Slide 1: Q1 2023 Conference Call Presentation
Q1 2023 Conference Call Presentation March 8, 2023 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: Q1 2023: 46% YoY growth in loan portfolio to record $3.24B
5 Q1 2023 46% YoY growth in loan Transitory costs primarily portfolio to record $3.24 B due to growth investments substantially normalized 68% YoY and 9% sequential and will further normalize growth in POS Loans & Leases throughout 2023 Record revenue Only beginning to realize Record net interest in
Slide 6: Q1 2023 Key Metrics & Highlights: Record Results
6 Q1 2023 Key Metrics & Highlights: Record Results Consolidated YoY Sequential Digital Banking: Strong loan portfolio growth to Total Revenue 42% 7% another record: $3.24B Net Income 69% 46% Record quarterly revenue, net interest income, EPS 79% 48% net income and EPS Net Interest Margin 6 bps 2 bps
Slide 7: Acquisition of OCC-Chartered, National US Bank: Transformational Next Step in Long-Term Growth Strategy
Acquisition of OCC-Chartered, National US Bank: 7 Transformational Next Step in Long-Term Growth Strategy June 2022: Definitive • Provides access to U.S. deposits to fuel growth of the Agreement to Acquire U.S. Receivable Purchase Program business (recently Minnesota-based Stearns launched in the U.
Slide 8: U.S. Receivables Purchase Program: A New Financing Solution for the Underserved U.S. Market
U.S. Receivables Purchase Program: A New Financing 8 Solution for the Underserved U.S. Market Launched in U.S. on a Limited Basis in April 2022 Supporting an Emerging, High-Growth Industry Full Roll Out to Commence Upon Closing of U.S. Bank Acquisition With a massive millennial consumer base and an
Slide 9: Shawn Clarke, Chief Financial Officer
9 Shawn Clarke Chief Financial Officer
Slide 10: Q1 2023: Continued Strong Financial Performance
10 Q1 2023: Continued Strong Financial Performance Balance Sheet • Total loan portfolio expanded to another record balance At January 31 2023 2022 YoY Sequential • Book Value per Share Change Change increases a function of higher Total Assets $3.53 B $2.42 B 46% 8% retained earnings (from net Loan P
Slide 11: Q1 2023: Continued Strong Financial Performance - Consolidated
Q1 2023: Continued Strong Financial Performance 11 Consolidated Consolidated Income Statement • Revenue increased driven by higher net interest income 3 Months Ended January 31 from Digital Banking operations resulting from strong loan Sequential 2023 2022 YoY Change Change portfolio growth Revenue
Slide 12: Digital Banking Operations – Record Loan Portfolio: $3.24B
Q1 2023: Continued Strong Financial Performance 12 Digital Banking Operations – Record Loan Portfolio: $3.24 B Q4 2022 Q1 2023 Total: $2.99 B Total: $3.24 B Point-of-Sale Point-of-Sale Loans/ Leases Loans/ Leases $2.2B Public Sector/ $2.4B Public Sector/ 75% Other Financing 75% Other Financing $35M
Slide 13: Digital Banking Operations
Q1 2023: Continued Strong Financial Performance 13 Digital Banking Operations Digital Banking Operations: Income Statement • YoY increase in non-interest expense due mainly to higher salary and benefits 3 Months Ended costs related to increased staffing levels January 31 to support expanded revenue-
Slide 14: Cost of Funds
14 Cost of Funds Wealth Management (Personal Deposits) Q1 2023 cost of funds: 2.95% • Increased 166 bps (129%) vs Q1 2022 • Increased 50 bps (20%) vs Q4 2022 $2,059M $2,340 $1,108M $1,203M $1,150M $1,052M $1,041M $960M $1,059M $1,213M Increase in cost of funds 2014 2015 2016 2017 2018 2019 2020 2021
Slide 15: PCL as a % of Average Loans
15 Top Tier Asset Quality & Prudent Approach to Risk Mitigation Average Provision for Credit Losses as a % of Average Loans PCL as a % of Average Loans 0.12% 0.00% (Trailing 12-Quarters) 0.08% 0.05% 0.06% 0.03% 0.02% (0.01%) (0.02%) (0.02%) (0.02%) 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 202
Slide 16: DRTC: Cybersecurity Services (DBG) Income Statement
Q1 2023: Continued Strong Financial Performance 16 DRTC Cybersecurity Services (DBG): Income Statement • Revenue decrease for DBG 3 Months Ended YoY and sequentially a January 31 function of lower service 2023 2022 YoY Change Seq Change work volume in Q1/23 Revenue 2.3 2.4 (3%) (19%) • YoY increase
Slide 17: David Taylor, President & Chief Executive Officer
17 David Taylor President & Chief Executive Officer
Slide 18: Capitalizing on Our Operating Leverage
18 Capitalizing on Our Operating Leverage $3.24 $2.99 75% 70% 10.29% 10.79% 8.45% 7.89% 65% 8.89% 8.50% 62% 6.61% $1.56 $1.63 $1.59 $2.10 $1.45 $1.22 $1.65 $1.52 55% 52% 4.50% 50% 49% 4.17% 4.15% 48% 47% 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2023 Efficiency Ratio Loan Portfolio Size ($B) R
Slide 19: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659
Slide 20: Our Time Has Arrived!
20 Our Time Has Arrived! Follow us