Raj Viswanathan: Sure, Scott. It’s Raj. So I’ll start, and any of my colleagues can add on if, Dan, you want to pitch in. As you saw mortgage growth has slowed down. And that’s a market, it’s a market we all live in. I think we know it quite well. Rate increases have been a big component of the slowdown in the RWA growth in the loan growth and therefore RWA growth. Auto has actually gone the other way. We actually saw expansion in our auto loan book by about $1 billion in Canada. This quarter, that’s quite nice because auto is something we’ve been waiting for some time for all the reasons that, again, many of you know, which is about supply chain issues and memory issues and all those stuff. Auto is higher RWA density as we know compared to mortgages.
There’s also going to be a lot of moving parts, Scott. If you caught up with the changes that are coming through from a Basel III perspective, we know that risk weights are going up on many, many products as they tend to focus more on the floor, standardized calculations, those kind of things, which is going to continuously increase the risk-weighted assets and therefore, the capital requirements on all products, not necessarily mortgages. So you’re going to be thoughtful about it. I think for the rest of the year, I would suggest that what you’ve seen in the mortgage growth is likely an indicator of what might happen, but I’ll leave Dan to clarify on a few other thoughts you might have on the loan growth.
Dan Rees: Yes. I just confirm the outlook that you’re giving with regards to our intentionally slowing the mortgage portfolio, even in light of the fact that the market has been slow. I think that trend will continue. Part of the reason for that is liquidity and risk-weighted assets, as Raj mentioned, but also the emphasis on profitable growth through cross-selling and retail. And to give you some comfort, a year ago, 18% of new mortgage customers had the day-to-day account that’s now up to 23%. So deepening with existing customers off the loan portfolios is going to continue to be a prominent story going forward. Auto loans did see good growth this quarter. That is a relatively higher margin business for us on the loan yield side, so that was encouraging.
It is RWA dense and does not offer as much cross-sell opportunity. So as we do the portfolio review that Scott mentioned, we will be bearing that in mind in particular. And I would just take the opportunity to reinforce our commitment to commercial profitable loan growth and profitable growth area. The NIR in commercial has been really encouraging, and the cross-sell ratios continue to be good as it relates to referrals into wealth management. That loan portfolio does carry higher risk weights, particularly in a forward Basel environment. And so in the same way that you saw us grow below the market in Q1, even before adjusting for our smaller loan size, you will continue to see us be diligent and deliberate about RWA managing the commercial loan growth from here forward with an emphasis in particular, on segments in commercial that offer noninterest revenues and feed the rest of the franchise.
Operator: The next question is from Sohrab Movahedi from BMO Capital Markets.
Sohrab Movahedi: Just I guess, a cynical question here, right? If for whatever reason the anticipated rate environment doesn’t evolve the way that would be kind of helpful to you. Is there anything you can do to kind of stop the bleeding in the corporate segment?
