Slide 1: Q1 2022 Conference Call Presentation
Q1 2022 Conference Call Presentation March 2, 2022 Follow us
Slide 2: Post Conference Call Q&A
2 Post Conference Call Q&A For those wishing to ask questions during the Q&A, please access today’s call through the telephone dial-in: Toll-free: 1 (888) 664-6392 (Canada/US) Local: (416) 764-8659 Passcode: 43448798#
Slide 3: Advisory
3 Advisory The Bank occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, annual reports and other disclosure documents an
Slide 4: David Taylor, President & Chief Executive Officer
4 David Taylor President & Chief Executive Officer
Slide 5: Q1 2022 Highlights: Core Digital Banking Operations Delivered Strong Year-Over-Year Growth
Q1 2022 Highlights: Core Digital Banking Operations 5 Delivered Strong Year-Over-Year Growth Core Digital Banking operations delivered strong Q1 2022 year-over-year growth YoY Sequential Total Loans 24% 5% Achieved another loan portfolio record: >$2.2B Total Revenue 18% 0.2% Continued to lower cost
Slide 6: A Better Digital Currency: Opportunity for Exponential Deposit Growth
A Better Digital Currency: Opportunity for 6 Exponential Deposit Growth Addressing the Critical Security and Value Certainty Shortcomings of Current Stablecoins • Represented 1:1 by Canadian-dollar deposits • Highest level of stability and security amongst all digital currencies • Addresses key conc
Slide 7: Shawn Clarke, Chief Financial Officer
7 Shawn Clarke Chief Financial Officer
Slide 8: Q1 2022: Continued Strong Financial Performance
8 Q1 2022: Continued Strong Financial Performance Balance Sheet YoY increases in CET1 and Leverage Ratio Driven Primarily by: At January 31 2022 2021 Change • Issuance of the US$75 M principal in Subordinated Notes Total Assets $2.42 B $2.04 B +18% (C$92.1 million) in late April, partially offset by
Slide 9: Record Loan Portfolio: $2.22B
9 Record Loan Portfolio: $2.22B Q4 2021 Q1 2022 Total: $2.1 B Total: $2.2 B Point-of-Sale Loans/ Point-of-Sale Loans/ Leases Public Leases Public Sector / Sector / $1.3B Other $1.4B Other 61% Financing 65% Financing $33M $31M $981M 2% Commercial 51% Commercial 1% Lending – $758M $365M Lending – $723
Slide 10: Q1 2022: Continued Strong Financial Performance
10 Q1 2022: Continued Strong Financial Performance Income Statement Strong Year-Over-Year & 3 Months Ended Sequential Growth in Key Metrics January 31 2022 2021 Change vs Q1/21 vs Q4/21 Total Revenue $18.3M $15.4M +18% Total Revenue 18% 0% Cost of Funds 1.29% 1.42% -13 bps Cost of funds 13 bps 2 bps
Slide 11: Continued to Lower Cost of Funds
11 Continued to Lower Cost of Funds Personal Deposits Q1 2022 cost of funds: 1.29% • Decreased 13 bps (9%) vs Q1 2021 • Decreased 2 bps (2%) vs Q4 2021 $1,213M $1,250M $1,108M $1,203M $1,150M $1,052M $1,041M $1,059M $960M Decreases primarily result of continued growth of Insolvency Professional depo
Slide 12: PCL as a % of Average Loans
12 Top Tier Asset Quality & Prudent Approach to Risk Mitigation Average Provision for Credit Losses as a % of Average Loans PCL as a % of Average Loans 0.12% (0.01%) (Trailing 12-Quarters) 0.08% 0.06% 0.02% 0.00% (0.01%) (0.02%) (0.02%) (0.02%) 2014 2015 2016 2017 2018 2019 2020 2021 Q1/22 VB PCLs
Slide 13: David Taylor, President & Chief Executive Officer
13 David Taylor President & Chief Executive Officer
Slide 14: U.S. Point-of-Sale Financing: A Largely Untapped Opportunity
14 U.S. Point-of-Sale Financing: A Largely Untapped Opportunity Supporting an Emerging, A New Financing Solution for U.S. Point-of-Sale Providers High-Growth Industry With a massive millennial consumer base and an impressive suite of digital offerings, Estimated size of the total point-of-sale marke
Slide 15: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659 Participant Passcode: 43448798#
Slide 16: Our Time Has Arrived!
16 Our Time Has Arrived! Follow us