National Bank Of Canada · TSX:NA
National Bank Of Canada — Q2 2001 Earnings Presentation
24 slides from National Bank Of Canada's earnings presentation, May 31, 2001
Slide 1: National Bank of Canada Investor Presentation Q2 2001 Results
National Bank of Canada Investor Presentation Q2 2001 Results Conference Call May 31st, 2001 www.nbc.ca/investorrelations
Slide 2: Quarterly Highlights
Quarterly Highlights ü Net income $145M, up 5% (Q2 01/Q2 00) ü Strong Retail Banking performance with Net Income up 19% (Q2 01/Q2 00) ü Solid performance by Treasury (Q2 01/Q2 00) ü Steadily increased margins in Retail, Commercial and Corporate ü Continued expense control for Financial Markets, Trea
Slide 3: Strategic Objectives 2001
Strategic Objectives 2001 YTD Growth in income before goodwill charges +10%/year 10.8% Return on common shareholders’ equity before goodwill charges: 15.5% - 17.5% 16.3% Expense ratio 60% in 2003 62.4%* Tier 1 capital ratio 7.75% - 8.50% 9.13% *Excluding non recurring charge 3
Slide 4: Q2 Developments
Q2 01 Developments • The Ultramar MasterCard fleet card with the National Bank signature: a new credit card with more to offer to businesses • National Bank Discount Brokerage inc. enhances its Website: new tools for more informed decision-making • National Bank MasterCard/PHH Arval corporate multic
Slide 5: Financial Review
Financial Review Michel Labonté Senior Vice-President Finance and Control 5
Slide 6: Quarterly Highlights: Building for long term growth
Quarterly Highlights Building for long term growth (Millions $) Cash Basis Q2 - 01 Q1- 01 Q4 - 00 Q3- 00 Q2- 00 % Q/Q % Y/Y (1) Revenues (TEB) $831 $795 $793 $790 $835 4,5% -0,5% Net income $145 $143 $138 $133 $138 1,4% 5,1% EPS $0,72 $0,71 $0,68 $0,67 $0,69 1,4% 4,3% ROE 16,6% 16,1% 15,8% 15,8% 17,
Slide 7: Line of Business Performance
Line of Business Performance Net income Cash basis $80 $73 $69 $66 $70 $60 Millions $53 $50 $47 $43 $40 $40 $37 $30 $27 $20 $10 $0 Personal Banking & Wealth Commercial Banking Financial Markets, Treasury Management and Investment Banking Q2-00 Q1-01 Q2-01 7
Slide 8: Net income contribution Q2 01
Net income contribution Q2 01 Cash basis Personal Banking & Wealth Management Commercial Banking Wealth 26% 7% US Managem ent 16% 34% 74% 93% Canada Retail Banking 84% 66% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% Q2-00 Q2-01 Q2-00 Q2-01 Financial Markets, Treasury and Investment Banking Treasury 5
Slide 9: Capital Discipline
Capital Discipline 12,5% 14% 10,3% 12% 3,4% 10% 3,0% 1,0% 8% 1,1% 0,9% Tier 1 6% 0,7% Tier 1 4% 7,0% 5,7% 2% 0% Q2 - 00 Q2 - 01 Tangible equity Non-cum. pref shares Innovative instruments Tier 2 9
Slide 10: Value at Risk
Value at Risk Daily VaR - Global Trading - YTD - in CAD$ (Maximum 1-day loss at 99%) 7000000 6500000 6000000 5500000 5000000 4500000 4000000 3500000 3000000 2500000 2000000 11- 11- 11- 11- 11- 11- 11- 12- 12- 12- 12- 12- 12- 1-3 1-8 1- 1- 1- 1- 1- 2-1 2-6 2-9 2- 2- 2- 2- 3-2 3-7 3- 3- 3- 3- 3- 4-3 4
Slide 11: National Bank Credit Quality
National Bank Credit Quality Millions $ Q1-01 Q2-00 Q2-01 Gross impaired loans $930 $934 $971 Net impaired loans $78 $54 $44 NIL as a % of loans & BA’s 0.17% 0.12% 0.10% Private risks 11
Slide 12: Asset Diversification
Asset Diversification Breakdown by Major Segments Total Loans and BAs* As at April 30, 2001 Consumer Credit card 3% 12% Commercial Small Business 31% 6% Mortgage Corporate 35% 13% * Adjusted for Securitization 12
Slide 13: Telecom and Cable Exposure
Telecom and Cable Exposure Loans and BAs as at April 2001 % of Total % of Total Total Loans Exposure Loans & BAs Telecommunication & Cable 522 100% 1,09% Wireless and Wireline 316 61% 0,66% Cable 206 39% 0,43% Investment Grade 317 61% 0,66% Non Investment Grade 205 39% 0,43% 13
Slide 14: Business Segment Review
Business Segment Review Réal Raymond President Personal and Commercial Bank 14
Slide 15: Personal Banking and Wealth Management
Personal Banking and Wealth Management Q2-01/Q2-00 YTD Net income +5.8% +6.1% Retail +19.3% +14.1% Wealth Management -21.3% -11.1% Revenues -2.2% +1.5% Retail +4.8% +5.3% Wealth Management -13.5% -5.4% Personal & Wealth Management Margin +24bps +30bps Q2-01 Q2-00 Expense ratio 71.5% 72.1% Retail 66.
