Slide 1: Q2 2021 Conference Call Presentation
Q2 2021 Conference Call Presentation May 27, 2021 Follow us
Slide 2: Post Conference Call Q&A
2 Post Conference Call Q&A For those wishing to ask questions during the Q&A, please access today’s call through the telephone dial-in: Toll-free: 1 (888) 664-6392 (Canada/US) Local: (416) 764-8659 Passcode: 57545890#
Slide 3: Advisory
3 Advisory The Bank occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, annual reports and other disclosure documents an
Slide 4: David Taylor, President & CEO
4 David Taylor President & CEO
Slide 5: Q2 2021 Highlights
5 Continued Momentum: Core Banking operations delivered a number of record results Q2 2021 Record net income1 Highlights Record assets & loan portfolio Strong growth from Digital Boundary Group 1. Excluding an $8.8 million one-time, non-cash gain resulting from the recognition of a Deferred Tax Asse
Slide 6: Q2 2021: Continued Strong Financial Performance
6 Q2 2021: Continued Strong Financial Performance Income Statement Strong sequential improvement in all key 3 Months Ended metrics as the Bank continued to deploy April 30 cash to its lending portfolios 2021 2020 Change Revenue $16.0 M $14.5M +10% vs Q1/21 Cost of Funding 1.28% 1.75% -47 bps Net int
Slide 7: Q2 2021: Continued Strong Financial Performance
7 Q2 2021: Continued Strong Financial Performance Balance Sheet Cash balance at end of Q2/21 At April 30 increased to $272 M from $212 M 2021 2020 Change at the end of Q1/21 Total Assets $2.14 B $1.97 B +9% Q2/21 cash balance includes $73 M in Book Value per $11.06 $10.37 +7% Common Share net procee
Slide 8: Industry Leading Provision for Credit Losses (PCLs)
8 Industry Leading Provision for Credit Losses (PCLs) Q1 2021: Continued Low PCLs as a % of Average Loans 1.42% PCL as a % of Average 0.60% Loans 0.32% 0.29% 0.35% 0.30% 0.32% 0.35% 0.40% 0.20% 0.08% 0.12% 0.06% -0.01% 0.02% -0.02% 0.12% 0.01% -0.01% -0.07% -0.14% 2014 2015 2016 2017 2018 2019 Q2'20
Slide 9: Continued to Lower Cost of Funding
9 Continued to Lower Cost of Funding • Continued strategic shift of deposit mix to Personal Deposits lower cost deposits • Reducing higher cost personal deposits • Increasing lower cost commercial deposits $1,098M $1,203M $1,150M $1,052M $1,041M $960M $1,059M $1,141M $1,120M 2014 2015 2016 2017 2018
Slide 10: Record Loan Portfolio: $1.82 B
10 Record Loan Portfolio: $1.82 B Q1 2021 Q2 2021 Total: $1.79 B Total: $1.82 B Point-of-Sale Loans/ Point-of-Sale Loans/ Leases Leases Public Public Sector Sector / / Other $1.0B Other $1.1B Financing Financing 58% 56% $37M $35M $981M 2% 2% Commercial Commercial 51% Lending – $712M Lending – $365M
Slide 11: Investment Grade Credit Ratings
11 Investment Grade Credit Ratings Issuer Rating • “A” issuer rating is comparable to that of several of the “Big Six” Canadian Schedule I A banks • Affirmation of the Bank’s low-risk digital banking model Sub Debt Rating (up to US$100) • Transformational: Will significantly expand universe of depos
Slide 12: Digital Boundary Group: Net Income Increased >60% YoY for 5-Month Period Since Acquisition
Digital Boundary Group: Net Income Increased 12 >60% YoY for 5-Month Period Since Acquisition DBG: One of North America’s premiere IT security assurance services firms • Suite of services: • External network, web and mobile app penetration testing • Physical social engineering engagements • Supervis
Slide 13: VCAD: A Revolutionary, Highly-Encrypted Digital Deposit Offering
VCAD: A Revolutionary, Highly-Encrypted Digital 13 Deposit Offering • Natural evolution of our current digital deposit offerings • Represented by a CAD$1 deposit with the bank • Facilitated by state-of-the-art blockchain technology • Easily transferable: Could potentially be used as a digital curren
Slide 14: Momentum for the Future with Two High-Growth Opportunities
Momentum for the Future with Two 14 High-Growth Opportunities Digital banking operations setting new records • Continue to deploy cash to meet demand in the Commercial Real Estate portfolio and the Point-of-Sale Finance portfolio • Launch instant mortgage for the $200 billion Canadian home financing
Slide 15: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659 Participant Passcode: 57545890#
Slide 16: We're Just Getting Started!
16 We’re Just Getting Started! Follow us