Bank of Nova Scotia (BNS) 2023 Q3 法說會逐字稿

Good morning, and welcome to Scotiabank's 2023 Third Quarter Results Presentation. My name is John McCartney. I'm Head of Investor Relations here at Scotiabank.

早上好，歡迎來到豐業銀行 2023 年第三季度業績發布會。我的名字是約翰·麥卡特尼。我是豐業銀行投資者關係主管。

Presenting to you this morning are Scott Thomson, Scotia's President and CEO; Raj Viswanathan, our Chief Financial Officer; and Phil Thomas, our Chief Risk Officer. Following our comments, we'll be glad to take your questions. Also present to take questions are the following Scotiabank executives: Dan Rees from Canadian Banking; Glen Gowland from Global Wealth Management, Francisco Aristeguieta from International Banking; and Jake Lawrence from Global Banking and Markets.

今天早上向您介紹的是 Scotia 總裁兼首席執行官 Scott Thomson； Raj Viswanathan，我們的首席財務官；以及我們的首席風險官 Phil Thomas。根據我們的評論，我們很樂意回答您的問題。出席提問的還有以下豐業銀行高管： 加拿大銀行業的 Dan Rees；全球財富管理部門的 Glen Gowland、國際銀行部門的 Francisco Aristeguieta；和來自全球銀行與市場的傑克·勞倫斯。

Before we start and on behalf of those speaking today, I will refer you to Slide 2 of our presentation, which contains Scotiabank's caution regarding forward-looking statements.

在我們開始之前，我代表今天的發言者，請您參閱我們演示文稿的幻燈片 2，其中包含豐業銀行對前瞻性陳述的謹慎態度。

With that, I will now turn the call over to Scott.

現在，我將把電話轉給斯科特。

Thank you, John, and good morning, everyone. We appreciate you joining us today. The bank reported Q3 adjusted earnings of $2.2 billion or $1.73 per share, up 2% sequentially. The Pretax pre-provision earnings of $3.5 billion were up 5% compared to the prior quarter. The bank's Q3 results reflect both the resilient performance of our retail and commercial businesses and modest improvement in our market-sensitive capital markets and wealth businesses.

謝謝約翰，大家早上好。我們感謝您今天加入我們。該銀行公佈第三季度調整後收益為 22 億美元，即每股 1.73 美元，比上一季度增長 2%。稅前撥備前盈利為 35 億美元，較上一季度增長 5%。該銀行第三季度的業績既反映了我們零售和商業業務的彈性表現，也反映了我們對市場敏感的資本市場和財富業務的適度改善。

Although the operating environment has stabilized following the Q2 market dislocation deposit migration to term products and Central Bank rate increases continue to increase our funding costs. Importantly, we strengthened our capital, liquidity and deposit metrics as we prepare the bank for our next phase of profitable, sustainable growth. We continue to build capital this quarter, resulting in a common equity Tier 1 capital ratio of 12.7%. Our liquidity coverage ratio was a strong 133% at quarter end up from 122% in the prior year. Deposits once again outpaced loan growth in the period from a sustained focus on deposit growth initiatives across our businesses, improving our loan-to-deposit ratio.

儘管隨著第二季度市場錯位存款轉向定期產品以及央行加息，經營環境已趨於穩定，但我們的融資成本仍在繼續增加。重要的是，我們加強了資本、流動性和存款指標，為銀行下一階段的盈利、可持續增長做好準備。本季度我們繼續增加資本，普通股一級資本比率達到 12.7%。截至季度末，我們的流動性覆蓋率高達 133%，而去年同期為 122%。由於我們各業務持續關注存款增長舉措，期內存款增速再次超過貸款增速，貸存比有所改善。

Year-over-year deposits increased by 9% or approximately $55 billion. On a sequential basis, deposits grew in our Canadian Banking and International Banking franchises. Lending volumes in the quarter reflect a more cautious environment from both a household confidence and business investment perspective as seen in activity levels across our various segments and geographies. The impact of these macroeconomic realities coupled with a more selective and deliberate approach to new originations has resulted in a moderation of our loan growth. Expense growth was flat to last quarter and will be a priority as we strive to achieve our medium-term objective of delivering positive operating leverage. Disciplined expense management has always been a core competency of our bank.

存款同比增長 9%，即約 550 億美元。我們的加拿大銀行和國際銀行業務的存款環比增長。從家庭信心和企業投資的角度來看，本季度的貸款量反映了更加謹慎的環境，這從我們各個部門和地區的活動水平來看。這些宏觀經濟現實的影響，加上對新發放採取更有選擇性和深思熟慮的方法，導致我們的貸款增長放緩。費用增長與上季度持平，這將是我們努力實現提供積極運營槓桿的中期目標的首要任務。嚴格的費用管理一直是我行的核心競爭力。

The higher for longer interest rate environment that has played out across our operating geographies has already and will continue to impact consumer health. Through our advanced data and analytics, we are closely monitoring customer behavior and have observed a very rational and responsible shift in spending as households manage through this period of reduced discretionary income. In our core international banking markets, where the interest rate tightening cycle has led most other global economies, we are seeing the impact of recessionary conditions, which are reflected in our elevated provisions. With the Chilean economy, for example, now in a recession, it's Central Bank cut rates with a 100 basis point policy rate decrease in late July and additional rate cuts are expected in the near term. Overall, we remain confident that the investment grade bias to our corporate and commercial portfolios, coupled with our conservative underwriting standards, has the bank very well positioned to manage through this phase of the rate cycle.

在我們的運營地區，長期利率較高的環境已經並將繼續影響消費者的健康。通過我們先進的數據和分析，我們正在密切監控客戶的行為，並觀察到隨著家庭度過這段可自由支配收入減少的時期，支出發生了非常理性和負責任的轉變。在我們的核心國際銀行市場，利率緊縮週期引領了大多數其他全球經濟體，我們看到了經濟衰退的影響，這反映在我們增加的準備金上。例如，由於智利經濟目前陷入衰退，該國央行在 7 月底將政策利率下調了 100 個基點，預計近期還會進一步降息。總體而言，我們仍然相信，我們的企業和商業投資組合的投資級別偏向，加上我們保守的承保標準，使該銀行能夠很好地管理利率週期的這一階段。

We continue to build performing allowances and improve our ACL coverage as the longer-term macroeconomic outlook continues to be uncertain. From a business line performance perspective, I was particularly encouraged by our revenue-led pretax pre-provision growth in each of Canadian Banking and International Banking, both up year-over-year and quarter-over-quarter. GBM and wealth both showed positive trends as market volatility stabilized. In our Canadian Banking business, as expected, profitability was impacted by higher provisions, however, we saw healthy net interest margin expansion supported by another quarter of double-digit deposit growth. Our Scene+ loyalty program reached 14 million members in the quarter and has been a strong contributor to new primary client relationships and deeper product penetration with existing customers. Just this month, home hardware was added to the Scene+ program, providing members the opportunity to earn and redeem Scene+ points at one of Canada's largest home improvement retailers. The Scene+ program was an important driver of the strong growth this quarter in Canadian banking deposits and clients who use us as their primary bank for day-to-day payments through credit cards.

由於長期宏觀經濟前景仍然不確定，我們將繼續建立績效津貼並提高 ACL 覆蓋範圍。從業務線績效的角度來看，我對加拿大銀行業和國際銀行業以收入為主導的稅前撥備增長感到特別鼓舞，無論是同比還是環比均有所增長。隨著市場波動趨於穩定，GBM 和財富均呈現積極趨勢。在我們的加拿大銀行業務中，正如預期的那樣，盈利能力受到撥備增加的影響，但是，我們看到淨息差在另一個季度兩位數的存款增長的支持下健康增長。我們的 Scene+ 忠誠度計劃在本季度覆蓋了 1400 萬會員，為新的主要客戶關係和現有客戶的更深層次的產品滲透做出了巨大貢獻。就在本月，家居硬件被添加到 Scene+ 計劃中，為會員提供在加拿大最大的家居裝修零售商之一賺取和兌換 Scene+ 積分的機會。 Scene+ 計劃是本季度加拿大銀行存款和使用我們作為主要銀行通過信用卡進行日常支付的客戶強勁增長的重要推動力。

Our Tangerine franchise is performing well from a deposit gathering and profitability perspective and is increasingly focused on deepening client relationships through card and wealth management cross-sell. Importantly, over 80% of our Tangerine deposit flows in Q3 originated from digitally engaged multiproduct clients, and once again, the business delivered double-digit revenue and earnings growth on a year-over-year basis. International Banking delivered solid performance against a challenging economic backdrop with strong revenue growth and good expense control. Earnings were impacted by higher provisions and a normalizing tax rate. Our Mexico business continues to show great momentum, delivering 16% pretax pre-provision growth year-over-year and a return on equity of 25%. We are well positioned to strategically support both local and multinational clients in Mexico as a wave of supply chain-related foreign direct investment drives outsized industrial activity and economic growth.

從存款收集和盈利能力的角度來看，我們的 Tangerine 特許經營業務表現良好，並且越來越注重通過卡和財富管理交叉銷售加深客戶關係。重要的是，第三季度超過 80% 的 Tangerine 存款流量來自數字化多產品客戶，該業務再次實現了兩位數的同比收入和盈利增長。國際銀行業務在充滿挑戰的經濟背景下憑藉強勁的收入增長和良好的費用控​​制實現了穩健的業績。收益受到撥備增加和稅率正常化的影響。我們的墨西哥業務繼續呈現強勁勢頭，稅前撥備同比增長 16%，股本回報率達 25%。隨著供應鏈相關的外國直接投資浪潮推動大規模工業活動和經濟增長，我們處於有利地位，可以為墨西哥的本地和跨國客戶提供戰略支持。

Global Wealth Management earnings grew 4% from the prior quarter, strong relative investment performance and continued momentum in our international wealth business tempered the impact of a negative industry investment fund flows. Global Banking and Markets delivered solid results on stronger capital markets activity in conjunction with moderating loan growth as the business continues efforts to optimize capital allocation with a focus on return metrics. Inclusive of continued strong results in GBM Lat Am, GBM delivered earnings of $748 million, up 31% year-over-year and 11% sequentially, driven largely by growth in our fee and client underwriting and advisory business. In summary, results across our businesses reflect the bank's ability to generate solid earnings through a period of economic uncertainty and transition.

