真正完全接觸到他們的客戶群，這個數字可能還有更大的上升空間。

Okay. And the 40% personal and wealth, is that more weighted to the latter in terms of wealth management, you think?

好的。還有40%的個人和財富，你認為在財富管理方面，後者比較重要嗎？

It's about even actually, to be honest with you, it's even between personal banking and Wealth Management.

事實上，老實說，這甚至是在個人銀行業務和財富管理之間。

The next question is from Gabriel Dechaine from National Bank Financial.

下一個問題來自國家銀行金融公司的加布里埃爾·德鏈 (Gabriel Dechaine)。

Yes, Darryl, I just want to follow up on your comment there. It sounds like you might be expecting an 11%, 11.5% post-close core Tier 1 ratio. That's surprising, I guess, considering the backdrop. I mean it's a lot different than what we had in December, of course. Are you -- we've all got our estimates for internal capital generation. Are you anticipating to pull some strategies out of your back pocket like securitization activity or portfolio of sales or anything of that nature? Or you're still anticipating getting there or even better than the 11% in normal course?

是的，達裡爾，我只想跟進你的評論。聽起來您可能會期望交割後核心一級比率為 11%、11.5%。考慮到背景，我想這很令人驚訝。當然，我的意思是，這與 12 月的情況有很大不同。你是嗎——我們都已經得到了內部資本產生的估計。您是否打算從自己的口袋裡拿出一些策略，例如證券化活動或銷售組合或任何類似性質的策略？或者您仍然期待達到這個目標，甚至比正常情況下的 11% 更好？

Yes. So Gabe, I should course correct if I miscommunicated earlier, I think I heard you say that that's different from what we expected 3 months ago. I'll be clear, that's exactly what we expected 3 months ago and 5 months ago when we announced the transaction. So the message we're trying to give you today is that we are not -- we are unchanged in our perspective of the capital outcome post the transaction after the first quarter. And the only tweak I would make to that is, if anything, a little bit more capital based on where the models have come in and the outlook that we've got today.

是的。所以，Gabe，如果我之前溝通不當，我應該糾正，我想我聽到你說這與我們 3 個月前的預期不同。我要澄清的是，這正是我們 3 個月前和 5 個月前宣布交易時的預期。因此，我們今天想向您傳達的訊息是，我們對第一季交易後的資本結果的看法沒有改變。我要做的唯一調整就是，如果有的話，根據模型的應用領域和我們今天的前景，增加一點資本。

And as far as actions are concerned, the second part of your question, we're continuing along in the normal course. The balance sheets are being absorbed in the way that we expected them to and the customer behavior is what it is as you see the loan growth. We completed the equity issuance, the DRIP is in place, as you know, and it's coming in a little bit stronger than we had modeled. So all told, it round trips to basically what we had expected all along, if not a little bit better. That's the message we're trying to leave you with.

就行動而言，你問題的第二部分，我們將繼續按正常路線進行。資產負債表正在按照我們預期的方式被吸收，客戶的行為就是你看到的貸款成長。如你所知，我們完成了股票發行，DRIP 已經到位，而且它的表現比我們模擬的要強一些。總而言之，它基本上達到了我們一直以來的預期，甚至好一點。這就是我們想留給您的訊息。

Yes. Maybe I misworded it, I meant the environment has gotten different, not necessarily your messaging. It's consistent despite that change.

是的。也許我用詞錯誤，我的意思是環境已經變得不同，不一定是你的資訊。儘管發生了這種變化，它仍然是一致的。

Okay. Now about expenses and, Tayfun, I believe I heard you recommitting to a lower expense growth rate in the second half. Because I've got the Q4, you were guiding to flat expense growth for the full year. Q1, you bumped that up to 1.5%, and now you're not changing that. This quarter, we had, what, 2% expense growth a bit above that if you exclude variable comp, but nothing on the wage inflation side that might actually nudge expense growth a bit higher than what we thought 3 months ago.

