National Bank Of Canada · TSX:NA

National Bank Of Canada — Q2 2013 Earnings Presentation

13 slides from National Bank Of Canada's earnings presentation, May 24, 2013

  1. Slide 1: Analyst and Investor Presentation Q2-2013 Conference Call

    23/05/2013 ANALYST AND INVESTOR PRESENTATION Q2-2013 CONFERENCE CALL Friday, May 24, 2013 - 11:00 am CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, National Bank of Canada (the Bank) makes written and oral forward-looking statements, such as those contained in the Major Economic Tre

  2. Slide 2: Highlights

    23/05/2013 HIGHLIGHTS Q2 13 Q1 13 Q2 12 QoQ YoY ADJUSTED RESULTS (1) Net Income(2) 369 361 347 2% 6% Diluted EPS $2.08 $2.02 $1.95 3% 7% Provision for Credit Losses 53 32 49 66% 8% Return on Equity 20.5% 19.8% 21.5% Common Equity Tier 1 Ratio 8.3% 7.9% 8.0% Under Basel III Dividend Payout(3) 40.1% 3

  3. Slide 3: Performance Snapshot – Q2 2013 and H1 2013

    23/05/2013 PERFORMANCE SNAPSHOT – Q2 2013 (millions of dollars) ADJUSTED (1) Q2 13 Q1 13 Q2 12 QoQ YoY Revenues 1,251 1,225 1,220 2% 3% Expenses 769 747 752 3% 2% Net Income 369 361 347 2% 6% Diluted EPS $2.08 $2.02 $1.95 3% 7% ROE 20.5% 19.8% 21.5% REPORTED Q2 13 Q1 13 Q2 12 QoQ YoY Revenues 1,386

  4. Slide 4: Income Statement Overview and Non Interest Expense

    23/05/2013 INCOME STATEMENT OVERVIEW (Excluding specified items) T.E.B. (millions of dollars) Q2 13 Q1 13 Q2 12 QoQ YoY REVENUES Q2 13 (vs. Q2 12) Revenues 1,251 1,225 1,220 2% 3% P&C Banking 632 642 622 (2%) 2% 28% Wealth Management 289 276 277 5% 4% 49% (26%) (51%) Financial Markets 363 303 322 20

  5. Slide 5: Balance Sheet Overview and Strong Capital Position

    23/05/2013 BALANCE SHEET OVERVIEW (Banking book) (billions of dollars) LENDING – LOANS AND BAs (MONTH END BALANCE) FUNDING – DEPOSITS AND BAs (MONTH END BALANCE) 96.1 91.7 92.8 91.6 89.8 90.5 86.2 87.4 88.8 17.9 83.8 7.1 7.2 17.7 17.3 6.2 6.7 16.8 5.5 7.9 16.7 7.8 7.8 7.9 9.0 7.9 7.6 8.3 7.4 5.5 25.

  6. Slide 6: Risk Management: Global Credit Portfolio

    23/05/2013 RISK MANAGEMENT William Bonnell Executive Vice-President, Risk Management GLOBAL CREDIT PORTFOLIO As at April 30, 2013 vs. (April 30, 2012) PER BUSINESS RETAIL PORTFOLIO PER INDUSTRY SEGMENT COMPOSITION 8% 9% (5%) (10%) 9% (10%) 11% (10%) 18% (17%) 25% 37% (26%) 12% 4% (4%) (37%) 67% (9%)

  7. Slide 7: Specific Provision for Credit Losses and Impaired Loans

    23/05/2013 SPECIFIC PROVISION FOR CREDIT LOSSES(1) (millions of dollars) 53 49 1 46 32 1 40 1 1 13 RISK PROVISIONING 14 9 3 12 1 2  Q2 2013: $53M or 24 bps 39  YTD 2013: $85M or 19 bps 34 34 33 35  Next 2 quarters target: 20-30 bps (13) Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Personal Banking Commercial Ba

  8. Slide 8: Business Segment Review: Personal and Commercial Banking

    23/05/2013 BUSINESS SEGMENT REVIEW Jean Dagenais Senior Vice-President Finance, Taxation and Investor Relations PERSONAL AND COMMERCIAL BANKING (millions of dollars) Q2 13 Q1 13 Q2 12 QoQ YoY HIGHLIGHTS  Revenues up 2% YoY due to strong volume Revenues 632 642 622 (2%) 2% growth in loans and BA’s (

  9. Slide 9: Wealth Management and Financial Markets

    23/05/2013 WEALTH MANAGEMENT(1) (millions of dollars) Q2 13 Q1 13 Q2 12 QoQ YoY HIGHLIGHTS Revenues 289 276 277 5% 4%  Net income up 23% YoY mainly due to good fee-based momentum Fee-based 137 133 132 3% 4% especially in our full-service Transaction & Others 86 76 84 13% 2% brokerage division  Goo

  10. Slide 10: Appendix: Detail of Specified Items

    23/05/2013 APPENDIX APPENDIX 1 │ DETAIL OF SPECIFIED ITEMS(1) (millions of dollars) Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Natcan / Fiera Transaction 227 (1) 1 (1) (2) Acquisition of WW & HSBC (8) (8) (14) (6) (7) Acquisition of TMX - - - (1) - Severance Pay (15) - (65) - - MAV and Other Notes 34 5 111 12 13

  11. Slide 11: Appendix: Income Statement FY2013 and Daily Trading Revenues vs VaR

    23/05/2013 APPENDIX 2 │ INCOME STATEMENT FY2013(1) (millions of dollars) - net income growth (%) T.E.B. Personal & Commercial Wealth Management Financial Markets (millions of dollars) 6M 13 6M 12 YoY 6M 13 6M 12 YoY 6M 13 6M 12 YoY Revenues 1,274 1,248 2% 565 539 5% 666 659 1% Operating Expenses 709

  12. Slide 12: Appendix: VaR Trend and Trading P&L Results

    23/05/2013 APPENDIX 4 │ VaR TREND Trading VaR Quarterly Average Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 -5.2 -6.1 -6.7 -7.4 -8.3 $ millions Q2 2013 RESULTS CONFERENCE CALL – May 24, 2013 I 23 APPENDIX 5 │ TRADING P&L RESULTS # days Trading P&L distribution - Q2 2013 14 12 10 8 6 4 2 0 (1) - 1 2 3 4 5 6 7 8 9

  13. Slide 13: Investor Relations

    23/05/2013 INVESTOR RELATIONS Financial analysts and investors who want to obtain financial information on the Bank are asked to contact the Investor Relations Department. 600 De La Gauchetière Street West, 7th Floor, Montreal, Quebec H3B 4L2 Toll-free: 1-866-517-5455 Fax: 514-394-6196 E-mail: inves

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