National Bank Of Canada · TSX:NA

National Bank Of Canada — RBC Capital Markets Canadian Bank CEO Conference 2005

19 slides from National Bank Of Canada's conference presentation, Jan 19, 2005

  1. Slide 1: RBC Capital Markets Canadian Bank CEO Conference

    RBC Capital Markets Canadian Bank CEO Conference Réal Raymond, President and CEO Toronto, January 19, 2005 Financial Objectives A successful 2004 2004 Objectives Results Growth in earnings per share 5% to 10% 22% Return on common shareholders' equity 15% to 17% 19% Tier 1 capital ratio 8.75% to 9.50

  2. Slide 2: 2004 Financial Results: At par and often leading our peer group

    2004 Financial Results At par and often leading our peer group NBC Big 5 Revenue growth 5.7% 3.8% Expense ratio 65.4% 66.7% PCL 0.21% 0.12% ROE 18.8% 19.4% EPS growth 21.6% 22.1% Total return index 23.0% 16.9% values (1) (1) S&P/TSX Banks for Big 5 RBC Capital Markets Canadian Bank CEO Conference —

  3. Slide 3: Indebtedness Ratios and Household Net Worth

    Indebtedness Ratios and Household Net Worth Net Worth Canada Indebtedness Canada Indebtedness US 5000 130% 125% As a % of disposable income 4000 120% 115% $ billions 3000 110% 105% 2000 100% 95% 1000 90% 85% 0 80% 90 92 94 96 98 00 02 04 Source: Statistics Canada, Federal Reserve Board RBC Capital M

  4. Slide 4: Profit Margin and Financial Strength, Non-Financial Sector

    Profit Margin (%) Manufacturing Sector (Excluding petroleum products) Canada US 9 8 7 6 5 4 3 2 1 0 88 90 92 94 96 98 00 02 04 Source: Statistics Canada, US Census Bureau RBC Capital Markets Canadian Bank CEO Conference — January 19, 2005 7 Financial Strength, Non-Financial Sector Debt Servicing Lev

  5. Slide 5: Commercial Bankruptcies and Impaired Loan Formation

    Commercial Bankruptcies (000) (Rolling 12 months) Canada Qc Ontario Other 15.6 6.0 14.4 5.4 13.2 4.8 Regional National 12.0 4.2 10.8 3.6 9.6 3.0 8.4 2.4 7.2 1.8 93 94 95 96 97 98 99 00 01 02 03 04 Source: Statistics Canada RBC Capital Markets Canadian Bank CEO Conference — January 19, 2005 9 Impaire

  6. Slide 6: Results of the Current Strategy

    Results of the Current Strategy Revenue growth 2003 2004 NBC Big 5 NBC Big 5 P&C1 5.3% 2.9% 4.2% 4.5% Wealth Management1 7.9% -3.3% 12.9% 6.1% Financial Markets 12.3% -2.4% 6.0% 1.2% Total 6.4% 0.9% 5.7% 3.8% (1) Excluding Scotia RBC Capital Markets Canadian Bank CEO Conference — January 19, 2005 11

  7. Slide 7: P&C: Partnerships, Life Insurance Companies

    P&C: 1- Partnerships Life Insurance Companies 14,000 Partner 93 12,314 252 753 12,000 188 347 273 100 357 Individual Direct Life Insurance 380 10,000 579 683 Premiums in 2003 ($MM) 1,056 8,000 1,417 1,659 6,000 4,177 4,000 2,000 0 SunLife London Life Industrial- Desjardins RBC Life Standard Life Nex

  8. Slide 8: P&C: Product Profitability and Client Satisfaction

    P&C: 2- Product Profitability Margin on Canadian $ Retail Loans Total Mortgage Installment loans Cards Personal lines of credit 140 130 120 Total: 110 + 13% 100 90 80 02 Q2 Q3 Q4 03 Q2 Q3 Q4 04 Q2 Q3 Q4 RBC Capital Markets Canadian Bank CEO Conference — January 19, 2005 15 P&C: 3- Client Satisfactio

  9. Slide 9: P&C: Client Satisfaction and Product Innovation

    P&C: 3- Client Satisfaction Personal Banking, Number of Products per Client 4.08 4.04 3.88 3.82 3.73 3.63 3.49 Oct 2001 Apr 2002 Oct 2002 Apr 2003 Oct 2003 Apr 2004 Oct 2004 RBC Capital Markets Canadian Bank CEO Conference — January 19, 2005 17 P&C: 4- Product Innovation Introduction of Several Prod