好的。現在關於費用，Tayfun，我相信我聽到你再次承諾下半年會降低費用成長率。因為我已經拿到了第四季度的數據，所以您指導全年支出保持不變。第一季度，您將其提高到了 1.5%，但現在您沒有改變這一點。如果排除可變補償，本季度我們的費用增長為 2%，略高於這一數字，但工資通膨方面沒有任何因素可能真正推動費用增長略高於我們 3 個月前的預期。

Yes. Thanks for the question, Gabe. So just to set up the environment, obviously, as I said, this was the eighth quarter in a row that we delivered positive operating leverage, and we are committing to that. So I mean it may not be every quarter, but that's our commitment over reasonable periods of time.

是的。謝謝你的提問，加布。因此，為了營造環境，顯然，正如我所說，這是我們連續第八個季度實現了積極的營運槓桿，我們正在致力於這一點。所以我的意思是，可能不是每個季度，但這是我們在合理時間內的承諾。

We did have 2% quarter-over-quarter increase. My comment about the second half continuing a more moderate expense growth into the second half of this year relates to the fact that when we started ramping up our investments in technology and sales force, that happened more in the second half of last year. So therefore, we knew that the first half of this year was going to be a bit more challenging. And now going into the third and fourth quarters, you should see similar numbers that you saw from us this quarter, that 2% type of number, a relatively more modest expense growth.

我們確實實現了 2% 的季度環比增長。我對下半年支出繼續溫和增長到今年下半年的評論與這樣一個事實有關：當我們開始加大對技術和銷售人員的投資時，這種情況在去年下半年發生得更多。因此，我們知道今年上半年將會更具挑戰性。現在進入第三和第四季度，您應該會看到與本季度我們看到的類似數字，即 2% 的數字，相對溫和的費用增長。

In that number, I should say that last week, we did announce a salary adjustment for our employees between levels 2 and level 7 of 3%. We are seeing more inflation on the salary side, and we made that adjustment last week. My outlook does include the impact of that increase, which is an incremental amount to our discussion back in February.

在這個數字中，我應該說，上週我們確實宣布了對2級至7級員工的薪資調整3%。我們看到薪資方面的通膨加劇，我們上週做出了調整。我的展望確實包括了這一增長的影響，這是我們二月份討論的增量。

As you reminded us, we did guide to about 1.5% year-over-year expense increase, excluding performance-based compensation. With this increase, we're now going to take our expense outlook year-over-year, excluding the impact of performance-based comp to about 2.5% because that sort of is the incremental amount. We are seeing more movements in salaries. But at the same time, we maintain our commitment to positive operating leverage. We're spending a lot of time internally assessing the magnitude and the returns to our investments, and we'll ensure that as we watch the revenue environment, we dynamically manage our expenses accordingly and still achieve that positive operating leverage.

正如您提醒我們的，我們確實預計費用將年增約 1.5%，不包括基於績效的薪酬。隨著這一增長，我們現在將把我們的費用前景逐年計算，排除基於績效的補償的影響，約為 2.5%，因為這是增量。我們看到工資有更多變動。但同時，我們仍然致力於積極的營運槓桿。我們花費大量時間在內部評估投資的規模和回報，我們將確保在觀察收入環境時，相應地動態管理我們的支出，並仍然實現積極的營運槓桿。

Okay. About 1.5%, 2.5% now?

好的。大約1.5%，現在2.5%？

Correct.

正確的。

The next question is from Doug Young from Desjardin Capital Markets.

下一個問題來自 Desjardin Capital Markets 的 Doug Young。

Just in U.S. banking, it seems like there was a sequential slowdown in commercial loan growth, and I do get that it probably bounces around a bit. So maybe there's nothing in there. But I'm just -- I'm curious as to what you're seeing and then what the pipeline is telling you from a loan growth perspective over the coming year. And maybe you can kind of sprinkle just in terms of utilization rates, where they stand today and where you expect them to kind of migrate to.

