Neil McLaughlin: Yes. Thanks for the question. We actually have seen our commercial lending pick up over the last couple of quarters. And I’d say overall sentiment from commercial clients is probably a little bit mixed. We see some of them who feel €“ they waited long enough. They need to start to pull a lever to invest in the business and they’re deploying capital and starting to lean into revolvers or taking out term debt. And you have others who I think are a little more cautious. But overall, that growth that we’re talking about, we do see that growth continuing to be fairly €“ quite strong throughout the year. And it’s underpinned by a change in strategy and levers we pulled last year, we resegmented the business and we put more experienced and additional FTE against our larger commercial clients in the one segment we didn’t feel we were really capturing our fair share.
And that’s playing out exactly how we wanted. So we’re quite confident in the strategy. And then the second comment I would make is we’re just really pleased with the diversification. So we see essentially very even growth across all sectors. We see very consistent growth across all regions. So we’re not seeing anything €“ any one sector really overweighted. And we €“ I think that’s the strategy and provides good diversification in terms of our risk profile.
Operator: The next question is from Mario Mendonca, TD Securities.
Mario Mendonca: Can we go to two comments you made during your opening that caught my attention. When you said that the hybrid working model, hybrid working force model, you question sort of productivity. And then you in a separate comment, that seemed unrelated, but is related in my mind, you talked about how losses could emerge in commercial real estate. So what I’m getting at here is if the world really is going to — if we’re going to function in this hybrid working model where a bunch of us working at home, is the message here that big occupiers of commercial real estate like Royal, like the rest of our banks, need to revisit their commercial real estate needs and address the productivity and address the inflation by actually unloading this commercial real estate. Is that why you’re sensitive to commercial real estate losses going forward?
Dave McKay: No, I think it would be almost the opposite. I think that the absence of working together in many ways has led to productivity and innovation challenges and society isn’t back together enough and working enough. So it actually narrows the opposite. Now there’s been a lot of dialogue among CEOs globally now about what is the productivity and creativity of your workforce in this hybrid world and what is the future hybrid world. And we’re in this discovery area and trying to find balance with employees. You hear a lot of commentary about it. I think most CEOs would tell you that there is a productivity loss. I think we can identify both in our organization productivity gains and productivity losses depending on the group you’re looking at from operations to head office to sales.
So we’re working through that as an organization. We’re working through that as an economy and a society. And I think there’s opportunity for improvement. So it’s actually the opposite. I’m trying to say that we likely need more people back at work, not permanently, like not 5 days a week, but more than we’re seeing today. We’re going to support some of the demand for commercial real estate and hence, our balanced approach I don’t think I said there’s a heightened commercial risk.
Mario Mendonca: Sorry, what Graeme did offer is that commercial real estate was an area of risk going forward. Maybe, Graeme, is that true? Did you say that? Or was I
