National Bank Of Canada · TSX:NA
National Bank Of Canada — Q3 2001 Earnings Presentation
26 slides from National Bank Of Canada's earnings presentation, Aug 30, 2001
Slide 1: National Bank of Canada Investor Presentation Q3 2001
National Bank of Canada Investor Presentation Q3 2001 Results Conference Call August 30th, 2001 www.nbc.ca/investorrelations
Slide 2: Introduction and Highlights
Introduction and Highlights Réal Raymond President and Chief Operating Officer 2
Slide 3: Third Quarter Highlights
Third Quarter Highlights ü Net income $148M, up 11% (Q3 01/Q3 00) ü Total revenues up 7%, with expense growth held to 2%(1) ü Net income growth of 10% for Personal Banking and Wealth Management, based on strong margins and expense control ü 15.9% Cash Return on Common Equity (1) Excluding the gain o
Slide 4: Q3 Developments
Q3 01 Developments ü Strategic alliance with Global Payments for marketing merchant products and services ü Assante and National Bank team up as banking partners ü National Bank joins the EXCHANGE ATM Network ü Impressive ranking for National Bank Financial’s Research team in Brendan Wood survey of
Slide 5: Financial Review
Financial Review Michel Labonté Senior Vice-President Finance and Control 5
Slide 6: Quarterly Highlights
Quarterly Highlights (Millions $) Cash Basis Q3 - 01 Q2 - 01 Q1 - 01 Q4 - 00 Q3 - 00 % Q/Q % Y/Y (1) Revenues (TEB) $844 $831 $795 $795 $790 1.6% 6.8% Net income $148 $145 $143 $138 $133 2.1% 11.3% EPS $0.73 $0.72 $0.71 $0.68 $0.67 1.4% 9.0% ROE 15.9% 16.6% 16.1% 15.8% 15.8% (2) (1) Expense ratio 62
Slide 7: Line of Business Performance
Line of Business Performance Net income Cash basis $80 $73 $74 $70 $67 $60 $60 $53 Millions $50 $47 $40 $40 $36 $30 $27 $20 $10 $0 Personal Banking & Wealth Commercial Banking Financial Markets, Treasury Management and Investment Banking Q3-00 Q2-01 Q3-01 7
Slide 8: Net income contribution Q3
Net income contribution Q3 01 Cash basis Personal Banking & Wealth Management Commercial Banking Wealth 25% 20% US Managem ent 24% 27% 75% 80% Canada Retail Banking 73% 76% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% Q3-00 Q3-01 Q3-00 Q3-01 Financial Markets, Treasury and Investment Banking Treasury
Slide 9: Continued Capital Discipline
Continued Capital Discipline 12.5% 12.9% 14% 12% 3.4% 3.3% 10% 1.1% 1.1% 8% 1.1% 1.1% Tier 1 Tier 1 9.5% 6% 9.2% 4% 7.0% 7.3% 2% 0% Q3 - 00 Q3 - 01 Tangible equity Non-cum. Pref. shares Innovative instruments Tier 2 9
Slide 10: Value at Risk
Value at Risk Daily VaR - Global Trading - YTD - in CAD$ THOUSANDS (Maximum 1-day loss at 99%) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 10
Slide 11: Credit Quality
Credit Quality Þ Revised loan loss expense from $59 M for Q2 01 to $71 M for Q3 01 Þ Continued strong performance in consumer loans, structured finance and energy portfolios Millions $ Q2-01 Q3-00 Q3-01 Gross impaired loans 947$ $930 $979 Net impaired loans 82$ $78 $45 NIL as a % of loans & BA’s 0.1
Slide 12: Asset Diversification
Asset Diversification Breakdown by Major Segments Total Loans and BAs* As at July 31st, 2001 Credit card Consumer 3% 12% Commercial Small Business 31% 6% Mortgage Corporate 35% 13% * Adjusted for Securitization 12
Slide 13: Telecom and Cable Exposure
Telecom and Cable Exposure Loans and BAs as at July 31st, 2001 (in millions $) % of Total % of Total Total Loans Exposure Loans & BAs Telecommunication & Cable 531 100% 1,12% Wireless and Wireline 335 63% 0,71% Cable 196 37% 0,41% Investment Grade 334 63% 0,71% Non Investment Grade 197 37% 0,41% US
Slide 14: Business Segment Review
Business Segment Review Réal Raymond President and Chief Operating Officer 14
