National Bank Of Canada · TSX:NA
National Bank Of Canada — Q1 2005 Earnings Presentation
16 slides from National Bank Of Canada's earnings presentation, Feb 24, 2005
Slide 1: Analyst and Investor Presentation Q1 2005 Results
Analyst and Investor Presentation Q1 2005 Results Conference Call February 24, 2005 www.nbc.ca/investorrelations Highlights Solid across-the-board performance • Q1 05 Results: • Net income $239 M; up 28% y/y • EPS at $1.39; +35% y/y • ROE at 23.6%; was 19% as at Q1 04 • A persistently robust perform
Slide 2: 2005 Objectives / Performance Snapshot
2005 Objectives Strong start to the year 2005 Objectives Q1 05 YTD Growth in earnings per share 5% to 10% 35% 35% Return on common shareholders' equity 16% to 18% 24% 24% Equal or greater Tier 1 capital ratio than 8.5% 9.6% 9.6% 1 Dividend payout ratio 35% to 45% 34% 34% (1) Trailing 4 quarters Anal
Slide 3: Dividend per Share / Revenues – Business Line Mix
Dividend per Share Quarterly 0.42 0.42 Highlights: 0.38 0.38 0.33 0.33 • Increase in quarterly 0.26 0.26 0.28 0.28 dividend 10% from Q4 04 and 27% from a year ago • No shares Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 repurchased in Q1 05 Annual $1.42 e increas 89% $1.08 $0.93 $0.82
Slide 4: Personal and Commercial Banking – Quarterly
Personal and Commercial Banking – Quarterly In millions of dollars Highlights: Revenues Expenses Year/Year: Net Income •Top line growth of 4% 114 •Net income increase 105 98 of 9% 96 93 485 493 508 503 •Revenues driven by 479 volume growth and steady margins 292 298 312 316 304 •Expense level in lin
Slide 5: P&C Volume Evolution / P&C Loan Evolution
P&C Volume Evolution In billions of dollars Quarterly average volumes Growth : 8% in Loans & BAs, $45 extremely strong $41 $41 $42 increase in a $40 challenging, highly $40 $39 competitive market, reaffirms NA’s $35 leverage $31 $30 $30 $30 $30 $30 Steady pace stemming from branch $25 network and al
Slide 6: P&C Deposit Volume Evolution / P&C Margin Evolution
P&C Deposit Volume Evolution Quarterly average Personal volumes Deposits Millions Growth : $23,000 Personal stable $22,000 Commercial 7% $21,000 Two important products launched: $20,000 •Global Blue Chip Note Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 •Multi-Managed GIC Millions Commercial Deposits $7,500 $7,000
Slide 7: P&C Expense Ratio / Wealth Management – Quarterly
P&C Expense Ratio Highlights : Priority remains balance between continuous business 63.3% 62.2% 62.2% 60.4% development 60.2% investments and cost control Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Analyst and Investor Presentation Q1 2005 Results Conference Call — February 24, 2005 13 Wealth Management – Quarte
Slide 8: Wealth Management Revenue Composition / Retail AUM
Wealth Management Revenue Composition In millions of dollars Revenue growth: 5% since Q1 04 205 4 195 From all major units 3 186 16 3 180 15 4 172 3 19 45 13 20 40 41 Increase in transaction 42 41 based revenues and Private investment management 128 140 132 113 116 Brokerage 4% Mutual funds 3% Q1 04
Slide 9: Wealth Management Expense Ratio / Financial Markets – Quarterly
Wealth Management Expense Ratio Highlights : Majority of contributors saw a 80.1% 79.1% 78.3% 78.5% productivity 75.6% improvement Reflecting the leverage in model since Q1 04 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Analyst and Investor Presentation Q1 2005 Results Conference Call — February 24, 2005 17 Finan
Slide 10: Financial Markets Revenue Composition / Trading Revenue Breakdown
Financial Markets Revenue Composition In millions of dollars Highlights : Q1 05 revenue growth 275 continues to support 269 248 diversified business 25 246 31 14 221 25 32 35 mix strategy 41 31 38 72 76 75 Maintaining the 75 20 60 excess of market 1 13 43 15 11 value over book of 43 39 65 41 $158 M,
Slide 11: Trading/Securities Gains/ALM Revenues / Expense Ratio
Trading/Securities Gains/ALM Revenues CDN $ CDN $ -25 000 000 160 000 000 140 000 000 -20 000 000 120 000 000 -15 000 000 100 000 000 80 000 000 -10 000 000 60 000 000 40 000 000 -5 000 000 20 000 000 0 0 ju -0 0 ju r-0 1 ju -0 2 ju r-0 3 jui -0 4 av -01 av -02 av -03 av -04 5 jan - 00 ja t- 01 jan
Slide 12: Risk Management / Global Portfolio Composition
Risk Management Analyst and Investor Presentation Q1 2005 Results Conference Call — February 24, 2005 23 Global Portfolio Composition As at January 31, 2005 Outstanding Credit cards 3% Personal loans 16% Mortgages Corporate 39% Banking 14% SME 28% Adjusted for securitization Analyst and Investor Pre
Slide 13: Risk Provisioning / Allowance for Credit Losses
Risk Provisioning In millions of dollars Highlights : As at Q1 05, 44 provisioning stands at 19 31 -8 17 bps of loans & BAs 24 17 12 17 20 22 29 2 Low level reflection of 19 15 superb portfolio quality -2 -20 -35 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 P&C Financial Markets General allowance Analyst and Inves
Slide 14: Impaired Loan Formation / Impaired Loans
Impaired Loan Formation In millions of dollars Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Personal & Commercial * 14.6 24.5 20.2 7.3 2.4 Corporate 11.0 3.0 (6.0) (19.7) (14.4) Treasury 0.0 0.1 (0.1) (0.3) 0.0 Other (8.8) 0.8 (1.7) 0.0 0.0 Total 16.8 28.4 12.4 (12.7) (12.0) Formations include new accounts, disbur
Slide 15: VaR – Global Trading / Daily Trading P/L – Q1 05
VaR – Global Trading In CDN dollars 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 -N 4 -N 4 De 4 8- 04 -N 4 -D 4 -D 4 3- 0 4 05 17 -05 24 -05 31 -05 5 -D 4 15 v-0 22 v -0 -0 0 -0 13 c-0 -0 -0 v- - n- - ov ov an an an an ec ec ec No No o Ja -J -J -J -J 1- 6- 29 10
Slide 16: Solid beginning to year
Solid beginning to year • Favourable overall performance for quarter, despite continued competitive business environment • Satisfying Q1 results, solid base to build on • Increased contribution from all sectors, supported by good cost control • Confident and on track to 2005 objectives Analyst and I
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