就美國銀行業而言，商業貸款成長似乎連續放緩，而且我確實認為它可能會反彈。所以也許裡面什麼都沒有。但我只是 - 我很好奇你所看到的以及管道從未來一年的貸款增長角度告訴你什麼。也許你可以只專注在利用率、它們目前的狀況以及你期望它們遷移到的地方。

Sure. This is Dave. Actually, in our commercial business in the U.S., we had almost 3% quarter-over-quarter loan growth on the commercial side. So very positive there and close to 14% if you exclude ex-PPPT year-over-year. So really strong, and it continues to be strong. And it's strong across both geographies and our sectors, particularly if there's been inventory build, which has increased our utilization and that's despite very, very low utilization in one of our businesses -- two of our businesses, our truck financing and our auto financing. Overall, though, utilization continues to go up as clients build their inventory and see a pretty positive near-term future for the back half of the year. So I would not characterize it as slowing down. I would say it's continuing to go up.

當然。這是戴夫。事實上，在我們美國的商業業務中，我們的商業貸款季度較上季成長了近 3%。所以非常積極，如果排除前 PPPT 的年比影響，接近 14%。所以真的很強大，而且還會繼續強大。它在各個地區和我們的行業中都很強大，特別是如果庫存增加了，這會提高我們的利用率，儘管我們的一項業務——我們的兩項業務——卡車融資和汽車融資——的利用率非常非常低。不過，總體而言，隨著客戶建立庫存並看到今年下半年相當樂觀的近期前景，利用率持續上升。所以我不會將其描述為放緩。我想說的是，它還在繼續上漲。

And the last thing I'd say about this is really over the last 8 quarters, we've had 1 quarter where we've actually lower loan growth. And that does not -- that's including the PPP. So we've continued to build throughout this entire period, adding new customers, growing geographically, adding to our sectors. So I'd say it's really, really positive. But tell me if I didn't answer your question completely, if you've got any follow-up.

我要說的最後一件事是在過去 8 個季度中，我們有一個季度的貸款成長實際上較低。但這並不包括 PPP。因此，我們在整個時期內不斷發展，增加新客戶，擴大地域，擴大我們的部門。所以我想說這真的非常非常積極。但請告訴我，如果我沒有完全回答你的問題，你是否有任何後續行動。

No. Well, given the macro backdrop, we get lots of questions on what is going to happen with commercial loan growth, and it just doesn't feel like in your discussions and your comments, and you're kind of talking to clients constantly that there's any real change in the outlook. Is that a fair characterization?

不。嗯，考慮到宏觀背景，我們收到了很多關於商業貸款增長將會發生什麼的問題，但在你的討論和評論中感覺並不像，而且你在不斷地與客戶交談前景有任何真正的變化。這是一個公平的描述嗎？

I'd say a couple of things. There's certainly more uncertainty given some of the continued issues that we all know about, supply chain inflation. But the demand for our clients' products still is outstripping supply. So they're still growing, they're trying to keep up, and the other part of it is there continues to be, both in Canada and the U.S., more movement to onshoring, less reliance on foreign sourcing, more capital expenditure to improve productivity through our manufacturing businesses and still a growth. And I think the North American market, U.S. and Canada, is going to continue to be pretty positive. I don't know, economically, if there's a downturn that's obviously going to impact us. But in the near term, we really don't hear that from our clients. They're still trying to grow and catch up in some cases in terms of still lower inventories.

我想說幾件事。鑑於我們都知道的一些持續存在的問題，即供應鏈通膨，肯定存在更多的不確定性。但我們客戶的產品仍供不應求。因此，他們仍在成長，他們正在努力跟上，而另一部分是，在加拿大和美國，更多的轉向本土化的趨勢，減少對外國採購的依賴，更多的資本支出來改善透過我們的製造業務，生產力仍在成長。我認為北美市場，美國和加拿大，將繼續非常積極。我不知道經濟衰退是否會明顯影響我們。但在短期內，我們確實沒有從客戶那裡聽到這樣的消息。在某些情況下，他們仍在努力實現成長，並在庫存更低的情況下迎頭趕上。

And then while I have you, just the sequential decline in noninterest revenue in the U.S. Can you break that out a little bit? Like I think I'm assuming that's a result of lower investment gains? Or is -- can you talk a little bit more about that?