全球財富管理盈利較上一季度增長 4%，強勁的相對投資表現和國際財富業務的持續增長勢頭緩和了行業投資基金流量負增長的影響。隨著該業務繼續努力優化資本配置，重點關注回報指標，全球銀行和市場業務在資本市場活動增強和貸款增長放緩的同時取得了堅實的業績。包括 GBM Lat Am 持續強勁的業績在內，GBM 實現盈利 7.48 億美元，同比增長 31%，環比增長 11%，這主要得益於我們的費用和客戶承保及諮詢業務的增長。總之，我們各項業務的業績反映了該銀行在經濟不確定和轉型時期創造穩定收益的能力。

Our results also reflect early actions in support of the priority initiatives I have previously outlined, primary client growth, purposeful capital allocation and excellence in operating efficiency. Growing client primacy is critical to delivering on our strategy, which means bringing the entire bank to our clients to earn core relationships. In each of our business lines, we are evaluating our approach to relationship building and our opportunity for relationship deepening. We will look to prioritize markets where we have scale opportunity and target client segments where we have the product capability and connectivity to be a lead financial services provider. Allocating capital to the businesses where we have the highest return through a disciplined approach will result in profitable growth for the bank. Operational excellence will entail continuing to digitize and streamline the way we do business to create efficiency across our bank. We want to make it easier to do business with us through continued digitization, simplified internal processes and enhanced client interactions. We are committed to ongoing productivity initiatives and a collaborative culture that position us to win for our shareholders, colleagues and communities.

我們的結果還反映了支持我之前概述的優先舉措、主要客戶增長、有目的的資本配置和卓越運營效率的早期行動。不斷提高客戶至上性對於實現我們的戰略至關重要，這意味著將整個銀行帶到我們的客戶身邊，以贏得核心關係。在我們的每個業務領域，我們都在評估建立關係的方法以及深化關係的機會。我們將優先考慮擁有規模機會的市場和目標客戶群，在這些市場中我們擁有成為領先金融服務提供商的產品能力和連接性。通過嚴格的方法將資本分配給回報率最高的業務，將為銀行帶來盈利增長。卓越運營需要繼續數字化和簡化我們的業務方式，以提高整個銀行的效率。我們希望通過持續的數字化、簡化的內部流程和增強的客戶互動，讓與我們開展業務變得更加容易。我們致力於持續的生產力計劃和協作文化，使我們能夠為股東、同事和社區贏得勝利。

In closing, I would like to welcome Jacqui Allard, who joins us next week as our Deputy Head, Global Wealth Management and will assume leadership of that business early next year. Jacqui will work closely through a transition period with Glen Gowland, who has done a fantastic job building our wealth business to scale in recent years. I look forward to having Glen Gowland closely with me on strategic initiatives across the organization in his new role as a Vice Chair of the bank. And finally, I wanted to acknowledge the devastating wildfires in the Northwest territories and my home province of British Columbia. I want all our employees and clients to know that we're thinking of them and here to support. We have made a donation to the Canadian Red Cross, the United Way Northwest Territories and the Colona firefighters to support relief and recovery efforts, and we are raising additional funds through our branches across Canada. We remain focused on the safety of our employees and ensuring we're here to support our clients during this difficult time.

最後，我要歡迎雅基·阿拉德 (Jacqui Allard)，他將於下週加入我們，擔任我們的全球財富管理副主管，並將於明年初領導該業務。 Jacqui 將在過渡期間與 Glen Gowland 密切合作，Glen Gowland 近年來在擴大我們的財富業務規模方面做得非常出色。我期待格倫·高蘭 (Glen Gowland) 在擔任銀行副主席的新職位上與我密切合作，共同製定整個組織的戰略舉措。最後，我想感謝西北地區和我的家鄉不列顛哥倫比亞省發生的毀滅性野火。我希望我們所有的員工和客戶都知道我們正在為他們著想並為他們提供支持。我們已向加拿大紅十字會、西北地區聯合之路和科洛納消防員捐款，以支持救援和恢復工作，並且我們正在通過加拿大各地的分支機構籌集更多資金。我們仍然關注員工的安全，並確保在這個困難時期為客戶提供支持。

With that, I will turn the call over to Raj for a more detailed review of our financials.

這樣，我會將電話轉給 Raj，以更詳細地審查我們的財務狀況。

Thank you, Scott, and good morning, everyone. All my comments that follow will be on an adjusted basis for the usual acquisition-related costs. I'll begin with a review of the performance for the quarter on Slide 5.

謝謝你，斯科特，大家早上好。我接下來的所有評論都將根據通常的收購相關成本進行調整。我將首先在幻燈片 5 上回顧本季度的業績。

The bank reported quarterly adjusted earnings of $2.2 billion and diluted EPS of $1.73 and return on equity was 12.2%. All bank pretax pre-provision profit decreased 2% year-over-year but increased 5% quarter-over-quarter. Year-over-year, the decline was driven mainly by higher funding costs, which is recorded in the other segment and lower wealth management results driven by challenging market conditions. Net interest income was $4.6 billion, down 2% year-over-year as loan growth and the positive impact of foreign currency translation were offset by lower margins. The net interest margin declined 12 basis points year-over-year and 3 basis points quarter-over-quarter, mostly from higher funding costs due to central bank rate increases. [Recall], given the increased probability for rates to remain higher for longer, last quarter, we modified our interest rate positioning while remaining positioned to benefit meaningfully from declining interest rates.

該銀行報告季度調整後收益為 22 億美元，稀釋後每股收益為 1.73 美元，股本回報率為 12.2%。所有銀行稅前撥備利潤同比下降2%，但環比增長5%。與去年同期相比，下降的主要原因是其他部門的融資成本上升，以及市場環境充滿挑戰導致財富管理業績下降。淨利息收入為 46 億美元，同比下降 2%，原因是貸款增長和外幣換算的積極影響被利潤率下降所抵消。淨息差同比下降12個基點，環比下降3個基點，主要是由於央行加息導致融資成本上升。 [回想一下]，考慮到利率在較長時間內保持較高水平的可能性增加，上個季度，我們修改了利率定位，同時保持從利率下降中顯著受益的定位。

For the second quarter in a row, deposit growth outpaced loan growth, resulting in a loan-to-deposit ratio of 114%, an improvement of approximately 140 basis points quarter-over-quarter. Noninterest income was $3.5 billion, up 12% year-over-year, mainly due to higher banking revenues, trading-related revenues in fixed income and equities, underwriting and advisory fees and wealth management revenues. The PCL ratio was 42 basis points this quarter, of which 4 basis points was performing PCLs. Phil will cover PCL in more detail later. Quarter-over-quarter expenses were flat or down 1% excluding the unfavorable impact of on currency translation, driven by lower share and performance-based compensation and employee benefits, partly offset by the 3 additional days in the quarter. Expenses increased 9% year-over-year or 5%, excluding the unfavorable impact of foreign currency translation, reflecting growth in staffing-related costs, technology costs, amortization and advertising and business development. The productivity ratio was 56.1% this quarter, an improvement of 140 basis points quarter-over-quarter as revenue growth outpaced expenses. Year-to-date operating leverage was negative 7.4%. The effective tax rate was 18.4% this quarter compared to 18.9% a year ago, driven by higher income in lower tax rate jurisdictions and higher tax-exempt income in the quarter, partly offset by lower inflationary adjustments in International Banking.

存款增速連續第二個季度超過貸款增速，存貸比達到114%，環比提高約140個基點。非利息收入為 35 億美元，同比增長 12%，主要是由於銀行收入、固定收益和股票交易相關收入、承銷和諮詢費用以及財富管理收入增加。本季度 PCL 比率為 42 個基點，其中 4 個基點為執行 PCL。 Phil 稍後將更詳細地介紹 PCL。排除因股份和基於績效的薪酬以及員工福利下降而導致的貨幣換算的不利影響，季度環比費用持平或下降 1%，但部分被本季度額外增加的 3 天所抵消。費用同比增長9%或5%，剔除外幣換算的不利影響，反映出與員工相關的成本、技術成本、攤銷以及廣告和業務開發的增長。由於收入增長超過了支出，本季度生產率為 56.1%，環比提高 140 個基點。年初至今的運營槓桿率為負 7.4%。本季度的有效稅率為 18.4%，而去年同期為 18.9%，這是由於較低稅率管轄區的收入增加以及本季度免稅收入增加，部分被國際銀行業較低的通脹調整所抵消。

Turning to Slide 6. This slide provides an evolution of the common equity Tier 1 ratio over the quarter as well as the quarter's changes in risk-weighted assets. The banks reported a common equity Tier 1 ratio of 12.7%, an increase of approximately 40 basis points. Net internal capital generation was strong at 37 basis points, including a lower risk-weighted asset number. Under the dividend reinvestment plan, the bank issued 7 million shares that contributed 11 basis points. Risk-weighted assets were $439.8 billion during the quarter, a decrease of approximately $11.3 billion from the previous quarter. Lower business loan growth, a reduction in the capital flow add-on of approximately $7 billion and the benefits from the inaugural synthetic is transfer transaction reduced the risk-weighted asset during the quarter. The bank's capital ratios are expected to continue to grow in Q4. In addition, the bank's liquidity coverage ratio or LCR improved 200 basis points quarter-over-quarter to 133% this quarter and was significantly up from 122% last year.

轉向幻燈片 6。這張幻燈片提供了本季度普通股一級資本比率的演變以及本季度風險加權資產的變化。這些銀行的普通股一級資本比率為 12.7%，增加了約 40 個基點。淨內部資本生成強勁，達 37 個基點，其中風險加權資產數量較低。根據股息再投資計劃，該銀行發行了700萬股股票，貢獻了11個基點。本季度風險加權資產為 4,398 億美元，較上季度減少約 113 億美元。商業貸款增長放緩、資本流動附加減少約 70 億美元以及首次合成轉讓交易帶來的好處減少了本季度的風險加權資產。該銀行的資本比率預計將在第四季度繼續增長。此外，本季度該銀行的流動性覆蓋率或LCR環比提高200個基點至133%，顯著高於去年的122%。

Turning now to the business line results beginning on Slide 7. Canadian Banking reported earnings of $1.1 billion, a decrease of 13% year-over-year due to higher provision for credit losses and noninterest expenses. Pretax pre-provision profit grew 2% year-over-year as revenue growth of 3% was partly offset by expense growth of 5%. Pretax pre-provision profit increased a strong 5% quarter-over-quarter. Net interest income increased 4% year-over-year as deposits grew a strong 11% and earning assets grew a modest 3%. Quarter-over-quarter margin expanded by 5 basis points due primarily to higher deposit margins. Average loans and acceptances grew 3% year-over-year. We saw continued growth in our higher-yielding portfolios as business loans grew 13%, personal loans grew 4% and credit cards increased 17%. This was offset by a decline of 1% in residential mortgage balances. Average loan balance was in line with last quarter as the decline in mortgage balances was offset by growth in business, personal and credit cards. We continue to see strong deposit growth, with average deposits again up 11% year-over-year and 2% quarter-over-quarter. Year-over-year, personal deposits grew 13% and primarily in term products and nonpersonal deposits increased 6%. The loan-to-deposit ratio has improved to 129% from 139% last year in this segment. Noninterest income was down 1% year-over-year, driven by lower cost revenue and reduced income from associated corporations. Expenses increased 5% year-over-year, primarily due to higher personnel costs from increased client-facing staff and inflationary adjustments. Quarter-over-quarter expenses were down a modest 1%. The PCL ratio was 27 basis points, an increase of 7 basis points quarter-over-quarter.

