The ones that have been more recent have had smaller increases. Graeme commented, those are embedded in the credit performance. One of the things just to add to Graeme’s comments is that, overall, those variable rate mortgages did start from a lower delinquency level than average. So we’re starting to see the move up to the average, and we’re seeing the more recent cohorts actually have lower incremental payments. So a real focus around the category, reaching out, talking to those clients, and we do break it down and look at a couple of factors, including what’s the collateral those customers have, what are the FICO scores. And then Graeme touched on just seeing the excess deposits. So whether it’s excess deposits or we have seen wage inflation over time from when many of those mortgages were taken out, and that is helping those clients deal with the increased payments.
So that’s maybe a little bit of color on variable rate mortgages. And Graeme, did you want to — anything you want to add?
Graeme Hepworth: No, I think you touched on some key points. I think the one I think you do draw out there, which I think is important is that we are seeing delinquency rise in that segment, as I noted. But as you know, Neil, that they’re starting from a position of strength again, and that’s true of our client base as a whole. Again, the strong employment situation, the strong liquidity situation and that portfolio that segment of that portfolio in particular kind of was starting from a better-than-average situation and then that’s trending up, but that’s why the overall delinquencies in the mortgage book are relatively stable quarter-over-quarter.
Neil McLaughlin: And then in terms of your second question, just about the percentage of mortgage holders with credit cards. it’s over 50%. So we have obviously a very strong credit card lineup. We do have a relationship-based model. So the majority of our mortgage holders do hold other products and over half of that portfolio also hold a credit card with us.
Sohrab Movahedi: Okay. And just a quick, I guess, housekeeping item. Idem, you didn’t mention any impact of the DRIP discount on the CET1 ratio Was the uptake not what you expected? Or any sense as to how that DRIP discount is.
Nadine Ahn: Yes. No, we do our uptake in the DRIP has been what we expected, Sara, and we do expect to get about 10 basis points a quarter as it relates to that.
Sohrab Movahedi: Okay. So included — would there have been about a 10 basis point benefit this quarter? .
Nadine Ahn: In terms of this quarter impact, the DRIP was just started, so it’s going to be smaller than the 10% that we had in €“ that we expect full 10 for next quarter.
Operator: The next question is from Joo Ho Kim, Credit Suisse.
Joo Ho Kim: Just one on Capital Markets. There was a commentary that the bank outperformed the global fee pool from Corporate and Investment Banking side. I’m curious if that outperformance was the same on the Global Markets side as you have some commentary there? And more importantly, would you have a sense of what the PTPP earnings capacity might look like from Capital Markets this year? Obviously, it will ebb and flow with the market. But curious if you have a baseline sort of expectation similar to the guidance that you provided back in early 2022.