然後，當我有你的時候，只是美國非利息收入的連續下降。你能稍微解釋一下嗎？就像我認為我假設這是投資收益較低的結果？或者是──你能多談談嗎？

Sure, sure. It's not investment gains at all. There are no investment gains in our P&C business. There never are. Those -- that's mostly a Canadian issue. So the issue, though, is in our first quarter, and really, particularly in December, we had very, very strong syndication gains. And that's -- as you recall, at the end of the last year, a lot of transactions try to get done before calendar year-end. So that hit us in the first quarter. And we were up probably 15% or 20% in that business. And that's -- the syndication business is very strong for us. But that's really what the decline was. I think our more normalized NIR would be what we hit this quarter. There'll be some ups and downs. But we have a lot of other parts of that business, our M&A business, our treasury management business, those are all fee-related. And so I think it's still pretty positive, but that was the one issue. It's not securities gains, but it is syndication fees in our loan business.

一定一定。這根本不是投資收益。我們的財產險業務沒有投資收益。從來沒有。這些——這主要是加拿大的問題。所以，問題是在我們的第一季度，實際上，特別是在 12 月份，我們獲得了非常非常強勁的聯合收益。正如您所記得的那樣，在去年年底，許多交易試圖在日曆年底之前完成。所以這在第一季對我們造成了打擊。我們的業務成長了 15% 或 20%。那就是——聯合業務對我們來說非常強大。但這確實是下降的原因。我認為我們更標準化的 NIR 將是我們本季達到的目標。會有一些起伏。但我們還有很多其他業務，我們的併購業務、我們的資金管理業務，這些都與費用有關。所以我認為這仍然是相當積極的，但這是唯一的問題。這不是證券收益，而是我們貸款業務中的銀團費用。

The next question is from Paul Holden from CIBC.

下一個問題來自 CIBC 的 Paul Holden。

So first question is regarding inflationary borrowing cost pressures on commercial clients. And we've seen a number of public companies come out with disappointing margin numbers. Just wondering if you're seeing any early indications of profit pressures on your customers. And then secondly, sort of how are you monitoring for that going forward?

因此，第一個問題是關於商業客戶的通膨借貸成本壓力。我們已經看到許多上市公司的利潤率數據令人失望。只是想知道您是否看到了客戶利潤壓力的任何早期跡象。其次，您如何監控未來的發展？

It's Pat. I'll start and then maybe others can jump in. I would say the short answer to your question is no, we're not really seeing that yet. In fact, we're seeing quite the opposite. We're seeing this quarter, again, we saw a positive credit migration across the wholesale portfolio and broad-based in virtually every sector. And that's been a continuation of positive migration that we've seen over the course of the past 6 quarters in the wholesale business. So the early signs in credit migration, in terms of credit, in terms of impaired formation, you would have seen impaired formations extremely low again this quarter, and in fact, way below pre-COVID levels. And so that's another sign that would suggest that we're not seeing those kinds of things happening.

是帕特。我會開始，然後也許其他人可以加入。我想說，對你的問題的簡短回答是否定的，我們還沒有真正看到這一點。事實上，我們看到的情況恰恰相反。我們再次看到本季整個批發投資組合以及幾乎每個行業的廣泛信貸遷移。這是我們在過去 6 個季度中看到的批發業務積極遷移的延續。因此，信貸遷移的早期跡象，就信貸而言，就受損形成而言，本季受損形成再次極低，事實上，遠低於新冠疫情前的水平。這是另一個跡象，表明我們沒有看到這種事情發生。

Now with that said, obviously, we're guiding towards a normalization in rates. And I think some of the wage pressure, debt service cost pressure and energy cost pressure is one of the reasons we think that normalization will occur. But there's always a lag to that, and that's why we're forecasting it to happen towards the end of this year and into next year is probably when you'll start to see some of those effects. But we don't see a material step function in terms of impact. We just see that as a catalyst to get us back to something that feels a bit more normal versus the really abnormally good conditions we're experiencing right now.

