So that was another 14 and then our issuance was 10. So, if you take those three things together, that’s basically what offset the headwinds, and we had a total of 51 basis points, right, between the Canadian federal budget, between the legal reserve and the phase-out of the ECL add-back that obviously had. So, we absorbed all of that and end up at negative 9. So where do we go from here? We feel very confident that capital continues to grow from here. So, the first thing I’ll say is, as you saw in the press release, we did have a settlement on that legal file. That was at a lower level. So that adds a few basis points of capital to us. So, we start at around 11 to 7 going into next quarter. And from that point on, we’ve got the Basel III coming in.
There may be some positive there. Honestly, what we’re assuming at this point, there’s a few things we’re still landing. Net neutral from the implementation of the Basel III in Q2. And then going forward, we’ve got 5 to 10 basis points from that same dynamic I described. We had about 14 basis points organic net generation this quarter. 5 to 10 is probably a more reasonable assumption. And so, you start from 11 to 7, you add 5 to 10, and that takes you 12 at the end of the year without having to do anything in terms of taking off risk, without having to do any model or methodology changes. And I’ll remind you that we do have also the U.S. That’s still on standardized. And at some point, that will move to advanced which will give us some positive on top of that.
Hopefully, that’s helpful.
Doug Young : No, I definitely appreciate the color. Second, I guess on NIMs, Canadian NIMs were down quarter-over-quarter, but the all bank NIM ex-trading was up, and I’m hoping you can kind of unpack a little bit about what drove that. And I think maybe this kind of goes to the corporate. I think you talked a bit about nonrecurring items in corporate and in treasury. If the two tie together, maybe can a bit about what those unusual or nonrecurring items were and quantify them? Thank you.
Hratch Panossian : Yes, absolutely happy to elaborate on what I said in response to Ebrahim’s question. So, this quarter, there was — a lot of the expansion was core NIM expansion in our businesses. And what we’re seeing is what we’ve telegraphed all along. Our balance sheet reprices with higher interest rates. You have repricing happening on the asset side, net of repricing on the deposit side, where some of that is passed on to clients. And that net dynamic adds a few basis points a quarter to our NIMs. There’s other things going on. Mortgage margins being lower, it’s pressuring NIMs a little bit. We’ve got deposit mix, things going from noninterest-bearing to interest-bearing or term products. Those kinds of things net off a little bit, but we’ve assumed all of that in our forecast.
And so, starting from this quarter, 166 as I said, look at that as more 164. There was a couple of basis points of net positive. And this is the noise that can happen in corporate and other, particularly in treasury-related activities quarter-over-quarter. Last quarter, we had talked about a couple of basis points negative from those items. We had said some of it is things that revert over time into P&L. Some of what we saw this quarter was that reversion. The 164 when you look at the remainder, it really is the expansion in our core businesses. So, you’re right, if you look at Canadian TPB on its own, it was down, and that’s largely a history of mortgage margins. When you look at Canadian P&C in aggregate, as we show on the slide, when you include the commercial business, you include the Simply business, that business was up in NIM.
