Royal Bank CFO: Provisions Are Right Where Expected

The transcript discusses the transparency and management of energy exposure in banking, focusing on the provisioning for impaired loans and the potential impact of negative interest rates. It also covers stress testing for economic uncertainties and managing risks in a volatile environment.

What percentage of the bank's total portfolio is made up of energy exposure?

• 0.6%

• 1.6%

• 3.6%

• 2.6%

What is considered a more normalized provisioning level for the bank?

• 30 basis points

• 20 basis points

• 50 basis points

• 40 basis points

What is the bank's risk appetite for provisioning under a stressed environment?

• 50 to 60 basis points

• 40 to 50 basis points

• 30 to 40 basis points

• 20 to 30 basis points

What is the expected provisioning level for the total portfolio for the year?

• In the 40s basis points

• In the 50s basis points

• In the 20s basis points

• In the 30s basis points

What impact would negative interest rates have on the bank's business model?

• Lower funding costs

• Higher interest rates

• More spread compression

• Increase in revenue

What kind of stress tests does the bank perform?

• Stable interest rates

• Decreasing unemployment

• Low oil prices

• Home price appreciation

How does the bank prepare for macroeconomic uncertainties?

• By ignoring stress tests

• By preparing for the worst and capitalizing on good environments

• By focusing only on current economic conditions

• By reducing all investments