Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| It's a very strong franchise, a franchise that we've gotten to know over years competing against them |
| But overall, when the majority of your customers are working, at the end of the day that provides a solid backdrop |
| This year, I'm very pleased to say we've got record annual attendance and so it certainly sets itself up for a very engaging two days of dialogue |
| So, I'm very excited about it |
| So it's a great opportunity |
| So I think from that perspective, the copilot, co coding, we're seeing really good benefit and the codes processing it efficiently and therefore, it's quality code and because you always worry about low quality code at the end of the day |
| And therefore I think it bodes well for not just banks but all the industries we focused on commercializing large language models and there's an enormous amount of data that we've payroll through these foundational models |
| And therefore the accuracy and the veracity of the modeling from a foundational model basis will be really strong |
| We have a very strong lending growth and we tripled the size of this business in the last seven years, maybe too fast |
| We're quite proud of that |
| So significant opportunity to continue that growth trajectory with one of the top platforms but also to cross-sell other products into that we don't have any banking product the way Morgan Stanley would have and FX products |
| And the franchise is winning and growing and benefiting from a run-up in markets |
| We have a better advisory platform and financial planning platform, and we've got very high customer satisfaction and adviser satisfaction |
| There's strong salary increases and therefore, disposable income is very strong in the US, and continuing to fuel inflation and continuing to keep the economy going along with a very substantial government deficit, I would add, exponential [ph] day |
| So I'm very excited about that $4 billion of revenue and $1 billion of earnings in the US with upside potential, in both sides of that equation in markets and in banking |
| The capital markets business that you run, obviously is a wonderful business for us $4 billion in revenue, the ninth largest player globally, and in the United States and growing grew share both in markets and in investment banking last year, the result of investment over a number of years, particularly on the health care vertical, and the tech vertical, but all strong FIG group under Vinnie strong real estate, and energy banking practices and diversified |
| So, it's three really strong businesses in the US and the three exciting growth opportunities for each of those businesses |
| And we're very proud of the deal, and where you can't wait to get at this in about 20 days |
| So I think all that makes it good for customers good for the government and good for investors |
| So -- and higher taxes, you say that's good for our governments |
| So we're very excited about being able to offer clients more value |
| They're a very good customer-centric bank |
| Their credit performance was better than ours on their retail side over the last year |
| So even if you look at their last quarterly results they're very strong credit bank |
| I think overall for the economy, good for credit overall even though we're seeing a little bit of credit weakness as you'd expect with the tightening cycle, and therefore I think generally positive for the backdrop of this conference |
| And then final point I would just say you touched on earlier is just the importance of funding, and trying to simplify our structure which will give us a little more flexibility and help us optimize our funding footprint and use of deposits across the US I think is an exciting opportunity |
| We're one of the best in the world |
| But for us the real opportunity in City National is to run this business much more efficiently and drive a much higher ROA |
| We have enormous complexity in the delivery of our products, whether it's wealth management or in the retail bank, you have turnover and therefore, you can deliver a better customer experience, a more efficient customer experience, with less cost less effort |
| So I think it's a wonderful deal for shareholders |
| Statement |
|---|
| And the one final point I'll add to that, which is important is that some of the weakness in the Canadian economy from all of that consumer tightening is masked by a significant number of immigrants coming into the country |
| And you're seeing an equivalent slowdown in services and therefore, inflation is coming off, given the weaker demand much more quickly and you saw that in our credit card portfolios |
| We saw significant uncertainty on the outlook for employment, growth whether inflation would be under control the credit cycle no shortage of other items |
| And obviously we've got a lot of ongoing geopolitical uncertainty and with elections in over 50% of the world's countries this year a lot potentially surprises on the horizon |
| You're seeing economies that serve as a goods side, whether it's transportation in particular, struggle with that |
| We've seen activity slowdown in the real estate market in Canada |
| You're seeing retail struggle with that |
| And those are fairly significant shocks to a consumer |
| We've seen, obviously, some pressure on pricing |
| And almost a year ago today we saw some of the pressures that created in terms of liquidity and funding on the banking sector, drive the very unexpected regional banking crisis again that was almost exactly a year ago from this conference |
| They're struggling with their debt in Canada and some equations at the lower end of the spectrum and you're starting to see a little bit of default |
| And I think as most of us know, there's implicit inefficiencies, when you're running things in a more siloed way |
| We make mistakes |
| And I think that's the challenge |
| We have to retrain |
| So I think, all of that I think both, the instability in the short-term, but stability I think overtime |
| The challenge is it's vicious circle to create greater supply you need lower rates |
| So, it belies an underlying slowing of the Canadian economy, the UK economy, the Australian economy, so -- and that's because -- largely because of the difference in how the consumer is behaving |
| So if rates come down and we don't get these projects permitted then we're back into this delayed creation of supply |
| And while you can't predict all aspects of what might happen, the probability for a softer landing, I think has increased |
Please consider a small donation if you think this website provides you with relevant information