Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Stephen Boland - GMP Securities Ltd.
Stephen Boland - GMP Securities Ltd.
First, I am not challenging you here on the Trust in terms of you are seeing a leveling off. When I look at the aging of the portfolio, even mortgages and legal actions it still seems to be ticking up quarter-over-quarter so I guess are you looking out even another quarter and sort of saying that ticking up is going to halt or start to reverse in the next quarter or two?
Greg Henderson
Actually if you look at mortgages under legal action they were down slightly quarter-over-quarter. Very slightly but as I said if you look at Note?
Stephen Boland - GMP Securities Ltd.
I meant for 9 months in that bucket.
Greg Henderson
Certainly if you look at the trend we saw in the early part of the year it going negative. What we are starting to see now is an improving trend our belief is. Maybe Mario can talk on some of the activities they are doing.
Mario Causarano
We do track the number. What we are seeing is a stabilization in our default rates across the whole portfolio, mortgages included. That is the sign, or one sign for us. We actually go inside the portfolio to try and determine where we think the loss rate will come in even on some of this legal action stuff we go through the whole portfolio and do a forecast in terms of where we think the loss rate is going to come in relation to the run rate we have on our existing loss rates.
I can tell you that we are pleased with the way it is performing and we don’t expect any surprises going into the future. To Greg’s point we are seeing stabilization across all of those portfolios from that perspective.
Greg Henderson
Certainly I think if you look at the $7.2 million for loan losses and take out the $2.5 million related to that $25 million book of business, obviously you are getting much more comparable to the levels that we saw last year in the business where we were at $3.4 million. Again, I think we have a much more conservative methodology. We have built up a pretty substantial provision. One of the reasons I wanted to show that coverage ratio is I just believe we are very adequately provided for anything that could happen to us right now and hopefully we will start to see some improvement.
- To read the full transcript on Seeking Alpha, click here »
