Slide 1: Q4 2023 Conference Call Presentation
Q4 2023 Conference Call Presentation December 13, 2023 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
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 & Chief Executive Officer
4 David Taylor President & Chief Executive Officer
Slide 5: Q4 2023 Highlights
5 Q4 2023 Highlights 29% YoY growth in loan Realizing portfolio to record $3.85 B significant operating leverage inherent in Digital Banking model 30% YoY growth in Digital Banking efficiency POS Loans & Leases ratio at 45% Record revenue ROCE improved to 13.58% Record net interest income Record EPS
Slide 6: Q4 2023 Key Metrics & Highlights: Record Results
6 Q4 2023 Key Metrics & Highlights: Record Results Consolidated Digital Banking: Strong loan portfolio growth to YoY Sequential another record: $3.85B Total Revenue 20% 9% Net Income 94% 25% Record quarterly revenue, NII and EPS EPS 104% 24% Digital Banking Efficiency Ratio (ex. DRTC): 45% Net Inter
Slide 7: FY 2023 Key Metrics & Highlights: Record Results
7 FY 2023 Key Metrics & Highlights: Record Results Consolidated Digital Banking: Strong loan portfolio growth to YoY another record: $3.85B Total Revenue 32% Net Income 86% Record annual revenue, NII and EPS EPS 99% Digital Banking Efficiency Ratio (ex. DRTC): 43% Net Interest Margin 2 bps • YoY dec
Slide 8: Acquisition of OCC-Chartered, National US Bank
Acquisition of OCC-Chartered, National US Bank: 8 Transformational Next Step in Long-Term Growth Strategy June 2022: Definitive • Provides access to US deposits to fuel growth of the US Agreement to Acquire Receivable Purchase Program business (launched in US Minnesota-based Stearns following succes
Slide 9: Shawn Clarke, Chief Financial Officer
9 Shawn Clarke Chief Financial Officer
Slide 10: Q4 2023: Continued Strong Financial Performance
10 Q4 2023: Continued Strong Financial Performance Balance Sheet • Total loan portfolio expanded to another record balance At October 31 2023 2022 YoY Sequential • Book Value per Share Change Change increased as a function of Total Assets $4.20 B $3.27 B 29% 6% higher retained earnings (from Loan Po
Slide 11: Q4 2023: Consolidated Income Statement
Q4 2023: Continued Strong Financial Performance 11 Consolidated Consolidated Income Statement • Revenue growth driven by higher NII from Digital Banking operations due 3 Months Ended Year Ended mainly to strong POS portfolio growth October 31 October 31 • YoY revenue also benefitted from higher YoY
Slide 12: Digital Banking Operations – Record Loan Portfolio: $3.85 B
Q4 2023: Continued Strong Financial Performance 12 Digital Banking Operations – Record Loan Portfolio: $3.85 B Q3 2023 Q4 2023 Total: $3.66 B Total: $3.85 B Point-of-Sale Point-of-Sale Loans/ Leases Loans/ Leases $2.8B Public Sector/ $2.9B Public Sector/ 76% Other Financing 75% Other Financing $50M
Slide 13: Digital Banking Operations: Income Statement
Q4 2023: Continued Strong Financial Performance 13 Digital Banking Operations Digital Banking Operations: Income Statement 3 Months Ended Year Ended • NIM on loans dampened by higher October 31 October 31 rates paid on term deposits during YoY Seq the quarter and periodically during 2023 2022 2023 2
Slide 14: Cost of Funds
14 Cost of Funds Q4 2023 cost of funds: 3.86% Wealth Management (Personal Deposits) • Increased 141 bps (58%) vs Q4 2022 • Increased 24 bps (7%) vs Q3 2023 $2,914 Cost of funds was impacted by higher rates $2,059 paid on term deposits during the quarter $1,108 $1,203 $1,150 $1,052 $1,041 $960 $1,059
Slide 15: PCL as a % of Average Loans
15 Top Tier Asset Quality & Prudent Approach to Risk Mitigation Average Provision for Credit 0.12% Losses as a % of Average Loans PCL as a % of Average Loans 0.00% 0.08% (Trailing 12-Quarters) 0.06% 0.02% 0.02% 0.02% (0.01%) (0.02%) (0.02%) (0.02%) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 16: DRTC: Cybersecurity Services Income Statement
Q4 2023: Continued Strong Financial Performance 16 DRTC Cybersecurity Services (DBG): Income Statement • Revenue changes are a 3 Months function of engagement Year Ended Ended October 31 activity relative to October 31 comparable periods YoY Seq 2023 2022 2023 2022 Change Change Change • YoY increas
Slide 17: David Taylor, President & Chief Executive Officer
17 David Taylor President & Chief Executive Officer
Slide 18: Senior Management Strategic Realignment
18 Senior Management Strategic Realignment Shawn Clarke Chief Financial Officer to Chief Operating Officer (newly created) John Asma Treasurer to Chief Financial Officer Chintan Shah Assistant Treasurer to Treasurer Will enable the Bank to efficiently and effectively deploy its deep internal experti
Slide 19: Next Milestones: >$5B, >$6B
Capitalizing on the Significant Operating Leverage 19 in Our Core Digital Banking Operations Period of Investment in Future Growth Next Milestones 62% 55% 11.75% Total Assets 52% 50% >$5B 49% >$6B 47% 10.29% 8.89% 43% 8.50% 8.45% 6.61% 7.89% $4.20 Efficiency Ratio $3.27 $1.81 $1.94 $2.42 <40% <35% $
Slide 20: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659
Slide 21: Our Time Has Arrived!
21 Our Time Has Arrived! Follow us