National Bank Of Canada · TSX:NA

National Bank Of Canada — Q2 2006 Earnings Presentation

14 slides from National Bank Of Canada's earnings presentation, May 25, 2006

  1. Slide 1: Analyst and Investor Presentation: Second Quarter 2006 Highlights

    Analyst and Investor Presentation Q2 2006 Results Conference Call Montreal, May 25, 2006 Second Quarter 2006 - Highlights ƒ Total revenues (1) increased by 3% (YoY) ƒ Net income (1) stood at $209M, up 9% (YoY) ƒ Diluted EPS (1) reached $1.23, a 14% increase (YoY) ƒ ROE at 20%, exceeding financial ta

  2. Slide 2: 2006 Objectives and Performance Snapshot

    2006 Objectives 2006 Objectives Q2 06 YTD (1) Growth in diluted earnings per share 5% to 10% 14% 8% Return on common shareholders' equity 16% to 18% 20% 20% Equal or greater Tier 1 capital ratio than 8.5% 9.1% 9.1% (2) Dividend payout ratio 35% to 45% 37% 37% (1) 2006 objectives exclude the gain on

  3. Slide 3: Dividend Per Share and Revenues

    Dividend Per Share Quarterly Growth for shareholders 0.50 0.48 0.48 Dividend increase of 4% 0.44 0.44 ƒ $0.50 per share in Q3 0.42 2006 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Share Buy Back Program Annual ƒ 2.7M shares $1.72 repurchased in Q2 $1.42 2006, totaling $168 M $1.08 $0.93 $0.82 2001 2002 2003

  4. Slide 4: Personal and Commercial Banking – Quarterly and YTD

    Personal and Commercial Banking – Quarterly Q2 2006 - YoY: TEB (millions of dollars) ƒ Net income up 6% 116 114 110 111 105 Driven by : 525 528 529 520 493 ƒ 5% increase in 311 324 324 326 320 revenues attributed to higher volume in P&C Banking Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 ƒ Solid insurance activit

  5. Slide 5: P&C Revenue Composition and Volume Evolution

    P&C Revenue Composition Q2 2006 - YoY: TEB (millions of dollars) All sectors contributing to growth: 525 528 529 520 493 182 181 182 ƒ Retail banking: 6% 171 177 26 29 ƒ Commercial banking: 4% 23 29 30 65 69 70 70 66 ƒ Insurance: 30% 248 248 247 ƒ Credits cards: 2% 234 248 Q2 05 Q3 05 Q4 05 Q1 06 Q2

  6. Slide 6: P&C Loan Evolution and Margin Evolution

    P&C Loan Evolution Highlights - YoY: Quarterly average volume growth, Q2 2005 = 100 (millions of dollars) ƒ 22% increase in consumers loans 22% ƒ Mortgage loans kept 10% momentum at 5% 5% 5% ƒ Commercial loans up Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 10% Personal Mortgage Loans Pers. Loans excl. Indirect Lo

  7. Slide 7: Wealth Management – Quarterly and YTD

    Wealth Management – Quarterly TEB Q2 2006 – YoY: (millions of dollars) ƒ Net income up 40%, 23% excluding gain 42 38 30 29 ƒ 7% revenue growth 26 230 mainly due to stronger 207 199 205 214 contributions from 165 160 150 160 155 mutual funds and segregated management ƒ Improved efficiency ratio in al

  8. Slide 8: Wealth Management Revenue and Assets Under Management Composition

    Wealth Management Revenue Composition Q2 2006 - YoY: TEB ƒ Overall, 11% increase (millions of dollars) 230 214 207 205 32 199 21 23 21 24 ƒ Growth in all sub-sectors: 48 42 46 49 42 ƒ Brokerage activity: 4% ƒ Mutual Funds: 14% 144 138 141 150 134 ƒ Segregated and private inv. mgmt: 10% (1) Q2 05 Q3

  9. Slide 9: Financial Markets – Quarterly and YTD

    Financial Markets – Quarterly Q2 2006 - YoY: TEB ƒ Net income decrease (millions of dollars) 82 of 3% 61 58 59 49 277 245 228 235 237 ƒ Lower Expenses 150 151 151 140 142 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Revenues Expenses Net Income Q2 2006 Results Conference Call YOUR TRUSTED PARTNER today and tomorro

  10. Slide 10: Financial Markets Revenue Composition and Trading Revenue Breakdown

    Financial Markets Revenue Composition Q2 2006 - YoY: TEB ƒ Lower capital markets (millions of dollars) 277 due to lower contribution 245 228 235 37 237 from managed retail 29 20 21 14 18 7 42 products 31 66 73 88 65 65 12 16 10 ƒ Good trading revenues 5 25 8 36 33 34 29 75 107 90 83 ƒ Unrealized gai

  11. Slide 11: Global Portfolio Composition and Risk Provisioning

    Global Portfolio Composition Highlights: As at March 31, 2006 Outstanding ƒ Retail banking Personal loans Corporate Banking Commercial Banking Mortgages Credit cards represents 66% of total 3% portfolio 26% 37% 7% 27% Adjusted for securitization Q2 2006 Results Conference Call YOUR TRUSTED PARTNER t

  12. Slide 12: Impaired Loans and Impaired Loan Formation

    Impaired Loans Highlights: 7.4% 7.0% 6.8% 6.8% 6.4% 271 261 260 259 242 ƒ Continued decrease in gross impaired loans: 119 down 11% YoY 114 117 113 111 ƒ Best ever ratio at 6.4% Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 (191) (195) (197) (214) (219) Gross impaired loans Net impaired before general allowance Net

  13. Slide 13: Summary and Daily Trading P/L – Q2 2006

    13 25 26 ƒ Good performance in P&C Banking and 28-Apr ƒ In line to achieve our financial targets 27-Apr 26-Apr 25-Apr 24-Apr 21-Apr 20-Apr 19-Apr 18-Apr 17-Apr 13-Apr 12-Apr Delivering another strong quarter 11-Apr 10-Apr 07-Apr 06-Apr 05-Apr 04-Apr 03-Apr 31-Mar 30-Mar 29-Mar 28-Mar 27-Mar 24-Mar t

  14. Slide 14: Investor Relations and Caution Regarding Forward-Looking Statements

    Investor Relations: 514-394-0296 www.bnc.ca/investorrelations investorrelations@nbc.ca CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, National Bank of Canada makes written and oral forward-looking statements, included in this Investor Presentation, in other filings with Canadian reg

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