現在轉向從幻燈片 7 開始的業務線業績。加拿大銀行業公佈的盈利為 11 億加元，同比下降 13%，原因是信貸損失和非利息支出撥備增加。稅前撥備前利潤同比增長 2%，其中 3% 的收入增長被 5% 的費用增長部分抵消。稅前撥備前利潤環比強勁增長 5%。淨利息收入同比增長 4%，存款強勁增長 11%，生息資產小幅增長 3%。季度利潤率擴大 5 個基點，主要是由於存款利潤率提高。平均貸款和承兌匯票同比增長3%。我們的高收益投資組合持續增長，商業貸款增長 13%，個人貸款增長 4%，信用卡增長 17%。這被住宅抵押貸款餘額下降 1% 所抵消。平均貸款餘額與上季度持平，因為抵押貸款餘額的下降被企業、個人和信用卡的增長所抵消。我們繼續看到存款強勁增長，平均存款同比再次增長 11%，環比增長 2%。個人存款同比增長 13%，主要是定期產品和非個人存款增長 6%。該領域的貸存比率已從去年的 139% 提高至 129%。由於成本收入下降和關聯公司收入減少，非利息收入同比下降 1%。費用同比增長 5%，主要是由於面向客戶的員工增加和通貨膨脹調整導致人員成本增加。環比支出小幅下降 1%。 PCL比率為27個基點，環比上升7個基點。

Turning now to Global Wealth Management on Slide 8. Earnings of $373 million declined 3% year-over-year primarily due to Canadian wealth being down 7%. International wealth earnings grew a strong 26% year-over-year. Earnings grew 4% quarter-over-quarter in spite of difficult market conditions. Revenue grew 2% year-over-year and 3% quarter-over-quarter due primarily to higher mutual fund and brokerage revenues. Expenses were up 6% year-over-year from expansion of revenue-generating sales force and 3% quarter-over-quarter driven by higher volumes. Assets under management increased 4% year-over-year to $331 billion as market appreciation was partly offset by net redemptions. Assets under administration increased 9% over the same period to $631 billion from both market appreciation and higher net sales. While investment funds in Canada remain in net redemptions, Scotia Global Asset Management investment results continue to perform well against their benchmarks, and the bank maintained its #2 ranking in investment funds in Canada. International Wealth generated earnings of $60 million driven by higher net interest income and business volume growth. International Wealth Management AUA grew 21% year-over-year to $130 billion.

現在轉向幻燈片 8 上的全球財富管理。收入為 3.73 億美元，同比下降 3%，主要是由於加拿大財富下降 7%。國際財富收入同比強勁增長 26%。儘管市場條件困難，但盈利仍環比增長 4%。收入同比增長 2%，環比增長 3%，主要是由於共同基金和經紀收入增加。由於創收銷售隊伍的擴張，費用同比增長 6%，由於銷量增加，費用環比增長 3%。由於市場升值被淨贖回部分抵消，管理資產同比增長 4% 至 3,310 億美元。由於市場升值和淨銷售額增加，管理資產同期增長 9%，達到 6,310 億美元。雖然加拿大的投資基金仍處於淨贖回狀態，但豐業環球資產管理公司的投資業績相對於基準繼續表現良好，該銀行在加拿大投資基金中排名第二。在淨利息收入增加和業務量增長的推動下，International Wealth 創造了 6000 萬美元的收益。國際財富管理 AUA 同比增長 21%，達到 1,300 億美元。

Turning to Slide 9, Global Banking and Markets, generated earnings of $434 million up 15% year-over-year. Revenues grew 17% year-over-year, outpacing expense growth of 16%. Capital markets revenue was up 41% year-over-year as FICC grew 52% and global equities grew 28%. Business Banking revenues grew 2% and the loans grew 13% year-over-year. Net interest income was down 17% year-over-year as a result of lower corporate lending and deposit margins and lower loan fees. Noninterest income grew $259 million or 35% year-over-year, primarily due to higher underwriting and advisory fees and growth in trading-related revenue in fixed income and equities. Expenses were up a modest 1% quarter-over-quarter, mainly from higher performance-based compensation and salaries. On a year-over-year basis, expenses were up 16% due mainly to higher personnel costs and technology investments, both related to business growth. The provision for credit losses was a recovery of $6 million driven by Stage 3 recoveries. The U.S. business generated earnings of $217 million this quarter. GBM Latin America, which is reported as part of International Banking had another strong quarter, reporting earnings of $314 million up 64% year-over-year, driven by Mexico, Chile and Brazil.

轉向幻燈片 9，全球銀行和市場業務實現盈利 4.34 億美元，同比增長 15%。收入同比增長 17%，超過支出增長 16%。資本市場收入同比增長 41%，FICC 增長 52%，全球股票增長 28%。商業銀行收入同比增長 2%，貸款同比增長 13%。由於企業貸款和存款利潤率下降以及貸款費用下降，淨利息收入同比下降 17%。非利息收入同比增長 2.59 億美元，增長 35%，這主要是由於承銷和諮詢費用增加以及固定收益和股票交易相關收入的增長。費用環比小幅增長 1%，主要是由於基於績效的薪酬和工資有所提高。費用同比增長 16%，主要是由於與業務增長相關的人員成本和技術投資增加。信貸損失撥備是由第三階段回收推動的 600 萬美元回收。美國業務本季度盈利 2.17 億美元。據報導，作為國際銀行業務一部分的 GBM 拉丁美洲季度又表現強勁，在墨西哥、智利和巴西的推動下，盈利達 3.14 億美元，同比增長 64%。

Moving to Slide 10 for a review of International Banking. My comments that follow are on an adjusted and constant dollar basis. The segment reported net income of $635 million, down 8% year-over-year. However, pretax pre-provision profit grew a strong 11%. The Pacific Alliance was up 10% with strong growth in Mexico of 16% and 19% growth in Caribbean and Central America. Revenue was up 8% year-over-year, driven by good loan growth, higher net interest margin and strong capital markets and corporate banking revenues in Mexico and Chile. Year-over-year loan growth moderated at 5%. Mortgages were up 10%. Personal loans and credit cards grew 3%, and business banking was up 3%. Deposits grew a strong 8% year-over-year and 1% quarter-over-quarter, reducing the loan-to-deposit ratio by approximately 400 basis points year-over-year. Net interest margin expanded 15 basis points year-over-year. The margin was down 2 basis points quarter-over-quarter, mostly from lower inflation benefits in Chile and Uruguay. The provision for credit losses was 118 basis points or $516 million, up 15 basis points from last quarter. On a quarter-over-quarter basis, expenses were down 1% due to lower salaries and employee benefits. On a year-over-year basis, noninterest expenses were up 5%, driven mainly by the inflationary impacts on personnel costs. The tax rate of 22.9% for the quarter increased from 20.7% in the prior quarter due to lower inflationary adjustments in Chile and Mexico.

轉到幻燈片 10，回顧一下國際銀行業務。我接下來的評論是在調整後且美元不變的基礎上做出的。該部門淨利潤為 6.35 億美元，同比下降 8%。然而，稅前撥備前利潤強勁增長11%。太平洋聯盟增長 10%，其中墨西哥增長 16%，加勒比海和中美洲增長 19%。受墨西哥和智利良好的貸款增長、更高的淨息差以及強勁的資本市場和企業銀行業務收入的推動，收入同比增長 8%。貸款同比增速放緩至 5%。抵押貸款增長了 10%。個人貸款和信用卡增長 3%，商業銀行業務增長 3%。存款同比強勁增長 8%，環比增長 1%，貸存比同比下降約 400 個基點。淨息差同比擴大15個基點。利潤率環比下降 2 個基點，主要是由於智利和烏拉圭的通脹收益下降。信貸損失撥備為 118 個基點，即 5.16 億美元，比上季度增加 15 個基點。由於工資和員工福利下降，費用環比下降了 1%。與去年同期相比，非利息支出增長了 5%，這主要是由於通貨膨脹對人員成本的影響。由於智利和墨西哥通脹調整幅度較小，本季度稅率從上一季度的 20.7% 上升至 22.9%。

Turning to Slide 11. The Other segment reported an adjusted net loss attributable to equity holders of $299 million, an improvement of $24 million compared to the prior quarter. Quarter-over-quarter, higher funding costs mainly driven by continued rate increases were more than offset by higher income from liquid assets and lower expenses. I'll now turn the call over to Phil to discuss risk.

轉向幻燈片 11。其他部門報告調整後歸屬於股東的淨虧損為 2.99 億美元，比上一季度減少了 2400 萬美元。與上一季度相比，主要由持續加息推動的融資成本上升被流動資產收入增加和費用下降所抵消。我現在將把電話轉給菲爾討論風險。

Thank you, Raj, and good morning, everyone. While we continue to operate in an environment of heightened uncertainty, we believe our business is well positioned to navigate this successfully. PCLs in Q3 were $819 million, up $110 million quarter-over-quarter, translating to a PCL ratio of 42 basis points. Our PCL ratio reflects 4 basis points of performing allowance build, reflecting the continued uncertain macroeconomic outlook. The fifth consecutive quarter of performing allowance build contributes to our balance sheet strength, with a total ACL coverage now at 78 basis points. Stage 3 PCL also increased nonperforming provisions of $738 million, up $117 million quarter-over-quarter. The largest increase was in Chile and Columbia unsecured retail, where the economies continue to slow. In Canada, despite two additional rate increases in Q3, variable rate mortgage customers remain resilient. These customers have adjusted quickly with spending down 15% year-over-year, driven by a reduction in discretionary areas. We remain comfortable in our retail, commercial and corporate customers' ability to manage through this credit cycle.

謝謝拉傑，大家早上好。雖然我們繼續在不確定性加劇的環境中運營，但我們相信我們的業務已做好準備，能夠成功應對這一挑戰。第三季度的 PCL 為 8.19 億美元，環比增長 1.1 億美元，相當於 PCL 比率為 42 個基點。我們的 PCL 比率反映了績效準備金增加的 4 個基點，反映出宏觀經濟前景持續不確定。連續第五個季度的績效準備金增加增強了我們的資產負債表實力，ACL 總覆蓋率目前為 78 個基點。第三階段 PCL 還增加了不良準備金 7.38 億美元，環比增加 1.17 億美元。增幅最大的是智利和哥倫比亞的無擔保零售，這些國家的經濟繼續放緩。在加拿大，儘管第三季度兩次加息，但浮動利率抵押貸款客戶仍然保持彈性。由於可自由支配領域的減少，這些客戶迅速進行了調整，支出同比下降了 15%。我們對零售、商業和企業客戶管理本信貸週期的能力仍然感到滿意。

Moving to international retail. Our secured balances remained stable at 73% of total loans for the third consecutive quarter. While inflation is beginning to ease, the absolute levels of price pressures on consumers remain high. This erosion of purchasing power is impacting the financial health of consumers in the Pacific Alliance. In particular, in Chile, this is compounded by a gradual rise in unemployment given the decline in economic activity. Overall, 90-day delinquency increased 8 basis points quarter-over-quarter within expectations. In Q3, the International Banking retail PCL ratio was 215 basis points compared to 185 basis points in Q2.

