National Bank Of Canada · TSX:NA

National Bank Of Canada — Q1 2007 Earnings Presentation

12 slides from National Bank Of Canada's earnings presentation, Mar 1, 2007

  1. Slide 1: Analyst and Investor Presentation Q1 2007 Results Conference Call

    Analyst and Investor Presentation Q1 2007 Results Conference Call Montreal, March 1st, 2007 a bank like no other 2007 - Highlights Best ever quarterly • Total revenues (TEB) increased by 6% (YoY) net income: • Record net income of $240M, up 11% (YoY) • Diluted EPS reached $1.43, a 13% increase (YoY)

  2. Slide 2: 2007 Objectives and Performance Snapshot

    2007 Objectives 2007 Objectives Q1 07 Growth in earnings per share 5% to 10% 13% Return on common shareholders' equity 16% to 20% 20.7% Tier 1 capital ratio Equal or greater than 8.5% 9.9% (1) Dividend payout ratio 40% to 50% 37% (1) Trailing 4 quarters Analyst and Investor Presentation Q1 2007 Resu

  3. Slide 3: Revenue and Dividend per Share

    Revenue Dividend per share Quarterly Growth for shareholders 0.54 0.50 0.50 • Quarterly dividend at 0.48 0.48 $0.54, up 13% (YoY) • 717,000 shares repurchased in Q1 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 2007, for an amount totaling $46M Annual $1.96 $1.72 $1.42 $1.08 $0.93 2002 2003 2004 2005 2006 Analyst a

  4. Slide 4: Loan Evolution and Personal and Commercial Banking

    Loan Evolution Volume growth Q1 2006 = 100 (millions of dollars) Highlights – YoY: Mortgage loans Pers. loans excl. indirect loans Credit card receivables Commercial loans (incl. energy) • 12% increase in Corporate Banking consumer loans • 6% increase in Corporate Banking • Mortgage loans kept momen

  5. Slide 5: P&C Revenue Composition and Margin Evolution

    P&C Revenue Composition TEB (millions of dollars) Q1 2007 - YoY: Retail Banking Credit cards Insurance Commercial Sectors contributing 537 542 538 to growth: 509 504 • Retail Banking: 8% 183 178 181 • Insurance: 4% 171 166 • Commercial 27 29 28 36 28 64 63 63 Banking: 6% 65 62 266 246 262 265 247 Q1

  6. Slide 6: Wealth Management Quarterly and Revenue Composition

    Wealth Management – Quarterly TEB (millions of dollars) Q1 2007 – YoY: Revenues Expenses Net Income Net income up 22% 45 37 37 • Strong contribution 35 from retail 29 brokerage and mutuals funds 214 224 206 197 202 148 154 144 155 156 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Analyst and Investor Presentation Q

  7. Slide 7: Retail Assets Under Management and Financial Markets

    Retail Assets Under Management Composition (billions of dollars) Q1 2007 – YoY: Deposits Retail brokerage Mutual funds Discount brokerage Overall, up 7% Segregated and private inv. mgmt • Growth in all 97 97 5 99 5 101 sub-sectors: 4 94 5 5 8 8 9 - Deposit: 7% 8 8 11 10 11 11 - Mutual funds: 10% 10

  8. Slide 8: Financial Markets Revenue and Trading Revenue Breakdown

    Financial Markets Revenue Composition TEB (millions of dollars) Q1 2007 – YoY: Trading Corp. Banking Capital Markets Inv. gains Other • Trading up 21 %, offsetting lower investment gains 298 299 290 22 48 255 50 244 36 36 29 42 32 31 83 43 66 65 65 57 45 45 45 40 45 112 109 90 83 67 Q1 06 Q2 06 Q3 0

  9. Slide 9: Business Line Expense Ratio and Global Portfolio Composition

    Business Line Expense Ratio Q1 06 Q1 07 Q1 2007 – YoY: • Productivity 71.8% 69.6% improved in P&C and Wealth 62.3% 57.6% 56.2% Management 52.8% sectors Personal and Wealth Management Financial Market Commercial Banking Analyst and Investor Presentation Q1 2007 Results Conference Call – March 1st, 20

  10. Slide 10: Risk Provisioning and Impaired Loans

    Risk Provisioning (millions of dollars) Highlights – YoY: P&C Financial Markets ƒ Continuous 28 favorable credit environment 22 22 ƒ PCL at $28M 1 1 17 16 1 1 21 21 16 15 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Analyst and Investor Presentation Q1 2007 Results Conference Call – March 1st, 2007 19 Impaired Loa

  11. Slide 11: Impaired Loan Formation and Daily Trading P/L

    Impaired Loan Formation (millions of dollars) Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Personal & Commercial 17 18 -1 41 22 Corporate -2 1 3 (1) 0 Total 15 19 2 40 22 Formations include new accounts, disbursements, principal repayments and exchange rate fluctuation Analyst and Investor Presentation Q1 2007 Res

  12. Slide 12: Summary and Investor Relations

    Summary • Record quarterly net income • Overall good results with excellent credit quality Analyst and Investor Presentation Q1 2007 Results Conference Call – March 1st, 2007 23 Investor Relations Investor Relations: 514-394-0296 www.bnc.ca/investorrelations investorrelations@nbc.ca CAUTION REGARDIN

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