National Bank Of Canada · TSX:NA

National Bank Of Canada — Q4 2010 Earnings Presentation

20 slides from National Bank Of Canada's earnings presentation, Dec 1, 2010

  1. Slide 1: Analyst and Investor Presentation Q4 2010 Results Conference Call

    ANALYST AND INVESTOR PRESENTATION Q4 2010 RESULTS CONFERENCE CALL December 1, 2010 CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, National Bank of Canada (the Bank) makes written and oral forward-looking statements, such as those contained in the "Major Economic Trends and Outlook"

  2. Slide 2: Highlights

    HIGHLIGHTS ADJUSTED RESULTS Q4 2010 2010 Net Income $282M $1,084 Diluted EPS $1.63 $6.25 Provision for credit losses $37M or 24 bps $144M or 24 bps ROE 17.5% 17.7% Tier 1 ratio 14% Dividend payout: 38% 39% (trailing 4 quarters) WELL CAPITALIZED  Common share dividends: from $0.62 to $0.66, up 6% or

  3. Slide 3: Performance Snapshot

    PERFORMANCE SNAPSHOT (millions of dollars) Adjusted(2) Reported Q4 10 Q4 09 Change Q4 10 Q4 09 Change Q4 2010 vs. Q4 2009 (adjusted) (1) Revenues 1,087 1,081 1% 1,084 1,080 0%  Net income: up 16% mainly Expenses 692 699 (1%) 716 700 2% due to higher contributions from P&C and Wealth Net Income 282

  4. Slide 4: Well Diversified Business Mix

    WELL DIVERSIFIED BUSINESS MIX TEB 2010 vs. (2009) Q4 2010 vs. (Q4 2009) REVENUES(1)(2) 30% 30% (32%) (34%) 53% 53% (51%) (50%) 17% 17% (17%) (16%) NET INCOME(2) 41% 40% (46%) 50% (52%) 49% (44%) (38%) 9% 11% (10%) (9%) Personal and Commercial Banking Wealth Management Financial Markets (1) Adjusted

  5. Slide 5: Business Line Efficiency Ratio and Capital Management

    BUSINESS LINE EFFICIENCY RATIO TEB 80.1% 78.1% 76.4% Q4 2010 vs. Q4 2009 61.2% 62.2% 60.9% 58.8% 60.4%  Overall efficiency ratio 55.7% 55.5% 52.4% improved by 180 bps 43.5% (1) (1) Personal and Wealth Management Financial Markets NBFG Commercial Banking Q4 2009 Q3 2010 Q4 2010 (1) Excluding specifi

  6. Slide 6: Quarterly Tier 1 Evolution

    QUARTERLY TIER 1 EVOLUTION 0.45% 0.54% 13.99% 13.00% Tier 1 Q3 2010 Capital increase Change in RWA Tier 1 Q4 2010 NATIONAL BANK OF CANADA – December 1, 2010 I 11 RISK MANAGEMENT

  7. Slide 7: Global Portfolio Composition and Risk Provisioning

    GLOBAL PORTFOLIO COMPOSITION As at October 31, 2010 vs. (October 31, 2009) PER BUSINESS PER INDUSTRY SEGMENT (Corporate & Commercial) 18% 19% 25% (21%) (23%) (16%) 14% (12%) 15% (16%) 11% (14%) 64% (63%) 5% (5%) 5% (5%) 10% (11%) 14% (14%) Personal Banking Corporate Banking Primary sector Constructi

  8. Slide 8: Impaired Loans

    IMPAIRED LOANS (millions of dollars) 453 447 407 379 369 259 246 223 177 162 (107) $126 M(1) (199) (213) (233) (276) (267) Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Gross Impaired Loans Impaired Loans before general allowances Impaired Loans, net of specific and general allowances (1) Reclass of allowance on cr

  9. Slide 9: Market Risk Management and Business Segment Review

    SOUND MARKET RISK MANAGEMENT (millions of dollars) GLOBAL TRADING VAR(1) Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 $(5.8) $(5.7) $(6.1) $(6.9) $(7.2) (1) Excluding ABCP VAR NATIONAL BANK OF CANADA – December 1, 2010 I 17 BUSINESS SEGMENT REVIEW Jean Dagenais Senior Vice-President Finance, Taxation and Investor

