Royal Bank of Canada (NYSE:RY) Q4 2022 Earnings Call Transcript

Dave McKay: Okay. So maybe I’ll just wrap things up and thanks, everyone, for your questions. We did expect a lot of questions around NIM today because it really helps focus on the strength of our franchise, which is our fantastic deposit franchise, our low beta payments and cash management capability. And it’s important for you to understand the impact of that and the expanding NIM, albeit slower expanding NIM because of rate increases; but as Nadine so effectively answered all your questions, continuing expanding NIM in Canadian Banking and in CNB despite slightly higher expected deposit base. But that is the strength of the franchise. It’s further fed with growth from the 400,000 new clients that come in that continue to feed into the low beta deposit growth.

And you can see how our strategy over the last 20 years is playing out into the overall franchise strength. You also heard us talk about expenses and being front-footed on growth with its Capital Markets, hiring MDs and building out our advisory, investment banking capability, our Commercial Banking capability, our mortgage and frontline branch officer capability to handle these 400,000 new clients that we hope to do again next year or more, therefore, being front-footed. And then you heard us our capital story. Very proud of our ability and our earnings power to be back to just under kind of 12% by — with the DRIP as you heard Nadine mention, but very strong capital ratios even with the acquisition, our largest acquisition in our history, we’re back to an ability to have flexibility again to continue to grow and position our bank.

So thank you for your questions. I think all the strengths of our franchise were highlighted in your great questions. And I wish you all a great holiday season. And be well of the holidays, and we’ll see you in the new year. Thanks, operator. That’s the end of our call.

Operator: Thank you. The conference has now ended. Please disconnect your lines at this time, and we thank you for your participation.