Slide 1: Q4 2021 Conference Call Presentation
Q4 2021 Conference Call Presentation December 1, 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: 45311522#
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 2021 Highlights
5 Record Results: Core Digital Banking operations delivered strong year-over-year growth Achieved another loan portfolio record: ~$2.1B Q4 2021 Initiated & expanded closed ecosystem testing on Digital Deposit Receipts Highlights Continued progress on execution of DRT Cyber growth strategy Completed
Slide 6: Record Results: Core Digital Banking Operations Delivered Strong Year-Over-Year Growth
Record Results: Core Digital Banking Operations Delivered 6 Strong Year-Over-Year Growth Q4 2021 Full Year 2021 YoY Sequential YoY Total Loans Total Loans 27% Total Revenue 33% 16% Total Revenue 21% Net Income 25% 9% Net Income 15% Cost of Funds 20 bps 10 bps Cost of Funds 36 bps Net Interest Margin
Slide 7: Momentum in Profitability and Long-Term Earnings Capacity
7 Momentum in Profitability and Long-Term Earnings Capacity 2021 Net Income: Growth since 2014 driven + 15% mainly by: • Lower cost of funds attributable largely to the introduction of $22.4M Insolvency Professional $18.1M $20.2M $19.4M deposits $15.9M • Launch of $8.2M $8.5M Point of Sale financing
Slide 8: Digital Deposit Receipts (DDRs): Significant Potential as an A-Rated-Bank-Issued Stablecoin
Digital Deposit Receipts (DDRs): Significant Potential as 8 an A-Rated-Bank-Issued Stablecoin • Commercial launch in partnership with Stablecorp • Represented 1:1 by fiat-currency deposits with the Bank • Highest level of stability and security amongst all digital currencies • Targeting commercial l
Slide 9: Executing on the DRT Cyber Growth Strategy: Multiple, Significant Growth Opportunities
Executing on the DRT Cyber Growth Strategy: 9 Multiple, Significant Growth Opportunities 1 2 3 Expand VersaVault® Continue to grow Develop and launch globally DBG business new complementary products/services 4 5 Acquisitions of Cross-sell and complementary up-sell products/services
Slide 10: Shawn Clarke, Chief Financial Officer
10 Shawn Clarke Chief Financial Officer
Slide 11: Q4 2021: Continued Strong Financial Performance
11 Q4 2021: Continued Strong Financial Performance Balance Sheet Increases in CET1 and Leverage Ratio Driven Primarily by: At October 31 2021 2020 Change • Issuance of the US$75 M principal in Total Assets $2.42 B $1.94 B +24% Subordinated Notes (C$92.1 million) in late Book Value per $11.61 $10.70
Slide 12: Record Loan Portfolio: $2.1B
12 Record Loan Portfolio: $2.1B Q3 2021 Q4 2021 Total: $1.95 B Total: $2.1 B Point-of-Sale Loans/ Point-of-Sale Loans/ Leases Leases Public Public Sector / $1.1B Sector / $1.3B Other Other 59% Financing 61% Financing $33M $981M $33M 2% Commercial 2% Commercial 51% Lending – $738M $712M Lending – $36
Slide 13: Q4 2021: Continued Strong Financial Performance
13 Q4 2021: Continued Strong Financial Performance Income Statement Strong Year-Over-Year & 3 Months Ended 12 Months Ended Sequential Growth in Key Metrics October 31 October 31 2021 2020 Change 2021 2020 Change vs Q4/20 vs Q3/21 Total Revenue $18.2M $13.7M +33% $65.4M $54.2M +21% Total Revenue 33%
Slide 14: Continued to Lower Cost of Funding
14 Continued to Lower Cost of Funding Personal Deposits Q4 2021 cost of funds: 1.31% • Decreased 10 bps (7%) vs Q3 2021 • Decreased 20 bps (13%) vs Q4 2020 $1,203M $1,150M $1,213M $1,108M $1,052M $1,041M $1,059M $960M Decreases primarily result of continued growth of Insolvency Professional deposits
Slide 15: PCL as a % of Average Loans
15 Top Tier Asset Quality & Prudent Approach to Risk Mitigation PCL as a % of Average Loans 0.12% 0.08% 0.06% 0.02% (0.01%) (0.02%) (0.02%) (0.02%) 2014 2015 2016 2017 2018 2019 2020 2021 VB PCLs
Slide 16: David Taylor, President & Chief Executive Officer
16 David Taylor President & Chief Executive Officer
Slide 17: Well Positioned for Acceleration of Our Growth
17 Well Positioned for Acceleration of Our Growth 1 2 3 Further Reduce Grow Loan Portfolio Pursue Accretive Acquisitions Cost of Funding via New Near-Term to Leverage Scalability of to Expand Net Interest Margin Opportunities and Existing Platform & Enter New Markets Offerings Expand insolvency depo
Slide 18: U.S. Point-of-Sale Financing Opportunity
18 U.S. Point-of-Sale Financing Opportunity A Largely Untapped Market Positioned for Growth U.S. Point-of-Sale Fintech Companies With a massive millennial consumer base and an impressive suite of digital offerings, Estimated size of the total point-of-sale market in the near term, fintechs are best
Slide 19: Q&A Session
Q&A Session Toll Free Dial In (Canada/US): 1 (888) 664-6392 Local Dial In: (416) 764-8659 Participant Passcode: 45311522#
Slide 20: Our Time Has Arrived!
20 Our Time Has Arrived! Follow us