Dave McKay: We’re definitely expecting to see more significant improvement in Q4, but Q3 will be a transition quarter. We still expect to have strong off level overall in the latter half of this year. But we’re going to execute a lot of this in Q3, and we expect a much better Q4. But Nadine, do you want to add to that?
Nadine Ahn: Yes. No. Obviously, given the headcount and coming off of Q1, we’ve been implementing into Q2, some of the cost reductions we already spoke about, but that’s going to take a couple of quarters to really start to impact. So that’s why, Meny, we’re commenting that the mid-single-digit NIE growth will be for the second half, but staggered more towards Q4.
Operator: Thank you. The next question is from Gabriel Dechaine from National Bank Financial. Please go ahead.
Gabriel Dechaine: I just want to ask about the deposit growth trends in the Canadian bank. I’ll use the word Chase, you might not, but it seems to me like Royal going out of its way to bring in more deposits to the bank. And then maybe you’re not, but what is the motivation there? Is it market share? Do you want to — you expect to convert some of these customers to core banking customers? Or is it a mix of factors, like the structure of your business. You’ve got a bigger wealth franchise. You’ve got a bigger independent broker business, the biggest in Canada. So some of the flows from wealth type and broker money that might have a disproportionate effect on your deposit growth and it’s good, but it’s also bad.
Neil McLaughlin: Yes. Thanks, Dave, it’s Neil. I’ll speak to it. I mean, the first thing we’d say is you touched on it, which was new client acquisition. So that aligns to the Investor Day goal we put out to grow that core checking account franchise. We do count that as that low beta, stable funding. And that has been going exceptionally well. And it’s part of our the increased costs we’ve seen in the first couple of quarters because last year, we had pulled back on some of that marketing in biz dev just didn’t see the returns on it, whereas right now, we’d say we’ve had the best Q2 we’ve ever had in terms of new client acquisition. So that would be the first pillar. The second pillar would be just to your point, on the franchise overall, we are — we do have a very large financial planning business.
We do benefit from GAM and a strong investment product manufacturing there. And so we are seeing this rotation that Maiden spoke of in terms of the GIC growth. Now when you look at the GIC growth, I think it’s important to call out, about half of that growth has come from outside the Company. So we’re seeing a good portion of that being attracted through those advisory sales forces into the Company. We’re capturing that in the GIC product, which our full intention would be once we start to have an equity market that feel more normalized that we will then put those clients into long-term funds. And then about half of it is coming from internally from mostly savings and then some core checking. So that would be as you sort of asked about the flow and the mix, but it would be a combination of new clients, external consolidation and then rotation internally.
Gabriel Dechaine: Okay and then a quick one on expenses. Just the way you display at 16% growth, about half of that, I get calling out the HSBC acquisition, but why should I look at Brewin Dolphin in a distinct manner because it’s in the revenue line as well.
Nadine Ahn: Agreed, Gabe, from an operating leverage standpoint, you’re absolutely correct. We’re just trying to explain the NIE growth trajectory since the comparative on a year-over-year basis, sometimes highlight.
Operator: Thank you. The next question is from Mario Mendonca from TD Securities. Please go ahead.