話雖如此，顯然我們正在引導利率正常化。我認為薪資壓力、償債成本壓力和能源成本壓力是我們認為正常化將會發生的原因之一。但這總是存在滯後，這就是為什麼我們預測它會在今年年底發生，到明年你可能會開始看到其中一些影響。但就影響而言，我們沒有看到實質的階躍函數。我們只是將其視為一種催化劑，讓我們回到感覺更正常的狀態，而不是我們現在正在經歷的異常良好的狀態。

Okay. I understand. And then I want to go back to the discussion on CET1 and Bank of the West from a little bit of a different angle. I think there's a plausible scenario where the forward-looking indicators could change significantly between now and year-end, again, possible scenario, not fairly the absolute scenario, but possible scenario. What would that do for CET1? Just from the Bank of the West perspective, understand what it might do to BMO CET1. But with the credit reserves you've built into the acquisition, could that absorb higher credit density or you might have to raise more capital to offset that type of scenario?

好的。我明白。然後我想從一個不同的角度回到關於CET1和西方銀行的討論。我認為有一種可能的情況，即前瞻性指標從現在到年底可能會發生重大變化，同樣，可能的情況，不是絕對的情況，而是可能的情況。這對CET1有什麼作用？僅從西方銀行的角度來看，了解它可能對 BMO CET1 產生什麼影響。但是，憑藉您在收購中建立的信貸儲備，是否可以吸收更高的信貸密度，或者您可能需要籌集更多資本來抵消這種情況？

So Paul, we only have a couple of quarters here ahead of us. So there's not a lot of time between now and closing. Yes, as you said, things may change, conditions may change. And depending upon the analysis at closing, those analyses are all performed at closing date, the way they look at closing date. We talked about the fact that we have pretty much neutralized the impact of interest rates.

保羅，我們只剩下幾個季度的時間了。所以從現在到關閉之間沒有太多時間。是的，正如你所說，事情可能會改變，情況可能會改變。根據成交時的分析，這些分析都是在成交日期進行的，就像他們看待成交日期的方式一樣。我們談到了這樣一個事實：我們幾乎已經抵銷了利率的影響。

The credit [mark] could get bigger. We could have a higher second day reserve if conditions change meaningfully. But I don't expect that to necessarily have a significant impact on our capital ratio as we sit here today. We feel actually -- Darryl said earlier that our capital forecast is actually a little bit ahead of where we thought we were going to be when we announced the transaction back in December. So I feel comfortable that the numbers that we are looking at are quite adequate even if conditions change a little bit here between now and then.

信用[標記]可能會變得更大。如果情況發生重大變化，我們可能會有更高的第二天儲備。但我並不認為這一定會對我們今天坐在這裡的資本比率產生重大影響。事實上，我們覺得——Darryl 早些時候說過，我們的資本預測實際上比我們 12 月宣布交易時的預期要提前一些。因此，我感到放心的是，即使從現在到那時這裡的情況發生了一些變化，我們所看到的數字也相當充足。

The next question is from Mario Mendonca from TD Securities.

下一個問題來自道明證券的 Mario Mendonca。

Tayfun, just maybe a quick detail question. Those syndication gains that were a little lower in the U.S. business this quarter, where is that reported in your fee income? Like is that just in the line referred to as other revenue?

Tayfun，也許只是一個快速的細節問題。本季美國業務的銀團收益略低，您的費用收入在哪裡報告？就像其他收入一樣嗎？

Lending. It's in the lending fees, Mario, yes.

借貸。馬裡奧，是的，它包含在貸款費用中。

Okay. I see it there. That's why it was down. Okay. Now a more broad question. Looking at the nature of loan growth, commercial real estate construction is still pretty good or, in fact, improving again and fairly strong growth to nonbank financial services companies. I would have thought with the environment changing in Q2, that growth in that area, so to financial sponsors and private equity would have started to slow somewhat. What are you seeing that's continued to drive growth in financial services lending nonbank? And the growth in commercial real estate, what's driving that? Why is that sort of coming back strong?

