National Bank Of Canada · TSX:NA

National Bank Of Canada — Q1 2014 Earnings Presentation

12 slides from National Bank Of Canada's earnings presentation, Feb 25, 2014

  1. Slide 1: Caution Regarding Forward-Looking Statements

    Tuesday, February 25, 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 the 2013 Annual Report, in other fi

  2. Slide 2: Highlights

    HIGHLIGHTS Q1 14 Q4 13 Q1 13 QoQ YoY ADJUSTED RESULTS (1) Net Income(2) 384 353 344 9% 12% Diluted EPS $1.09 $1.00 $0.97 9% 12% Provision for Credit Losses 51 48 32 6% 59% Return on Equity 18.8% 17.6% 19.0% Common Equity Tier 1 Ratio 8.3% 8.7% 7.9% Under Basel III Dividend Payout(3) 41.8% 41.8% 40.7

  3. Slide 3: Performance Snapshot – Q1 2014 / Income Statement Overview

    PERFORMANCE SNAPSHOT – Q1 2014 (millions of dollars) ADJUSTED (1) Q1 14 Q4 13 Q1 13 QoQ YoY Revenues 1,326 1,260 1,222 5% 9% Expenses 807 791 766 2% 5% Net Income 384 353 344 9% 12% Diluted EPS $1.09 $1.00 $0.97 9% 12% ROE 18.8% 17.6% 19.0% REPORTED Q1 14 Q4 13 Q1 13 QoQ YoY Specified Items 21 (33)

  4. Slide 4: Non Interest Expenses / Balance Sheet Overview

    NON INTEREST EXPENSES (Excluding specified items) (millions of dollars) Q1 14 Q4 13 Q1 13 QoQ YoY Salaries and Staff Benefits 504 469 473 7% 7% Technology and Professional Fees 158 163 148 (4%) 7% Other Expenses 145 159 145 (8%) -% Non Interest Expense 807 791 766 2% 5% 788 802 791 807 766 149 155 1

  5. Slide 5: Strong Capital Position / Risk Management

    STRONG CAPITAL POSITION TOTAL RISK-WEIGHTED ASSETS COMMON EQUITY TIER 1 UNDER BASEL III UNDER BASEL III EVOLUTION (QoQ) 0.39% 64,627 59,388 60,895 61,251 60,040 4,110 3,251 3,594 3,252 3,382 8,487 0.41% 8,266 8,385 8,418 8,082 0.24% 0.21% 8.73% 8.73% 8.71% 48,055 48,180 49,258 49,451 52,030 8.47% 8.

  6. Slide 6: Global Credit Portfolio / Specific Provision for Credit Losses

    GLOBAL CREDIT PORTFOLIO As at January 31, 2014 vs. (January 31, 2013) PER BUSINESS RETAIL PORTFOLIO PER INDUSTRY SEGMENT COMPOSITION 11% 9% (9%) (6%) 9% 9% (11%) 25% (10%) 20% 4% (25%) (4%) 34% (17%) (37%) 8% 67% 12% (13%) 15% 20% (8%) (67%) (13%) (21%) 4% 26% (4%) (25%) 4% (5%) 8% 3% (3%) (9%) 12%

  7. Slide 7: Impaired Loans and Formation / Business Segment Review

    IMPAIRED LOANS AND FORMATION (millions of dollars) IMPAIRED LOANS IMPAIRED LOANS FORMATION(1) (millions of dollars) Q1 14 Q4 13 Q3 13 Q2 13 Q1 13 6.53% 6.47% 6.87% 6.06% 6.28% Retail 36 21 26 20 22 Commercial 9 23 36 (13) 34 395 417 Corporate Banking - (3) (6) 7 (56) 377 354 346 Wealth Management 1

  8. Slide 8: Personal and Commercial Banking / Wealth Management

    PERSONAL AND COMMERCIAL BANKING HIGHLIGHTS (millions of dollars) Q1 14 Q4 13 Q1 13 QoQ YoY Revenues 658 658 639 -% 3%  Revenues up 3% YoY due to strong volume growth Personal Banking 305 307 294 (1%) 4%  Net Interest Margin is up 1 bp QoQ Commercial Banking 241 241 238 -% 2%  Operating leverage r

  9. Slide 9: Financial Markets

    FINANCIAL MARKETS (millions of dollars) Q1 14 Q4 13 Q1 13 QoQ YoY Revenue Breakdown – Q1-14 (vs. Q1-13) Revenues 365 331 303 10% 20% Principal Activities 16% 11% Trading 163 146 127 12% 28% (18%) (11%) Credigy Banking Services 58 61 54 (5%) 7% 12% 15% (10%) Fixed Income (15%) Equity Derivatives Fina

  10. Slide 10: Appendix – Detail of Specified Items

    APPENDIX 1 │ DETAIL OF SPECIFIED ITEMS (millions of dollars) Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Wealth Management and other acquisitions (8) (9) (8) (14) (11) Severance Pay - - - (12) - MAV and Other Notes 12 137 (4) (3) 40 Leases Termination - - - (16) - Write-off of Intangible Assets - (39) - - - Item

  11. Slide 11: Appendix – VaR Trend / Trading P&L Results

    APPENDIX 3 │ VaR TREND Trading VaR Quarterly Average Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 -5.2 -6.5 -7.4 -7.1 -7.6 -8.3 $ millions Q1 2014 RESULTS CONFERENCE CALL – February 25, 2014 I 21 APPENDIX 4 │ TRADING P&L RESULTS # days Distribution of daily trading revenues - Q1 2014 14 12 10 8 6 4 2 0 (1) -

  12. Slide 12: 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 — Q1 2014 Earnings Presentation on 6ix