National Bank Of Canada · TSX:NA
National Bank Of Canada — Q1 2004 Earnings Presentation
16 slides from National Bank Of Canada's earnings presentation, Feb 26, 2004
Slide 1: Analyst and Investor Presentation Q1 2004 Results
Analyst and Investor Presentation Q1 2004 Results Conference Call February 26, 2004 www.nbc.ca/investorrelations National Bank continues to deliver impressive results Q1 04 strong profit: Net Income up 12% y/y, 17% q/q Record EPS, 17% increase y/y, from $0.88 to $1.03 and 18% q/q, from $0.87 to $1.0
Slide 2: Delivery underway on attaining yearly objective and performance goals
Delivery underway on attaining yearly objective and performance goals Strong momentum to achieving targets 2004 Objectives Q1 04 Growth in earnings per share 5% to 10% 17% Return on common shareholders' equity 15% to 17% 19% Tier 1 capital ratio 8.75% to 9.50% 10.1% Dividend payout ratio (1) 35% to
Slide 3: Progressive Dividend increase
Progressive Dividend increase Dividend per share Dividend Payout 0,33 34.2% 0.28 0.28 33.3% 0.26 0.26 32.8% 32.7% 0.24 32.4% 32.0% Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q4 02* Q1 03* Q2 03* Q3 03 Q4 03 Q1 04 * Trailing 4 quarters, excluding impairment charge on investment 5 Consistently strong Capital
Slide 4: Business Line Breakdown Q1 2004 Personal and Commercial Banking
Business Line Breakdown Q1 2004 Net Income Wealth Management 24M Financial Markets 72M Personal and Commercial Banking 104M Starting at Q1 04, sectoral net income is based on actual credit losses as opposed to expected credit losses 7 Personal and Commercial Banking Quarterly Y/Y Net income increase
Slide 5: Volume and Margin Evolution
Volume and Margin Evolution P&C Banking in millions of dollars Volume Margin 3.23% 3.25% 3.25% Volume still up: 3.23% • +1% Q/Q 3.19% 38.7 • +3% Y/Y 38.3 37.8 37.9 37.5 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 9 Loans & BAs and Margin Evolution in millions of dollars Mortgage Loans + 5 bps Credit Card Receivab
Slide 6: Revenue line increase per contributor
Revenue line increase per contributor Evolution Jan. 03 vs Jan. 04 in millions of dollars $10.2 $4.5 $0.3 $483 $468 Q1 03 Revenues Personal & Credit cards Insurance Q1 04 Revenues Commercial Banking 11 Business Mix Q1 04 Revenue contribution (y/y increase) 5% (+1%) 12% (+8%) 47% (+5%) 36% (stable) R
Slide 7: Business Line Breakdown Q1 2004 Wealth Management
Business Line Breakdown Q1 2004 Net Income Wealth Management 24M Financial Markets 72M Personal and Commercial Banking 104M Starting at Q1 04, sectoral net income is based on actual credit losses as opposed to expected credit losses 13 Wealth Management Quarterly Y/Y Net income increase +26% in mill
Slide 8: Assets under Management composition
Assets under Management composition in billions of dollars 79.0 Year/year increases: 75.0 69.5 Total growth rate Y/Y +14% Deposits +4% 2.0 2.3 Retail Brokerage +15% 6.7 Mutual Funds +15% 1.7 6.1 4.8 8.3 Discount Brokerage +40% 7.6 Trust Services +35% 7.2 35.8 37.8 32.8 23.0 23.5 23.9 Q1 03 Q4 03 Q1
Slide 9: Financial Markets Quarterly
Financial Markets Quarterly Y/Y Net income increase +13% in millions of dollars Revenue increase: • +13% Q1 04 vs Q1 03 300 Q/Q NI 80 +9% 72 70 250 66 64 60 200 53 50 150 40 37 275 268 237 232 30 100 188 153 20 128 117 129 132 50 10 0 0 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Revenues Expenses Net income 17 T
Slide 10: Treasury and Capital Market Activity
Treasury and Capital Market Activity Revenue composition evolution in millions of dollars 275 268 237 231 32 24 4 12 25 33 188 21 64 23 19 72 4 56 20 62 50 20 35 20 14 43 26 41 42 26 119 82 84 63 63 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Trading CIB ALM Capital Markets Inv.Gains Other Trading revenues includ
Slide 11: Diversification of Earnings
NBC Trading/Securities Gains/ALM Revenues USD $ CND $ (14,000,000) 160,000,000 (12,000,000) 140,000,000 120,000,000 (10,000,000) 100,000,000 (8,000,000) 80,000,000 (6,000,000) 60,000,000 (4,000,000) 40,000,000 (2,000,000) 20,000,000 0 0 Jul-00 Oct-00 Jan-01 Jul-01 Oct-01 Jan-02 Jul-02 Oct-02 Jan-03
Slide 12: Risk Management
Operating Leverage Business Line Expense Ratio Year to date 80.9% 79.6% 59.6% 60.5% 54.0% 49.3% Personal and Wealth Financial Markets Commercial Management Banking Q1 03 Q1 04 23 Risk Management 24 12
Slide 13: Provision for credit losses
Provision for credit losses Actual credit losses per sector in millions of dollars 2004 Guidance 50 40 to 50 bps of loans 45 44 41 41 and BAs 19 10 13 21 As at Q1 04: 43 bps 24 4 3 3 31 28 27 21 17 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 P&C Credit Cards (net of securitization) Financial Markets 25 Impaired l
Slide 14: Impaired loan formation
Impaired loan formation In millions of dollars Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Personal & Commercial * 34.7 3.1 13.3 (10.6) 14.6 Corporate (6.8) 31.8 25.1 80.5 11.0 Treasury (0.1) (0.3) (0.1) (0.3) 0 Other 1.8 1.4 1.8 (4.5) (8.8) TOTAL 29.6 36.0 40.1 65.1 16.8 Formations include new accounts, disburse
Slide 15: Focus for 2004
Daily Trading P/L Q1 04 Excludes underwriting 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 11/3/2003 11/10/2003 11/17/2003 11/24/2003 12/1/2003 12/8/2003 12/15/2003 12/22/2003 12/29/2003 1/5/2004 1/12/2004 1/19/2004 1/26/2004 (2,000,000) (4,000,000) 29 Focus for 2004 National Bank franchise:
Slide 16: Investor Relations
Investor Relations: 514.394.0296 www.nbc.ca/investorrelations investorrelations@nbc.ca • HIGHLIGHTS CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, National Bank of Canada makes written and oral forward-looking statements, included in this analyst and investor presenation, in other f
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