Joo Ho Kim: Thank you. That’s very helpful. And just one last one for me. I wanted to go back to Wholesale Banking segment. The loan growth from that segment is up 18% sequentially. So, wondering if you could let me know what drove the results there? It looks like kind of come from perhaps financial sectors or some of the other sectors? Wondering what drove the growth and how we should think about that going forward?
Riaz Ahmed: Joe, it’s Riaz. Look, there has been a really attractive growth in really all parts of our lending book, whether that’s in corporate lending, in our prime businesses and our securitized businesses. So, it’s quite widely spread out in the businesses. And I think we have been really happy with the business that we are doing with our clients and as we continue to add clients. I mean obviously, the environment for deals as it has been a bit slower, I would expect that growth rate to moderate a bit. But as you know, that can be €“ that can change very quickly depending on economic circumstances. So, I feel pretty good about the growth that we were able to deliver in €˜22 across the board.
Joo Ho Kim: Thank you.
Operator: Thank you. The next question is from Mike Rizvanovic from KBW Research. Please go ahead. Your line is open.
Mike Rizvanovic: Thanks. Good afternoon. Probably one for Michael. And first off, thanks for updating your disclosure on remaining amortization in the mortgage book. So, I am referencing the 25% that’s greater than 35 years amortization. And what I am wondering is do you face any sort of regulatory or legal constraints in terms of how much you could renew in terms of that amortization? So, you have got a quarter of your book above 35%, I am guessing there is probably a portion of above 40% even. Is there some sort of constraint that you face, I am trying to get a better understanding of how much leeway you may have when you have your customers renewing and for the ones that may be potentially have a bit of a struggle to make a higher payment.
Michael Rhodes: So, for the most part and you are right, we did €“ first of all, we did update the table to reflect current payment trends as opposed to the contractual obligation for the customer. And the contractual obligations haven’t changed for a customer. And so if a customer is a 25-year term, even if they may be amortizing currently at a lower rate, they still do have a 25-year term. And so when the renewal comes, the options are either reset the payment to reflect what’s required in order to amortize over the contractual term from origination or you can actually reset the amortization, basically, we underwrite the loan. But there, we generally look to re-underwrite them for, again, a 25-year term. On a case-by-case basis, we will look at longer terms, but come that moment when the renewal comes, we are generally looking to either reset to the initial term or possibly re-underwrite for, let’s call it, a new 25-year term.
Ajai Bambawale: The only €“ it’s Ajai. The only additional comment I would add is we are watching the rate reset risk across our fixed in variable books like very, very closely. We have done a lot of stress testing and what happens at 5%, what happens at 6%. We have actually estimated potential formations, prudential PCL and a lot of that thinking is already incorporated into our allowance. I just thought I would share that.
Mike Rizvanovic: Okay. That’s helpful. So, it’s fair to say that you do have leeway. There is no real limitation that regulators would have. I don’t see anything in the B20. Correct me if I am wrong, but no real limitation. So, you aim for the 25-year or the original amortization period, but you will work with your customers, and I am guessing really try to limit any sort of disruption in that €“ in your book?
Michael Rhodes: Right. We work with our customers on a case-by-case basis. But that aside the contractual amortization terms, they are generally 25 years. And if someone’s slow aming today, there is an expectation under the obligation that when the loan renews, that the payment resets to reflect the initial term.
Mike Rizvanovic: Okay. Thanks.
Operator: Thank you. And we have a last question from Scott Chan from Canaccord Genuity. Please go ahead. Your line is open.
Scott Chan: Thank you. So, just a quick clarification question first, Ajai. On the €“ you talked about a PCL ratio target for 2023, 35 bps to 45 bps, was that a total?
Ajai Bambawale: Yes, that is total, but I do expect, like you go and look at €˜19, for example, a large part of that will be impaired.
Scott Chan: Got it. Okay. And then last question for Bharat. 8% dividend increase, obviously, very strong. And I think it signals a really strong organic outlook, and then you have got the acquisitions coming. And maybe talk about the reason for the increase now the amount? And does this set the bar for TD to raise your dividend once a year like they did pre-pandemic?
Bharat Masrani: Thanks. Thanks Scott for the question. I outlined earlier, somebody asked me about how we are feeling about next year. And as you rightly pointed out, with the momentum we have, with further rate increases that are embedded in the forward curve with the acquisitions, we feel that we should be able to meet or exceed our target. But there are headwinds as well. Things could change. And when they change, they change quite dramatically, the economic environment, etcetera, etcetera. So, I pointed that out. On dividends, we don’t look at it from that perspective. We want to look at the earnings power of the bank. We want to look at the overall environment and feel very comfortable with what we have done this quarter.
Generally, our view is we don’t like to think about dividends every quarter or every little while. We would like to think of it from a long-term perspective. But it depends on the circumstance. It’s hard to speculate on future events and what may or may not happen. But very happy with what we have done today with the increase that we announced earlier.
Scott Chan: Fair enough. Thank you very much.
Operator: Thank you. There are no further questions registered at this time. I will return the call back to Mr. Masrani.
Bharat Masrani: Thanks very much operator and thank you all for joining us today. And a very strong quarter from TD, I am very happy with how the year has turned out. I would, once again, like to take this opportunity to thank our TD bankers around the world. They continue to deliver for all our stakeholders, including our shareholders. And it’s terrific to see that the bank continues to make progress on a consistent basis. And if I don’t see any of you before the holidays, happy holidays to all of you, and we will talk again, in about 90 days. Thank you.
Operator: Thank you. The conference has now ended. Please disconnect your lines at this time and we thank you for your participation.