好的。我在那裡看到它。這就是它下跌的原因。好的。現在是一個更廣泛的問題。從貸款成長的性質來看，商業房地產建設仍然相當不錯，或者實際上正在再次改善，非銀行金融服務公司的成長相當強勁。我以為，隨著第二季環境的變化，該領域的成長，對於金融贊助商和私募股權來說，將會開始有所放緩。您認為哪些因素持續推動了非銀行金融服務貸款的成長？商業房地產的成長，是什麼推動了它？為什麼這種強勢回歸？

Dave, do you want to take that one?

戴夫，你想拿走那個嗎？

Sure. Well, commercial real estate continues to be a very good business for us on both sides of the border. But as you know, we're still on both sides of border pretty significantly underweight in that business vis-a-vis our competitors. So it's gone -- it's been good growth, but it doesn't impact as much as it would with others as we grow there. It's still positive. We are still seeing good opportunities. I think it will probably slow down in some cases. But on both sides of the border, we have really deep relationships with strong long-term real estate clients. And I think that will still continue, although there's certainly some slowdown in some businesses where we haven't been as active. So it won't impact us as much.

當然。嗯，商業房地產對我們兩國來說仍然是一項非常好的業務。但如您所知，與我們的競爭對手相比，我們在邊境兩側的業務仍然嚴重不足。所以它已經消失了——這是一個很好的成長，但當我們在那裡成長時，它對其他人的影響並不大。這仍然是積極的。我們仍然看到很好的機會。我認為在某些情況下它可能會減慢。但在邊境兩側，我們與強大的長期房地產客戶有著非常深厚的關係。我認為這種情況仍將繼續，儘管我們不那麼活躍的一些業務肯定會出現一些放緩。所以對我們的影響不會那麼大。

As it relates to the financial side, I just want to make sure you're clear on that. The growth in -- and that's mostly in the U.S. is all in the investment-grade side of our business. So it's providing capital for financial sponsors that are backed by capital calls. It's not -- the growth that we've seen has been much more modest in what we were when financing individual portfolio companies. And that business will ebb and flow based on transaction activity. But I wouldn't want you to assume that, that business that's grown is not -- that's all -- the growth is almost all investment grade. Does that help?

由於它涉及財務方面，我只是想確保您清楚這一點。主要是在美國的成長都集中在我們業務的投資等級。因此，它為受到資本需求支持的金融贊助商提供資金。事實並非如此——我們在為個別投資組合公司融資時看到的成長要溫和得多。該業務將根據交易活動而潮起潮落。但我不希望你認為，成長的業務並不是——僅此而已——成長幾乎都是投資等級的。這樣有幫助嗎？

Yes. And I wasn't assuming that, that was leveraged lending. I had a feeling that was still the high-quality stuff. But even that business, are there indications that activity with private sponsors or financial sponsors and private equity firms is starting to moderate?

是的。我並沒有假設那是槓桿貸款。我有一種感覺，這仍然是高品質的東西。但即使是這項業務，是否有跡象表明與私人贊助商或金融贊助商以及私募股權公司的活動開始放緩？

It's a good question. There's still -- as my partner, Dan Barclay, reminds me all the time, there's still a couple of trillion dollars of unused capacity out there. It's probably slowed down a little bit since year-end. But we still see pretty good backlogs and the business in the commercial side is clearly more in the mid-market side. So not the mega deals. So in that area, that continues to be strong area. And I think actually, that will get probably more time with sponsors over time because the multiples in those businesses are a little bit smaller, a little bit lower. So I think it could certainly slow down as activity does. But I would not underestimate the ability of our financial sponsor group, our clients to continue to invest and do well. But it goes up and down, and it's at a good point right now. Is that helpful?

