National Bank Of Canada · TSX:NA
National Bank Of Canada — Q4 2000 Earnings Presentation
33 slides from National Bank Of Canada's earnings presentation, Nov 30, 2000
Slide 1: National Bank of Canada Investor Presentation: Q4 2000 and Year End Results
National Bank of Canada Investor Presentation Q4 2000 and Year End Results November 30th, 2000
Slide 2: Financial Review
Financial Review Michel Labonté Senior Vice-President Finance and Control 2
Slide 3: Quarterly Highlights
Quarterly Highlights (Millions $) Cash Basis Q4 00 Q3 00 Q2 00 Q1 00 Q4 99 % Q/Q % Y/Y Revenues (TEB) $795 789 (2) $835 $749 $651 0,8% 22,1% Net income $138 $133 $138 $122 $115 3,7% 19,6% EPS $0,68 $0,67 $0,69 $0,62 $0,59 1,5% 15,3% ROE (1) 15,8% 15,8% 17,2% 15,3% 15,1% Expense ratio 63,8% 65.1% (2)
Slide 4: 2000 Financial Performance
2000 Financial Performance (Millions $) Cash Basis 2000 1999 Y/Y Revenues (TEB) $3 304 $2 582 22,7% (2) Net income $531 $428 24,1% EPS $2,66 $2,30 15,7% (1) ROE 16,0% 15,5% (2) Expense ratio 65,1% 64,4% (1) Book equity method (2) Excluding the gain on sale of SIBN 4
Slide 5: Continuous Growth
Continuous Growth CAGR = 12.7% Millions Net income - cash basis 600 $ 531 $ 500 $ 428 $ 392 $ 400 $ 353 $ 329 $ 300 $ 200 $ 100 $ 0$ 1996 1997 1998 1999 2000 5
Slide 6: Business Segment Quarterly Review
Business Segment Quarterly Review (Millions $) (TEB) Revenues Earnings Cash Basis Q4 - 00 Q4 - 99 % Var. Q4 - 00 Q4 -99 % Var. Personal Banking and 482 407 18% 67 53 26% Wealth Management Commercial Banking 130 117 11% 39 33 18% Financial Markets,Treasury 186 102 82% 48 24 100% and Investment Bank O
Slide 7: Business Segment Fiscal Year Review
Business Segment Fiscal Year Review (Millions $) (TEB) Revenues Earnings Cash Basis 2000 1999 % Var. 2000 1999 % Var. Personal Banking and 1,883 1,573 20% 258 180 43% Wealth Management Commercial Banking 505 461 10% 155 133 17% Financial Markets,Treasury 674 402 68% 173 118 47% and Investment Bank O
Slide 8: Asset/Savings Growth
Asset/Savings Growth as at October 31st (Millions $) 2000 1999 % variation Loans and BA's Residential mortgages (1) 16,748 15,971 4.9% Consumer and Independant Business (1) 10,431 9,993 4.4% Commercial 14,609 13,802 5.8% Corporate 5,054 4,688 7.8% NBF and Other 4,194 3,171 32.3% 51,036 47,625 7.2% P
Slide 9: Operational Excellence Program
Operational Excellence Program Full impact 2002 Total Objective: $100 M Strategic Sourcing Total objective: $40 M Net impact on results Fiscal 1999/2000: $26 M Fiscal 2000/2001: $46 M Optimization of Support Operations Total objective: $60 M Net impact on results Fiscal 2000/2001: $28 M 9
Slide 10: Business Segment Review
Business Segment Review Jean Houde Senior Vice-President, Retail Banking 10
Slide 11: Personal Banking and Wealth Management
Personal Banking and Wealth Management Q4 00 vs Y/Y Q4 99 00 vs 99 Total revenues 18.4% 19.7% Net interest income 7.8% 7.3% Other income 30.7% 34.5% Revenue growth by Sub-sector – Personal Banking 9.4% 5.2% – Wealth Management 43.5% 65.7% Net Income 26.4% 43.3% 11
Slide 12: Personal Banking and Wealth Management: Expense ratio
Personal Banking and Wealth Management Expense ratio Fiscal year 80% 75.5% 75% 72.5% 70% 65% 60% 55% 1999 2000 12
Slide 13: Branch Network
Branch Network 640 35 625 620 30 30 25 600 24 20 Total 1999 649 580 15 560 556 Merged 69 10 In-Store opened 6 540 5 Total 2000 586 520 0 1999 2000 Traditionnal branches In-store branches 13
Slide 14: Internet and VRU Banking Transactions
Internet and VRU Banking Retail 1,600 1,400 1,200 Transactions 1,000 800 600 400 200 0 oct-99 janv-00 avr-00 juil-00 oct-00 14
Slide 15: Assets under Administration
Assets under Administration INCLUDES MUTUAL FUNDS, DISCOUNT BROKERAGE, FULL SERVICE BROKERAGE AND TRUST SERVICES 50 43.2 45 21 % Growth 35.6 Assets ($ billions) 40 35 30 25 20 15 10 5 0 1999 2000 15
Slide 16: Business Segment Review
Business Segment Review Tony Meti Senior Vice-President, Commercial Banking North America 16
