Meny Grauman: Hi. Good morning. Just a numbers question on capital. Apologies if I missed it, but are you able to quantify the impact on the Basel III update for Q2, what that is going to be for you?
Tayfun Tuzun: Yes. So, we are obviously finalizing the results of the transition this quarter. I think overall, as we mentioned, I believe, last quarter, there is going to be a benefit, and that benefit potentially could be 35 basis point to 40 basis points for the quarter.
Meny Grauman: Okay. And then, Darryl, I just want to make sure I heard you correctly in terms of the guidance for Bank of the West for 2025. Did you talk about $2 billion in pretax pre-provision earnings benefit, is that the right number that I have.
Darryl White: You got it right, Meny, and I’ll just clarify for you by the end of ’25, and I think this is an important point, we’re trying to remind everybody that when we have the full benefit of the company on a stand-alone basis plus the cost synergies that Tayfun has just reminded us all of, plus, you may recall, Meny, in Q2 of last year, we announced a range of revenue synergies which we said take a little longer to get to. But I got to tell you, in the early days of owning the asset, my confidence level has gone up on those revenue synergies. You get to $2 billion of PPPT. And I’ll remind you that those are U.S. dollars. So, to use very round numbers to illustrate it for you, you’ve got $1 billion of stand-alone PPPT.
You’ve got $670 million of cost savings. And then if you take the low end of the revenue synergy range that we presented in Q2 of last year, you get a little over USD2 billion. So, I rounded it to two, which if you compare that to our current run rate for the total company at BMO, that’s roughly a 20% lift in the PPPT power of the company by the time we get to the end of ’25.
Operator: The next question is from Doug Young from Doug Young from Desjardins Capital Markets. Please go ahead. Your line is now open.
Doug Young: Good morning, Tayfun. I think you talked a bit about corporate losses being elevated this quarter and expected to be elevated, I guess, in Q2 as well. Can you talk a bit about what’s causing that elevation, what the unusual items are? Can you quantify anything there?
Tayfun Tuzun: Yes. So, I have to tell you that both the quarter preceding a transaction of the size that we are executing and the quarter after transaction will have some noise. Coming into the quarter, we obviously were sitting on a good amount of capital. There were some transactional costs that were running through the corporate section and so nothing really unusual going through. But that noise will probably last a couple of quarters here before towards the end of the year, we sort of go back to our regular pieces. And just to remember, this quarter, there’s also the impact of the seasonal expenses in the earlier expenses relative to last quarter. So, nothing really fundamentally big numbers, but a number of small items impacting the trends. Again, I suspect that we will start normalizing trends once we go through the second quarter into the second half.
Doug Young: Okay. And then just second on NIMs. I think in the U.S. NIM discussion, it was talked about loan margins declining in the U.S. Can you elaborate a little bit about what you’re seeing what’s driving that? And then the synthetic risk transfer, I think you talked about that having a point or two of negative impact. Is there more of that to anticipate as well? Thank you.