這是一個好問題。正如我的合作夥伴 Dan Barclay 一直提醒我的那樣，仍然有數萬億美元的未使用產能。自去年年底以來，這一速度可能有所放緩。但我們仍然看到相當多的積壓，商業方面的業務顯然更集中在中端市場方面。所以不是大型交易。因此，在該領域，這仍然是強勢領域。我認為實際上，隨著時間的推移，這可能會為贊助商帶來更多的時間，因為這些業務的倍數要小一點，低一點。所以我認為它肯定會隨著活動而放緩。但我不會低估我們的金融贊助團體、我們的客戶繼續投資並取得良好績效的能力。但它有起有落，而且現在處於一個好點。有幫助嗎？

The next question is from Lemar Persaud from Cormark Securities.

下一個問題來自 Cormark Securities 的 Lemar Persaud。

I just want to circle back to the net revenue synergies on the back of the last year. So the $450 million to $550 million, is that Canadian dollars or U.S. dollars? And how is that expected to come in, more front-end loaded or back-end loaded?

我只想回顧去年的淨收入綜效。那麼4.5億到5.5億美元是加幣還是美元？預計會如何出現，更多是前端載入還是後端載入？

It's in U.S. dollars. At this point, clearly, there's going to be a ramp-up towards the back end of that time period. But I think when you get to year 3, you are going to have a sizable portion of that coming in through the run rate of revenues. Again, as I said, if you can just give us a quarter or 2, we will give you a more specific perspective on both the time line as well as the dollars.

是美元。顯然，在這一點上，該時間段的後期將會出現成長。但我認為，當你進入第三年時，你將透過收入運行率獲得相當大的一部分。再次，正如我所說，如果您能給我們一兩個季度的時間，我們將為您提供有關時間線和資金的更具體的觀點。

Okay. That's fair. And I guess then just to clarify, is that -- just because you mentioned it was a net number. So this should be this $450 million to $550 million, I don't want to beat it to death, but that should be in addition to the, I guess, $670 million expense synergy guidance that you guys offered at the time of the deal. Is that fair to suggest?

好的。這還算公平。我想接下來要澄清的是──只是因為你提到這是一個淨值。所以這應該是 4.5 億到 5.5 億美元，我不想把它搞砸，但這應該是在你們在交易時提供的 6.7 億美元費用協同指導之外的。這樣的建議公平嗎？

That is correct.

那是對的。

Next question from Mike Rizvanovic from Stifel GMP.

下一個問題來自 Stifel GMP 的 Mike Rizvanovic。

Maybe just a quick question for Pat. Just looking at the historical performance on the PCL ratio for Bank of the West longer term. Obviously, a very different experience than what BMO's reporting in the U.S. business. And I'm just wondering when you combine that business, I'm not sure if the book has been sort of changed or will be changed materially to sort of gravitate more toward your comfort level on credit risk, but what does that do to your PCL ratio in like a downward scenario if we do get a recession? And maybe on a run rate basis, is it incrementally positive, negative or somewhat neutral?

也許只是問帕特一個簡單的問題。只要看看西方銀行長期 PCL 比率的歷史表現即可。顯然，這與 BMO 在美國業務中的報告截然不同。我只是想知道，當你將這項業務合併起來時，我不確定這本書是否已經發生了某種改變，或者是否會發生重大改變，以更傾向於你對信用風險的舒適水平，但這對你有什麼影響？如果我們真的陷入經濟衰退，PCL 比率會下降嗎？也許在運行率的基礎上，它是遞增的正值、負值還是某種程度的中性？

Yes. Thanks for the question, Mike. Actually, I don't actually agree that their credit history is significantly different from ours. When I look at their provisioning rate over the course of time, it's actually reasonably consistent with when we look at their credit profile as well, both in consumer and wholesale, we see it as very consistent with ours and a lot of overlap in terms of the sector exposures and even the weightings of sectors, we see pro forma, the weightings that we're going to have in sectors will be reasonably consistent with what we've got actually right now.

