If you could talk to that, I think it would just help sort of frame how quickly this could potentially decelerate into next year.
Derek Neldner : It’s Derek. Just to start. Just to clarify your question, I think we’re late broadly to overall growth in lending activity?
Mike Rizvanovic : On the business lending side, yes.
Derek Neldner : Yes, yes, so I’ll start from the corporate or wholesale side and then Neil may want to chime in on the commercial side. So I think as we saw a couple of years ago right after the pandemic, when you get into periods of market disruption, you’ll often see clients pivot more to the bank lines as opposed to going to the Capital Markets. And so as we saw some dislocation in debt and equity markets over the course of 2022, we have seen that happen. And so we have seen both an increase in utilization rates on existing authorized facilities. And then we’ve also seen additional requests for new facilities, either expansions to revolvers or term loans that are really being used as a bridge to Capital Markets takeouts once markets stabilize or normalize to some extent.
I do think that that’s obviously driven very robust growth this year. We are starting to see that taper off. And I think as we see Capital Markets normalize, an increase in DCM and ECM activity, which we are in the early days of starting to see, we will see growth normalize to more moderate levels consistent with our plan.
Neil McLaughlin : It’s Neil. In terms of the retail business and commercial and maybe a couple of things. So similar to Derek, utilization of revolvers amongst commercial clients. Early on, we saw those drop. We’ve seen them come back about 400 basis points year-over-year. But we’re still not back to pre-pandemic use of those operating facilities. In terms of — there is some differences by sector as well. We’re seeing not unexpectedly supply chain starting to come back, some of those supply chain disruptions starting to ease. And then I would say, maybe the last thing, just in terms of the forward, look, we’ve been growing sort of accelerating growth through the last couple of quarters and say sort of two factors there. You’re seeing on the client side, a lot of clients are saying, I need to get on with some of the delayed investment I was putting into capital equipment, expanding their business.
And then the second factor would be just investments we’ve made in terms of the FTE you heard Nadine speak about. So we’ve invested really across the country, across sectors, particularly targeting larger commercial clients.
Mike Rizvanovic : So it sounds like the rate environment really isn’t impacting this. And is it fair to say that we could see this elevated for the foreseeable future?
Neil McLaughlin : On the commercial side of the business, we do see really strong growth continuing into 2023 for sure.
Dave McKay : This will be our last question. One more question, sorry.
Operator: This is the last question from Joo Ho Kim from Credit Suisse.
Joo Ho Kim : Just wanted to go back to Canadian Banking. And in one of the slides, you mentioned 400,000 in net new clients in that segment. Just wondering how much success you had in cross-selling into these new clients. And I asked this in the context of the HSBC acquisition. It seems like revenue synergies could be significant if cross-selling can be realized there as well.
Neil McLaughlin: Yes, listen, we’ll go right back to our Investor Day presentation where we laid out part of our strategy was just to grow the franchise and add 2.5 million net new clients. And we got off to a good start. We need to obviously pause that during COVID. And what you’re seeing now is that real step-up Dave mentioned in his comments. So 2022, very strong overall net client growth of 400,000. We’ll continue to see that accelerate into next year. The cross-sell rates, and we laid some of those out in the slides yesterday around the four different retail categories and our penetration there. The new cohorts we’re bringing on, you heard Dave talk about the Vantage program. That mechanism of giving the client an incentive to consolidate their business with us is pulling extremely strong.
So we’re very, very happy with what we’re seeing in terms of those cross-sell rates and cross-sell rates in credit cards and savings accounts are actually up. So I’d say we’re feeling really bullish about new client acquisition.
