Slide 1: Q3 2022 Conference Call Presentation
Q3 2022 Conference Call Presentation August 31, 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
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
4 David Taylor President & Chief Executive Officer
Slide 5: Q3 2022 Key Metrics & Highlights
5 Q3 2022 Key Metrics & Highlights Consolidated YoY Sequential Digital Banking: Strong loan portfolio growth to Total Revenue 35% 14% another record: >$2.81B Net Income 5% 16% Record quarterly revenue and net interest income EPS 20% 18% Return to year-over-year and sequential net income Net Interest
Slide 6: Acquisition of OCC-Chartered, National US Bank: Transformational Next Step in Long-Term Growth Strategy
Acquisition of OCC-Chartered, National US Bank: 6 Transformational Next Step in Long-Term Growth Strategy June 2022: Definitive • Provides access to U.S. deposits to fuel growth of the Agreement to Acquire U.S. Receivable Purchase Program business (recently Minnesota-based Stearns launched in the U.
Slide 7: U.S. Receivables Purchase Program: A Largely Untapped Opportunity
U.S. Receivables Purchase Program: 7 A Largely Untapped Opportunity Supporting an Emerging, Launched March 2022: A New Financing Solution for U.S. High-Growth Industry Point-of-Sale Providers With a massive millennial consumer base and an impressive suite of digital offerings, Estimated size of the
Slide 8: Shawn Clarke
8 Shawn Clarke Chief Financial Officer
Slide 9: Q3 2022: Continued Strong Financial Performance
9 Q3 2022: Continued Strong Financial Performance Balance Sheet YoY increases in regulatory capital levels and ratios driven primarily by: At July 31 2022 2021 Change • Retained earnings growth, changes to risk- Total Assets $3.08 B $2.29 B +35% weighted asset balances and composition and the Septem
Slide 10: Q3 2022: Continued Strong Financial Performance Consolidated
Q3 2022: Continued Strong Financial Performance 10 Consolidated Consolidated Income Statement vs Q2/22 3 Months Ended 9 Months July 31 Ended July 31 Revenue 14% 2022 2021 Change 2022 2021 Change Net Income 16% Revenue 21,239 15,729 +35% 58,140 47,121 23% Earnings Per Share 18% Net Income 5,720 5,436
Slide 11: Digital Banking Operations – Record Loan Portfolio: $2.81 B
Q3 2022: Continued Strong Financial Performance 11 Digital Banking Operations – Record Loan Portfolio: $2.81 B Q2 2022 Q3 2022 Total: $2.45 B Total: $2.81 B Point-of-Sale Loans/ Leases Point-of-Sale Loans/ Leases $1.6B Public Sector/ $2.0B Public Sector/ 66% Other Financing 71% Other Financing $36M
Slide 12: Digital Banking Operations Income Statement
Q2 2022: Continued Strong Financial Performance 12 Digital Banking Operations Digital Banking Operations: Income Statement 3 Months Ended 9 Months Ended vs Q2/22 July 31 July 31 Cost of funds 56 bps 2022 2021 Change 2022 2021 Change Net interest income 16% Cost of Funds 1.94% 1.41% +53 bps 1.49% 1.3
Slide 13: Cost of Funds
13 Cost of Funds Personal Deposits Q3 2022 cost of funds: 1.94% • Increased 53 bps (38%) vs Q3 2021 • Increased 56 bps (41%) vs Q2 2022 $1,884M $1,108M $1,203M $1,150M $1,052M $1,041M $1,213M $960M $1,059M Increase in cost of funds 2014 2015 2016 2017 2018 2019 2020 2021 Q3 2022 significantly less t
Slide 14: PCL as a % of Average Loans
14 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% 0.03% 0.02% (0.01%) (0.02%) (0.02%) (0.02%) 2014 2015 2016 2017 2018 2019 2020 2021 Q3 22 VB PCLs
Slide 15: DRTC Income Statement
Q3 2022: Continued Strong Financial Performance 15 DRTC DRTC: Income Statement 3 Months Ended 9 Months vs Q2/22 July 31 Ended July 31 Revenue 12 % 2022 2021 Change 2022 2021 Change Gross Profit 17 % Revenue 2,137 1,997 7% 6,916 5,459 27% Net income (loss) n/a Gross Profit 1,206 1,226 (2%) 4,061 3,23
Slide 16: David Taylor
16 David Taylor President & Chief Executive Officer
Slide 17: Digital Banking Growth Strategy: Momentum for the Future
17 Digital Banking Growth Strategy: Momentum for the Future 1 2 3 Further Reduce Grow Loan Portfolio Pursue Accretive Acquisitions Cost of Funding via New Near-Term Opportunities to Leverage Scalability of to Expand Net Interest Margin and Existing Offerings Platform & Enter New Markets Generate cap
Slide 18: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659
Slide 19: Our Time Has Arrived!
19 Our Time Has Arrived! Follow us