National Bank of Canada
February 28, 2024
Regulatory
Announcement
Q1 2024 Results
National Bank of Canada (the
"Bank") announces
publication of its First Quarter 2024 Release. The First Quarter
Results have been uploaded to the National Storage Mechanism and
will shortly be available at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
and is available on the Bank's website at
https://www.nbc.ca/about-us/investors/quarterly-results.html
To view the full PDF of this First
Quarter 2024 Release, please click on the following
link:
http://www.rns-pdf.londonstockexchange.com/rns/8177E_1-2024-2-28.pdf
National Bank reports its results for the First Quarter of
2024
The financial information reported
in this document is based on the unaudited interim condensed
consolidated financial statements for the quarter ended
January 31, 2024 and is prepared in accordance with
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), unless otherwise
indicated. IFRS represent Canadian generally accepted accounting
principles (GAAP). All amounts are presented in Canadian
dollars.
MONTREAL, February 28, 2024 -
For the first quarter of 2024, National Bank is reporting net
income of $922 million, up 5% from $876 million in the first
quarter of 2023. First-quarter diluted earnings per share stood at
$2.59 compared to $2.47 in the first quarter of 2023. These
increases were driven by total revenue growth in all of the
business segments as well as by the impact of the Canadian
government's 2022 tax measures on income taxes in the first quarter
of 2023. Excluding the impact of those measures, adjusted net
income(1) and adjusted diluted earnings per
share(1) both increased by 2% compared to the first
quarter of 2023.
"National Bank delivered strong performance and
excellent return on equity for the first quarter of 2024,
underpinned by sustained momentum and execution across our business
segments. These results reflect the earnings power of our
diversified business mix and relevance of our defensive posture,"
said Laurent Ferreira, President and Chief Executive Officer of
National Bank of Canada.
"Our effective capital deployment, active cost
management, and commitment to maintaining a prudent credit profile
are serving us well, particularly in an uncertain macroeconomic
environment. We enter the second quarter on solid footing,"
added Mr. Ferreira.
Highlights
|
(millions of Canadian
dollars)
|
|
|
Quarter
ended January 31
|
|
|
|
|
|
|
2024
|
|
|
|
2023(2)
|
|
|
%
Change
|
|
|
Net income
|
|
|
922
|
|
|
|
876
|
|
|
5
|
|
|
Diluted earnings per share
(dollars)
|
|
$
|
2.59
|
|
|
$
|
2.47
|
|
|
5
|
|
|
Income before provisions for credit
losses and income taxes
|
|
|
1,261
|
|
|
|
1,172
|
|
|
8
|
|
|
Return on common shareholders'
equity(3)
|
|
|
17.1
|
%
|
|
|
17.9
|
%
|
|
|
|
|
Dividend payout
ratio(3)
|
|
|
43.1
|
%
|
|
|
38.6
|
%
|
|
|
|
|
Operating results - Adjusted(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income - Adjusted
|
|
|
922
|
|
|
|
900
|
|
|
2
|
|
|
Diluted earnings per share -
Adjusted (dollars)
|
|
$
|
2.59
|
|
|
$
|
2.54
|
|
|
2
|
|
|
Income before provisions for credit
losses and income taxes - Adjusted
|
|
|
1,371
|
|
|
|
1,302
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
January 31,
2024
|
|
|
As
at
October
31, 2023
|
|
|
|
|
|
CET1 capital ratio under Basel
III(4)
|
|
|
13.1
|
%
|
|
|
13.5
|
%
|
|
|
|
|
Leverage ratio under Basel
III(4)
|
|
|
4.3
|
%
|
|
|
4.4
|
%
|
|
|
|
(1) See the Financial Reporting Method section on pages 3 and 4
for additional information on non-GAAP financial
measures.
(2) Certain amounts have been adjusted to reflect accounting
policy changes arising from the adoption of IFRS 17. For additional
information, see Note 2 to the unaudited interim condensed
consolidated financial statements in the
Report to
Shareholders - First
Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(3) For details on the composition of these measures, see the
Glossary section on pages 43 to 46 in the Report to Shareholders
-
First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(4)
For additional information on capital management
measures, see the Financial Reporting Method section on pages 4 to
8 in the Report to
Shareholders - First
Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Personal and Commercial
-
Net income totalled $339 million in the first
quarter of 2024 versus $326 million in the first quarter of 2023, a
4% increase that was driven by growth in total revenues, partly
offset by higher non-interest expenses and higher provisions for
credit losses.
-
Income before provisions for credit losses and income taxes
totalled $539 million in the first quarter of 2024, up 5% from $511
million in the first quarter of 2023.
-
At $1,154 million, first-quarter total revenues
rose $50 million or 5% year over year due mainly to an increase in
net interest income (driven by growth in loan and deposit volumes)
and to a higher net interest margin.
-
Compared to a year ago, personal lending grew 2% and
commercial lending grew 11%.
-
Net interest margin(1) stood at 2.36%
in the first quarter of 2024, up from 2.35% in the first quarter of
2023.
-
First-quarter non-interest expenses stood at $615
million, up 4% year over year.
-
First-quarter provisions for credit losses rose $10 million
year over year, mainly due to higher allowances for credit losses
on impaired loans.
-
At 53.3%, the efficiency ratio(1)
improved from 53.7% in the first quarter of 2023.
Wealth Management
-
Net income totalled $196 million in the first
quarter of 2024, down 1% from $198 million in the first quarter of
2023.
-
First-quarter total revenues amounted to $660
million compared to $637 million in first-quarter 2023, a $23
million or 4% increase driven essentially by growth in fee-based
revenues owing to strong stock market performance.