是的。謝謝你的提問，麥克。事實上，我並不同意他們的信用記錄與我們的信用有很大不同。當我隨著時間的推移查看他們的撥備率時，它實際上與我們查看他們的信用狀況時相當一致，無論是在消費者還是批發方面，我們認為它與我們的非常一致，並且在以下方面有很多重疊：行業風險敞口，甚至行業權重，我們預計，我們在行業中的權重將與我們現在實際得到的權重相當一致。

And so we don't anticipate making material changes. The only place that they have a slightly different exposure to us is in the RV and marine segment. That segment performed differently during the financial crisis, so maybe that's what you're referring to. But we like that business as well. We think it's a nice complement to the consumer portfolio.

因此，我們預計不會做出重大改變。他們與我們的接觸略有不同的唯一地方是房車和船舶領域。該細分市場在金融危機期間的表現有所不同，所以也許這就是您所指的。但我們也喜歡這個行業。我們認為這是對消費者產品組合的一個很好的補充。

And I think I have to reiterate, too, that in both the consumer and the wholesale segment, their starting position is the same as ours, which is a really, really strong credit profile, particularly in consumer. And so we're not concerned at this point in time with the merger of their risk profile and ours. We see it as very similar, quite complementary and don't anticipate making any material changes. And it certainly would not affect my guidance in terms of forward PCL.

我想我還必須重申，在消費者和批發領域，他們的起始地位與我們相同，這是一個非常非常強大的信用狀況，特別是在消費者領域。因此，我們目前並不關心他們的風險狀況與我們的風險狀況的合併。我們認為它非常相似，非常互補，並且預計不會做出任何實質改變。這當然不會影響我對遠期 PCL 的指導。

Okay. It was actually the financial crisis period. So you're saying that, that business is something that you still like and I'm guessing that -- I guess the adjudication in that business has changed over time?

好的。那其實是金融危機時期。所以你是說，你仍然喜歡這個行業，而且我猜 - 我猜這個行業的裁決隨著時間的推移而改變了？

Yes. It's hard for me to answer that question. We don't -- I don't -- as Tayfun said, given some of the legal restrictions, we don't have deep detail on the history of that business. But we know a fair bit about it and we've done a lot of due diligence on the RV and marine portfolio. We like the business, and we like their expertise there. They've got some really, really well-developed analytics. And so we would anticipate continuing to remain there and would not anticipate it materially affecting our risk profile going forward.

是的。我很難回答這個問題。我們不——我不——正如泰豐所說，考慮到一些法律限制，我們沒有關於該業務歷史的深入細節。但我們對此有一定了解，並且我們對房車和船舶產品組合進行了大量盡職調查。我們喜歡這個行業，也喜歡他們的專業知識。他們有一些非常非常完善的分析。因此，我們預計會繼續留在那裡，並且不會預期它會對我們未來的風險狀況產生重大影響。

That concludes today's question-and-answer session. I would like to turn back the meeting over to Mr. Darryl White.

今天的問答環節到此結束。我想將會議轉交給達裡爾懷特先生。

Well, thank you, operator, and thank you all for your questions. I'll conclude very quickly with a few key themes.

好的，謝謝接線生，也謝謝大家提出的問題。我很快就會以幾個關鍵主題作為結束語。

Number one, we continue to deliver good financial performance in the second quarter. Number two, we're strategically investing to deliver growth and efficiency over time. Number three, our superior risk management remains a differentiator and we believe it will continue to be. And number four, we have an advantaged business mix that's positioned to take advantage of the global trends that I talked about at the beginning of the conference call.

第一，我們在第二季持續實現良好的財務表現。第二，我們正在進行策略性投資，以隨著時間的推移實現成長和效率。第三，我們卓越的風險管理仍然是一個與眾不同的因素，我們相信它將繼續如此。第四，我們擁有優勢的業務組合，可以利用我在電話會議開始時談到的全球趨勢。

So thank you all for participating in today's call, and we look forward to speaking to you again in August.

感謝大家參加今天的電話會議，我們期待在八月再次與你們交談。

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。