National Bank Of Canada · TSX:NA
National Bank Of Canada — Merger or Acquisition (November 2001)
9 slides from National Bank Of Canada's merger presentation, Nov 15, 2001
Slide 1: Agreement with PNC Financial Services Group
Agreement with PNC Financial Services Group Montreal, November 15, 2001
Slide 2: Executive Summary
Executive Summary ■ Sale of the National Bank of Canada’s U.S. Commercial Lending Business to PNC Financial Services Group, a $1.6 billion in loans outstanding portfolio " NBC and PNC will collaborate to liquidate the discontinued portfolio of $550 million ■ PNC will buy all 18 regional offices, exc
Slide 3: Reasons for Sale
Reasons for Sale ■ NBC’s effort to focus resources and attention on its core activities: " Retail Banking " Wealth Management In Canada " Commercial lending ■ Portfolio not meeting financial objectives ■ Changing economic marketplace " Large specialists " Focused super regional full service banks ■
Slide 4: Highlights of the Existing Portfolio
Highlights of the Existing Portfolio ■ $2.2 billion in loans outstanding as at September 30, 2001 ■ 66% in traditional secured-based lending as at July 31, 2001 ■ 363 customers ■ Diversified loan portfolio (client, geography & industry) ■ Head office in New York, 113 employees ■ 18 regional offices,
Slide 5: 2001 Financial Highlights of US Portfolio
2001 Financial Highlights of US Portfolio ■ Erosion of portfolio as payouts outpaced originations given credit conditions ■ Increased loan losses ■ Net income impact of - $0.15 a share The profitability of U.S. Commercial Lending Business deteriorated markedly in 2001. Loan losses were the main cont
Slide 6: Why chose PNC?
Why chose PNC? ■ Best overall consideration and fit " HR retention " Business continuity " Experienced, diversified financial organization " Provides broad rage of services for our client base 6
Slide 7: Servicing the Cross-Border Portfolio
Servicing the Cross-Border Portfolio ■ The cross-border portfolio serviced by North American Corporate Banking (NACB) has been excluded from the transaction. ■ The non-competition clause will allow NBC to maintain non secured-based lending activities to corporate client 7
Slide 8: Remaining U.S. Operations
Remaining U.S. Operations Treasury, NACB and National Bank Financial will unite in a common effort to continue operating efficiently in the U.S.: " Treasury: funding " NBF: sales office " NACB: cross-border loans, deposit-taking " 2 Florida Natbank branches 8
Slide 9: VOVNVO JO
VOVNVO JO ANVE “IWNOLLVN
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