National Bank Of Canada · TSX:NA
National Bank Of Canada — Merger or Acquisition (June 2024)
12 slides from National Bank Of Canada's merger presentation, Jun 11, 2024
Slide 1: National Bank to acquire CWB
National Bank to acquire CWB Accelerating our domestic growth June 11, 2024 A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces and territories of Canad
Slide 2: Forward-looking statements
Forward-looking statements 2 Caution Regarding Forward-Looking Statements Certain statements in this presentation are forward-looking statements. All such statements are made in accordance with applicable securities legislation in Canada and the United States. Forward-looking statements in this pres
Slide 3: Non-GAAP financial measures and disclaimers
Non-GAAP financial measures and disclaimers 3 Non-GAAP and Other Financial Measures This presentation refers to financial measures that are not recognized under International Reporting Standards (IFRS), namely non-GAAP financial measures. While National Bank evaluates the performance of its operatio
Slide 4: Strategic transaction accelerating our domestic growth
Strategic transaction accelerating our domestic growth 4 > Complementary platforms leverage the strengths of National Bank (“NA”) and Canadian Western Bank (“CWB”) to create a stronger coast-to-coast competitor, providing more choice for Canadians Highly Complementary > Geographic footprint signific
Slide 5: Transaction summary
Transaction summary 5 > NA to acquire 100% of the common shares of CWB, other than those NA already owns > NA currently owns 5.668MM shares(1) of CWB (5.9% of CWB’s outstanding common shares) > Total transaction value of $5.0B ($4.7B excluding shares owned by NA) > 100% share consideration at fixed
Slide 6: CWB at a glance
CWB at a glance 6 Unique Commercial Client Focus Highlights As at Q2-24 > Founded in 1984, CWB is a leading commercially focused $7.1B bank in Canada $42.0B $30.1B Personal Loans Total Assets Commercial Loans and Mortgages > High-touch, relationship-driven model with a targeted focus on SMEs > Speci
Slide 7: CWB brings a well-diversified, attractive commercial franchise
CWB brings a well-diversified, attractive commercial franchise … 7 Diversified Loan Portfolio Disciplined Portfolio Growth Loan Portfolio (Q2-24)(1) Loan Portfolio (1) General Commercial $30.1B 12% Commercial 5-Year CAGR Loan Portfolio 38% (vs. total portfolio at 6%) 1% 8% 29% 16% 38% $37.2B 20% 19%
Slide 8: Meaningfully expanding our domestic earnings power
… Meaningfully expanding our domestic earnings power 8 > Growing our P&C and Wealth businesses across Canada is a key piece of NA’s strategy > NA has demonstrated strong success across Canada so far, particularly in commercial lending > NA’s commercial loan book outside Quebec has grown at an 18% CA
Slide 9: And enhancing balance sheet and revenue diversification
… And enhancing balance sheet and revenue diversification 9 > NA’s highly complementary platform significantly increases Increases Revenue Contribution from P&C geographic diversification and client coverage across NA Pro Forma LTM Q2-24 Revenues by Business Segment(1) ($B) Canada > Increases NA’s d
Slide 10: Highly complementary capabilities supporting significant revenue upside potential
Highly complementary capabilities supporting significant 10 revenue upside potential NA Revenues by Geography (FY’23) CWB Revenues by Geography (FY’23) NA Pro Forma Revenues by Geography (FY’23)(1) P&C 23% Complementary Footprint P&C 38% Banking Banking 62% $4.4B 77% $5.4B Reach Across Other CAN Pro
Slide 11: Compelling opportunity to realize meaningful synergies
Compelling opportunity to realize meaningful synergies 11 Overview of Cost and Funding Synergies Comprehensive Integration Plan > Expect ~$270MM in pre-tax cost and funding synergies > Highly experienced joint leadership committed to annually by year 3 integration success > Strong cultural alignment
Slide 12: Attractive value creation
Attractive value creation 12 1 Highly ~$270MM Revenue Opportunities Identified Achievable In Pre-Tax Run-Rate Cost But Not Factored Into Synergies and Funding Synergies annually by Year 3 Transaction Financials 2 Strong Capital >12.75%(1) Strong Capital Levels Position and Target CET1 Ratio Aligned
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