Graeme Hepworth: Right. I mean, so commercial real estate has got 2 headwinds, right? You’ve got the overall headwind of a higher interest rate environment, which is affecting the asset class as a whole. And then certainly, sub portfolios within that like office have the additional headwind that companies are implementing hybrid models. And — but as Dave is saying, how that plays out over time is uncertain, right? And so certainly, if it goes down a more negative path as you’re articulating, where companies choose to be in a more permanent state in a hybrid model, that will impact the kind of the demands and needs around that footprint. But as Dave is pointing out, we’ve also got companies seeing that we see negative impacts on productivity on that front. And so this is going to play out over time, But certainly, it’s a portfolio because of that, that we’re more focused on, and we’re cautious
Mario Mendonca: I’ll talk about this now. But the point I’m thinking through here is if Royal sends out an e-mail tomorrow to its 80,000 employees saying, everybody come back to the office, it certainly seems to me that commercial real estate risk is diminished because you’re using it again. Is that not the right way to look at it?
Dave McKay: Yes, that’s part of the reason, but it’s not going to be returned to pre-pandemic levels either. So there is going to be some dislocation. But I think we’re probably edging back to a better balance and we saw in ’21 and ’22. So we’re finding our way, I think, as a society. I think all CEOs in every sector I talk to are struggling with the balance of attracting, retaining, developing talent promoting talent, building culture, creating productivity, it’s tough. It’s really tough. We don’t have the final model yet. So I’m trying to highlight there’s opportunity to be better at this. There’s opportunity to be more productive about it. I think that provides a support level under some commercial real estate, but there will be companies like us that re-lease some real estate, I don’t think we’ll have 100% of the portfolio we had before.
So we’re finding our way towards that. And I think it’s a balance that creates an overall environment that I think is constructive. So I think we’re just trying to highlight that perspective that we’re confident of our portfolio. We’re evolving as a society, and we’ll manage it.
Mario Mendonca: That’s helpful. I think the answer is we just don’t know yet, but I appreciate you trying to put some texture around it. So a little further along in my understanding.
Dave McKay: So maybe I know we’ve run over there. Maybe I’ll operator, I’ll cut it off there. I think we only had one question in the queue given that we’ve gone a fair bit over. So maybe I’ll summarize some of the thematics that came out in the questions and maybe some of the deltas that happened over the quarter. And I think the first takeaway I’d like everyone to have is our franchises built over putting the customer first. That helps us create high ROEs, sustainable growth over time. And very much, as you saw on the deposit and filtered into the margin questions, but it’s really building a solid client franchise, building a solid funding franchise with a strategic advantage for RBC, leveraging the money in and money out and keeping it within the RBC ecosystem is all part of the strength of our client franchise.
