National Bank Of Canada · TSX:NA
National Bank Of Canada — Shareholder Meeting (2005)
53 slides from National Bank Of Canada's shareholder meeting presentation, 2005
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Slide 4: Net income
OF CANADA RESULTSO OO! Net income (millions of dollars)
Slide 5: Earnings per share
Earnings per share (in dollars) Return on shareholders’ equity (as a %)
Slide 6: Personal and Commercial
Personal and Commercial Net income (millions of dollars) Personal and Commercial Revenue growth (on a taxable equivalent basis) (millions of dollars)
Slide 7: Wealth Management
Wealth Management Net income (millions of dollars) Personal savings (billions of dollars) 2003 2004 Deposits Full-service brokerage Online brokerage Mutual funds Other Total
Slide 8: Financial Markets
Financial Markets Net income (millions of dollars) Revenues (on a taxable equivalent basis) (millions of dollars)
Slide 9: Operating expenses
Operating expenses (millions of dollars) Provision for credit losses (millions of dollars)
Slide 10: Gross impaired loans
Gross impaired loans (millions of dollars) Allowances for credit losses (millions of dollars) 10
Slide 11: Net impaired loans
Net impaired loans (millions of dollars) Tier 1 capital ratio (as a % of risk-weighted assets) 11
Slide 12: Dividends per share
Dividends per share (in dollars) Total return, 2004 (as a %) National Bank 12
Slide 13: 2004 Objectives and Results
2004 Objectives and Results Objectives Results Growth in earnings per share ae Return on shareholders' equity 18.8% Tier 1 capital ratio Dividend payout ratio . OF CANADA 2005 FIRST QUARTER RESUINS: 13
Slide 14: Growth in net income
Growth in net income (millions of dollars) Growth in earnings per share (In dollars) 14
Slide 15: Return on shareholders' equity
Return on shareholders’ equity il (asa %) Personal and Commercial Net income (millions of dollars) 15
Slide 16: Wealth Management
Wealth Management Net income (millions of dollars) Financial Markets Net income (millions of dollars) 16
Slide 17: Gross impaired loans
Gross impaired loans (millions of dollars) Net impaired loans (millions of dollars) 17
Slide 18: Capital ratios
Capital ratios (as a % of risk-weighted assets) Quarterly dividend (cents per share) 18
Slide 19: 2005 Objectives
2005 Objectives Growth in earnings per share Return on shareholders’ equity Tier 1 capital ratio Dividend payout ratio” OF CANADA 2005 FIRST QUARTER RESUINS: 19
Slide 20: Réal Raymond, President and CEO
NATIONAL BANK OF CANADA Réal Raymond President and Chief Executive Officer 20
Slide 21: Seizing opportunities
Seizing opportunities 21
Slide 22: Current context
Current context Focus on growing revenues Innovations: source of added value > Growth in credit and savings volumes in line with GDP growth Current context New competitors for personal banking services > More businesses turning directly to financial markets 22
Slide 23: Current context
Current context Where will our next revenue and earnings dollar come from? Our achievements since 1999 Revenues (millions of dollars) 4000 3500 3000 2500 2000 1999 2004 NATIONAL
Slide 24: Our achievements since 1999
Our achievements since 1999 Provision for credit losses reduced > Efficiency in line with that of larger institutions Our achievements since 1999 (millions of dollars) 800 700 +11.7%peryear 14 600 se 500 400 300 1999 2004 NATIONAL BANK OF CANADA
Slide 25: Our achievements since 1999
Our achievements since 1999 Income and risk-adjusted assets 50 10 e ASSETS S 5 40 9 i~ s = INCOME = 30 8 2 o 3 ® 20 7 $ J =) ® 10 6 x 2 4 0 It 5 1999 Q1 2005 Income/$100 of risk-adjusted assets Our achievements since 1999 Earnings per share (in dollars) 5.00 4.00 3.00 2.00 1.00 1999 2004 25
Slide 26: Our achievements since 1999
Our achievements since 1999 Dividends per share (in dollars) 1.50 yor ta + 15.2% per year, o oe -* 1.00 0.50 0.00 1999 2004 Our achievements since 1999 Total return index + 26% per year y, =@ National Bank of Canada Pus 300 | -e Royal Bank of Canada > —© Canadian Imperial Bank of Commerce —® TD Bank
Slide 27: An enviable track record
An enviable track record Improved customer satisfaction Employee engagement More effective risk management Reconfiguration of our networks Advances in remote banking (NATIONAL BANK OF CANADA An enviable track record Sale of non-core business activities Ongoing pursuit of efficiency Launch of new pro
Slide 28: An enviable track record
