National Bank Of Canada · TSX:NA

National Bank Of Canada — Q2 2014 Earnings Presentation

13 slides from National Bank Of Canada's earnings presentation, May 28, 2014

  1. Slide 1: Caution Regarding Forward-Looking Statements

    Wednesday, May 28, 2014 - 11:00 am 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 filin

  2. Slide 2: Highlights

    HIGHLIGHTS Q2 14 Q1 14 Q2 13 QoQ YoY ADJUSTED RESULTS (1) Net Income(2) 375 384 352 (2%) 7% Diluted EPS $1.05 $1.09 $1.00 (4%) 5% Provision for Credit Losses 51 51 53 - (4%) Return on Equity 18.1% 18.8% 19.6% Common Equity Tier 1 Ratio 8.7% 8.3% 8.3% Under Basel III Dividend Payout(3) 42.5% 41.8% 41

  3. Slide 3: Performance Snapshot – Q2 2014 and YTD 2014

    PERFORMANCE SNAPSHOT – Q2 2014 (millions of dollars) ADJUSTED (1) Q2 14 Q1 14 Q2 13 QoQ YoY Revenues 1,283 1,326 1,248 (3%) 3% Expenses 789 807 788 (2%) - Net Income 375 384 352 (2%) 7% Diluted EPS $1.05 $1.09 $1.00 (4%) 5% ROE 18.1% 18.8% 19.6% REPORTED Q2 14 Q1 14 Q2 13 QoQ YoY Specified Items (13

  4. Slide 4: Income Statement Overview – Q2 2014 and YTD 2014

    INCOME STATEMENT OVERVIEW - Q2 2014 (Excluding specified items) (millions of dollars) Q2 14 Q1 14 Q2 13 QoQ YoY Revenues Q2-14 (vs. Q2-13) T.E.B. Revenues 1,283 1,326 1,248 (3%) 3% 26% P&C Banking 649 658 630 (1%) 3% (28%) 49% Wealth Management 332 325 290 2% 14% (49%) 25% Financial Markets 337 365

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

    NON INTEREST EXPENSES (Excluding specified items) (millions of dollars) Q2 14 Q1 14 Q2 13 QoQ YoY 6M 14 6M 13 YoY Salaries and Staff Benefits 478 504 478 (5%) - 982 951 3% Technology and Professional Fees 158 158 161 - (2%) 315 308 2% Other Expenses 153 145 149 5% 2% 299 295 1% Non Interest Expense

  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) 64,627 64,235 0.05% 60,040 60,895 61,251 0.33% 0.02% 4,110 3,888 3,594 3,252 3,382 8,487 8,503 8,266 8,385 8,418 49,258 49,451 52,030 51,844 8.59% 8.61% 8.66% 48,180 8.26% 8.26% Q2

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

    GLOBAL CREDIT PORTFOLIO As at April 30, 2014 vs. (April 30, 2013) PER BUSINESS RETAIL PORTFOLIO PER INDUSTRY SEGMENT COMPOSITION 11% 9% (9%) (7%) 9% 9% (11%) (9%) 18% (17%) 25% 4% (5%) 36% (26%) (37%) 67% 12% 20% 8% (66%) (13%) (21%) 16% (8%) (13%) 3% 26% (4%) (25%) 3% (4%) 3% (3%) 8% (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% 6.06% 6.28% (millions of dollars) Q2 14 Q1 14 Q4 13 Q3 13 Q2 13 395 417 417 377 346 Retail 15 36 21 26 20 Commercial 15 9 26 36 (13) 183 194 191 172 146 Corporate Banking - - (6) (6) 7 Wea

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

    PERSONAL AND COMMERCIAL BANKING Q2 14 Q1 14 Q2 13 QoQ YoY HIGHLIGHTS (millions of dollars)  6% loans and BA’s growth and Revenues 649 658 630 (1%) 3% 8% deposits growth (YoY) Personal Banking 301 305 290 (1%) 4%  Revenues up 3% YoY due to good volume growth Commercial Banking 236 241 233 (2%) 1% 

  10. Slide 10: Financial Markets

    FINANCIAL MARKETS (millions of dollars) Q2 14 Q1 14 Q2 13 QoQ YoY HIGHLIGHTS Revenues 337 365 363 (8%) (7%)  YoY Revenues 7% lower, due to low Trading 142 163 164 (13%) (13%) volatility and flat yield curve Banking Services 61 58 64 5% (5%)  Corporate and Investment Banking pipeline remains good F

  11. Slide 11: Appendix – Detail of Specified Items

    APPENDIX 1 │ DETAIL OF SPECIFIED ITEMS (millions of dollars) Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Wealth Management and other acquisitions (9) (8) (14) (11) (12) Severance Pay - - (12) - - MAV and Other Notes 137 (4) (3) 40 (4) Leases Termination - - (16) - - Write-off of Intangible Assets (39) - - - (1) I

  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 -6.5 -7.1 -6.9 -7.4 -7.6 -8.3 $ millions Q2 2014 RESULTS CONFERENCE CALL – May 28, 2014 I 23 APPENDIX 4 │ TRADING P&L RESULTS # days Distribution of daily trading revenues - Q2 2014 16 14 12 10 8 6 4 2 0 (3) (2)

  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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