  10. Slide 10: P&C: Commercial Sector, Enhance Profitability

    P&C: 5- Commercial Sector Financing Gap, Non-Financial Businesses (Capital spending/cash flow) Canada US 1.6 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 88 90 92 94 96 98 00 02 04 Source: Statistics Canada, US Census Bureau RBC Capital Markets Canadian Bank CEO Conference — January 19, 2005 19 P&C: 5- C

  11. Slide 11: Energy Lending and Wealth Management Revenue Growth

    P&C: 5- Commercial Sector Energy Lending, $ millions 2002 2003 2004 1050 1000 950 900 850 800 750 700 650 600 550 Nov Feb May Aug Fiscal Year RBC Capital Markets Canadian Bank CEO Conference — January 19, 2005 21 Wealth Management Wealth Management, Revenue Growth % NBC 4 Banks RBC BMO TD CIBC 12.9

  12. Slide 12: Wealth Management: Improved Branch-Level Sales Force

    Wealth Management Wealth Management $ millions AUM/AUA Growth Revenue Growth NIBIT Growth Total (1) $166,046 16.5% $743 12.9% $167 26.5% Brokerage 49.5% 16.0% 67.1% 11.9% 35.1% 26.5% Mutual 5.8% 5.0% 15.2% 7.6% 33.2% 22.6% Funds Natcan (fund 15.5% 14.0% 7.5% 55.6% 13.4% 32.6% management) Other 29.2%

  13. Slide 13: Wealth Management: Share of Wallet and Net Sales

    Wealth Management Share of Wallet, Wealthy Clientele, Quebec (Rolling 4 quarters average) Net sales of National Bank Mutual Funds reach 14% AUM during 2004 39% 38% 37% 36% 35% 34% 33% 32% 31% 30% 29% Oct-02 Jan-03 Apr-03 July-03 Oct-03 Jan-04 Apr-04 July-04 Oct-04 Source: IPSOS-Reid RBC Capital Mark

  14. Slide 14: NBF Brokerage AUM/AUA and Equity Participation

    Wealth Management NBF Brokerage AUM/AUA, $ billions National Bank Financial Individual Investor Services Correspondent Network 81.5 CAGR: 16% 68.5 57.0 51.8 41.5 45.7 38.1 32.3 30.4 29.8 40.0 30.4 21.4 24.7 15.9 Oct 00 Oct 01 Oct 02 Oct 03 Oct 04 RBC Capital Markets Canadian Bank CEO Conference — Ja

  15. Slide 15: Strengthen Brokerage Operations

    Wealth Management Strengthen Brokerage Operations • Increase AUM/AUA • Boost efficiency • Recruit new clients • Introduce structured products • Invest in new technology to reduce transaction costs • Increase fee-based portion of portfolio • Instill greater pricing discipline RBC Capital Markets Cana

  16. Slide 16: Financial Markets Revenue Growth and Change in Revenue

    Financial Markets Revenue Growth, Financial Markets NBC Big 5 12.9% 12.3% 10.1% 6.0% 4.0% 1.2% -2.4% -11.6% 2001 2002 2003 2004 RBC Capital Markets Canadian Bank CEO Conference — January 19, 2005 31 Financial Markets Financial Markets, Change in Revenue 03 vs 04 $ millions Total 56 Trading, interest

  17. Slide 17: Key Strengths of Financial Markets Sector

    Financial Markets Expense Ratio, Financial Markets NBC Big 5 60.8% 60.3% 57.0% 56.6% 54.8% 50.2% 2002 2003 2004 2004 excludes CIBC provision for Enron RBC Capital Markets Canadian Bank CEO Conference — January 19, 2005 33 Financial Markets Key Strengths of Financial Markets Sector • Well balanced •

  18. Slide 18: Leveraging on Current Success

    Leveraging on Current Success • Business development strategy has delivered excellent results in the past few years • Continue to build on our momentum and avoid distraction • Execute with discipline and proactively examine new strategic initiatives to sustain growth and create value for shareholder

  19. Slide 19: Investor Relations Contact and Forward-Looking Statements

    Investor Relations: 514-394-0296 www.nbc.ca/investorrelations investorrelations@nbc.ca CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, National Bank of Canada makes written and oral forward-looking statements, included in this Investor Presentation, in other filings with Canadian reg

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