  10. Slide 10: Personal and Commercial Banking Quarterly Results

    PERSONAL AND COMMERCIAL BANKING Quarterly Results (millions of dollars) TEB 162 Q4 2010 vs. Q4 2009 141 145 139  Revenues: up 6% due to strong 108 volume growth in loans and BAs 621 621 (+9%) 585 593 591  Net income: up 34 % 358 365  Net income before PCL: up 13% 337 335 346 Q4 2010 vs. Q3 2010 

  11. Slide 11: Personal and Commercial Banking Loans and Deposits

    PERSONAL AND COMMERCIAL BANKING Loans & BAs Evolution Average Monthly Volume (billions of dollars) 10% 46.0 41.8 10% 17.1 15.5 Personal Commercial October 2009 October 2010 NATIONAL BANK OF CANADA – December 1, 2010 I 21 PERSONAL AND COMMERCIAL BANKING Deposits Average Monthly Volume (billions of do

  12. Slide 12: Personal and Commercial Banking Margin Evolution and Results

    PERSONAL AND COMMERCIAL BANKING Margin Evolution 2.52% 2.49% 2.48% 2.46% 2.46% Q4 2010 vs. Q3 2010  Loan margins are stable 1.76% 1.76% 1.72% 1.72%  Higher deposit margins 1.66% due to yield curve 1.25% 1.23% 1.29% 1.21% 1.18% Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 P&C Loans Deposits NATIONAL BANK OF CANAD

  13. Slide 13: Personal and Commercial Banking Key Takeaways; Wealth Management

    PERSONAL AND COMMERCIAL BANKING Key Takeaways  Good volume growth in Personal and Commercial Banking  Efficiency ratio improved 240 bps from Q4 2009 to Q4 2010  Good momentum in the one client, one bank program  Q4 2010: 14 branch projects, including 3 new branches  Fiscal 2011: 59 branch proje

  14. Slide 14: Wealth Management Revenues and Assets

    WEALTH MANAGEMENT Revenues Breakdown (millions of dollars) TEB Q4 2010 vs. Q4 2009 193 194 195 191 187 26 25 24 30  NII: up $4 million or 15% 29 due to higher interest rate  Fee-based revenues: up 96 98 98 101 $5M or 5% due to higher 98 markets  Transaction revenues: down $5M or 7% due to some pr

  15. Slide 15: Wealth Management Results and Key Takeaways

    WEALTH MANAGEMENT RESULTS(1) (millions of dollars) TEB 113 112 2010 vs. 2009  Gaining momentum in 757 769 second half 602  Increasing AUM and AUA 588  Good expense control 2009 2010 Revenues Expenses Net Income (1) Excluding specified items NATIONAL BANK OF CANADA – December 1, 2010 I 29 WEALTH M

  16. Slide 16: Financial Markets Quarterly Results and Revenues

    FINANCIAL MARKETS Quarterly Results(1) (millions of dollars) TEB 147 144 125 119 98 400 371 345 349 319 174 177 183 160 165 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Revenues Expenses Net Income (1) Excluding specified items and adjusted for gains or losses attributable to third parties NATIONAL BANK OF CANADA

  17. Slide 17: Financial Markets Trading Revenues and Results

    FINANCIAL MARKETS Trading Revenues Breakdown(1) (millions of dollars) TEB 196 18 Q4 2010 150 148 141  All sub sectors up QoQ 24 110 28 22  Large part of trading revenues coming from 68 45 88 46 client facing activities. 11  Proprietary trading: $9M 40 68 75 73 58 37 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

  18. Slide 18: Financial Markets Key Takeaways; Positioned for Growth

    FINANCIAL MARKETS Key Takeaways  Continued strong performance in Government and Corporate debt underwriting  Good activity in risk management products with clients  Vast majority of trading revenues were from client facing activities  Good momentum in M&A activity  Rigorous cost management  Fo

  19. Slide 19: Appendix: Detail of Specified Items

    APPENDIX 1 │ DETAIL OF SPECIFIED ITEMS (millions of dollars) Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Projects write-off (54) - - - - - - - - Write-off - - - - - - - - (2) Restructuration charge (66) - - - - - - - (22) Income taxes 40 - - - - 25 - - 32 Net Income (80) - - - - 25 - - 8 E

  20. Slide 20: 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: investorrelations

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