Darryl White: Why don’t we have Dave and Dan help you with that question, Paul. Dave?
Dave Casper: Yes. I think, on the commercial side, it’s really — it’s not quite back to pre-pandemic, but it’s in a couple of areas where we’ve had good growth. One I mentioned earlier, our auto dealer business has actually started the return. You’ll probably see that there’s more cars on the lot, not yet where it was pre-pandemic. But that’s actually helped us and increased our outstandings and increased utilization. The other area is asset-based lending. And that, particularly around now. And this will start to slow down, as companies gear up to the holiday season, that builds it up, and then that will come down over time. But nothing outside the normal and everything is what we would have expected in the past. I’ll pass it over to Dan on the capital market side.
Dan Barclay: Yes. And I think our experience is, we’re still below pre-pandemic on utilization. It’s up a little bit the last couple of quarters, but nothing that I would say is concerning, percent or so. And then, I think, the more robust opening of the markets is good for everybody. So that’s a good outcome.
Paul Holden: Okay. Got it. I’ll leave it there. Thank you.
Operator: Thank you. The next question is from Lemar Persaud from Cormark Securities. Please, go ahead.
Lemar Persaud: Hi. One thing that stands out to me is the strong sequential mortgage growth relative to peers. Obviously, we’re seeing a slowdown across the industry. Can you maybe talk to us about what you’re seeing in terms of mortgage spreads? One of your peers suggested that they are a bit tight relative to historical levels. And if that’s true and the growth is unprofitable, maybe talk to us about the value proposition and taking market share in mortgages at this time. Perhaps it’s something around franchising and cross-selling opportunities. Any color there would be helpful. And then, maybe if I missed it, but could you talk about the outlook for mortgage growth looking forward in 2023 in domestic?
Ernie Johannson: Sure. Thanks, Lemar. It’s Ernie. I will give you a summary of our strategy. And just quickly, our approach in the mortgage market is really about expanding customer relationships with existing customers as well as acquiring new customers. We know that mortgage business is a core product at a life stage when we can consolidate businesses — with business with our customers. So we come at it in a couple of ways. We have a very effective mortgage specialist sales team that is out there every day, talking to customers and seeking out more mortgages, more business for us, which in turn brings in new customers to our franchise. That then we actually cross-sell them, if you would use that language, build full relationships with them.
And we’re very successful. The majority of our customers come in with a mortgage first, if I can use that, end up being our primary customers. And that is really a fuel for our overall growth, whether it be deposits, credit card, business, et cetera. We’ve been successful over the past as we’ve been retooling that team, our digital capabilities, to be able to sell accordingly and including our HELOC business as well. And so that’s been our focus, is really around valuable, sustainable customer relationship growth. In terms of the market right now, as you can imagine, with the prime CA spread, it is a little challenging. It is a very competitive marketplace, as all of our competitors are looking as we are for new customer growth. It is profitable.
And at the total relationship perspective, it’s extremely profitable. Mortgage customers with other products at our bank are phenomenally more — obviously, profitable than a single service customer. So our focus is around quality growth, long-term customer relationship build and bringing new customers into the franchise. Moving forward, I mean, we think we see some slowdown in the housing market. We all are experiencing it. We will continue to play at market. Our strategy is to be at market in our proprietary mortgage businesses. So we’ll run where the market goes and keep pace in that direction. Hopefully, that answers your question.