轉向國際零售。我們的擔保餘額連續第三個季度穩定在總貸款的 73%。雖然通貨膨脹開始緩解，但消費者面臨的價格壓力的絕對水平仍然很高。購買力的削弱正在影響太平洋聯盟消費者的財務健康。特別是在智利，由於經濟活動下降，失業率逐漸上升，情況更加複雜。總體而言，90 天拖欠率環比增長 8 個基點，符合預期。第三季度，國際銀行零售 PCL 比率為 215 個基點，而第二季度為 185 個基點。

Turning to business banking. This portfolio continues to perform well. The segment reported PCLs of 18 basis points, down from 21 basis points in Q2. International Commercial was stable quarter-over-quarter, while we had a small release in GBM driven by a recovery on 1 account. In Canada, we built performing allowances being cautious on macroeconomic outlook and headwinds facing commercial real estate. Our global commercial real estate portfolio is $66.2 billion, down 1% quarter-over-quarter, representing approximately 8% of our loan portfolio. We remain focused on undersupplied asset classes with 72% of our CRE exposure in residential and industrial. Office exposure represents less than 1% of our total loans, and we have built performing allowances that the longer-term impact of flexible work remains uncertain. We continue to proactively manage maturities and credit events.

轉向商業銀行業務。該投資組合繼續表現良好。該部門報告 PCL 為 18 個基點，低於第二季度的 21 個基點。國際商業業務季度環比穩定，而 GBM 業務因 1 個賬戶復甦而小幅釋放。在加拿大，我們建立了績效津貼，對宏觀經濟前景和商業房地產面臨的不利因素持謹慎態度。我們的全球商業房地產投資組合為 662 億美元，環比下降 1%，約占我們貸款組合的 8%。我們仍然專注於供應不足的資產類別，我們 72% 的 CRE 敞口位於住宅和工業領域。辦公室貸款占我們貸款總額的不到 1%，而且我們設立了績效津貼，但靈活工作的長期影響仍不確定。我們繼續主動管理到期日和信用事件。

Moving to Slide 13. Gross impaired loans were up 3 basis points quarter-over-quarter to 70 basis points, but remain below pre-pandemic levels. GILs were primarily driven by new formations in retail specifically in Chile and Columbia. Business Banking GILs were relatively unchanged this quarter. Canadian commercial GILs increased quarter-over-quarter. However, GBM and international commercial GILs were lower.

轉到幻燈片 13。總減值貸款環比上升 3 個基點，達到 70 個基點，但仍低於大流行前的水平。 GIL 主要是由零售業的新形成推動的，特別是在智利和哥倫比亞。本季度商業銀行 GIL 相對不變。加拿大商業 GIL 環比增長。然而，GBM 和國際商業 GIL 較低。

Moving to Slide 14. Canadian Banking reported PCLs of $307 million. The PCL ratio of 27 basis points reflects a performing build of 4 basis points. The quarter-over-quarter increase was due to continued uncertain macroeconomic outlook, a performing build in commercial and higher impairments in Canadian Commercial and prime auto. International Banking PCLs were $516 million, translating to a PCL ratio of 118 basis points. The quarter-over-quarter increase was primarily due to retail driven by delinquency and net write-offs mainly in Chile and Columbia. In international, ACL coverage is now at 218 basis points, up 9 basis points quarter-over-quarter. We continue to build prudent allowances across our portfolios with the all-bank ACL ratio of 78 basis points, up 3 basis points quarter-over-quarter. We expect key macroeconomic indicators in Chile and Columbia to remain challenged in the near term, owing to a lagged impact of higher interest rates and the loss of purchasing power associated with high inflation. We continue to closely monitor our portfolio and we'll respond with adjustments to allowances as appropriate. We remain prudent with new exposures and will focus on high-quality borrowers.

轉向幻燈片 14。加拿大銀行業報告 PCL 為 3.07 億美元。 27 個基點的 PCL 比率反映了 4 個基點的表現。環比增長的原因是宏觀經濟前景持續不明朗、商業表現良好以及加拿大商業和高端汽車的減值損失增加。國際銀行業 PCL 為 5.16 億美元，相當於 PCL 比率為 118 個基點。環比增長主要是由於智利和哥倫比亞的拖欠和淨沖銷推動的零售業。在國際方面，ACL 覆蓋率目前為 218 個基點，環比上升 9 個基點。我們繼續在投資組合中建立審慎的準備金，全銀行 ACL 比率為 78 個基點，環比上升 3 個基點。我們預計，由於利率上升的滯後影響以及高通脹導致的購買力損失，智利和哥倫比亞的關鍵宏觀經濟指標在短期內仍將面臨挑戰。我們將繼續密切監控我們的投資組合，並將酌情調整配額。我們對新的風險敞口保持審慎態度，並將重點關注優質借款人。

With that, I will pass the call back to John for Q&A.

這樣，我會將電話轉回給約翰進行問答。

Great. Thank you, Phil. Operator, if we could queue for questions?

偉大的。謝謝你，菲爾。接線員，我們可以排隊提問嗎？

Our first question is from Ebrahim Poonawala with Bank of America.

我們的第一個問題來自美國銀行的 Ebrahim Poonawala。

I guess I just wanted to narrow down on the Canadian Banking segment, Raj, I think you referenced the loan-to-deposit ratio. If we look at loan and deposit balances relative to year-end, loans have been relatively flat, you've grown deposits. And I know deposits -- growth in deposits, a big priority for Scott. Just give us a sense of, is there a targeted loan-to-deposit ratio that you want that business to get to before we see loan balances grow, like is that intentional? And what is the -- and the strategy around the deposit customers who are coming on, are those really sticky customers that you can convert into a multipronged relationship? Or is it driven by rates and it's TBD in terms of whether this becomes a lasting relationship for the bank?

我想我只是想縮小加拿大銀行業的範圍，拉吉，我想你提到了貸存比。如果我們看一下相對於年底的貸款和存款餘額，貸款相對持平，存款卻有所增加。我了解存款——存款的增長，這是斯科特的首要任務。請讓我們了解一下，在我們看到貸款餘額增長之前，您是否希望該業務達到目標貸存比，這是故意的嗎？圍繞即將出現的存款客戶的策略是什麼，這些客戶是否是真正可以轉化為多管齊下的關係的粘性客戶？或者它是由利率驅動的，而這是否會成為銀行的持久關係尚待確定？

Great. I'll just start simplistically on the loan-to-deposit ratio, and I'll pass it on to Dan to talk about customers and how we are approaching deposits and loans from a client primacy perspective. What we have seen in the reduction in loan-to-deposit ratio, both in IB as well as in the Canadian bank is what we are going to continuously aspire to achieve. And like you point out, there's two sides to it, loans and deposits. So the deposit drive, I think, will continue because we do need to build our deposit base, something we've been quite clear about since Scott talked about it. I think in January, February of this year, you'll see that momentum continue. On the entire relationship, we'll be more thoughtful about how we want to grow the share of the wallet and so on. So I'm going to pass it on to Dan, he can talk about it in greater detail.

偉大的。我將簡單地從貸存比開始，然後我將把它交給 Dan 來談論客戶以及我們如何從客戶至上的角度處理存款和貸款。我們在興業銀行和加拿大銀行看到的貸存比下降是我們將不斷渴望實現的目標。正如您所指出的，它有兩個方面：貸款和存款。因此，我認為，存款驅動將會繼續下去，因為我們確實需要建立我們的存款基礎，自從斯科特談到這一點以來，我們已經非常清楚這一點。我想在今年一月、二月，你會看到這種勢頭持續下去。在整個關係上，我們會更加考慮如何增加錢包的份額等等。所以我要把它轉給丹，他可以更詳細地談論它。

Great. Thanks, Raj. Dan here. Look, a couple of things I would call it. We are aiming for an ongoing improvement in the LDR ratio in the [CVA] segment. We're 129 this quarter. We were 139 a year ago. So that's a substantial change. Clearly, decelerating loan growth, particularly in mortgages, has had an important impact of that as well as the market appetite for term on the [personal] deposit side. I would call out a few key planks of our mission towards deepening with clients or improving our client primacy. I know Scott off the top referred to the importance of seen. We have seen on the back of that customer loyalty program about 0.5 million new day-to-day accounts opened in the last year. Those would be core deposit, low-price sticky accounts which are often the result of cross-selling off the existing stock. That would be point one. We've also seen substantial improvements in our market share position with new Canadians as a result of targeted value propositions for those. Our improvement in Tangerine has also been noticeable. Scott called out in his remarks, the deepening on core there. And obviously, we've been improving our deposit growth in commercial for quite some time and in this quarter, again, at a faster growth rate than loans. So we are intensely decelerating our mortgage growth in favor of clients. And we launched in Q3 a really important pilot to deepen the deposit cross-sell off mortgages at time of origination. So I mean we're being very intentional here as we signaled a number of quarters ago, and we're really pleased with the cost of that deposit growth. As Raj mentioned, deposit margin improved again this quarter.

偉大的。謝謝，拉傑。丹在這裡。聽著，我會這樣稱呼它。我們的目標是持續改善 [CVA] 領域的 LDR 比率。本季度我們有 129 人。一年前我們139歲。所以這是一個實質性的改變。顯然，貸款增長放緩，特別是抵押貸款增長放緩，以及市場對[個人]存款期限的興趣產生了重要影響。我想指出我們深化與客戶合作或提高客戶至上性的使命的幾個關鍵要點。我知道斯科特在上面提到了所見的重要性。我們看到，在該客戶忠誠度計劃的支持下，去年大約開設了 50 萬個新的日常賬戶。這些將是核心存款、低價粘性賬戶，通常是交叉銷售現有股票的結果。這是第一點。由於針對新加拿大人的目標價值主張，我們還看到我們的市場份額地位得到了顯著改善。我們在 Tangerine 方面的改進也很明顯。斯科特在講話中呼籲深化核心問題。顯然，我們在相當長的一段時間裡一直在改善商業存款的增長，並且在本季度再次以比貸款更快的速度增長。因此，我們正在大力減緩抵押貸款的增長，以利於客戶。我們在第三季度啟動了一項非常重要的試點，以深化抵押貸款發起時的存款交叉銷售。所以我的意思是，正如我們在幾個季度前發出的信號一樣，我們在這裡非常有意，而且我們對存款增長的成本感到非常滿意。正如 Raj 提到的，本季度存款保證金再次改善。

Got it. That was helpful. And just separately, in terms of when we think about expense management, not that it was a big issue this quarter, we are hearing from peers around restructuring charges, we saw one this quarter, there's probably more coming from others going into 4Q. Maybe just top of the house, your headcount is somewhat flattish, about 2% up relative to the end of '21. Give us a sense of just how you're thinking about expense management, rightsizing the franchise for the current revenue backdrop?

