Meny Grauman: Yes. Hi, good morning. Apologies if I missed this, but I was hoping we could get an update in terms of your views for mortgage and commercial loan growth in 2023 specifically.
Laura Dottori-Attanasio: Good morning, Meny, it’s Laura. So I will start that off and then I’ll hand it over to Jon for the commercial side. When we look at our housing and economic outlook and looking at our application pipeline, that is down. Expect to see, I’d say, low single-digit growth for 2023. I would like to highlight and maybe even a shout out, if I may, to our CIBC team members involved in mortgages because over the years, we’ve really delivered consistent growth. I also want to point out we’ve made really good strides in our franchising of our mortgage clients. So as at October, 92% of our client base that have mortgages now have deeper relationships with us. So while we will see volume come off of 2022 levels, we do expect to continue to do really well on the franchising side and to grow in other areas of the bank that I think are going to offset some of the decrease that we see in the mortgage side of the business. And maybe over to Jon for commercial.
Jon Hountalas: Thank you, Laura. So €˜22 was a robust year for the industry in terms of commercial loan growth. I think the industry did about 15% this year, 15 to 20, we were at the high end of that. Historically, the industry is in the high single, low double-digit range, most years, 9% to 11%. When I look at the client entrepreneur confidence, when I look at the macro environment, our feeling is that growth rate is going to go back to historical levels, high single, low double and will continue to be kind of in the mix, hopefully, outgrowing. Shawn, let me pass it over to you.
Shawn Beber: Thanks, Jon. Good mornign, Meny. Thanks for the quesiton. Really quickly, we had strong growth in fiscal €˜22, similar to what Jon talked about for the Canadian commercial business. It’s a function of the investments, the strategic investments we’ve been making. We expect that to moderate in €˜23 and expect for high single-digits growth in loan growth for the U.S. segment.
Meny Grauman: Thanks for that. And then I just wanted to ask on Canadian wealth management deposits, a pretty big quarter-over-quarter decline. I presume that’s related to the rate environment. The question is how much of that is being retained at CIBC? So I assume these deposits are going to higher-yielding places. But how much of that is staying at CIBC?
Jon Hountalas: Thank you for the quesiton. It’s Jon. The entire amount that dropped in the wealth business moved over to the rest of the bank.
Meny Grauman: Thank you.
Operator: Thank you. The following question is from Gabriel Dechaine from National Bank Financial. Please go ahead.
Gabriel Dechaine: Good morning. So I want to dive into one of Victor’s comments there. Client acquisition was the best since 2017. And that was a period I believe when CIBC was growing mortgages at 2x the industry average, if I recall correctly. I wanted to dot the line from that period to today as far as the impact of that high period of mortgage growth to the influence that has on your margins today such that we see it disproportionately exposed to lower renewal margins in the mortgage book because you grew so fast 5 years ago, because that’s typically a term that…
Victor Dodig: So Gabriel, just let me comment on a couple of things, and then going to hand it off to Laura. This year was a year of significant growth for our personal banking franchise in Canada. We grew our Canadian retail client base by over 25% with the acquisition of the Costco portfolio. We’re growing our affluent segment at 3x the level of our market share in our personal bank. We’ve put in place over 1,400 financial advisers that are focusing on the emerging affluent that are dealing with that book of mortgages that is increasingly being franchised. So with that, that’s all aligned with our strategy, all along with that high touch, high growth segment. Laura, maybe you can elaborate on that.