Slide 17: Commercial Banking
Commercial Banking Q4 00 vs Y/Y Q4 99 00 vs 99 Total revenues 11.1% 9.5% – Net interest income 11.5% 9.9% – Other income 10.0% 8.4% Segmentation: Canada 11.9% 10.4% United States 10.0% 9.9% Net income 18.2% 16.5% 17
Slide 18: Commercial Banking: Expense ratio
Commercial Banking Expense ratio Fiscal Year 41% 40% 39% 38.6% 38% 37.6% 37% 36% 35% 1999 2000 18
Slide 19: Business Segment Review
Business Segment Review Jean Turmel President, Financial Markets, Treasury and Investment Bank 19
Slide 20: Financial Markets, Treasury and Investment Banking
Financial Markets, Treasury and Investment Banking Q4 00 vs Y/Y Q4 99 00 vs 99 Total revenue increase 82.3% 67.7% Segmentation : NBF Wholesale 67.8% 106.1% Treasury 169.0% 68.1% Corporate 36.5% 23.5% Net income 100% 46.6% 20
Slide 21: Financial Markets, Treasury and Investment Banking: Expense ratio
Financial Markets, Treasury and Investment Banking Expense ratio 62% 60% 58% 56% 54% 52% 50% Q4-99 Q1-00 Q2-00 Q3-00 Q4-00 21
Slide 22: Financial Markets, Treasury and Investment Banking: Revenues
Financial Markets, Treasury and Investment Banking (TEB) millions $ 2000 1999 Trading revenues 266.8 103.9 Capital markets fees 182.6 69.1 Investment gains 39.5 13.8 22
Slide 23: Risk Management
Risk Management Patricia Curadeau-Grou Senior Vice-President, Credit and Chair of the Credit Committee 23
Slide 24: Business Portfolio Diversification
Business Portfolio Diversification as at September 30 Excluding Repo ’s Agricultural Non-residential mortgages 3% 2% Financial institutions 7% Mortgages 28% Manufacturing 13% Construction and real estate 3% Transportation and communication 3% Mines, Quaries and Energy 1% Governments 2% Wholesale tra
Slide 25: Asset Diversification: Geographic Distribution
Asset Diversification Geographic Distribution Total Loans and BAs* $47 Billion as at Oct. 31, 2000 Other 1% United States 10% * Excluding repos Canada 89% 25
Slide 26: Asset Diversification: Breakdown by Major Segments
Asset Diversification Breakdown by Major Segments Total Loans and BAs* $47 Billion as at Oct. 31, 2000 Commercial 31% Consumer 56% * Adjusted for Securitization Corporate 13% 26
Slide 27: Asset Diversification: Consumer Loans by Major Segments
Asset Diversification Consumer Loans by Major Segments * Residential Mortgages 62% Personal Loans 34% Credit Cards 4% * Adjusted for Securitization 27
Slide 28: Asset Diversification: Telecommunication and Cable Exposure
Asset Diversification Telecommunication and Cable Exposure Loans and BAs at October 31, 2000 % of Total % of Total Total Loans Exposure Loans & BAs Telecommunication & Cable 415 100% 0,92% Telecommunication 241 58% 0,54% Cable 174 42% 0,39% Invesment Grade 260 63% 0,58% Non Investment Grade 155 37%
Slide 29: Net Impaired Loans
Net Impaired Loans Millions $ Q4 00 Q3 00 Q4 99 Domestic Individuals and small business 194 191 216 Commercial Canada 233 234 240 Corporate 23 23 3 Real Estate 26 31 33 International Commercial US 52 50 30 Real Estate 12 12 13 International 4 4 7 General allowance for credit risk (500) (500) (500) T
Slide 30: Asset Quality: Loan Losses
Asset Quality : Loan Losses As a % of Loans and BA’s 0,90% 0,80% 0,70% 0,60% 0,50% * 0,40% 0,30% 0,20% 0,10% 0,00% 1995 1996 1997 1998 1999 2000 National 5 Other Major Banks * * First nine months for other Banks 30
Slide 31: Credit Quality
Credit Quality General Reserve as a % of Risk Adjusted Assets 1,40% 1,20% 1,00% 0,80% * 0,60% 0,40% 0,20% 0,00% 1996 1997 1998 1999 2000 National 5 Other Major Banks * * First nine months for other Banks 31
Slide 32: Daily Value at Risk on Trading Operations
Millions $- $1,0 $2,0 $3,0 $4,0 $5,0 $6,0 $7,0 $8,0 $9,0 99-11-22 99-12-22 00-01-22 00-02-22 00-03-22 00-04-22 00-05-22 00-06-22 Value at Risk 00-07-22 Daily Value at Risk on Trading Operations 00-08-22 00-09-22 00-10-22 00-11-22 32
Slide 33: National Bank of Canada
NATIONAL BANK OF CANADA 33
National Bank of Canada — Q4 2000 Earnings Presentation on 6ix