Gabriel Dechaine: So those are — and then kind of what’s — I mean these aren’t strategies that are implemented in a quarter time. Like what’s kind of the time line of turnaround for those Colombian and Central American businesses.
Scott Thompson: David, it’s Scott. So we’re working with the teams right now. I mean this is part of the whole strategy review and there’s a combination of deposits and there’s a combination of business mix and we need to make sure we allocate our capital to the areas where we’re going to get the highest return on risk-adjusted — risk-weighted assets. And so that’s the process that we’re going through right now, and we’ll have more to say on that at the end of the year.
Gabriel Dechaine: Okay. And I echo with the comment that if there are changes in quantifying the impact so we can get a better handle on our modeling and expectations, that’s pretty important.
Operator: The next question is from Paul Holden from CIBC.
Paul Holden: I guess my question relates to the PCL guidance for mid-30s. You hit 33% this year, which is actually already in mid-30s. And I think we’re — like my perspective is we’re kind of closer to the beginning of the normalization and impairments versus midway through or near the end. So I’m just wondering what it is that gives you comfort that the PCL ratio won’t be increasing significantly from Q1.
Phil Thomas: Yes. Thanks, Paul. I appreciate the question. It’s Phil here. We’re going to — as I said in my prepared remarks, we’re standing behind our mid-30s guidance for the year. And what gives me comfort is the shift in business mix that we’ve had, both in Canada and international. Certainly, from — in the international perspective, the move to 73% secured and then in Canada move to 95% secured. And we’ve been spending a lot of time on the — just really focused on high-quality acquisition in our international portfolio, focused more on affluent as well. And that’s making a big difference in terms of what I’m seeing in the numbers coming up. And so — and then finally, as I go through portfolio by portfolio, like we’re starting to — we really see a lot of the continued low delinquency rates continue to low net write-offs coming out of some of our major portfolios.
We are starting to see some of those indicators starting to tick upwards. But those are in particularly in GIL this quarter, but those tend to be in areas such as Canadian mortgages, Canadian auto, secured, which have a good collections rate on them. So, those don’t usually flow into Stage 3. And then in the commercial side, we’re seeing — continue to see resilience and strength. We were up slightly in GILs this quarter, but that was 1 Canadian commercial credit that we already have letters of intent for. So if I look at the portfolio holistically, we’re in really good shape. But having said that, I think as I look at my business partners here, we’re not going to turn away healthy growth for the sake of the PCL ratio. And we’ll be thoughtful and over collectively with my partners here to see how we go throughout the year.
Operator: The next question is from Mike Rizvanovic from KBW Research.
