National Bank Of Canada · TSX:NA
National Bank Of Canada — RBC Capital Markets Canadian Financial Services CEO Conference (January 2004)
16 slides from National Bank Of Canada's conference presentation, Jan 21, 2004
Slide 1: Super Regional Business Model
RBC Capital Markets Canadian Financial Services CEO Conference Réal Raymond President and CEO Toronto, January 21, 2004 Super Regional Business Model Full Brokerage Altamira Network Branch Clusters Wealth Management 1
Slide 2: National Bank's dominant position in Quebec
National Bank’s dominant position in Quebec Outstanding personal credit Branches in Quebec Quebec Market shares NBC 368 NBC CIBC 37 16.1% TD 81 Other deposit-taking Royal 134 institutions Scotia 45 44.8% Full-service Brokers BMO 145 Asset Rankings for Quebec 0 50 100 150 200 250 300 350 400 Desjardi
Slide 3: National Bank: Four primary competitive advantages
National Bank: Four primary competitive advantages 1. Medium size 2. Quebec stronghold 3. Wealth management strategy 4. Stable and well-thought out capital markets strategy 1. Our medium size Efficiency Ratio – P&C Bank(1) Big 4 (2) NBC 62.5% 61.8% 61.6% 61.1% 2002 2003 2002 2003 (1) Excluding speci
Slide 4: 1. Our medium size
1. Our medium size ROE 12M-02 12M-03 21% 19.5 18% 17.1 17.1 17.8 16.2 16.9 16.5 15% 14.2 14.4 13.0 13.2 12% 11.2 9% 6% 5.7 3.9 3% 0% Royal BMO TD CIBC Scotia Big 5 NBC 1. Our medium size Business Line Breakdown Year to date As at Oct. 31, 2003 Revenues Wealth Management 19% Financial Markets 27% Per
Slide 5: Advantages of being a medium sized Bank
Advantages of being a medium sized Bank More freedom to choose Nov 2002 August 2003 Nov 2002 Nov 2002 May 2002 June 2002 May 2001 Nov 2001 Jan 2001 Edward Jones Loan Portfolio Mix As at September 30, 2003* Other Services 8% Public and Government Services 3% Trade 5% Transportation 1% Communication 1
Slide 6: Gross Impaired Loans; Customer Satisfaction, Quebec
Gross Impaired Loans to Tangible Assets Big 5 NBC 22.8% 22.5% 18.9% 15.7% 14.1% 13.0% 12M-01 12M-02 12M-03 12M-01 12M-02 12M-03 Customer Satisfaction, Quebec % of Very Satisfied Individuals SME +6% +4% +2% +3% 2001 2002 2003 6
Slide 7: 2. Our Quebec stronghold
2. Our Quebec stronghold Commercial Credit Authorized amount $250M - $5 000M Dec-01 Dec-02 March-03 40% 38.4 39.0 39.3 30% 20% 16.1 15.2 15.5 10% 2.7 2.5 2.2 0% Quebec Ontario Rest of Canada Volume and Margin Evolution P&C Banking in billions of dollars Volumes Margins $ 39 38.3 38 37.8 37.9 37.3 37
Slide 8: An incomparable brand name
An incomparable brand name Notoriety, image and recognition of financial institutions Notoriety: 1st and 2nd mentions 2003 2002 50% 45% 43% 40% 35% 32% 30% 25% 22% 21% 20% 18% 15% 12% 10% 7% 7% 7% 5% 4% 3% 5% 0% NBC Royal BMO CIBC TD Scotia In-depth market knowledge Introduction of products and serv
Slide 9: GIC Asset growth
GIC Asset growth In billions of dollars Total assets $ 18.5 18.2 17.5 16.9 16.5 16.3 16.0 15.5 14.5 2000 2001 2002 2003 3. A strategy adapted towards wealth management Complete product offering for Quebec market, solid niches elsewhere in Canada 9
Slide 10: 3. A strategy adapted towards wealth management
3. A strategy adapted towards wealth management National Bank Financial Retail Brokerage: 9 Nearly 800 Investment Advisors across Canada The Correspondent Network (Cornet): 9 Over 85 associated organizations 9 Staffed by 5,000 Financial Advisors trading through NBCN for their 420,000 clients 9 Canad
Slide 11: 4. Our stable and well-thought capital markets strategy
4. Our stable and well-thought capital markets strategy First keystone: diversification across activities Liquidity Below Average Above Average Rising Rebound Calm Low Macro Trading Equity Trading FX Trading Retail Brokerage Momentum Credit Spread Products Corporate Finance Liquidity Credit Risk Fix
Slide 12: Third keystone: a sufficient size
4. Our stable and well-thought capital markets strategy Third keystone: a sufficient size Building a foundation of excellence 9 Despite the worst economic conditions in a generation, NBF has emerged as a top tier Investment Bank 9 Focused on rebuilding the business and business model ground up - str
Slide 13: Income, Capital Markets
Income, Capital Markets in millions of dollars Average trailing 4 quarters Quarterly Trend trailing 4 quarters Trend $ 285 265 245 225 205 185 Trend was calculated excluding 03Q4. 165 Excludes CDS revaluation in 03Q2 145 125 4. Our stable and well-thought capital markets strategy Stay on course 9 Re
Slide 14: Rigor and Discipline; Valuation Metrics, P/E
Rigor and Discipline Looking ahead 9 Stable or improving capital markets expected 9 Rapid growth of Wealth Management in all business segments 9 Steady growth from retail and commercial sectors 9 Material efficiency gains in the P&C sector Valuation Metrics, P/E Market Banks Banks/Market 120% 29x 10
Slide 15: Valuation Metrics; Yes it's possible to be different
Valuation Metrics Dividend Yield Market Banks Banks/Market 250% 5.0% 225% 4.0% 200% 3.0% 175% 2.0% 150% 1.0% 125% 0.0% Source: Datastream Yes it’s possible to be different 9 National Bank strategic plan well suited to our specific position 9 Reiterate commitment to disciplined and rigorous execution
Slide 16: Investor Relations
Investor Relations: 514.394.0296 www.nbc.ca/investorrelations investorrelations@nbc.ca • HIGHLIGHTS CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, National Bank of Canada makes written and oral forward-looking statements, included in this [AIF/Annual Report], in other filings with C