Mike Rizvanovic: A quick question for Raj. Just wanted to get some color on the rate impact since quarter end. Obviously, rate expectations have moved a little bit in terms of the forward rate curve. Are we looking at a situation where you could see pressure once again next quarter at your — on your margin at the all bank level. Sure, if you’ve covered this already, but I may have missed your comments.
Raj Viswanathan: No worries, Mike. Happy to clarify that as well. Yes, I don’t see any material margin compression looking forward into Q2. A lot of the forward rates are already built into our positions, I think, and our own estimates and outlook. We might have something marginal, I would say, but certainly not to the extent you saw this quarter, the 7 basis points. I’m actually quite confident that if Q1 is not at the bottom, Q2 will likely be the bottom and then we’re going to start seeing our margins expand and therefore, contribute to the profitability.
Mike Rizvanovic: Okay. I appreciate that. And if I could just sneak 1 in. I think this 1 is very important. I get asked this question often by investors. So will you — and maybe better for Scott. But when you think about capital allocation, and it sounds like divestitures are certainly something that you could potentially do. When you think about that dynamic between maybe taking a hit on capital because your carrying values are higher than what you could sell these assets, these businesses for versus just the natural benefit you get on reducing your risk-weighted assets, maybe some higher risk-weighted asset density type lending. Can you talk about that trade-off? And what I’m wondering is, do you have any low-hanging fruit, where you could maybe sell some of these higher risk lending businesses off and not actually have to take a hit to your CET1?
Raj Viswanathan: Let me start there, and Scott might have a comment or 2 on this, Mike. I think our divestiture program or our repositioning is done. I think that’s the simplest way you need to think about it. There will always be something which is housekeeping. And like Nacho commented, there’s a couple of countries where we feel like we’re not getting the appropriate returns for the capital we’ve invested in. Our first plan and generally our first plan is saying how can we improve the profitability of these operations. And that’s what we’re going to be focused on. These are not bad operations. We like the places where we are in. We want to ensure that we’re able to deliver to our shareholders. Divestitures, I think, is the last option.
I’m not saying we won’t exercise it at some point in time, but this is not the time. And I suspect that Scott will be able to clarify more when we talk about it at the Investor Day. And eventually, performance drives actions, and we expect to start performing in these regions or in certain products, even in other parts of our business. If you’re not getting the appropriate returns, we’re going to be laser focused on getting our return on risk-weighted asset or return on equity more than we have done in the past, particularly in light of we know capital liquidity, all these are going to be constraints either based on market events or just based on regulatory changes that are coming, including Basel III, and we’re going to evaluate all that in the context of how we set our strategy for growth going forward.
Scott Thompson: Yes. I’d just add on, I mean, profitable growth, this is the pivot, right, from growth to profitable growth and return on risk-weighted assets is a big component of that. So we’re going through the portfolio right now and making sure and from our customer lens as well, right, and making sure we have the appropriate return on risk-weighted assets for the capital that we deploy. And that’s going to be the challenge that as a team we’re all going to go through here over the next few months.
