National Bank Of Canada · TSX:NA

National Bank Of Canada — Q3 2014 Earnings Presentation

13 slides from National Bank Of Canada's earnings presentation, Aug 27, 2014

  1. Slide 1: Q3 2014 Results Conference Call

    Wednesday, August 27, 2014 - 1:00 pm 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 fil

  2. Slide 2: Highlights – Record quarterly earnings

    HIGHLIGHTS – Record quarterly earnings Q3 14 Q2 14 Q3 13 QoQ YoY ADJUSTED RESULTS (1) Net Income(2) 427 375 374 14% 14% Diluted EPS $1.20 $1.05 $1.07 14% 12% Provision for Credit Losses 49 51 48 (4%) 2% Return on Equity 19.4% 18.1% 19.5% Common Equity Tier 1 Ratio 9.1% 8.7% 8.6% Under Basel III Divi

  3. Slide 3: Performance Snapshot – Q3 2014 and YTD 2014

    PERFORMANCE SNAPSHOT – Q3 2014 (millions of dollars) ADJUSTED (1) Q3 14 Q2 14 Q3 13 QoQ YoY Revenues 1,427 1,283 1,291 11% 11% Expenses 866 789 802 10% 8% Net Income 427 375 374 14% 14% Diluted EPS $1.20 $1.05 $1.07 14% 12% ROE 19.4% 18.1% 19.5% REPORTED Q3 14 Q2 14 Q3 13 QoQ YoY Specified Items 14

  4. Slide 4: Income Statement Overview – Q3 2014

    INCOME STATEMENT OVERVIEW – Q3 2014 (Excluding specified items) (millions of dollars) Q3 14 Q2 14 Q3 13 QoQ YoY Revenues Q3-14 (vs. Q3-13) Revenues 1,427 1,283 1,291 11% 11% T.E.B. P&C Banking 696 649 665 7% 5% 25% (25%) 47% Wealth Management 335 332 291 1% 15% (50%) 5% (3%) Financial Markets 445 33

  5. Slide 5: Non Interest Expenses; Balance Sheet Overview

    NON INTEREST EXPENSES (Excluding specified items) (millions of dollars) Q3 14 Q2 14 Q3 13 QoQ YoY 9M 14 9M 13 YoY Salaries and Staff Benefits 545 478 484 14% 13% 1,527 1,435 6% Technology and Professional Fees 168 158 163 6% 3% 484 472 3% Other Expenses 153 153 155 - (1%) 451 449 - Non Interest Expe

  6. Slide 6: Strong Capital Position / Risk Management

    STRONG CAPITAL POSITION TOTAL RISK-WEIGHTED ASSETS COMMON EQUITY TIER 1 UNDER BASEL III UNDER BASEL III EVOLUTION (QoQ) 0.06% 0.03% 64,627 64,235 64,703 0.40% 60,895 61,251 3,441 0.07% 4,110 3,888 3,252 3,382 8,487 8,503 8,676 8,385 8,418 9.06% 9.12% 9.12% 9.08% 8.66% 8.66% 49,258 49,451 52,030 51,8

  7. Slide 7: Global Credit Portfolio; Specific Provision for Credit Losses

    GLOBAL CREDIT PORTFOLIO As at July 31, 2014 vs. (July 31, 2013) PER BUSINESS RETAIL PORTFOLIO PER INDUSTRY SEGMENT COMPOSITION 11% 9% (7%) (9%) 8% (11%) 10% 25% (10%) 18% 4% (17%) (25%) (4%) 34% (35%) 67% 8% (67%) (8%) 12% (13%) 16% 22% (13%) (23%) 3% 26% (4%) (25%) 3% (4%) 3% 8% (3%) (9%) Agricultu

  8. Slide 8: Impaired Loans and Formation / Business Segment Review

    IMPAIRED LOANS AND FORMATION (millions of dollars) IMPAIRED LOANS IMPAIRED LOANS FORMATION(1) 6.47% 6.87% 6.62% 6.28% 6.26% (millions of dollars) Q3 14 Q2 14 Q1 14 Q4 13 Q3 13 395 417 417 411 Retail 20 15 36 21 26 377 Commercial 2 15 9 26 36 Corporate Banking - - - (6) (6) 172 183 194 191 184 Wealth

  9. Slide 9: Personal and Commercial Banking; Wealth Management

    PERSONAL AND COMMERCIAL BANKING (millions of dollars) Q3 14 Q2 14 Q3 13 QoQ YoY HIGHLIGHTS  Revenues up 5% YoY due to strong volume Revenues 696 649 665 7% 5% growth from loans, deposits and mutual Personal Banking 323 301 307 7% 5% funds Commercial Banking 253 236 246 7% 3%  Net Interest margin s

  10. Slide 10: Financial Markets

    FINANCIAL MARKETS (millions of dollars) Q3 14 Q2 14 Q3 13 QoQ YoY HIGHLIGHTS Revenues 445 337 381 32% 17%  Record trading revenues driven by very high client activity during the quarter Trading 191 142 176 35% 9%  Very strong performance from Banking Services 64 61 55 5% 16% Investment Banking wit

  11. Slide 11: Appendix – Detail of Specified Items

    APPENDIX 1 │ DETAIL OF SPECIFIED ITEMS (millions of dollars) Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Wealth Management and other acquisitions (8) (14) (11) (12) (22) Severance Pay - (12) - - - MAV and Other Notes (4) (3) 40 (4) 42 Leases Termination - (16) - - - Write-off of Intangible Assets - - - (1) - Inco

  12. Slide 12: Appendix – VaR Trend; Trading P&L Results

    APPENDIX 3 │ VaR TREND Trading VaR Quarterly Average Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 -6.5 -6.6 -7.1 -6.9 -7.4 -7.6 -8.3 $ millions Q3 2014 RESULTS CONFERENCE CALL – August 27, 2014 I 23 APPENDIX 4 │ TRADING P&L RESULTS # days Distribution of daily trading revenues - Q3 2014 12 10 8 6 4 2 0

  13. Slide 13: 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

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