Slide 1: Q2 2024 Conference Call Presentation
Q2 2024 Conference Call Presentation June 5, 2024 Follow us
Slide 2: Post Conference Call Q&A
2 Post Conference Call Q&A For those wishing to ask questions during the Q&A, please access today’s call through the telephone dial-in: Toll-free: 1 (888) 664-6392 (Canada/US) Local: (416) 764-8659
Slide 3: Advisory
3 Advisory The Bank occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, annual reports and other disclosure documents an
Slide 4: David Taylor, President & Chief Executive Officer
4 David Taylor President & Chief Executive Officer
Slide 5: Q2/YTD Highlights
5 Q2/YTD Highlights Q2 2024 18% YoY growth in total assets to Realizing significant & increasing operating leverage in efficient record $4.4 B Digital Banking model 23% YoY growth in POS Financing portfolio Digital Banking efficiency ratio 15% YoY growth in net income improved to a record 38% (Q2) 1
Slide 6: Q2 2024 Key Metrics & Highlights
6 Q2 2024 Key Metrics & Highlights Consolidated Digital Banking: Strong loan portfolio growth YoY Sequential driving total assets to a record: $4.4 B Total Revenue 7% 1% Net Income 15% 7% • Q2 is a seasonally softer quarter for POS EPS 18% 6% Digital Banking Efficiency Ratio (ex. DRTC): 38% Net Inte
Slide 7: John Asma, Chief Financial Officer
7 John Asma Chief Financial Officer
Slide 8: Q2 2024: Continued Strong Financial Performance
8 Q2 2024: Continued Strong Financial Performance Balance Sheet • Total loan portfolio expanded to another record balance At April 30 2024 2023 YoY Sequential • Book Value per Share Change Change increased as a function of Total Assets $4.39 B $3.73 B 18% 2% higher retained earnings (from Loan Portf
Slide 9: Q2 2024: Continued Strong Financial Performance - Consolidated
Q2 2024: Continued Strong Financial Performance 9 Consolidated Consolidated Income Statement • YoY revenue growth driven by 3 Months Ended April 30 higher NII from Digital Banking operations due mainly to robust POS YoY Sequential (000’s) 2024 2023 Change Change portfolio growth Revenue 28,501 26,68
Slide 10: Digital Banking Operations – Record Loan Portfolio: $4.02 B
Q2 2024: Continued Strong Financial Performance 10 Digital Banking Operations – Record Loan Portfolio: $4.02 B Q1 2024 Q2 2024 Total: $3.98 B Total: $4.02 B Point-of-Sale Point-of-Sale Loans/ Leases Loans/ Leases $3.1B Public Sector/ $3.1B Public Sector/ 78% Other Financing 78% Other Financing $55M
Slide 11: Digital Banking Operations Income Statement
Q2 2024: Continued Strong Financial Performance 11 Digital Banking Operations Digital Banking Operations: Income Statement • NIM decrease due primarily to: 3 Months Ended • Strong growth of the POS portfolio April 30 (composed of lower-risk weighted, lower yielding but higher “ROCE” 2024 2023 YoY Ch
Slide 12: Cost of Funds
12 Cost of Funds Q2 2024 cost of funds: 4.21% Wealth Management (Personal Deposits) • Increased 94 bps (29%) vs Q2 2023 • Increased 22 bps (6%) vs Q1 2024 $2,914 $3,021 Cost of funds was impacted by: $2,059 • Lower relative proportion of lower cost $1,108 $1,203 $1,150 $1,052 $1,041 $960 $1,059 $1,2
Slide 13: Top Tier Asset Quality & Prudent Approach to Risk Mitigation
13 Top Tier Asset Quality & Prudent Approach to Risk Mitigation Average Provision for Credit Losses as a % of Average Loans 0.01% PCL as a % of Average Loans 0.12% (Trailing 12-Quarters) 0.08% 0.06% 0.02% 0.02% 0.02% 0.00% (0.01%) (0.02%) (0.02%) (0.02%) 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 14: DRTC Cybersecurity Services Income Statement
Q2 2024: Continued Strong Financial Performance 14 DRTC Cybersecurity Services (DBG): Income Statement • Revenue changes are a function 3 Months Ended of engagement activity relative April 30 to comparable periods YoY Seq 2024 2023 • Q2 is a seasonally softer quarter Change Change Revenue 2.8 2.6 8%
Slide 15: David Taylor, President & Chief Executive Officer
15 David Taylor President & Chief Executive Officer
Slide 16: Capitalizing on the Significant Operating Leverage in Core Digital Banking
Capitalizing on the Significant Operating Leverage 16 in Our Core Digital Banking Operations Period of Investment in Future Growth Next Milestones 62% 55% 11.75% 50% 52% 12.36% Total Assets 49% 47% >$5B >$6B 43% 10.29% 8.50% 8.89% 8.45% 6.61% 38% 7.89% $4.20 $4.39 $3.85 $4.02 Efficiency Ratio <40% <
Slide 17: Acquisition of OCC-Chartered, National US Bank
Acquisition of OCC-Chartered, National US Bank: 17 Transformational Next Step in Long-Term Growth Strategy Definitive Agreement to • Provides access to US deposits to fuel growth of the US Acquire Minnesota-based Receivable Purchase Program business (launched in US Stearns Bank Holdingford following
Slide 18: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659
Slide 19: Our Time Has Arrived!
19 Our Time Has Arrived! Follow us