Slide 16: Internet Transactional Growth
Internet Transactional Growth Retail Banking Discount Brokerage 6 000 180 160 5 000 140 Thousands 4 000 120 100 3 000 80 2 000 60 2 784 3 236 3 724 4 779 5 448 40 1 000 20 0 0 Q2 - 00 Q3 - 00 Q4 - 00 Q1 - 01 Q2 - 01 16
Slide 17: Personal Asset Growth
Personal Asset Growth Adjusted for securitization As at April 30, 2001 (1) Mortgage loans Personal loans $8 000 $16 834 $16 890 Millions $ Millions $ $16 155 $7 000 $6 657 $16 000 $6 393 $6 366 $6 000 $5 000 $13 000 Q2-00 Q1-01 Q2-01 Q2-00 Q1-01 Q2-01 (1) Excluding indirect loans 17
Slide 18: Savings under Administration
Savings under Administration Includes Mutual Funds, Discount Brokerage, Full Service Brokerage, Trust Services And Deposits As at April 30 70,0 62,5 60,8 60,0 Assets ($ billions) 8,9 9,2 50,0 21,9 21,9 40,0 30,0 20,0 30,0 31,4 10,0 0,0 2000 2001 NBF Deposits Other 18
Slide 19: Commercial Banking
Commercial Banking Q2-01/Q2-00 YTD Net income* -15.6% -5.2% Canada -18.2% -14.3% US * -1.7% -5.2% Total Revenue Growth stable +2.7% Canada - % +3.1% US - % +2.2% Margins +9bps +13bps Q2-01 Q2-00 Expense ratio * 41.4% 40.6% * excluding non recurring charge 19
Slide 20: Commercial Loans Growth
Commercial Loans Growth Loans & BA’s $12 000 $9 794 $9 344 $9 000 Thousands $6 000 $3 998 $4 038 $3 000 $0 Canada US Q2 - 00 Q2 - 01 20
Slide 21: Business Segment Review
Business Segment Review Jean Turmel President, Financial Markets, Treasury and Investment Bank 21
Slide 22: Financial Markets, Treasury and Investment Bank
Financial Markets, Treasury and Investment Bank Q2-01/Q2-00 YTD Net income +26.2% +38.9% Corporate Banking +4.2% +6.8% Treasury +51.5% +234.0% NBF Wholesale -55.6% -60.0% Total revenues +3.8% +13.4% Corporate banking +16.4% +20.8% Treasury +52.2% +70.1% NBF Wholesale -30.0% -22.2% Q2-01 Q2-00 Expens
Slide 23: Financial Markets, Treasury and Investment Banking
Financial Markets, Treasury and Investment Banking 70,0 $ 69,5 $ 60,0 $ 55,4 $ 50,0 $ 44,0 $ 40,0 $ 36,7 $ 40,1 $ 45,5 $ 30,0 $ 20,0 $ 15,3 $ 10,0 $ 9,4 $ 4,5 $ 0,0 $ Trading Revenues Capital Market Fees Investment Gains Q2 - 00 Q1 - 01 Q2 - 01 23
Slide 24: Question and Answer Session
NATIONAL BANK OF CANADA This presentation may contain certain forward looking statements about the operations, objectives and strategies of the National Bank of Canada. Such statements are subject to risk and uncertainties. Actual results may differ materially due to a variety of factors, including
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