National Bank Of Canada · TSX:NA

National Bank Of Canada — Q4 2012 Earnings Presentation

13 slides from National Bank Of Canada's earnings presentation, Dec 6, 2012

  1. Slide 1: Analyst and Investor Presentation – Q4 2012 Results Conference Call

    ANALYST AND INVESTOR PRESENTATION Q4 2012 RESULTS CONFERENCE CALL Thursday, December 6, 2012 – 1:30 p.m. CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, National Bank of Canada (the Bank) makes written and oral forward-looking statements, such as those contained in the Major Economic

  2. Slide 2: Highlights and Mid-Term Objectives

    HIGHLIGHTS Q4 12 Q3 12 Q4 11 QoQ YoY ADJUSTED RESULTS (1) Net Income(2) 343 353 303 (3%) 13% Diluted EPS $1.93 $1.98 $1.68 (3%) 15% Provision for Credit Losses 46 40 50 15% (8%) Return on Equity 19.2% 20.2% 19.0% Common Equity Tier 1 Ratio 7.3% 7.8% 7.6% Under Basel III Dividend Payout(3) 38.8% 39.0

  3. Slide 3: Financial Review – Performance Snapshot

    FINANCIAL REVIEW Ghislain Parent Chief Financial Officer and Executive Vice-President, Finance and Treasury NAME OF PRESENTATION – Date 1, 2010 I 5 PERFORMANCE SNAPSHOT (millions of dollars) ADJUSTED (1) Q4 12 Q3 12 Q4 11 QoQ YoY Revenues 1,240 1,217 1,168 2% 6% Expenses 770 744 748 3% 3% Net Income

  4. Slide 4: Detail of Specified Items and Performance Snapshot

    DETAIL OF SPECIFIED ITEMS(1) Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 (millions of dollars) Natcan / Fiera Transaction - - 227 (1) 1 Acquisition of WW & HSBC (7) (8) (8) (8) (14) Severance Pay (8) - (15) - (65) Litigation Provisions - - - - - MAV and Other Notes - 5 34 5 111 Leases Termination - - - - (4) Writ

  5. Slide 5: Income Statement Overview and Non Interest Expense

    INCOME STATEMENT OVERVIEW (Excluding specified items) REVENUES Q4 12 (vs. Q4 11) Q4 12 Q3 12 Q4 11 QoQ YoY (millions of dollars) T.E.B. Revenues 1,240 1,217 1,168 2% 6% 27% (24%) P&C Banking 649 662 642 (2%) 1% 52% (55%) Wealth Management 253 242 242 5% 5% 21% Financial Markets 337 338 280 0% 20% (2

  6. Slide 6: Balance Sheet Overview and Strong Capital Position

    BALANCE SHEET OVERVIEW (Banking book) (billions of dollars) LENDING – LOANS AND BAs (MONTH END BALANCE) 87.4 88.8  YoY growth: 83.7 79.8 82.2 9.1 Personal and Wealth Management +11% 8.5 7.5 7.6 1.5 1.5 6.8 1.4 1.4 1.5 Commercial and Corporate +12% 20.3 20.0 19.2 19.6 19.5 Total +11% 55.1 57.1 58.2

  7. Slide 7: Risk Management – Global Credit Portfolio

    RISK MANAGEMENT William Bonnell Executive Vice-President Risk Management NAME OF PRESENTATION – Date 1, 2010 I 13 GLOBAL CREDIT PORTFOLIO As at October 31, 2012 vs. (October 31, 2011) PER BUSINESS SEGMENT PER INDUSTRY RETAIL PORTFOLIO COMPOSITION 1% 5% (6%) 8% (2%) (9%) 11% (8%) 23% 20% 17% (19%) (2

  8. Slide 8: Specific Provision for Credit Losses and Impaired Loans

    SPECIFIC PROVISION FOR CREDIT LOSSES(1) (millions of dollars) 50 49 46 RISK PROVISIONING 45 16 14 40  Q4 2012: $46M or 21 bps 11 4 12 1  YTD 2012: $180M or 21 bps  Next 2 quarters target: 25-30 bps 34 34 35 35 34 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Personal Banking Commercial Banking Financial Markets

  9. Slide 9: Business Segment Review – Personal and Commercial Banking

    BUSINESS SEGMENT REVIEW Jean Dagenais Senior Vice-President Finance, Taxation and Investor Relations NAME OF PRESENTATION – Date 1, 2010 I 17 PERSONAL AND COMMERCIAL BANKING (millions of dollars) Q4 12 Q3 12 Q4 11 QoQ YoY HIGHLIGHTS  Revenues up 1% YoY, due to strong Revenues 649 662 642 (2%) 1% vo

  10. Slide 10: Wealth Management and Financial Markets

    WEALTH MANAGEMENT(1) (millions of dollars) Q4 12 Q3 12 Q4 11 QoQ YoY HIGHLIGHTS Revenues 253 242 242 5% 5%  Strong performance with 10% net income growth QoQ and 5% YoY(2) Fee-based 133 129 121 3% 10% (excluding gain on disposal)  Acquisitions contributed $5.3M Transaction & Others 71 67 74 6% (4%

  11. Slide 11: Appendix – Income Statement FY2012

    APPENDIX NAME OF PRESENTATION – Date 1, 2010 I 21 APPENDIX 1 │ INCOME STATEMENT FY2012(1) (millions of dollars) - net income growth (%) T.E.B. Personal & Commercial Wealth Management Financial Markets (millions of dollars) 2012 2011 YoY Growth 2012 2011 YoY Growth 2012 2011 YoY Growth Revenues 2,591

  12. Slide 12: Appendix – Restructured ABCP and VaR

    APPENDIX 2 │ RESTRUCTURED ABCP AS AT OCTOBER 31, 2012 TRIGGER RISK  Remote Trigger Risk - US spreads would have to widen by more than 787 bps from current levels Note: Assuming no change in realized losses in the credit indices *Maturity Date: 12/20/2011  Triggers could also be breached if realize

  13. Slide 13: Appendix – Trading P&L Results and Investor Relations

    APPENDIX 4 │ TRADING P&L RESULTS 98% OF DAYS WITH POSITIVE RESULTS IN Q4 2012 # days Trading P&L distribution - Q4 2012 14 12 10 8 6 4 2 0 (1) - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 $ millions Q4 2012 RESULTS CONFERENCE CALL – December 6, 2012 I 25 INVESTOR RELATIONS Financial analysts and inve

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