知道了。這很有幫助。單獨而言，就我們考慮費用管理而言，這並不是本季度的一個大問題，我們從同行那裡聽到了有關重組費用的信息，我們在本季度看到了一個，其他人可能會在第四季度提出更多的費用。也許只是高層，你們的員工人數有些持平，相對於 21 年底增加了約 2%。請讓我們了解一下您如何考慮費用管理、根據當前收入背景調整特許經營規模？

It's Scott. I think it's clear to say clear for me that operational excellence will be an important component of the refresh strategy. And I was pleased to see the cost discipline in the quarter, but also recognize there's more work to do to align the organization and resources around our focus areas for growth. So good progress, but more to do as we look forward.

這是斯科特。我認為對我來說，卓越運營將是更新戰略的重要組成部分是很清楚的。我很高興看到本季度的成本紀律，但也認識到，圍繞我們的重點增長領域調整組織和資源還有更多工作要做。進展如此之好，但我們期待更多的工作要做。

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

我們的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)。

I'd like to follow on the balance sheet management question -- line of questioning in Canada. I mean you've clearly pointed out that mortgages and decelerating growth, even shrinking that book is big part of the plan. So just wondering, considering it is mortgages, I don't -- I wouldn't expect a big impact to your revenue base in the Canadian business. And equally, wondering if the declines we've seen this quarter and prior were the main drivers of the decline in the capital risk floor add-on?

我想跟進資產負債表管理問題——加拿大的提問路線。我的意思是，您已經明確指出，抵押貸款和增長減速，甚至縮減該賬簿是該計劃的重要組成部分。所以只是想知道，考慮到這是抵押貸款，我不認為會對您在加拿大業務的收入基礎產生重大影響。同樣，想知道本季度和之前我們看到的下降是否是資本風險下限附加下降的主要驅動因素？

I'll start with the capital risk floor, and then Dan can probably talk about the business in a little more detail than he did, Gabe. The capital risk floor is actually driven by three different components. And I think it's an important factor that will impact what the floor add-on is quarter-after-quarter because there are drivers that impact the standardized risk weight, there's drivers and impact to ARB calculation. So you're going to see that movement every quarter, not necessarily every quarter down like you saw this quarter. This quarter has three components grade. It's actually quite simple. When you break it down, we did the synthetic risk transfer, so that benefited the floor, and that gave us about $2 billion benefit in the $6.9 billion that we have called out in the slide. The next $2 billion results from when you see credit migration, which impacts the ARB RWA and standardized, as we all know, is risk insensitive. The floor add-on reduces as you see, slightly higher credit migration, which we saw this quarter. And the third one is the split of the allowances, the expected credit losses and the expected losses, which is used for Basel. That will move between ARB and standardized, and that moved in a direction that helped with the floor add-on this quarter of another $2 billion. So it's not got to do with the mortgages question, but I'll let Dan answer the business question that you had.

我將從資本風險下限開始，然後丹可能會比他更詳細地談論業務，加布。資本風險下限實際上由三個不同的組成部分驅動。我認為這是一個重要因素，將影響每個季度的底線附加值，因為有影響標準化風險權重的驅動因素，有驅動因素和對 ARB 計算的影響。因此，您每個季度都會看到這種變化，而不一定像本季度那樣每個季度都出現下降。本季度有三個組件等級。其實很簡單。當你分解它時，我們進行了綜合風險轉移，因此這對地板有利，這為我們在幻燈片中標明的 69 億美元中帶來了約 20 億美元的收益。接下來的 20 億美元是當你看到信貸遷移時產生的，這會影響 ARB RWA 和標準化，眾所周知，這是對風險不敏感的。正如您所看到的，下限附加減少了，信貸遷移略有增加，這是我們本季度看到的。第三個是準備金、預期信用損失和預期損失的分割，用於巴塞爾協議。這將在 ARB 和標準化之間轉變，並且朝著有助於本季度額外增加 20 億美元的方向發展。所以這與抵押貸款問題無關，但我會讓丹回答你的商業問題。

Thanks, Raj. We're just being more disciplined with regards to customer selection at time of origination. I think this is a good time to drive that standard higher here because it's a softer, slower housing market. I mean that is a definite fact affecting the street. We are also being more efficient with regards to our use of capital and using customer deselection at renewal as part of that conversation. We like the mortgage business, okay? We're very pleased with the pilot we put in place. Sequentially spreads expanded as we expected in the mortgage business, new spreads are good. And the deepening that we've done of the mortgages in the last 3, 4 quarters has been really encouraging. I think it slowed a little bit faster than maybe we might have expected a couple of quarters ago. But customers are behaving well on the VRM side, as Phil mentioned, the shift into fixed-rate mortgages has been prominent through the course of this calendar year as expected. And so we just -- we know Basel changes are coming. We're focused on liquidity and focused on customers and client promising.

謝謝，拉吉。我們只是在發起時對客戶選擇更加嚴格。我認為現在是提高這裡標準的好時機，因為這是一個更加疲軟、緩慢的房地產市場。我的意思是，這是影響街道的明確事實。我們在資本使用方面也更加高效，並在續約時使用客戶取消選擇作為對話的一部分。我們喜歡抵押貸款業務，好嗎？我們對我們實施的試點感到非常滿意。抵押貸款業務利差隨後擴大，正如我們預期的那樣，新利差良好。過去三、四個季度我們對抵押貸款的深化確實令人鼓舞。我認為它的放緩速度比我們幾個季度前的預期要快一些。但正如 Phil 提到的，客戶在 VRM 方面表現良好，正如預期的那樣，今年向固定利率抵押貸款的轉變非常突出。所以我們知道巴塞爾即將發生變化。我們專注於流動性、客戶和客戶承諾。

Okay. Great. And just a quick one on capital, like your CET1 ratio is getting [down] close to 13%. I'm wondering what does it take to turn off the discount on the DRIP? And then ultimately, maybe implement the buyback because you're obviously in a good position here.

好的。偉大的。簡單介紹一下資本，比如您的 CET1 比率[下降]接近 13%。我想知道如何才能關閉 DRIP 的折扣？最後，也許會實施回購，因為你顯然處於有利地位。

It's Raj. Yes, it is 12.7%, as you pointed out, good growth this quarter. We know it will grow again in Q4, Gabe. I think we'll be closer to 13% from what I can tell. But there's two things we need to think about from Scotia's perspective, at least. The floor is going to go up by 2.5%. So that is going to impact. So we're building for that, definitely. And at this time, the fundamental review of the trading book will be, we know it will be something, right? We don't know the exact number as this moves around with how trading positions move and how our CVA risk changes and so on. So we're preparing ourselves for those two, not to suggest it will be anywhere close to the 100 basis points. To go from [13%], we want to run about 12%. And then we also have to wait and see what ASP does in December. So a lot of it to build our balance sheet so that when we are able to talk about our strategic refresh that we have enough capital balance sheet strength to execute on it from day 1.

是拉吉。是的，正如您所指出的，本季度增長了 12.7%，增長良好。我們知道它會在第四季度再次增長，加布。據我所知，我認為我們會接近 13%。但至少從斯科舍的角度來看，我們需要考慮兩件事。下限將上漲2.5%。所以這將會產生影響。所以我們肯定會為此而努力。此時，對交易簿的基本審查將是，我們知道它會是一些東西，對嗎？我們不知道確切的數字，因為這個數字會隨著交易頭寸的變化以及我們的 CVA 風險的變化等而變化。因此，我們正在為這兩個基點做好準備，而不是暗示其會接近 100 個基點。從 [13%] 開始，我們希望運行在 12% 左右。然後我們還得拭目以待 ASP 12 月份的表現。因此，我們花了很多錢來構建我們的資產負債表，以便當我們能夠談論我們的戰略更新時，我們有足夠的資本資產負債表實力從第一天起就可以執行它。

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。

Raj, I just want to follow up on what you just referred to because that -- the reference to getting to 13% surprises me a little bit that Scotia would target 13%. Beyond the DSB floors, is there something else that's driving this pursuit of a higher capital ratio? Are you sensitive to what's the deterioration in Latin America, for example, is there anything else that I could be missing?

Raj，我只想跟進您剛才提到的內容，因為提到達到 13%，這讓我對 Scotia 的目標是 13% 感到有點驚訝。除了 DSB 底線之外，還有其他因素推動人們追求更高的資本比率嗎？例如，您對拉丁美洲的惡化情況是否敏感？還有什麼我可能遺漏的嗎？

No. I think we want to stay about 12%, right, 12% above. That hasn't changed at all. I just said it will go up to 13%. DRIP is going to give us another 10, 11 basis points. We know next quarter, Mario, so it's simply [1,270] to [1,280]. We know our RWA growth has been fairly modest in this whole year. I think that will continue in Q4. It's not the pursuit of 13%, how I describe it. It is more about we will get to 13%, which puts us in a fantastic position as we think about our strategic refresh and where we want to grow going forward, apart from the two factors I called out.

不，我認為我們希望保持在 12% 左右，對，高於 12%。這一點都沒有改變。我剛才說會上升到13%。 DRIP 將為我們帶來另外 10、11 個基點。我們知道下個季度，馬里奧，所以它只是 [1,270] 到 [1,280]。我們知道全年 RWA 的增長相當溫和。我認為這種情況將在第四季度繼續下去。我所說的這不是追求13%。更重要的是我們將達到 13%，這讓我們在考慮戰略更新和未來發展方向時處於一個絕佳的位置，除了我指出的兩個因素之外。

Does the strategic refresh require the bank have a starting point of 13%? Is there something about the strategic refresh that necessitates a higher capital ratio?

戰略刷新是否要求銀行起點為13%？戰略更新是否需要更高的資本比率？

No, it does not, Mario. It absolutely does not. The 13% is just an outcome of how we manage capital through 2023. It puts us in a great position where capital will not be a constraint for all the growth we want to have.

不，事實並非如此，馬里奧。絕對不是。 13%只是我們在2023年之前管理資本的結果。它使我們處於一個有利的位置，資本不會成為我們想要的所有增長的限制。

You referred to the risk transfer as your inaugural was transferred. I took that to mean there's more to come. Did I interpret that correctly?

當你的就職典禮被轉移時，你提到了風險轉移。我認為這意味著還有更多的事情要做。我的解釋正確嗎？

No, I meant inaugural simply as the first one we have done. It doesn't mean we will do more. But what it does is it gives us another tool in the toolkit as we manage capital. And basically, we have tested out the plumbing, so to speak, and we know that if necessary, we will have the ability to do it operationally. That's all I meant to say.