Slide 15: Personal Banking and Wealth Management
Personal Banking and Wealth Management Q3-01 Growth YTD Growth vs Q3-00 vs 2000 Net income $74 +10% $213 +6% Personal Banking 56 +14 157 +14 Wealth Management 18 +5 56 -11 Full Fledged Brokerage and Cornet 11 -1 34 -28 Mutual Funds, Discount Brokerage and Trust Services 7 +13 22 +37 Total Revenues 4
Slide 16: Internet Transactional Growth
Internet Transactional Growth Retail Banking Discount Brokerage 7 000 100 90 6 000 80 Thousands 5 000 70 Millions 60 4 000 50 3 000 40 2 000 30 3 236 3 724 4 779 5 448 5 899 20 1 000 10 0 0 Q3 - 00 Q4 - 00 Q1 - 01 Q2 - 01 Q3 - 01 16
Slide 17: Personal Asset Growth
Personal Asset Growth Adjusted for securitization As at July 31st, 2001 (1) Mortgage loans Personal loans $8,000 $16,982 $16,324 Millions $ Millions $ $7,000 $16,000 $6,588 $6,330 $6,000 $13,000 $5,000 Q3-00 Q3-01 Q3-00 Q3-01 (1) Excluding indirect loans 17
Slide 18: Savings under Administration
Savings under Administration Includes Mutual Funds, Discount Brokerage, Full Fledged Brokerage, Trust Services And Deposits As at July 31st 70.0 62.0 61.7 60.0 Assets ($ billions) 9.2 9.4 50.0 21.3 21.6 40.0 30.0 20.0 31.5 30.7 10.0 0.0 2000 2001 NBF Deposits Other 18
Slide 19: Commercial Banking
Commercial Banking Q3-01 Growth YTD Growth vs Q3-00 vs 2000 Net income $36 -10% $103 -8% Canada 29 -6 85 -1 US 7 -26 18 -30 Total Revenues 135 -1 399 +2 Canada 100 +2 290 +3 US 35 -7 109 -1 Margins +30bps +16bps YTD 01 YTD 00 Expense ratio 41.7% (1) 41.0% (1) excluding a non recurring charge of $6 m
Slide 20: Commercial Loans Growth
Commercial Loans Growth Loans & BA’s $12,000 $9,680 $9,102 $9,000 Thousands $6,000 $4,080 $3,738 $3,000 $0 Canada US 20 Q3 - 00 Q3 - 01
Slide 21: Business Segment Review
Business Segment Review Jean Turmel President, Financial Markets, Treasury and Investment Bank 21
Slide 22: Financial Markets, Treasury and Investment Bank
Financial Markets, Treasury and Investment Bank Q3-01 Growth YTD Growth vs Q3-00 vs 2000 Net income $60 +28% $160 +34% Corporate Banking 23 +15 60 +11 Treasury 35 +37 93 +56 NBF Wholesale 2 +4 7 +5 Total revenues 209 +19 572 +15 Corporate Banking 58 +25 157 +22 Treasury 75 +29 206 +52 NBF Wholesale
Slide 23: Financial Markets, Treasury and Investment Banking
Financial Markets, Treasury and Investment Banking $70 $60 $62.7 $55.4 $53.8 $50 Millions $ $53.6 $46.9 $40 $51.8 $30 $20 $19.6 $15.0 $10 $0.1 $0 Trading Revenues Capital Market Fees Investment Gains Q3 - 00 Q2 - 01 Q3 - 01 23
Slide 24: National Bank Financial's Award Winning Research Team
National Bank Financial’s Award Winning Research Team Highlights of 2001 Brendan Wood Equity Survey: Þ NBF ranks #1 in research quality in all five deciding components Þ NBF ranks #2 in number of rising star analysts and #1 in number of rising star citations Þ 11 sectors are covered by “All Star Ana
Slide 25: On target with 2001 Strategic Objectives
On target with 2001 Strategic Objectives YTD Growth in income before goodwill charges +10%/year 10.9% Return on common shareholders’ equity before goodwill charges: 15.5% - 17.5% 16.2% Expense ratio 60% in 2003 62.3% (1) Tier 1 capital ratio 7.75% - 8.50% 9.5% (1) Excluding a non recurring charge of
Slide 26: National Bank of Canada
NATIONAL BANK OF CANADA This presentation may contain certain forward looking statements about the operations, objectives and strategies of the National Bank of Canada. Such statements are subject to risk and uncertainties. Actual results may differ materially due to a variety of factors, including
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