National Bank Of Canada · TSX:NA
National Bank Of Canada — Q1 2001 Earnings Presentation
24 slides from National Bank Of Canada's earnings presentation, Feb 22, 2001
Slide 1: National Bank of Canada Investor Presentation Q1 2001 Results
National Bank of Canada Investor Presentation Q1 2001 Results February 22nd 2001
Slide 2: Strategic Objectives 2001
Strategic Objectives 2001 Q1 01 Growth in income before goodwill charges +10%/year 17.3% Return on common shareholders’ equity before goodwill charges: 15.5% - 17.5% 16.1% Expense ratio 60% in 2003 62.1% Tier 1 capital ratio 7.75% - 8.50% 8.8% 2
Slide 3: Quarterly Highlights
Quarterly Highlights é Increase in Revenue Þ Improved Capital Ratios Þ Retail and Commercial margins improved Þ Increase in Loan Loss Provision Þ Improved expense ratio Þ Dividend increase Þ +10.5%, from $0.19 to $0.21 per share 3
Slide 4: Operational Highlights
Operational Highlights Þ Signed partnership agreement with Groupe Promutuel covering the development and distribution of financial products and services Þ A faster way to trade for autonomous on-line investors: new brokerage mode offered by National Bank Discount Brokerage Þ NA and COG select RightW
Slide 5: Financial Review
Financial Review Michel Labonté Senior Vice-President Finance and Control 5
Slide 6: Quarterly Highlights: Solid start to the year
Quarterly Highlights Solid start to the year (Millions $) Cash Basis Q1- 01 Q4 - 00 Q3- 00 Q2- 00 Q1- 00 % Q/Q % Y/Y (1) Revenues (TEB) $795 $793 $790 $835 $749 0.2% 6.2% Net income $143 $138 $133 $137 $122 3.6% 17.3% EPS $0.71 $0.68 $0.67 $0.69 $0.62 4.4% 14.5% ROE 16.1% 15.8% 15.8% 17.2% 15.3% (1)
Slide 7: Continuous Growth: Net income
Continuous Growth Net income Cash Basis Millions $145 $143 $140 $137 $138 $135 $133 $130 $125 $122 $120 $115 $110 Q1-00 Q2-00 Q3-00 Q4-00 Q1-01 7
Slide 8: Business segment growth
Business segment growth Net income cash basis $70 $66 $62 $60 $50 $47 Millions $40 $40 $38 $29 $30 $20 $10 $0 Personal Banking & Wealth Commercial Banking Financial Markets, Treasury Management and Investment Banking Q1-00 Q1-01 8
Slide 9: Net income Q1
Net income Q1 01 Cash basis 31% 43% 26% Personal Banking and Wealth Management Commercial Banking Financial Markets, Treasury and Investment Banking * Excluding Other segment 9
Slide 10: Loan Loss provision
Loan Loss provision Q1 00 Q1 01 Personal Banking 23 28 Commercial Banking Canada 11 11 United States 6 8 17 19 Financial Markets, Treasury and Investment Banking 4 10 46 59 10
Slide 11: Asset Diversification
Asset Diversification Breakdown by Major Segments Total Loans and BAs* Small Business 6% Consumer 50% Commercial 31% Corporate 13% * Adjusted for Securitization 11
Slide 12: Capital Ratios
Capital Ratios 12.1% 14% 10.8% 12% 3.3% 10% 3.2% 8% Tier 2 Tier 1 6% 8.8% 4% 7.6% 2% 0% Q1 00 Q1 01 12
Slide 13: Business Segment Review
Business Segment Review Réal Raymond President Personal and Commercial Bank 13
Slide 14: Personal Banking and Wealth Management
Personal Banking and Wealth Management Q1 01 vs Q1 00 Total revenues +5.6% Net interest income +9.6% Other income +1.7% Revenue growth by Sub-sector – Personal Banking + 5.9% – Wealth Management + 5.2% Net Income +6.5% Q1 01 Q1 00 Expense ratio 71.6% 72.7% 14
Slide 15: Branch Network
Branch Network 620 614 35 600 30 30 Traditional branches 25 580 24 Total - as at Q1 00 614 20 560 15 Acquisition 4 541 540 Merged 65 10 Closed 12 520 5 Total - as at Q1 01 541 500 0 Q1-2000 Q1-2001 Traditionnal branches In-store branches 15
Slide 16: Online Growth
Online Growth Retail Banking Discount Brokerage 6,000 180 160 5,000 140 Thousands 4,000 120 100 3,000 80 2,000 60 2,426 2,784 3,236 3,724 4,779 40 1,000 20 0 0 Q1-00 Q2-00 Q3-00 Q4-00 Q1-01 16
Slide 17: Personal Assets Growth
Personal Assets Growth adjusted for securitization $18,000 $16,747 $16,834 $16,063 $15,000 Thousands $12,000 $9,000 $6,199 $6,293 $6,366 $6,000 $3,000 $0 Residential mortgages Personal loans (1) (1) Excluding indirect loans 17 Q1-00 Q4-00 Q1-01
Slide 18: Savings under Administration
Savings under Administration Includes Mutual Funds, Discount Brokerage, Full Service Brokerage, Trust Services And Deposits As at January 31 $64,0 $63,1 $63,0 Assets ($ billions) $62,0 wth o $61,0 Gr 8% $60,0 $58,4 $59,0 $58,0 $57,0 $56,0 2000 2001 18
Slide 19: Commercial Banking
Commercial Banking Q1 01 vs Q1 00 Total revenues +5.4% – Net interest income +6.7% – Other income +2.6% Segmentation: Canada +6.0% United States +4.3% Net income +5.3% Q1 01 Q1 00 Expense ratio 38.2% 38.0% 19
Slide 20: Commercial Loans Growth
Commercial Loans Growth Loans & BA’s $12,000 $10,132 $9,907 $9,000 Thousands $6,000 $4,502 $4,566 $3,000 $0 Canada US Q1-00 Q1-01 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 Q1 01 vs Q1 00 Total revenues +26.0% Segmentation: NBF Wholesale - 7.5% Treasury + 92.1% Corporate + 19.2% Net income +62.1% Q1 01 Q1 00 Expense ratio 50.0% 61.6% 22
Slide 23: Financial Markets, Treasury and Investment Banking
Financial Markets, Treasury and Investment Banking (TEB) millions $ Q1 01 Q4 00 Q1 00 Trading revenues 44.0 83.2 57.2 Capital market fees 40.1 43.6 39.6 Investment gains 17.0 10.5 17.0 23
Slide 24: National Bank of Canada
NATIONAL BANK OF CANADA 24
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