Doug Young: Okay. And then — and I know, Bharat, you said this, and Kelvin, you said this, I mean, with First Horizon, CET1 comfortably above 11%. I guess the question I have got is, would that be the case even if the deal closed right now and does that factor in any other actions, like, does that factor in selling additional stakes in Schwab, does that factor in with loan sales, like, I am just curious if you can give some context to what that that means, because I think that’s one area that — I am getting a lot of questions on?
Bharat Masrani: Well, Doug, let’s look at and I heard some of the noise around capital. Let’s look at what TD’s record has been on this. I mean, look at the last couple of years, our internal capital generation earnings less dividends is a simple way to do it. It’s about 40 basis points per quarter. The DRIP contributes about 13 basis points per quarter and that allows us to support our customer’s activity through RWA growth, which over the last five quarters is about 15 basis points to 20 basis points. The first quarter was unusual because I think Ajai provided some of the explanations to you. So the Bank’s capital flexibility is immense and that’s why I was quite happy to say that, at the closing of First Horizon will be comfortably over 11%.
But as you can see, there’s a pathway to a much higher capital level and that will depend on what the requirements are that will be announced from time-to-time. So feel very comfortable with where the Bank’s position is on capital, we have a lot of capital levers as well and so I think the noise around this, I am not sure that I really understand
Doug Young: Well, I guess, maybe just ask it another way, like, is that comfortably above 11% organic?
Bharat Masrani: That’s my view. Yes. I have said this that we think we are going to be over 11% — comfortably over 11%. And then I gave you some of the calculations as to why it even goes higher over time and so that, we feel very comfortable with our capital position.
Doug Young: Okay. Thank you.
Bharat Masrani: And I know, Doug, you didn’t ask, but many asked me what negotiations would be and I am not going to talk about any specific issues on those negotiations with First Horizon. We have just started a discussion. We have a fantastic relationship. It’s a great franchise and so we will see where we get to.
Operator: Thank you. The next question is from Gabriel Dechaine, National Bank Financial. Please go ahead.
Gabriel Dechaine: Well, actually, Doug asked pretty much all the questions I asked, but just to put a fine point on that. There’s no contemplating doing what you did ahead of the Cowen transaction and selling down any Schwab? I mean you might be confused by the feedback on capital, I guess, but it has to do with where you ended up this quarter versus where people expected you to end up and then applying the pro forma impact of Cowen and First Horizon and you get to a number closer to 11%. I just want to know what your — you have in the back of your mind or we would like to know just to kind of get more comfortable with that comfortably above 11% figure?
Bharat Masrani: I am not sure how you calculate your numbers, Gabe. So at some point I have
Gabriel Dechaine: Right.
Bharat Masrani: chance to look at your numbers. But the numbers I gave you, there is a pathway here for TD to be in excess of 12% by next year.
Gabriel Dechaine: Yeah.
