National Bank Of Canada · TSX:NA
National Bank Of Canada — Q1 2008 Earnings Presentation
17 slides from National Bank Of Canada's earnings presentation, Feb 28, 2008
Slide 1: Analyst and Investor Presentation Q1 2008 Results Conference Call
Analyst and Investor Presentation Q1 2008 Results Conference Call Montreal, February 28, 2008 Caution Regarding one client Forward-Looking Statements one bank From time to time, National Bank of Canada (the “Bank”) makes written and oral forward-looking statements in publications, in filings with Ca
Slide 2: Q1 2008 Highlights
Q1 2008 Highlights one client one bank Record Net Income of $255 M Tier 1 Capital ratio at 9.3% (Basel II) One client, one bank: IT restructuration Wealth Management: Acquisitions Appointment in P&C Banking Q1 2008 Results Conference Call – February 28, 2008 I 3 Financial Review Patricia Curadeau-Gr
Slide 3: Performance Snapshot (reported and adjusted)
Performance Snapshot (reported) one client one bank (m illions of dollars) Q1 08 Q1 07 Change Q4 07 Q1 2008 – YoY Revenues 991 988 0% 372 Reported EPS up 10% Expenses 632 656 (4%) 640 Net Income 255 240 6% (175) EPS $1.58 $1.43 10% ($1.14) ROE 22.9% 20.7% (16.0%) Adjusted for gains or losses attribu
Slide 4: Well-diversified Business Mix; Capital Management
Well-diversified Business Mix one client Q1 2008 one bank Revenues1 Net Income 27% 30% 52% 53% 21% 17% Personal and Commercial Banking Wealth Management Financial Markets 1Adjusted for gains or losses attributable to third parties using the Innocap platform Q1 2008 Results Conference Call – February
Slide 5: Capital Management: Tier 1 Capital
Capital Management one client Tier 1 – Q1 2008 one bank Active capital management 9.8% Basel II implementation: Impact of 50 bps Issuance of $400 M of 9.3% Innovative instrument Impact of 39 bps Basel I Basel II Q1 2008 Results Conference Call – February 28, 2008 I 9 Risk Management
Slide 6: Global Portfolio Composition; Risk Provisioning
Global Portfolio Composition one client one bank As at January 31, 2008 Per business segment Per industry 3% 6% 2% 3% 22% 1% 3% 29% 3% 1% 2% 40% 4% 11% 8% 4% 3% 24% 31% Personal loans Corporate Banking Personal Residential mortgage Commercial Banking Mortgages Non-residential mortgage Agricultural C
Slide 7: Impaired Loans; Impaired Loan Formation
Impaired Loans one client one bank (millions of dollars) Sound risk 6.6% 6.2% management 5.8% 5.6% 5.7% 240 249 249 Stable gross impaired 236 232 loans 129 140 112 110 110 (179) (168) (196) (198) (198) Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Gross impaired loans Impaired loans before general allowances Impa
Slide 8: Risk Management: Current Focus; Credit Derivative Position
Risk Management one client Current Focus one bank Commercial paper liquidity lines to third party None asset-backed conduits Commercial paper liquidity lines to National Bank Backstop liquidity facilities – not significant sponsored asset–backed conduit No exposure to U.S. subprime mortgages U
Slide 9: Business Segment Review; Specified Items
Business Segment Review Jean Dagenais Senior Vice-President and Chief Financial Officer Specified items one client one bank (m illions of dollars) Q1 08 Gain related to the sale of the Bank's operations in Nassau 32 ABCP financing costs (19) Revenues 13 ABCP professional fees 2 Income before income
Slide 10: Personal and Commercial Banking Quarterly Results
Personal and Commercial Banking one client Quarterly Results one bank TEB (millions of dollars) Q1 2008 – YoY 130 123 124 Net Income up 6% 112 114 Good volume growth in 540 525 555 553 546 personal loans and deposits increased revenues by 1% 334 345 312 321 309 Continuous efforts resulted in a
Slide 11: Personal and Commercial Banking Volume and Margin Evolution
Personal and Commercial Banking one client Volume Evolution one bank Average volume (billions of dollars) Strong volume 36.8 growth 33.7 Good performance in Personal Banking with 21.5 loans and deposits up 20.7 9% and 4% respectively 13.1 13.7 9.7 Commercial Banking: 9.1 deposits were up 7% and
Slide 12: Personal and Commercial Banking Summary; Wealth Management Results
Personal and Commercial Banking one client Summary one bank Sustained personal loans and deposits volume growth tampered by temporally spread compression Efficiency ratio improvement Q1 2008 Results Conference Call – February 28, 2008 I 23 Wealth Management one client Quarterly Results1 one bank TEB
Slide 13: Wealth Management Revenues Breakdown; Retail AUM
Wealth Management one client Revenues Breakdown one bank TEB (millions of dollars) Q1 2008 – YoY 223 227 215 216 208 22 22 21 24 Solid growth in mutual 25 47 47 funds and private 48 52 47 investment management up 11% and 9%, respectively 158 154 140 146 136 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Brokerage
Slide 14: Wealth Management Summary; Financial Markets Results
Wealth Management one client Summary one bank AUM grew by 3% Pursuing acquisition initiatives : Aquilon Capital Corp (February 6) Groupe Financier Everest (February 7) Q1 2008 Results Conference Call – February 28, 2008 I 27 Financial Markets one client Quarterly Results1 one bank TEB (millions of d
Slide 15: Financial Markets Revenues and Trading Revenues Breakdown
Financial Markets one client Revenues Breakdown1 one bank TEB (millions of dollars) 316 Q1 2008 – YoY 308 307 292 284 45 50 67 57 16 Good trading 23 29 20 34 performance, revenues 43 81 72 up 16% 66 56 76 “Other” segment 49 44 44 44 affected by slower 43 merchant banking 108 113 116 124 results
Slide 16: Financial Markets Summary; Business Line Efficiency Ratio
Financial Markets one client Summary one bank Strong trading revenues Good performance in a challenging environment Q1 2008 Results Conference Call – February 28, 2008 I 31 Business Line Efficiency Ratio one client one bank 70.0% 70.8% 60.9% 57.8% 56.6% 57.5% Overall improvement of 100 bps 1 Perso
Slide 17: 2008 Objectives
2008 Objectives one client one bank 2008 Objectives Q1 08 Q1 08 Reported Adjusted Growth in diluted earnings per share 3% to 8% 10% 2% Return on common shareholders' equity 16% to 21% 22.9% 21.3% Tier 1 capital ratio More than 8.0% 9.3% 9.3% Dividend payout ratio 40% to 50% n/a 41.3% Q1 2008 Results
National Bank of Canada — Q1 2008 Earnings Presentation on 6ix