National Bank Of Canada · TSX:NA

National Bank Of Canada — National Bank Financial Canadian Financial Services Conference 2005

18 slides from National Bank Of Canada's conference presentation, Mar 30, 2005

  1. Slide 1: Canadian Financial Services Conference

    National Bank Financial Canadian Financial Services Conference Réal Raymond, President and CEO Montréal, March 30, 2005 NIBIT Breakdown TEB Change Change As a % of In millions of dollars Q1 04 Q1 05 in % in $ NIBIT NIBIT $301 $369 Quarterly gains (1) 25 37 NIBIT * $276 $332 20% $56 100% PCL -44 -17

  2. Slide 2: Comparative Credit Situation

    I - Improvement in Credit Quality Comparative Credit Situation 2 As at Q1 05 NBC Big 5 Difference 1 PCL % loans & BAs, Q1 05 0.27% 0.26% 0.01% PCL % loans & BAs, Q1 041 0.46% 0.45% 0.01% Change, Q1 05 vs Q1 04 -0.19% -0.19% 0.00% Impaired loans, % of tangible equity 8.19% 8.87% -0.68% Net impaired l

  3. Slide 3: Impaired Loan Formation; Delinquency Rates

    I - Improvement in Credit Quality Impaired Loan Formation, $ millions (Cumulative 4 quarters) P&C Other sectors Total 350 300 250 200 150 100 50 0 -50 -100 Q4 02 03 Q2 Q3 Q4 04 Q2 Q3 Q4 05 National Bank Financial Canadian Financial Services Conference — March 30, 2005 5 I - Improvement in Credit Qua

  4. Slide 4: Personal and Commercial Bankruptcies

    I - Improvement in Credit Quality Personal Bankruptcies (In thousands) Ontario Quebec Others 35 30 25 20 15 10 5 91 92 93 94 95 96 97 98 99 00 01 02 03 04 National Bank Financial Canadian Financial Services Conference — March 30, 2005 7 I - Improvement in Credit Quality Commercial Bankruptcies Ontar

  5. Slide 5: Watchlist, Commercial Loans; EDF Public Companies

    I - Improvement in Credit Quality Watchlist, Commercial Loans of $1 Million & Over (2001 = 100) 110 100 90 80 70 60 50 01 02 03 04 05 National Bank Financial Canadian Financial Services Conference — March 30, 2005 9 I - Improvement in Credit Quality EDF1, Public Companies 1.00% 0.80% 0.60% 0.40% 0.2

  6. Slide 6: Industry Market Share - Canada; Loan Losses

    I - Improvement in Credit Quality Industry Market Share - Canada (1) As at September 30, 2004 14% 12.2% 12% 11.6% 11.0% 10.3% 10% 9.4% Average market share 8.3% 8% 7.5% 5.8% 6% 5.4% 5.1% 4% 2% 0% Agriculture Mines Oil and Gas Manufactured Construction Transport Commerce Public Other and Forest produ

  7. Slide 7: NIBIT Growth; Revenue Growth

    II - Other Growth Drivers NIBIT Growth In millions of dollars Q1 04 Q1 05 Change 1 $276 $332 20.3% Total $164 $172 4.9% Personal & Commercial 37 42 13.5% Wealth Management 113 118 4.4% Financial Markets 314 332 5.7% Total sectors (1) Excluding quarterly gains, Q1 04 general allowance reversal and Ot

  8. Slide 8: Financial Markets Revenue; Sectoral Expense Ratio

    II - Other Growth Drivers Financial Markets Revenue In millions of dollars Quarters Average 4 quarters Trend 300 275 Growth trend: 9.8% 250 225 200 175 150 125 00 Q3 01 Q3 02 Q3 03 Q3 04 Q3 05 National Bank Financial Canadian Financial Services Conference — March 30, 2005 15 II - Other Growth Driver

  9. Slide 9: Loan Losses as % of Assets; Debt Servicing

    III - Looking Ahead Loan Losses as % of Assets, Canadian Banks Annual 5 year trend 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 78 81 84 87 90 93 96 99 02 Source: CBA National Bank Financial Canadian Financial Services Conference — March 30, 2005 17 III - Looking Ahead Financial Strength Non-Financial Sector

  10. Slide 10: Household Debt Servicing; Annual Change in Employment

    III - Looking Ahead Household Debt Servicing As a % of disposable income Debt (left scale) Net Worth (right scale) 130% 650% 125% 120% 600% 115% 110% 550% 105% 100% 500% 95% 90% 450% 85% 80% 400% 90 92 94 96 98 00 02 04 Source: Statistics Canada National Bank Financial Canadian Financial Services Co

  11. Slide 11: External Financing Businesses; Non-mortgage Personal Credit

    III - Looking Ahead External Financing Businesses Banks Other Financial Institutions Shares Bonds 45% 40% 35% 30% 25% 20% 15% 90 92 94 96 98 00 02 04 Source: Bank of Canada National Bank Financial Canadian Financial Services Conference — March 30, 2005 21 III - Looking Ahead Non-mortgage Personal Cr

  12. Slide 12: Canadian Households Balance Sheet; Population Breakdown

    III - Looking Ahead Canadian Households Balance Sheet Assets ($B) Liabilities/assets 6,000 20% 5,000 18% 4,000 16% 3,000 14% 2,000 12% 1,000 10% 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Source: Statistics Canada National Bank Financial Canadian Financial Services Conference — March 30, 2005 23 I

  13. Slide 13: Share of Wallet; 2004 Growth – Wealth Management

    III - Looking Ahead Share of Wallet, Wealthy Clientele, Quebec (Rolling 4 quarter average) 40% 38% 36% 34% 32% 30% Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 National Bank Financial Canadian Financial Services Conference — March 30, 2005 25 III - Looking Ahead 2004 Growth – Wealt

  14. Slide 14: AUM/AUA Brokerage; Financial Markets Revenue

    III - Looking Ahead AUM/AUA Brokerage In billions of dollars NBF Individual Investor Services Correspondent Network 87.4 CARG: 16% 81.5 68.5 44.2 57.0 41.5 51.8 45.7 38.1 32.3 30.4 29.8 40.0 43.2 30.4 21.4 24.7 15.9 Oct-00 Oct-01 Oct-02 Oct-03 Oct-04 Jan-05 National Bank Financial Canadian Financial

  15. Slide 15: Numerous Profitable Initiatives

    III - Looking Ahead Other Income As a % of Total Revenues TEB NBC Big 5 70% 64% 60% 54% 50% 45% 44% 40% 30% 97 98 99 00 01 02 03 04 05 National Bank Financial Canadian Financial Services Conference — March 30, 2005 29 III - Looking Ahead Numerous Profitable Initiatives • Strong inroads in direct pro

  16. Slide 16: Private Investment Management AUM; Revenues per $100 of BIS Assets

    III - Looking Ahead Private Investment Management AUM In millions of dollars 4,000 3,678 3,355 3,000 2,392 2,051 1,967 2,000 1,846 1,000 0 Oct-00 Oct-01 Oct-02 Oct-03 Oct-04 Jan-05 National Bank Financial Canadian Financial Services Conference — March 30, 2005 31 III - Looking Ahead Total Revenues f

  17. Slide 17: Positioned for Future Growth

    Positioned for Future Growth • Strong fundamentals • Benefiting from stable Quebec economy • National Bank has delivered strong cyclical growth • Confident that steps taken to boost profitability and reduce risk will position us well for future secular industry movements National Bank Financial Cana

  18. Slide 18: Investor Relations; Caution Regarding 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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