不，我的意思是就職典禮只是我們所做的第一次。這並不意味著我們會做得更多。但它的作用是在我們管理資本時為我們提供了工具箱中的另一個工具。基本上，我們已經測試了管道，可以這麼說，我們知道，如果有必要，我們將有能力進行操作。這就是我想說的。

Is there any way to size the -- what I'm trying to figure out here is for every 10 basis point lift you get in your capital ratio as a result of a risk transfer. It implies a certain percentage decline in your EPS or pennies, I mean, your EPS. Is there anything you can give me to help me understand that dynamic?

有沒有什麼方法可以衡量——我在這裡想弄清楚的是，由於風險轉移，你的資本比率每提高 10 個基點。這意味著你的每股收益或美分，我的意思是，你的每股收益下降了一定的百分比。你能給我什麼幫助我理解這種動態嗎？

I can speak to you offline on that, Mario. I think the synthetic risk transfer will have a small cost attached to it is. The way we think about it is what is the cost of equity of the bank, and the cost of the equity of the bank, you can take weighted average cost of capital call it, 11%. As long as it's significantly south of that, we feel like it's accretive to the EPS, which just means that we've got to manage capital through other levers if we continue to do synthetic risk transfer.

馬里奧，我可以離線和你談談這個問題。我認為綜合風險轉移會產生很小的成本。我們思考的方式是，銀行的股權成本是多少，銀行的股權成本，你可以將其稱為加權平均資本成本，11%。只要它明顯低於這個水平，我們就會覺得它會增加每股收益，這意味著如果我們繼續進行綜合風險轉移，我們就必須通過其他槓桿來管理資本。

Final thing then perhaps this is for Scott. You referred -- I think the phrase you used was prioritized markets. Perhaps this is going to be a part of your discussion in the refresh, but what do you mean by prioritized markets? Are you signaling that the bank with exit certain markets in Latin America, for example?

最後一件事也許是斯科特的。你提到——我認為你使用的短語是優先市場。也許這將成為您在更新中討論的一部分，但您所說的優先市場是什麼意思？例如，您是否表示該銀行將退出拉丁美洲的某些市場？

Mario, I think going forward, our plan is to prioritize capital allocation to areas where we see the highest risk-adjusted return on a full cycle basis. We'll take into consideration where we can build competitive advantage and also connectivity across the platform. So we'll have more to say on that at Investor Day. But no, I wouldn't read too much into my comments that you referred to. And then secondly, I'd come back to the capital piece, just to reinforce what Raj said, recognizing on relatively new enroll. Right now with what OSFI has highlighted, 12%, that's the right number, plus 12%. So I don't want at all you to think that we should be running here at 13%. But we do have a situation where there's going to be some offsets in Q1 associated with Basel, and there's uncertainty with what OSFI is doing. And so the objective here would be to get off the DRIP as soon as we can. And we also recognize that the risk transfer is not a good use of capital. And so trying to manage this prudently given the uncertainties, but also being rarely sensitive to the shareholder is the key objective here going forward.

馬里奧，我認為展望未來，我們的計劃是優先將資本配置到我們認為全週期風險調整回報最高的領域。我們將考慮在哪裡可以建立競爭優勢以及跨平台的連接。因此，我們將在投資者日對此進行更多討論。但不，我不會過多地閱讀你提到的我的評論。其次，我會回到主要部分，只是為了強化 Raj 所說的內容，承認相對較新的註冊。目前 OSFI 強調的 12% 是正確的數字，再加上 12%。所以我不想讓你們認為我們應該以 13% 的速度運行。但我們確實遇到了這樣的情況：第一季度會出現一些與巴塞爾相關的抵消，並且 OSFI 正在做的事情存在不確定性。因此，我們的目標是盡快擺脫 DRIP。而且我們也認識到風險轉移並不是資本的良好利用。因此，考慮到不確定性，努力謹慎管理這一問題，同時對股東很少敏感是未來的關鍵目標。

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 part of NIM question. I mean, NIM up in Canada, it's up in international down at the all-bank level. Can you talk a bit about the drivers in corporate? And Raj, I think you signaled last quarter that you've made some changes in the hedge book. And as we think about what you've talked about and Dan has talked about on the deposit and the loan growth side, like how should we think about NIMs evolving over the next year, maybe at the divisional level, but also as it kind of goes through the corporate and to the all bank level as well?

也許只是 NIM 問題的一部分。我的意思是，加拿大的淨息差上升，而國際上所有銀行層面的淨息差上升。您能談談企業中的驅動因素嗎？拉吉，我認為您在上個季度表示您對對沖賬簿進行了一些更改。當我們思考你和丹談到的存款和貸款增長方面的內容時，比如我們應該如何考慮明年淨息差的演變，也許是在部門層面，但也可以是也經過公司和所有銀行層面？

Sure. I'll start, and I'll try to cover all the confidence of your question, Doug. All bank level NIM had a modest compression of 3 basis points. I would attribute all of that to the corporate segment, which relates to the cost of funds increase. As you know, we recorded there. Since we talked in May, there's been rate increases, both in Canada and the United States. And at that time, we did not expect rate increases in Canada. So what you're seeing this quarter is the impact of that. The improvement in NIM in the Canadian bank will continue. As we pointed out, this quarter's improvement was all deposit driven, and I think that will continue. Asset margin is actually starting to show signs of growth, like Dan pointed out, mortgage margin is starting to go up. So I'm optimistic that it will also contribute maybe modestly to next quarter so that you should see it happen. International Banking NIM, many times in the past, I said there are so many moving parts within the interest bank segment. The Caribbean is benefiting from U.S. rate increases, particularly the English Caribbean, while the Pacific Alliance countries, inflation moves it around quite a bit, business mix also does. I think it will remain in about these levels. There might be a quarter where a couple of basis points down or up. But when you take it to the all bank level, it's about 20% of the assets of the bank. So it wouldn't have a meaningful impact to the banks NIM going forward. The biggest impact will always be the cost of funds in this environment. And as we talked about before, currently, the bank is neutralized to the sensitivity across the rate curve, which is what we disclosed. However, when you have rate cuts happening at the short end of the curve, which is where we expect it to benefit us, that will be a meaningful benefit when it happens.

當然。我會開始，我會盡力涵蓋你的問題的所有信心，道格。所有銀行層面的淨息差均適度壓縮 3 個基點。我將所有這些歸因於企業部門，這與資金成本的增加有關。如你所知，我們在那裡錄音。自從我們五月份談話以來，加拿大和美國的利率都在上漲。當時，我們並沒有預期加拿大會加息。因此，您在本季度看到的是其影響。加拿大銀行淨息差的改善將繼續。正如我們所指出的，本季度的改善完全是存款驅動的，我認為這種情況將持續下去。資產利潤率實際上開始顯示出增長的跡象，正如丹指出的那樣，抵押貸款利潤率開始上升。因此，我樂觀地認為，它也可能會對下個季度做出適度的貢獻，因此您應該會看到它的發生。國際銀行 NIM，過去我多次說過，利息銀行領域有很多變動的部分。加勒比地區受益於美國加息，特別是英屬加勒比地區，而太平洋聯盟國家的通脹則使其大幅波動，商業組合也隨之變化。我認為它將保持在這些水平左右。可能有一個季度會出現幾個基點的下降或上升。但當你把它放到整個銀行層面時，它大約佔銀行資產的20%。因此，這不會對銀行未來的淨息差產生重大影響。在這種環境下，最大的影響始終是資金成本。正如我們之前談到的，目前，銀行對利率曲線的敏感性已被中和，這就是我們所披露的。然而，當降息發生在曲線的短端時，我們預計降息將使我們受益，當它發生時，這將是一個有意義的好處。

Okay. And then maybe just on the strategic risk trends for, Scott, if I heard you, you said that's not an efficient use of your capital. I mean -- and Raj, I heard you wanted to test at the plumbing. But why do a strategic risk transfer at this point in time?

好的。然後也許只是關於戰略風險趨勢，斯科特，如果我聽到你的話，你說這不是你的資本的有效利用。我的意思是——拉吉，我聽說你想在管道上進行測試。但為什麼要在這個時候進行戰略風險轉移呢？

Yes. It's a synthetic risk transfer. So it's not an actual elimination from the balance sheet, as you know. So it's a synthetic exposure. I think it's -- capital management is going to be key as we see it going forward because of the significant changes that is happening all around those, including regulatory Basel, those kind of things. Having another tool in the toolkit is an important component of how we manage capital. So we look at it from that perspective. We'd rather test it early to see we know how to make it work operationally, like I mentioned, and we've established that. So we feel very comfortable that we'll be able to do it as required in quarters where we think it is the necessary first step to do.

是的。這是一種綜合風險轉移。因此，正如您所知，這並不是從資產負債表中實際消除的。所以這是一種合成曝光。我認為，正如我們所看到的那樣，資本管理將成為關鍵，因為圍繞這些方面正在發生重大變化，包括巴塞爾監管等。工具箱中的另一個工具是我們管理資本的重要組成部分。所以我們從這個角度來看它。正如我提到的，我們寧願儘早對其進行測試，以了解如何使其在運行中發揮作用，並且我們已經確定了這一點。因此，我們感到非常放心，我們將能夠按照我們認為這是必要的第一步的季度的要求來做到這一點。

Our next question is from Paul Holden with CIBC.

我們的下一個問題來自 CIBC 的 Paul Holden。

First question for Phil and appreciate the color in Canada you provided on the international bank. And I just want to ask in past experiences, what does history tell you in terms of how long unemployment may remain elevated and thereby, how long PCLs may remain elevated, assuming those two remain correlated?

第一個問題是菲爾，感謝您在國際銀行上提供的加拿大顏色。我只想問，根據過去的經驗，歷史告訴你什麼關於失業率可能保持高位的時間，以及由此導致的 PCL 可能保持高位的時間（假設這兩者保持相關）？

Paul, are you referring to international specifically? Or do you want to -- your Canada pertain -- your question pertained to Canada mostly?

保羅，你特指的是國際嗎？或者你想——你的加拿大相關——你的問題主要與加拿大有關嗎？

International, mostly.

大部分是國際的。

Okay. So if you look at where we're having the most pockets of friction in Chile, as an example, they've decreased interest rates by about 100 basis points a few weeks ago, which we view as promising. We're going to monitor that over the next quarter or so. And we expect that we'll start to see some improvements in terms of purchasing power of our customers. But this is something that will stick around for a little bit. But you know what, one of the things I've been really pleased with, Paul, is the pivot -- the strategy pivot we made around originations about 2 years ago to focus on affluent customers. This is really paying dividends for us right now. And as I look and we double-click on that customer base. They're not -- we're not seeing the level of stress with those customers as we would see with some of our other customers. And so I think that pivot that the IB team have been doing and Francisco is now focused on has been really positive for us. But this is going to be -- this is something we're working on closely. There's a lot of activity with collections. A lot of activity between Francisco and I am looking at how we manage originations moving forward. I think, as Scott said in his opening remarks, focusing on primary customer being focused on that affluent segment international will pay dividends for us.

