And so — and from a credit perspective, we’re quite comfortable with how these folks are performing right now. And maybe just to add to that, I think it’s also important as we look forward, employment or rather unemployment continues to be strong in Canada, and this is all pre-determinant of as we hit sort of bumpier times, but we’re not seeing any changes to that. And certainly, we’re also seeing wage increases consistently across our customer base as well, particularly for those customers that participate in the variable mortgage program.
Operator: The following question is from Doug Young from Desjardin Capital Markets.
Doug Young: I just wanted to go back to the Canadian banking NIM discussion, and I’m not sure if this is for Dan or for Raj, but I think there’s an interplay between Corporate and Treasury and Canadian Banking. And maybe I can just ask it this way. If the other or the treasury costs in corporate were actually allocated out, the divisions are allocated back to Canadian Banking, would that decline this quarter had been worse, no different or better? And can you talk a bit about that?
Raj Viswanathan: Yes, sure. I’ll start, Doug, and see if I can help you with that. Transfer pricing is a factor and that — So what I want you to know is that doesn’t apply only to the Canadian bank, whatever is in the other segment. Transfer pricing generally from an asset repricing perspective will track to that. Deposit transfer pricing happens quicker, because very simply put, the deposit rate tracks what would be the wholesale funding rate from a transfer pricing perspective, while the asset transfer pricing will happen as assets reprice in the business line, and that’s to ensure that the business line NIM is consistent. This is not inconsistent with what other banks do. So I wouldn’t attribute it only to the Canadian bank.
It’s just a nuance when you have significant rate changes up or down, how it manifests itself in our bank and the other segment. That’s the comment I’d make. But I would suggest that you take it up to the higher level, just look at it from an all-bank perspective, net interest margin. And if you understand the reasons why it moved up or down in any particular quarter, I think generally will be…
Doug Young : Okay. So the squeeze between the deposit costs went up faster than the asset repricing is actually being captured within the other segment. I think we’ve talked about this before. And I guess the way to really kind of just high level, just thinking about the — track the all-bank, that’s what you’re suggesting.
Raj Viswanathan: Yes, that’s what I’m saying. Doug. I think it’s easier. And at the all-bank NIM compression is the simple way to think about it as our funding costs have grown quicker. And when asset repricing catches up, you shouldn’t see that problem. Also, what happened in IB this quarter.
Operator: Our following question is from Gabriel Dechaine from National Bank Financial.
Gabriel Dechaine: Good morning. And Brian, best of luck in your retirement, not that you need it, but it’s pleasure engaging with you in the past nine years plus. My question is on Canadian Banking margin. We talked about asset yields or spreads that are tightening. I suspect that mortgages spread dynamic in that business, plus the impact of prepayment income probably at the client? And then just a less field question, it could be a quick yes or no answer. Is there any thought to — or progress towards converting the RWAs in the International segment to the AIRB model?
