National Bank Of Canada · TSX:NA

National Bank Of Canada — Q2 2015 Earnings Presentation

15 slides from National Bank Of Canada's earnings presentation, May 27, 2015

  1. Slide 1: Caution Regarding Forward-Looking Statements

    NATIONAL BANK OF CANADA 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 2014 Annual Report, in other filings with Canadia

  2. Slide 2: Highlights and Mid-Term Objectives

    HIGHLIGHTS ADJUSTED RESULTS (1) Q2 15 Q1 15 Q2 14 QoQ YoY (2) Net Income 411 410 375 - 10% Diluted EPS $1.15 $1.14 $1.05 1% 10% Provision for Credit Losses 57 54 51 6% 12% Return on Equity 17.9% 17.5% 18.1% Common Equity Tier 1 Ratio Under Basel III 9.5% 9.3% 8.7% Leverage ratio 3.7% 3.6% Liquidity

  3. Slide 3: Financial Review: Performance Snapshot – Q2 2015

    FINANCIAL REVIEW Ghislain Parent Chief Financial Officer and Executive Vice-President, Finance and Treasury PERFORMANCE SNAPSHOT – Q2 2015 (millions of dollars) ADJUSTED (1) Q2 15 Q1 15 Q2 14 QoQ YoY  Adjusted revenues up 11%, YoY Revenues (2) 1,497 1,459 1,344 3% 11% Expenses 879 857 789 3% 11% 

  4. Slide 4: Performance Snapshot YTD 2015 and Income Statement Overview

    PERFORMANCE SNAPSHOT – YTD 2015 (millions of dollars) ADJUSTED (1) 6M 15 6M 14 YoY  Adjusted revenues up 9%, YoY Revenues (2) 2,956 2,714 9% Expenses 1,736 1,596 9%  Diluted EPS up 7%, YoY Net Income 821 759 8% Diluted EPS $2.30 $2.14 7% ROE 17.7% 18.4% REPORTED 6M 15 6M 14 YoY Specified Items (2)

  5. Slide 5: Income Statement Overview YTD and Non Interest Expenses

    INCOME STATEMENT OVERVIEW – YTD 2015 (Excluding specified items) REVENUES 6M-15 (vs. 6M-14) T.E.B. (millions of dollars) 6M 15 6M 14 YoY (1) 26% Revenues 2,956 2,714 9% (22%) 47% P&C Banking 1,371 1,303 5% (49%) 3% (4%) Wealth Management 704 656 7% 24% (25%) Financial Markets 846 702 21% Other Segme

  6. Slide 6: Strong Capital Position

    STRONG CAPITAL POSITION TOTAL RISK-WEIGHTED ASSETS COMMON EQUITY TIER 1 UNDER BASEL III UNDER BASEL III EVOLUTION (QoQ) 0.15% 0.23% 66,264 67,071 0.11% 64,235 64,703 64,818 0.11% 2,878 2,548 3,888 3,441 3,317 8,853 8,929 8,503 8,676 8,719 9.30% 9.53% 9.57% 9.30% 9.46% 9.46% 51,844 52,586 52,782 54,5

  7. Slide 7: Loan Portfolio Overview

    LOAN PORTFOLIO OVERVIEW (billions of dollars) Q2 15 % of Total Retail mortgages & HELOC 51.4 47% Secured by non real estate 4.8 4%  The loan portfolio is well diversified across Credit cards 1.8 2% industrial sectors Other retail 6.6 6% Total Retail 64.6 59% Mining and Oil & Gas (billions of dollar

  8. Slide 8: Retail Mortgage and HELOC Portfolio; Specific Provision for Credit Losses

    RETAIL MORTGAGE AND HELOC PORTFOLIO DISTRIBUTION BY PROVINCE MORTGAGE PORTFOLIO COMPOSITION As at April 30, 2015 As at April 30, 2015 (vs. January 31, 2015) 65% 34.5% (34.2%) 42.9% (43.0%) 22% 22.6% 5% 4% 4% (22.8%) QC ON AB BC Others Insured Uninsured HELOC Q2 2015 RESULTS CONFERENCE CALL – May 27,

  9. Slide 9: Impaired Loans and Formation; Daily Trading Revenues vs VaR

    IMPAIRED LOANS AND FORMATION (millions of dollars) IMPAIRED LOANS IMPAIRED LOANS FORMATION(1) 0.46% (millions of dollars) Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 0.41% 0.40% 0.41% 0.36% Retail 28 22 29 20 15 486 446 Commercial 65 (37) 79 2 15 417 411 389 Corporate Banking - - - - - Wealth Management 1 2 2 1 -

  10. Slide 10: VaR Trend; Business Segment Review

    VaR TREND Trading VaR Quarterly Average Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 -5.8 -6.2 -6.6 -6.9 -7.2 $ millions Q2 2015 RESULTS CONFERENCE CALL – May 27, 2015 I 19 BUSINESS SEGMENT REVIEW Jean Dagenais Senior Vice-President, Finance

  11. Slide 11: Personal and Commercial Banking

    PERSONAL AND COMMERCIAL BANKING (millions of dollars) Q2 15 Q1 15 Q2 14 QoQ YoY HIGHLIGHTS  Revenues up 5% YoY due to strong volume Revenues 680 691 645 (2%) 5% growth from loans, deposits and mutual funds Personal Banking 316 323 300 (2%) 5%  Net Interest Margins down 1 bps QoQ Commercial Banking

  12. Slide 12: Financial Markets

    FINANCIAL MARKETS(1) (millions of dollars) Q2 15 Q1 15 Q2 14 QoQ YoY HIGHLIGHTS  Solid revenues from client activity in risk management Revenues 428 418 337 2% 27% products in all asset classes Trading 201 232 142 (13%) 42%  Very active market for new equity issues Banking Services 63 69 61 (9%) 3

  13. Slide 13: Appendix: Detail of Specified Items

    APPENDIX 1 │ DETAIL OF SPECIFIED ITEMS (millions of dollars) Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Wealth Management and other acquisitions (13) (22) (14) (10) (8) Gain on disposal of equity interest in Fiera Capital - - - - 29 Share of current tax asset write-down of an - - - - (18) associated company Fund

  14. Slide 14: Comparative Performance – Capital Ratios; Trading P&L Results

    COMPARATIVE PERFORMANCE – Capital Ratios CAPITAL RATIOS UNDER BASEL III 14.6% 14.6% 15.1% 14.0% 13.4% Total Total Tier 1 12.3% 11.7% 12.4% 12.3% 11.3% Tier 1 9.9% CET1 10.1% CET1 9.5% 9.3% 9.2% Q2 15 Q1 15 Q1 15 (1) Q4 14 Q4 14 (1) NBC NBC Canadian Peers NBC Canadian Peers Common Equity Tier 1 (CET1

  15. Slide 15: 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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