好的。因此，如果你看看我們在智利遇到最多摩擦的地方，例如，他們在幾週前將利率降低了約 100 個基點，我們認為這是有希望的。我們將在下個季度左右對此進行監控。我們預計客戶的購買力將開始有所改善。但這會持續一段時間。但你知道嗎，保羅，我真正滿意的事情之一就是轉向——我們圍繞大約兩年前的起源製定的戰略轉向，重點關注富裕客戶。現在這確實為我們帶來了紅利。當我觀察時，我們雙擊該客戶群。他們沒有——我們沒有看到這些客戶所承受的壓力程度，就像我們在其他一些客戶身上看到的那樣。因此，我認為 IB 團隊一直在做的以及弗朗西斯科現在關注的重點對我們來說確實是積極的。但這將是——這是我們正在密切合作的事情。有很多收藏活動。弗朗西斯科和我之間的很多活動都在研究我們如何管理未來的起源。我認為，正如斯科特在開場白中所說，專注於主要客戶和國際富裕階層將為我們帶來紅​​利。

Okay. So a challenge in the near term, but how long we'll wait to see.

好的。因此，短期內這是一個挑戰，但我們還要等多久才能看到。

Yes, you got it.

是的，你明白了。

Okay. And then second question, which is probably for Raj. Just want to ask on expenses. I see a decline in FTE notably in Canada quarter-over-quarter. It seems like expenses were kind of in line with what you'd expect yet still negative operating leverage. And I would argue for a challenging revenue environment going in next year for everyone, not just for Scotiabank, but for everyone. So how are you thinking about the expense management going forward? Is there a potential to take additional actions to rein in operating expenses?

好的。然後是第二個問題，這可能是問拉吉的。只是想問一下費用。我發現加拿大的 FTE 環比下降尤其明顯。費用似乎與您的預期相符，但運營槓桿仍然為負。我認為明年對每個人來說都將面臨一個充滿挑戰的收入環境，不僅僅是豐業銀行，而是每個人。那麼您如何看待未來的費用管理？是否有可能採取額外措施來控制運營費用？

Yes. I think like Scott referenced in his remarks, too, I think expense management is a cornerstone of this bank. I think we've been proving it over many, many years, Paul, as you know. This quarter is just a reflection of how we manage it in line with revenue. We've talked about it before, where we'd like to generate positive operating leverage this year, as you point out, likely not, probably not. It's probably a more accurate way of saying it. Quarter-over-quarter, you should see our expenses being moderated the way you saw this quarter. I wouldn't talk about 2024 at this time. I think it's a little early. We'll talk about it in our outlook call in November. But prioritizing our spend, investing appropriately where we need to invest. And as you point out, managing our staffing costs and two staffing numbers has been an approach we've taken in the past. The Canadian banks reduction in employee count that you point out is something that we decided we needed to do in the right spots within the Canadian bank. So it doesn't impact revenue. It doesn't impact customers, how can we manage it prudently, and I think Dan has done a great job of that in the last 3 quarters. International Bank has always been great in managing their expenses because many times we forget they operate in an exceptionally high inflationary environment even in normal times. And to have a 5% expense growth year-over-year, I think, is very credible of how we pay attention to those lines in that segment as well. So you should expect us to continue doing that. And our expectation is always to generate positive operating leverage every year, and we hope to start doing that again in 2024 what we missed in '23.

是的。我認為就像斯科特在他的講話中提到的那樣，我認為費用管理是這家銀行的基石。我想我們多年來一直在證明這一點，保羅，正如你所知。本季度只是反映了我們如何根據收入進行管理。我們之前已經討論過，正如您所指出的，我們希望今年產生積極的運營槓桿，可能不會，也可能不會。這可能是更準確的說法。與上一季度相比，您應該會看到我們的支出與本季度的情況一樣有所放緩。我現在不會談論 2024 年。我覺得現在有點早了。我們將在 11 月份的展望電話會議中討論這個問題。但要優先考慮我們的支出，在我們需要投資的地方進行適當的投資。正如您所指出的，管理我們的人員成本和兩個人員數量是我們過去採取的方法。您指出的加拿大銀行減少員工人數是我們決定需要在加拿大銀行內的正確位置進行的事情。所以不會影響收入。它不會影響客戶，我們如何謹慎地管理它，我認為Dan在過去的三個季度中做得很好。國際銀行在管理開支方面一直表現出色，因為很多時候我們忘記了即使在正常時期，他們也是在通脹異常高的環境中運營的。我認為，費用同比增長 5% 也足以說明我們對該細分市場的關注程度。所以你應該期待我們繼續這樣做。我們的期望始終是每年產生積極的運營槓桿，我們希望在 2024 年再次開始這樣做，就像我們在 23 年錯過的那樣。

Okay. And so -- sorry, I guess, just a finer point on it, to get to that positive operating leverage in 2024, you believe you're on the right path today? Or do you think additional actions might be required?

好的。所以 - 抱歉，我想，只是更詳細一點，為了在 2024 年實現積極的運營槓桿，您認為您今天走在正確的道路上嗎？或者您認為可能需要採取其他行動？

I think we are on the right path. We always look at what additional actions we need to take every year. We took Q4, if you look at last year, we rationalized some of the expenses in the technology teams as well as in International Banking. We always look at that call. We look at it again. So we set ourselves in the right path before we start the year. And I suspect '23 will be the same as we have done in prior years.

我認為我們走在正確的道路上。我們每年都會考慮需要採取哪些額外行動。我們以第四季度為例，如果你看看去年，我們合理化了技術團隊以及國際銀行業務的一些費用。我們總是關注那個電話。我們再看一遍。因此，我們在新年伊始之前就為自己設定了正確的道路。我懷疑'23'將會與我們前幾年所做的一樣。

Our next question is from Mike Rizvanovic with KBW Research.

我們的下一個問題來自 KBW Research 的 Mike Rizvanovic。

A quick question for Dan on your mortgage growth. I'm just wondering -- I'm not sure if there's a way to basically remove the impact of the fact that you don't have negative amortization in that DRM product. What's your sense of what your true market share trend is here? I know you've been losing some share. I feel like it's largely related to that factor. Not sure if you're able to split that out, but what's your sense in terms of what you guys are doing on the origination side versus industry right now?

問丹一個關於抵押貸款增長的簡單問題。我只是想知道 - 我不確定是否有一種方法可以從根本上消除 DRM 產品中沒有負攤銷這一事實的影響。您對這裡的真實市場份額趨勢有何看法？我知道你已經失去了一些份額。我感覺跟這個因素有很大關係。不確定你是否能夠將其分開，但你對你們現在在原創方面和行業方面所做的事情有何看法？

Yes. I don't think that the new booking mix VRM versus fixed is affecting the total new originations in the quarter. I would just reinforce the point I made earlier, which is we're being more deliberate with regards to efficient needs of capital, pricing to the full customer relationship and potential and taking this time given a slow housing market to put those plans into effect, and the pickup on cross-sell of that product is very encouraging. We like the mortgage business. We know it's important to our customers. And I think the VRM dynamic is more around client preference for moving into fixed which we're supportive of from a financial advice standpoint as opposed to anything around volume or market share.

是的。我認為新的 VRM 預訂組合與固定預訂組合不會影響本季度的新預訂總量。我只想強調我之前提出的觀點，即我們正在更加審慎地考慮資本的有效需求，根據完整的客戶關係和潛力進行定價，並在房地產市場緩慢的情況下利用這段時間來實施這些計劃，該產品交叉銷售的增長非常令人鼓舞。我們喜歡抵押貸款業務。我們知道這對我們的客戶很重要。我認為 VRM 動態更多地是圍繞客戶對進入固定模式的偏好，我們從財務建議的角度支持這一點，而不是圍繞數量或市場份額的任何因素。

Okay. So you don't think it's having an impact on the market share launches that you've had the last few quarters, just that negative amortization dynamic that some of the other banks have, which you don't?

好的。因此，您認為這不會對您過去幾個季度的市場份額發布產生影響，而只是對其他一些銀行的負攤銷動態產生影響，而您卻沒有？

That's possible. I mean we certainly -- we are -- we deliberately slowed the mortgage book as we signaled some time ago, and so that's intentional as an outcome. So we're actually pleased by that. I think the VRM dynamic might be showing up more fill in GILs. We do have customers who are seeing our payments rise faster than peers. And so we're -- we've been saying for at least a year now that we've been proactive with those customers. And the VRM mix is more around managing credit, which we're pleased with, than it is around market share or volume. And I would just say on the back of Raj's comments on expenses, we're really pleased with how we've been decelerating quickly. And in Q3, we printed positive operating leverage with the big retail bank, which was our ambition, and we did that a quarter ahead of schedule.

這是可能的。我的意思是，我們當然——我們確實——正如我們不久前所暗示的那樣，我們故意放慢了抵押貸款的速度，所以這是有意為之的結果。所以我們實際上對此感到高興。我認為 VRM 的動態可能會顯示出更多的 GIL 填充。我們確實有一些客戶發現我們的付款增長速度比同行更快。因此，我們至少一年以來一直在說，我們一直在積極主動地與這些客戶合作。 VRM 組合更多地圍繞信貸管理，我們對此感到滿意，而不是圍繞市場份額或數量。我只想說，在拉吉對支出的評論之後，我們對我們的快速減速感到非常滿意。在第三季度，我們向大型零售銀行印出了正的運營槓桿，這是我們的雄心，我們比原計劃提前了一個季度做到了。

Got it. And then just a quick one for Jake. Just thinking back in the fact that Scotia had maybe been underinvesting a little bit in the cap markets business heading into the pandemic and you didn't have the same upward sort of trajectory during that time. I'm just wondering where you currently sit with respect to your -- just the full platform, the capabilities? And do you see any pockets where maybe you want to allocate more capital and invest in it? Any thoughts on that just in terms of where you sit today and where you want to do your capabilities?

知道了。然後給傑克簡單介紹一下。回想一下這樣一個事實：在疫情爆發之前，斯科舍省在資本市場業務上的投資可能有點不足，而在那段時間裡，你並沒有看到同樣的上升軌跡。我只是想知道您目前在整個平台和功能方面處於什麼位置？您是否看到任何您可能想要分配更多資本並進行投資的領域？就您今天所處的位置以及您想發揮自己的能力而言，對此有何想法？

Yes. Thanks for the question, Mike. You're right, heading into the pandemic and tipping back to our Investor Day in Chile, we weren't where we wanted to be. We've definitely grown to our natural share here in Canada, which has been really positive. But the U.S. market continues to be a good opportunity. There's opportunities to invest there by sector, by product and really attract into some new areas. We're not terribly large in noninvestment grade at this stage. That's an area we can look to add value. Our U.S. loan book is at zero deals for the past 6 quarters. So there's an opportunity to grow in some different segments there. I'd also say we're underrepresented in private capital. You've seen we've launched a CLO practice that's been positive to access the private credit growth we've seen. And then when we look further into our platform, Mexico has been really promising with a strong quarter. So we think there's real opportunity across that network in North America as we build out further capabilities, whether it's treasury services, cash management, et cetera.