An enviable track record High-performance banking network Capable of meeting increasingly demanding expectations Solid foundation Healthy, vibrant company Paths of development pursued > Approach to the future Achievements and opportunities > Wealth Management: > Increase our share of wallet by: Expa
Slide 29: Achievements and opportunities
Achievements and opportunities > Wealth Management: Deploying financial planners in Commercial Banking Centres Linking compensation to sales > Improving service quality Achievements and opportunities Share of wallet Wealthy and upscale clients (Quebec) (as a %) 40 % g g © ‘wo & > g 35 2 3 a S 5 & 3
Slide 30: Achievements and opportunities
Achievements and opportunities 2004 Growth, Wealth Management (as a %) ASSETS UNDER ADMINISTRATION/ MANAGEMENT 19.7 INCOME BEFORE INCOME TAXES Management 32.6 Other} Achievements and opportunities Retail assets - National Bank Financial (billions of dollars) 400 + 16% per year 90 87.4 80 70 60 50 40
Slide 31: Achievements and opportunities
Achievements and opportunities Net mutual fund sales 2004 calendar year (as a % of assets) 18 16 14 12 10 ON FD OW All funds Retail funds Hl National Bank fund family m™Q institutions mm industry total Achievements and opportunities Private Investment Management Assets under management (millions of
Slide 32: Achievements and opportunities
Achievements and opportunities > Insurance: Life and health insurance: 600,000 insured clients > Private Investment Management portfolios offered as part of universal insurance policies Achievements and opportunities > Insurance: Automobile insurance in Quebec 70,000 policies $60 million in premiums
Slide 33: Achievements and opportunities
Achievements and opportunities > Partnerships: Strong growth in business $880 million in new loans and deposits since October 2003 Leverage to penetrate other Canadian markets > Major player (NATIONAL BANK OF CANADA Achievements and opportunities > Commercial Banking: Leader in financing Quebec entr
Slide 34: Achievements and opportunities
Achievements and opportunities > Commercial Banking: Exclusive depositors Professionals and the self-employed BusinessFlex >» Specialized financing for the health sector (NATIONAL BANK OF CANADA Achievements and opportunities > Commercial Banking: > Ontario and Western Canada: Energy sector loans up
Slide 35: Achievements and opportunities
Achievements and opportunities > Commercial Banking: > Sector profitability: Greater operating efficiency Improved credit quality > Healthy loan portfolio Achievements and opportunities Jean Turmel NATIONAL BANK OF CANADA 35
Slide 36: Our achievements since 1999
Our achievements since 1999 Financial market revenues (millions of dollars) 1000 16 000 900 15 400 800 14 800 700 14 200 600 13 600 500 13 000 2000 2001 2002 2003 2004 (NATIONAL @ National Bank (left scale) m™ Big 5 banks (right scale) Oe canana Achievements and opportunities > National Bank Financi
Slide 37: Bank's image
Bank’s image Bank’s image Improvement in the valuation of the Bank’s stock Higher price/ earnings ratio > Growth in the number of very satisfied clients since 2001 37
Slide 38: Bank's image
Bank’s image > Motivated employees: Clear understanding of corporate goals Compensation linked to performance Fast-tracking of high achievers > Top-quality training for all personnel Bank’s image BEST EMPLOYERS IN CANADA 2005 REPORT ON BUSINESS MAGAZINE 38
Slide 39: Bank's image
Bank’s image Most admired lending and deposit-taking institution in Quebec for the past 3 years (NATIONAL BANK OF CANADA Bank’s image Link between our corporate performance and our role in society Volunteer work of Bank employees Donations and sponsorships > Quality jobs (NATIONAL BANK OF CANADA 39
Slide 40: Action plan executed with:
> Action plan executed with: Professionalism Thoroughness > Discipline A prosperous, efficient and progressive financial institution renowned for its leadership, innovation and service quality that builds on its position of strength in Quebec to continue its expansion elsewhere in Canada and in othe
Slide 41: Two competitive advantages:
> Two competitive advantages: On course to meet our main objectives > Several strategies have yet to reach full potential (NATIONAL BANK OF CANADA Immediate opportunities: In our areas of expertise In our core markets > Profitability: > Our primary concern NATIONAL BANK OF CANADA 41
Slide 42: A leading institution in Quebec
Aleading institution in Quebec With solid niches elsewhere Progressive, efficient, innovative Focussed on customer satisfaction A prosperous company > Attuned to shareholders’ expectations
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