Toronto Dominon FY 2Q17 Earnings Call Notes

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Bharat Masrani – CEO

Greg Braca

*We’ve seen some slow down in commercial markets

“I would just also call out that Q1 and Q2 we’ve seen some slow down in general across all commercial markets, a couple of things have been going on higher interest rates, we’ve seen clients staying on the side lines or hitting the bond market and retiring bank debt that we’ve also seeing less CapEx spend. And in the U.S., we’ve decidedly seen a lot of our commercial clients sitting on the side lines for the last couple of quarters with a wait and see attitude with everything from decisions on taxes to infrastructure spend and the rules of the road in the U.S. with the new administration”

Mark Chauvin

You can’t have lower losses forever

“Now, I’m not looking for major increases, but you can’t have really lower losses for the extended period of time. So, I would look for the modest increase maybe in next quarter, but from a quality perspective I prefer to look at loss rates. And we’re really in the current economic environment and borrowing a significant change in that, we’re looking at the loss rates in the U.S., staying relatively consistent to what we’re seeing for the — in this quarter and for the balance of the year.”

Mike Pedersen

Deposit beta has been low but rising with Fed rate increases

“Now, I’m not looking for major increases, but you can’t have really lower losses for the extended period of time. So, I would look for the modest increase maybe in next quarter, but from a quality perspective I prefer to look at loss rates. And we’re really in the current economic environment and borrowing a significant change in that, we’re looking at the loss rates in the U.S., staying relatively consistent to what we’re seeing for the — in this quarter and for the balance of the year.”