是的。謝謝你的提問，邁克。你是對的，進入大流行並回到我們在智利的投資者日，我們沒有達到我們想要的目標。我們在加拿大的自然份額肯定已經增長，這非常積極。但美國市場仍然是一個很好的機會。這裡有按行業、按產品進行投資的機會，並真正吸引到一些新領域。現階段我們的非投資級別並不是很大。這是我們可以尋求增值的領域。過去 6 個季度我們的美國貸款賬簿交易量為零。因此，那裡有一些不同領域的增長機會。我還想說，我們在私人資本中的代表性不足。您已經看到，我們推出了 CLO 實踐，這對我們看到的私人信貸增長起到了積極作用。然後，當我們進一步研究我們的平台時，墨西哥的季度表現非常強勁，前景非常光明。因此，我們認為，隨著我們進一步增強能力，無論是財務服務、現金管理等，北美的網絡都存在真正的機會。

Got it. Is it fair to say that there is some low-hanging fruit in your business at this point in time?

知道了。可以公平地說，此時您的業務中有一些唾手可得的成果嗎？

Without a doubt. And as we move forward, it will be key that we allocate the capital that the bank has to generate the most profitable returns we can across our footprint, whether it's in GBM or other parts of the organization.

毫無疑問。隨著我們的前進，關鍵是我們要分配銀行所擁有的資本，以便在我們的業務範圍內產生最有利可圖的回報，無論是在 GBM 還是組織的其他部分。

Our next question is from Lemar Persaud with Cormark Securities.

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

Maybe for Phil. I'm probably front-running the Q4 here. But just help me think through PCLs for a moment. So steady in the PCL ratios, the total PCL ratio over the last 5 quarters. The challenges in Chile and Columbia and the domestic, it looks like this trend could continue. So perhaps, should we expect continued sequential increases in the total PCLs sale? Or is there some reason where -- why we should expect it to kind of move down from the 42 basis points this quarter?

也許是為了菲爾。我可能在這裡領先第四季度。但請幫我思考一下 PCL。 PCL 比率以及過去 5 個季度的總 PCL 比率非常穩定。智利和哥倫比亞以及國內的挑戰，看起來這種趨勢可能會持續下去。那麼，也許我們應該預期 PCL 銷售總量會持續連續增長嗎？或者是否存在某種原因——為什麼我們應該預期它會從本季度的 42 個基點下降？

I appreciate the question. Yes, this is how I would think about it. There's a lot of moving parts in our portfolio. I think as I said in my prepared remarks and the answer to the last question, Chile and Columbia remain an area of great focus for us. And so I would probably look to Q4 to be at or maybe slightly elevated above where we are today, but then and then I'll come back to you next quarter with an outlook for 2024.

我很欣賞這個問題。是的，這就是我的想法。我們的產品組合中有很多移動部件。我認為正如我在準備好的發言和對最後一個問題的回答中所說的那樣，智利和哥倫比亞仍然是我們重點關注的領域。因此，我可能希望第四季度達到或略高於今天的水平，但之後我會在下個季度向您匯報 2024 年的前景。

Our next question is from Joo Ho Kim with Crédit Suisse.

我們的下一個問題來自瑞士信貸銀行的 Joo Ho Kim。

Just one quick one for me and a question on International Banking in Chile specifically. With the country in a recession, and I know this quarter was impacted by impaired losses and potential for more as we go forward. But I'm trying to get a sense of whether it's possible to grow that business in Chile in an environment like this? And maybe if you can speak to on a pretax pre-provision basis.

我只想簡單問一個關於智利國際銀行業務的問題。由於國家陷入衰退，我知道本季度受到了損失受損和未來可能出現更多損失的影響。但我想了解在這樣的環境下是否有可能在智利發展這項業務？也許您可以在稅前預撥備的基礎上進行交談。

Well, thank you very much for the question. As you said, we're going through a cycle. And when we look at our retail business, for example, in Chile is performing quite well from the PCL perspective outside of the commercial space. Similarly, on the GBM space. So we are growing quite significantly year-on-year on a PTPP basis. So we are optimistic on how the business is performing even on a very difficult year where we're seeing an economic contraction. As we look at 2024, we see Chile coming back to GDP growth, and that will play strong to our positioning in the market. So we remain optimistic with Chile are positioning ex the commercial space.

嗯，非常感謝你的提問。正如你所說，我們正在經歷一個循環。例如，當我們審視我們的零售業務時，從 PCL 的角度來看，在商業領域之外，智利的零售業務表現相當不錯。同樣，在 GBM 空間上。因此，在 PTPP 基礎上，我們的同比增長非常顯著。因此，即使在經濟萎縮的非常困難的一年裡，我們對業務的表現也持樂觀態度。展望 2024 年，我們看到智利將恢復 GDP 增長，這將對我們的市場定位發揮重要作用。因此，我們對智利在商業領域的定位保持樂觀。

Our next question is from Sohrab Movahedi with BMO Capital Markets.

我們的下一個問題來自 BMO 資本市場的 Sohrab Movahedi。

Okay. Maybe if I can just stay with Francisco. Mexico, I think, has been highlighted a couple of times both in Scott's remarks and Jake's remarks is an area of opportunity. I think last year, this quarter, it contributed to about 7% of total bank earnings. It's up closer to 11%. It's been a nice offset to Chile within the Pacific Alliance. Just curious as to what the growth prospects there look like? And how much -- what's the risk appetite, I suppose, at the total bank level. How much of the total bank can be accounted for by Mexico in particular? And if you could just give us a little bit of additional color as to what is that business? Is it secured on secured? And is it going through a boom benefiting from the U.S.? Or is there a chance that we may have a similar, I guess, slowdown like Chile has been experiencing?

好的。如果我能留在弗朗西斯科身邊就好了。我認為，斯科特和傑克的言論都多次強調墨西哥是一個充滿機遇的領域。我認為去年這個季度，它對銀行總盈利的貢獻約為7%。上漲接近11%。這對太平洋聯盟內的智利來說是一個很好的抵消。只是好奇那裡的增長前景如何？我想，整個銀行層面的風險偏好是多少。特別是墨西哥可以佔銀行總額的多少？您能否給我們一些額外的信息來說明該業務是什麼？它是否安全？它是否正在經歷受益於美國的繁榮？或者我們是否有可能出現類似智利所經歷的經濟放緩？

Well, thank you for the question. I would say, first on a macro basis, we are very bullish on Mexico. We believe the dynamics around that economy will continue to benefit growth and certainly benefit our positioning in country. So we're very, very positive about as to the outlook and position of Mexico, given what is going on around efforts like nearshoring and other dynamics that are certain to benefit economic growth in Mexico. Our business construct is very well diversified across different aspects of our universal banking capabilities. When you look at our corporate commercial positioning is very, very strong. And as Jake alluded to, we're seeing very positive growth in that business. And certainly, commercial will benefit from the near-shoring phenomenon that is [strictly] to continue to grow sustainably over the coming years. From the retail perspective, what you'll see is our credit performance has been quite strong is primarily a secured portfolio. So in terms of our exposure currently in Mexico, the overwhelming majority is secured and therefore, performing quite well. We expect to move to primacy as we are across the bank. And we intend to penetrate further those relationships that primarily today are monoliner mortgages into a more broad-based primacy driven relationships. So we expect that again to be a contributor to outsize growth within our franchise. So overall, very positive in Mexico, not only the macro outlook, but certainly our positioning within that macro outlook. And in the context of the connectivity of Scotiabank across our Canada and the international footprint, certainly a strong contributor to our long-term positioning for growth and capital allocation.

嗯，謝謝你的提問。我想說，首先從宏觀角度來看，我們非常看好墨西哥。我們相信，圍繞該經濟的動態將繼續有利於增長，當然也有利於我們在該國的定位。因此，考慮到近岸外包和其他肯定有利於墨西哥經濟增長的動態等努力的進展，我們對墨西哥的前景和地位非常非常樂觀。我們的業務結構在全能銀行能力的各個方面都非常多元化。當你看到我們公司的商業定位非常非常強大。正如傑克提到的，我們看到該業務非常積極的增長。當然，商業將受益於近岸現象，這種現象將在未來幾年持續可持續增長。從零售角度來看，您會看到我們的信貸表現相當強勁，主要是有擔保的投資組合。因此，就我們目前在墨西哥的業務而言，絕大多數都是安全的，因此表現相當不錯。我們預計將成為銀行的首要地位。我們打算將目前主要是單一抵押貸款的關係進一步滲透到更廣泛的首要驅動關係中。因此，我們預計這將再次成為我們特許經營範圍內超額增長的貢獻者。總體而言，墨西哥非常積極，不僅是宏觀前景，而且肯定是我們在宏觀前景中的定位。在豐業銀行在加拿大各地的連通性和國際足蹟的背景下，這無疑對我們的增長和資本配置的長期定位做出了強有力的貢獻。

Francisco, how important are your local presence in places like Columbia and Peru to future success in Mexico?

Francisco，您在哥倫比亞和秘魯等地的本地業務對於未來在墨西哥取得成功有多重要？

Well, it is a mixed story. I would say that when you look at our positioning in each of these countries is quite relevant and at scale domestically. Our ability to connect those markets for the benefit of global initiatives will be very important to determine that relative importance in the context of the strategy, and we're working towards that in our refresh. So I would say today, it's important to get improvement in all of our operations in all the points that Scott has highlighted in terms of efficiency, disciplined allocation of capital, improvement of capital return. So that remains our core effort. And over time, what we intend is to maximize the opportunity of connectivity across that footprint.

嗯，這是一個複雜的故事。我想說的是，當你看看我們在每個國家的定位時，它在國內都是非常相關和規模的。我們為了全球計劃的利益而連接這些市場的能力對於確定戰略背景下的相對重要性非常重要，我們正在努力在更新中實現這一目標。所以我今天要說的是，重要的是要在斯科特強調的效率、嚴格的資本配置和提高資本回報方面改善我們所有的運營。所以這仍然是我們的核心努力。隨著時間的推移，我們的目的是最大限度地利用該足蹟的連接機會。

And there are no further questions on the line.

並且線路上沒有其他問題。

Okay. On behalf of the entire management team, I want to thank everyone for participating in our call today and look forward to our Q4 call. This concludes our third quarter results call. Have a great day.

好的。我謹代表整個管理團隊感謝大家今天參加我們的電話會議，並期待我們第四季度的電話會議。我們的第三季度業績電話會議到此結束。祝你有美好的一天。