National Bank Of Canada · TSX:NA

National Bank Of Canada — Morgan Stanley U.S. Financials Conference 2010

13 slides from National Bank Of Canada's conference presentation, Feb 3, 2010

  1. Slide 1: Morgan Stanley U.S. Financials Conference

    MORGAN STANLEY U.S. FINANCIALS CONFERENCE Patricia Curadeau-Grou Chief Financial Officer Executive Vice-President Finance, Risk and Treasury New York City February 3, 2010 CAUTION REGARDING FORWARD-LOOKING STATEMENTS Caution Regarding Forward-Looking Statements From time to time, National Bank of Ca

  2. Slide 2: Consistent Performer

    CONSISTENT PERFORMER CONSISTENT PERFORMANCE TOP-OF-CLASS RESULTS Excluding specified items, net of Innocap minority interest Total revenues ($M) Earnings per share ($) CAGR: 4.5% 4,218 4,311 CAGR: 16.2% 6.22 5.65 5.75 3,787 3,954 3,942 3,460 3,653 5.05 3,028 4.45 4.05 3.34 2.18 2002 2003 2004 2005 2

  3. Slide 3: Banner Year in 2009 / Leading Positions in Quebec

    BANNER YEAR IN 2009 Record earnings in difficult environment Ž Adjusted net earnings up 12%, EPS up 8% Ž ROE 19% Disciplined capital and risk management Ž Favourable loan loss experience relative to Canadian peers Ž Strong capital position, dividend maintained Resilient business model Ž Significant

  4. Slide 4: Diversified Business Mix (2009)

    DIVERSIFIED BUSINESS MIX (2009) REVENUES(1)(2) NET INCOME(2) (TEB) 10% 17% 51% 45% 45% 32% Personal and Commercial Banking Wealth Management Financial Markets 1. Adjusted for gains or losses attributable to third parties 2. Excluding specified items Morgan Stanley U.S. Financials Conference – Februa

  5. Slide 5: Supra-Regional Bank, Attractive Market

    GEOGRAPHIC REVENUE DISTRIBUTION (2009) REVENUES(1)(2) (TEB) Growth potential across Canada Ž Wealth management Ž Retail branch expansion 25% Ž Specific industry sectors 64% 11% Low risk international activities Ž Growing with our clients Rest of Canada Ž Canadian debt and equities Québec Internation

  6. Slide 6: Canadian Supra-Regional Bank / Quebec Economy

    CANADIAN SUPRA-REGIONAL BANK Ž SERVICING INTERNATIONALLY ACTIVE CLIENTS WORLD Ž OFFERING CANADIAN DEBT & EQUITY TO INSTITUTIONS Ž NICHE PLAYER Ž OUTSIDE QUEBEC: 107 BRANCHES, CANADA 113 ATMs, 24 BUSINESS CENTRES Ž FINANCIAL MARKETS (90 OFFICES) Ž 15,000 INDEPENDENT ADVISORS Ž #1 BANK IN CORE MARKET

  7. Slide 7: Quebec Economy: Diversified Export Base

    QUEBEC ECONOMY: DIVERSIFIED EXPORT BASE International merchandise exports, excluding re-exports Aluminum 11.1% Quebec well-diversified Other categories 29.9% Other primary metals Ž Merchandise exports of and metal ores $69.3 billion in 2008 11.0% Ž Merchandise exports account for 23% of Aerospace no

  8. Slide 8: Objectives

    OBJECTIVES Financial performance Mid-term Growth in diluted earnings per share (EPS) 5% — 10% Return on common shareholders’ equity (ROE) 15% — 20% Dividend payout ratio 40% — 50% Regulatory capital ratio Target Tier 1 capital ratio — Standardized approach Tier 1 capital ratio — Advanced approach Mo

  9. Slide 9: Personal and Commercial Banking / Wealth Management

    PERSONAL AND COMMERCIAL BANKING (millions of dollars) TEB Growth Strategy 2,294 2,192 2,232 2,092 Ž One client, one bank Ž Cross-selling Ž More client-facing 1,295 1,315 1,302 1,339 positions in branches Ž Emphasis on advice and integrated solutions 483 504 504 447 Ž Consistent brand experience for

  10. Slide 10: Financial Markets

    FINANCIAL MARKETS (millions of dollars) TEB Growth Strategy 1,431 Ž Focus on Canadian 1,202 mid-market companies 1,077 1,101 Ž Deploy risk management solutions 692 681 Ž Lead in structured 617 634 products 503 307 335 387 Ž Expand government financing (provincials and municipals) 2006 2007 2008 2009

  11. Slide 11: Global Portfolio Composition

    GLOBAL PORTFOLIO COMPOSITION BY BUSINESS SEGMENT BY INDUSTRY (Corporate & Commercial) Personal Other services banking 16% Primary sector 63% 21% Wholesale & retail 12% Construction Communication and 5% real estate 16% Commercial Manufacturing Transport banking Corporate 11% banking 5% 23% 14% Public

  12. Slide 12: Strong Coverage Ratio / Strong Capital Management

    STRONG COVERAGE RATIO (PPE/PCL) 10,000 12 National Bank outperforms 9,000 Canadian peers 8,000 10 Ž Best coverage ratio 7,000 6,000 8 Ž Best-in-class asset quality 5,000 6 Ž National Bank coverage 4,000 ratio for 2009 is 9.70x 3,000 4 Ž Average PPE/PCL for 2,000 Canadian peers for 2009 2 1,000 is 3.

  13. Slide 13: Key Takeaways

    KEY TAKEAWAYS Strong franchise with room for growth Consistent performer Disciplined risk management Ample capital to fund growth and sustain returns Morgan Stanley U.S. Financials Conference – February 2010 I 25 Investor Relations Financial analysts and investors who want to obtain financial inform

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