National Bank Of Canada · TSX:NA

National Bank Of Canada — Q4 2014 Earnings Presentation

15 slides from National Bank Of Canada's earnings presentation, Dec 5, 2014

  1. Slide 1: Q4 2014 Results Conference Call – Forward-Looking Statements

    Friday, December 5, 2014 - 11:00 am CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, the Bank makes written and oral forward-looking statements, such as those contained in the Major Economic Trends and the Outlook for National Bank sections of this Annual Report, in other filings with

  2. Slide 2: Highlights and Mid-Term Objectives

    HIGHLIGHTS Q4 14 Q3 14 Q4 13 QoQ YoY ADJUSTED RESULTS (1) Net Income(2) 407 427 353 (5%) 15% Diluted EPS $1.14 $1.20 $1.00 (5%) 14% Provision for Credit Losses 57 49 48 16% 19% Return on Equity 17.9% 19.4% 17.6% Common Equity Tier 1 Ratio 9.23% 9.08% 8.73% Under Basel III Dividend Payout(3) 41.5% 41

  3. Slide 3: Financial Review – Performance Snapshot Q4 2014

    FINANCIAL REVIEW Ghislain Parent Chief Financial Officer and Executive Vice-President, Finance and Treasury PERFORMANCE SNAPSHOT – Q4 2014 (millions of dollars) ADJUSTED (1) Q4 14 Q3 14 Q4 13 QoQ YoY Revenues 1,383 1,427 1,260 (3%) 10% Expenses 841 866 791 (3%) 6% Net Income 407 427 353 (5%) 15% Dil

  4. Slide 4: Performance Snapshot YTD 2014 and Income Statement Overview

    PERFORMANCE SNAPSHOT – YTD 2014 (millions of dollars) ADJUSTED (1) 12M 14 12M 13 YoY Revenues 5,419 5,021 8% Expenses 3,303 3,147 5% Net Income 1,593 1,423 12% Diluted EPS $4.48 $4.04 11% ROE 18.5% 18.9% REPORTED 12M 14 12M 13 YoY Specified Items (55) 89 Net Income 1,538 1,512 2% Diluted EPS $4.32 $

  5. Slide 5: Income Statement Overview YTD and Non Interest Expenses

    INCOME STATEMENT OVERVIEW – YTD 2014 (Excluding specified items) REVENUES 12M-14 (vs. 12M-13) (millions of dollars) 12M 14 12M 13 YoY T.E.B. Revenues 5,419 5,021 8% 23% (23%) P&C Banking 2,693 2,592 4% 49% 4% (51%) (4%) Wealth Management 1,332 1,150 16% 24% (22%) Financial Markets 1,527 1,378 11% Ot

  6. Slide 6: Balance Sheet Overview and Strong Capital Position

    BALANCE SHEET OVERVIEW (Banking Book) (billions of dollars) LENDING – LOANS AND BAs (MONTH END BALANCE) FUNDING – DEPOSITS AND BAs (MONTH END BALANCE) 105.2 110.3 101.2 102.9 106.9 107.8 105.4 97.0 99.2 101.8 12.0 11.2 11.3 23.4 10.6 22.3 22.7 9.4 20.5 8.5 8.6 19.7 8.4 8.6 8.1 11.1 11.5 11.4 12.9 10

  7. Slide 7: Comparative Performance – Capital Ratios; Risk Management

    COMPARATIVE PERFORMANCE – Capital Ratios CAPITAL RATIOS UNDER BASEL III NBC 15.1% 14.8% 13.6% 12.3% 12.0% 11.5% 9.2% 9.1% 9.8% Q4 14 Q3 14 Q3 14 (1) NBC NBC Canadian Peers Common Equity Tier 1 (CET1) Tier 1 Total (1) Weighted average ratios of Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nov

  8. Slide 8: Global Credit Portfolio and Specific Provision for Credit Losses

    GLOBAL CREDIT PORTFOLIO As at October 31, 2014 vs. (October 31, 2013) PER BUSINESS RETAIL PORTFOLIO PER INDUSTRY SEGMENT COMPOSITION 10% 9%(9%) (8%) 9% 9% (9%) (10%) 18% 25% (17%) (25%) 4% (4%) 34% (35%) 8% 67% 12% (8%) (67%) (13%) 22% (23%) 17% 4% (15%) 26% (4%) (25%) 3% (4%) 3% (3%) 8% (9%) 12% Un

  9. Slide 9: Impaired Loans and Formation; Business Segment Review

    IMPAIRED LOANS AND FORMATION (millions of dollars) IMPAIRED LOANS IMPAIRED LOANS FORMATION(1) 0.46% 0.41% 0.42% 0.41% 0.40% Q4 14 Q3 14 Q2 14 Q1 14 Q4 13 (millions of dollars) 486 Retail 29 20 15 36 21 395 417 417 411 Commercial 79 2 15 9 26 Corporate Banking - - - - (6) 248 Wealth Management 2 1 -

  10. Slide 10: Personal and Commercial Banking; Wealth Management

    PERSONAL AND COMMERCIAL BANKING (millions of dollars) Q4 14 Q3 14 Q4 13 QoQ YoY HIGHLIGHTS Revenues 690 696 658 (1%) 5%  Revenues up 5% YoY due to strong volume growth from loans, deposits and mutual funds Personal Banking 322 323 307 - 5%  Net Interest Margin down 3 bps QoQ Commercial Banking 252

  11. Slide 11: Financial Markets; Appendix

    FINANCIAL MARKETS(1) Q4 14 Q3 14 Q4 13 QoQ YoY (millions of dollars) HIGHLIGHTS Revenues 380 445 331 (15%) 15%  Strong performance in Corporate and Investment Banking and client related Trading Revenues Trading 138 191 146 (28%) (5%)  Proprietary trading losses partially offset by gains Banking Se

  12. Slide 12: Appendix 1 – Detail of Specified Items

    APPENDIX 1 │ DETAIL OF SPECIFIED ITEMS (millions of dollars) Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Wealth Management and other acquisitions (14) (11) (12) (22) (14) Funding Valuation Adjustments - - - - (13) Severance Pay (12) - - - - MAV and Other Notes (3) 40 (4) 42 (4) Litigation provisions - - - - (14)

  13. Slide 13: Appendix 3 – 2014 Income Statement

    APPENDIX 3│ 2014 INCOME STATEMENT(1) T.E.B. Personal & Commercial Wealth Management Financial Markets (millions of dollars) 2014 2013 YoY 2014 2013 YoY 2014 2013 YoY Revenues 2,693 2,592 4% 1,332 1,150 16% 1,527 1,378 11% Operating Expenses 1,532 1,497 2% 913 841 9% 692 664 4% PCLs 205 192 7% 3 3 -

  14. Slide 14: Appendix 5 – VaR Trend; Appendix 6 – Trading P&L Results

    APPENDIX 5 │ VaR TREND Trading VaR Quarterly Average Q1 14 Q2 14 Q3 14 Q4 14 -6.6 -6.9 -7.2 -7.6 $ millions Q4 2014 RESULTS CONFERENCE CALL – December 5, 2014 I 27 APPENDIX 6 │ TRADING P&L RESULTS # days Distribution of daily trading revenues - Q4 2014 10 9 8 7 6 5 4 3 2 1 0 (3) (2) (1) - 1 2 3 4 5

  15. Slide 15: Investor Relations

    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: investorrelation

National Bank of Canada — Q4 2014 Earnings Presentation on 6ix