National Bank Of Canada · TSX:NA

National Bank Of Canada — Q1 2015 Earnings Presentation

14 slides from National Bank Of Canada's earnings presentation, Feb 25, 2015

  1. Slide 1: Caution Regarding Forward-Looking Statements

    NATIONAL BANK OF CANADA CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, the Bank makes written and oral forward-looking statements, such as those contained in the Major Economic Trends and the Outlook for National Bank sections of the 2014 Annual Report, in other filings with Canadia

  2. Slide 2: Highlights and Mid-Term Objectives

    HIGHLIGHTS ADJUSTED RESULTS (1) Q1 15 Q4 14 Q1 14 QoQ YoY (2) Net Income 410 407 384 1% 7% Diluted EPS $1.14 $1.14 $1.09 - 5% Provision for Credit Losses 54 57 51 (5%) 6% Return on Equity 17.5% 17.9% 18.8% Common Equity Tier 1 Ratio Under Basel III 9.30% 9.23% 8.26% (3) Dividend Payout 41.9% 41.5% 4

  3. Slide 3: Financial Review: Performance Snapshot Q1 2015

    FINANCIAL REVIEW Ghislain Parent Chief Financial Officer and Executive Vice-President, Finance and Treasury PERFORMANCE SNAPSHOT – Q1 2015 (millions of dollars) ADJUSTED (1) Q1 15 Q4 14 Q1 14 QoQ YoY  Adjusted revenues up 7%, YoY Revenues (2) 1,459 1,440 1,370 1% 7% Expenses 857 841 807 2% 6%  Dil

  4. Slide 4: Income Statement Overview – Q1 2015

    INCOME STATEMENT OVERVIEW – Q1 2015 (Excluding specified items) REVENUES Q1-15 (vs. Q1-14) T.E.B. (millions of dollars) Q1 15 Q4 14 Q1 14 QoQ YoY (1) Revenues 1,459 1,440 1,370 1% 7% 26% (23%) P&C Banking 691 690 658 - 5% 47% (49%) 3% (4%) Wealth Management 345 339 324 2% 6% 24% (24%) Financial Mark

  5. Slide 5: Strong Capital Position

    STRONG CAPITAL POSITION TOTAL RISK-WEIGHTED ASSETS COMMON EQUITY TIER 1 UNDER BASEL III UNDER BASEL III EVOLUTION (QoQ) 64,627 64,703 64,818 66,264 64,235 0.34% 2,878 4,110 3,888 3,441 3,317 8,719 8,853 0.20% 0.07% 8,487 8,503 8,676 9.23% 9.23% 9.37% 9.30% 9.30% 52,030 51,844 52,586 52,782 54,533 Co

  6. Slide 6: Loan Portfolio Overview

    LOAN PORTFOLIO OVERVIEW (billions of dollars) Q1 15 % of Total Retail mortgages & HELOC 50.7 47% Secured by non real estate 4.8 4%  The loan portfolio is well diversified across Credit cards 1.8 2% industrial sectors Other retail 6.4 6% Total Retail 63.7 59% (billions of dollars) Q1 15 % of Total R

  7. Slide 7: Retail Mortgage and HELOC Portfolio

    RETAIL MORTGAGE AND HELOC PORTFOLIO DISTRIBUTION BY PROVINCE MORTGAGE PORTFOLIO COMPOSITION 65% As at January 31, 2015 As at January 31, 2015 34% 43% 22% 5% 4% 4% 23% QC ON AB BC Others Insured Uninsured HELOC Q4 2014 RESULTS CONFERENCE CALL – December 5, 2014 I 13 SPECIFIC PROVISION FOR CREDIT LOSS

  8. Slide 8: Impaired Loans and Formation

    IMPAIRED LOANS AND FORMATION (millions of dollars) IMPAIRED LOANS IMPAIRED LOANS FORMATION(1) 0.46% 0.42% 0.41% 0.40% 0.36% (millions of dollars) Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 486 417 417 411 Retail 22 29 20 15 36 389 Commercial (37) 79 2 15 9 Corporate Banking - - - - - 248 194 194 Wealth Managemen

  9. Slide 9: Business Segment Review

    VaR TREND Trading VaR Quarterly Average Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 -5.8 -6.6 -6.9 -7.2 -7.6 $ millions Q1 2015 RESULTS CONFERENCE CALL – February 25, 2015 I 17 BUSINESS SEGMENT REVIEW Jean Dagenais Senior Vice-President, Finance

  10. Slide 10: Personal and Commercial Banking

    PERSONAL AND COMMERCIAL BANKING (millions of dollars) Q1 15 Q4 14 Q1 14 QoQ YoY HIGHLIGHTS  Revenues up 5% YoY due to strong volume Revenues 691 690 658 - 5% growth from loans, deposits and mutual funds Personal Banking 323 324 306 - 6%  Net Interest Margin down 1 bps QoQ  Operating leverage rati

  11. Slide 11: Financial Markets

    FINANCIAL MARKETS(1) (millions of dollars) Q1 15 Q4 14 Q1 14 QoQ YoY HIGHLIGHTS Revenues 418 380 365 10% 15%  Record trading revenues driven by increased Trading 232 138 163 68% 42% client activity with higher market volatility  Lower Investment Banking fees mostly in the Banking Services 69 67 58

  12. Slide 12: Appendix 1: Detail of Specified Items

    APPENDIX 1 │ DETAIL OF SPECIFIED ITEMS (millions of dollars) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Wealth Management and other acquisitions (11) (12) (22) (14) (10) Funding Valuation Adjustments - - - (13) - MAV and Other Notes 40 (4) 42 (4) 18 Litigation provisions - - - (14) - Write-off of Intangible Asse

  13. Slide 13: Comparative Performance – Capital Ratios

    COMPARATIVE PERFORMANCE – Capital Ratios CAPITAL RATIOS UNDER BASEL III 14.6% 15.1% 14.8% 14.0% Total 13.6% Total 12.3% 11.7% Tier 1 11.5% Tier 1 12.3% 12.0% 9.3% 9.2% 9.1% 10.1% CET1 9.8% CET1 Q1 15 Q4 14 Q3 14 Q4 14 Q3 14 (1) (1) NBC NBC NBC Canadian Peers Canadian Peers Common Equity Tier 1 (CET1

  14. Slide 14: Investor Relations

    INVESTOR RELATIONS Financial analysts and investors who want to obtain financial information on the Bank are asked to contact the Investor Relations Department. 600 De La Gauchetière Street West, 7th Floor, Montreal, Quebec H3B 4L2 Toll-free: 1-866-517-5455 Fax: 514-394-6196 E-mail: investorrelation

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