National Bank Of Canada · TSX:NA

National Bank Of Canada — Q3 2015 Earnings Presentation

15 slides from National Bank Of Canada's earnings presentation, Aug 26, 2015

  1. Slide 1: Caution Regarding Forward-Looking Statements

    NATIONAL BANK OF CANADA 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 2014 Annual Report, in other filings with Canadia

  2. Slide 2: Highlights / Mid-Term Objectives

    HIGHLIGHTS ADJUSTED RESULTS (1) Q3 15 Q2 15 Q3 14 QoQ YoY Net Income(2) 444 411 427 8% 4% Diluted EPS $1.25 $1.15 $1.20 9% 4% Provision for Credit Losses 56 57 49 (2%) 14% Return on Equity 18.4% 17.9% 19.4% Common Equity Tier 1 Ratio Under Basel III 9.5% 9.5% 9.1% Leverage ratio 3.6% 3.7% Liquidity

  3. Slide 3: Financial Review – Performance Snapshot Q3 2015

    FINANCIAL REVIEW Ghislain Parent Chief Financial Officer and Executive Vice-President, Finance and Treasury PERFORMANCE SNAPSHOT – Q3 2015 (millions of dollars) ADJUSTED (1) Q3 15 Q2 15 Q3 14 QoQ YoY  Adjusted revenues up 5%, YoY Revenues (2) 1,553 1,497 1,484 4% 5% Expenses 900 879 866 2% 4%  Dil

  4. Slide 4: Performance Snapshot – YTD 2015 / Income Statement Overview

    PERFORMANCE SNAPSHOT – YTD 2015 (millions of dollars) ADJUSTED (1) 9M 15 9M 14 YoY  Adjusted revenues up 7%, YoY Revenues 4,509 4,198 7% Expenses 2,636 2,462 7%  Diluted EPS up 6%, YoY Net Income 1,265 1,186 7%  Slightly positive operating leverage Diluted EPS $3.54 $3.34 6% ROE 17.9% 18.8% REPOR

  5. Slide 5: Income Statement Overview – YTD 2015 / Non Interest Expenses

    INCOME STATEMENT OVERVIEW – YTD 2015 (Excluding specified items) (millions of dollars) 9M 15 9M 14 YoY REVENUES 9M-15 (vs. 9M-14) T.E.B. (1) Revenues 4,509 4,198 7% 26% (24%) P&C Banking 2,099 1,999 5% 47% (48%) 3% Wealth Management 1,051 991 6% (4%) 24% Financial Markets 1,316 1,147 15% (24%) Other

  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) 68,617 0.14% 66,264 67,071 0.38% 64,703 64,818 3,121 2,878 2,548 3,441 3,317 0.26% 8,929 9,098 0.16% 8,719 8,853 0.10% 8,676 9.46% 9.84% 9.72% 9.46% 9.56% 9.46% 9.46% 52,586 52,782

  7. Slide 7: Loan Portfolio Overview

    LOAN PORTFOLIO OVERVIEW (billions of dollars) Q3 15 % of Total Retail mortgages & HELOC 53.2 47% Secured by non real estate 4.8 4%  The loan portfolio is well diversified across Credit cards 1.9 2% industrial sectors Other retail 6.7 6% Total Retail 66.6 59% Mining and Oil & Gas (billions of dollar

  8. Slide 8: Retail Mortgage and HELOC Portfolio

    RETAIL MORTGAGE AND HELOC PORTFOLIO DISTRIBUTION BY PROVINCE MORTGAGE PORTFOLIO COMPOSITION As at July 31, 2015 As at July 31, 2015 (vs. April 30, 2015) 63% 34.0% (34.5%) 42.8% (42.9%) 22% 23.2% 6% 5% (22.6%) 4% QC ON AB BC Others Insured Uninsured HELOC  The average Loan to Value on the heloc and

  9. Slide 9: Impaired Loans and Formation

    IMPAIRED LOANS AND FORMATION (millions of dollars) IMPAIRED LOANS IMPAIRED LOANS FORMATION(1) 0.46% 0.40% 0.41% 0.39% 0.36% (millions of dollars) Q3 15 Q2 15 Q1 15 Q4 14 Q3 14 486 Retail 16 28 22 29 20 446 449 411 389 Commercial 24 65 (37) 79 2 Corporate Banking - - - - - 248 249 254 Wealth Manageme

  10. Slide 10: VaR Trend / Business Segment Review

    VaR TREND Trading VaR Quarterly Average Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 -5.8 -6.2 -6.2 -6.6 -7.2 $ millions Q3 2015 RESULTS CONFERENCE CALL – August 26, 2015 I 19 BUSINESS SEGMENT REVIEW Jean Dagenais Senior Vice-President, Finance

  11. Slide 11: Personal and Commercial Banking

    PERSONAL AND COMMERCIAL BANKING (millions of dollars) Q3 15 Q2 15 Q3 14 QoQ YoY HIGHLIGHTS  Revenues up 5% YoY due to strong volume Revenues 728 680 696 7% 5% growth from loans, deposits and mutual funds  Commercial Banking impacted by yield curve Personal Banking 344 316 324 9% 6%  Credit Card i

  12. Slide 12: Financial Markets

    FINANCIAL MARKETS(1) (millions of dollars) Q3 15 Q2 15 Q3 14 QoQ YoY HIGHLIGHTS  Increased client activity in risk management Revenues 470 428 445 10% 6% products Trading 206 201 191 2% 8%  Higher underwriting revenues in fixed income driven by increased activity in government Banking Services 75

  13. Slide 13: Appendix – Detail of Specified Items

    APPENDIX 1 │ DETAIL OF SPECIFIED ITEMS (millions of dollars) Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Wealth Management and other acquisitions (22) (14) (10) (8) (9) Gain on disposal of equity interest in Fiera Capital - - - 29 - Share of current tax asset write-down of an - - - (18) - associated company Fundi

  14. Slide 14: Comparative Performance – Capital Ratios

    COMPARATIVE PERFORMANCE – Capital Ratios CAPITAL RATIOS UNDER BASEL III 14.5% 14.6% 13.9% 14.6% 13.4% Total Total 11.7% Tier 1 12.3% 11.3% Tier 1 12.3% 12.4% 10.2% CET1 9.9% CET1 9.5% 9.5% 9.3% Q3 15 Q2 15 Q2 15 (1) Q1 15 Q1 15 (1) NBC NBC Canadian Peers NBC Canadian Peers Common Equity Tier 1 (CET1

  15. Slide 15: 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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