-
First-quarter non-interest expenses stood at $390
million, up 7% from $364 million in first-quarter 2023.
-
At 59.1%, the efficiency ratio(1)
compares to 57.1% in the first quarter of 2023.
Financial Markets
-
Net income totalled $308 million in the first
quarter of 2024, up 3% from $298 million in the first quarter of
2023.
-
First-quarter total revenues on a taxable
equivalent basis amounted to $755 million, up $66 million or 10%
given an increase in global markets revenues and an increase in
revenues from corporate and investment banking services.
-
First-quarter non-interest expenses stood at $313
million compared to $287 million in first-quarter 2023, an increase
that was partly due to compensation and employee benefits as well
as to the segment's technological investments.
-
Provisions for credit losses of $17 million were
recorded in the first quarter of 2024 compared to $9 million
in credit loss recoveries recorded in the first quarter of
2023.
-
At 41.5%, the efficiency ratio(1) on a
taxable equivalent basis improved from 41.7% in the first quarter
of 2023.
U.S. Specialty Finance and International
-
Net income totalled $150 million in the first
quarter of 2024 versus $147 million in the first quarter of
2023.
-
First-quarter total revenues amounted to $326
million, a 2% year-over-year increase that was essentially driven
by revenue growth at the ABA Bank subsidiary.
-
First-quarter non-interest expenses stood at $100
million, a 2% year-over-year increase attributable mainly to
business growth at ABA Bank.
-
Provisions for credit losses rose $1 million year
over year.
-
At 30.7%, the efficiency ratio(1) was
stable compared to the first quarter of 2023.
Other
-
There was a net loss of $71 million in the first
quarter of 2024 versus a net loss of $93 million in the first
quarter of 2023, a change arising from a $24 million income
tax expense related to the Canadian government's 2022 tax measures
recorded in the first quarter of 2023.
Capital Management
-
As at January 31, 2024, the Common Equity Tier 1
(CET1) capital ratio under Basel III(2) stood at 13.1%,
down from 13.5% as at October 31, 2023, notably due to a negative
impact of implementing revised market risk and credit valuation
adjustment (CVA) risk frameworks.
-
As at January 31, 2024, the Basel
III(2) leverage ratio was 4.3%, down from 4.4% as at
October 31, 2023.
Dividends
-
On February 27, 2024, the Board of Directors
declared regular dividends on the various series of first preferred
shares and a dividend of $1.06 per common share, payable
on May 1, 2024 to shareholders of record on March 25,
2024.
(1)
For details on the composition of these measures,
see the Glossary section on pages 43 to 46 in the Report to Shareholders
-
First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(2)
For additional information on capital management
measures, see the Financial Reporting Method section on pages 4 to
8 in the Report to
Shareholders - First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Financial Reporting Method
The Bank's consolidated financial statements
are prepared in accordance with IFRS, as issued by the IASB. The
financial statements also comply with section 308(4) of the
Bank Act (Canada), which
states that, except as otherwise specified by the
Office of the Superintendent of Financial Institutions
(Canada) (OSFI), the consolidated financial statements
are to be prepared in accordance with IFRS, which represent
Canadian GAAP. None of the OSFI accounting requirements are
exceptions to IFRS.
The presentation of segment disclosures is
consistent with the presentation adopted by the Bank for the fiscal
year beginning November 1, 2023. This presentation reflects the
retrospective application of accounting policy changes arising from
the adoption of IFRS 17 - Insurance Contracts (IFRS 17). For
additional information, see Note 2 to the unaudited interim
condensed consolidated financial statements in the Report to Shareholders - First Quarter
2024, which is available on the Bank's website at
nbc.ca or the SEDAR+ website at
sedarplus.ca. The figures for the 2023
quarters have been adjusted to reflect these accounting policy
changes.
Non-GAAP and Other Financial Measures
The Bank uses a number of financial
measures when assessing its results and measuring overall
performance. Some of these financial measures are not calculated in
accordance with GAAP. Regulation
52-112 Respecting Non-GAAP and Other Financial Measures
Disclosure (Regulation 52-112) prescribes disclosure
requirements that apply to the following measures used by the
Bank:
· non-GAAP financial measures;
· non-GAAP ratios;
· supplementary financial measures;
· capital management measures.
Non-GAAP
Financial Measures
The Bank uses non-GAAP financial measures that
do not have standardized meanings under GAAP and that therefore may
not be comparable to similar measures used by other companies.
Presenting non-GAAP financial measures helps readers to better
understand how management analyzes results, shows the impacts of
specified items on the results of the reported periods, and allows
readers to better assess results without the specified items if
they consider such items not to be reflective of the underlying
performance of the Bank's operations. In addition, the
Bank uses the taxable equivalent basis to calculate net interest
income, non-interest income, and income taxes. This calculation
method consists of grossing up certain revenues taxed at lower
rates (notably dividends) by the income tax to a level that would
make it comparable to revenues from taxable sources in Canada. An
equivalent amount is added to income taxes. This adjustment is
necessary in order to perform a uniform comparison of the return on
different assets, regardless of their tax treatment.
However, in light of the proposed legislation with respect to
Canadian dividends, the Bank did not either recognize an income tax
deduction or use the taxable equivalent basis method to adjust
revenues related to affected dividends received after January 1,
2024 (for additional information, see the Income Taxes
section in the Report to shareholders for the first
quarter of 2024, which is available on the Bank's website at
nbc.ca or the SEDAR+ website at
sedarplus.ca).
The key non-GAAP financial measures used by the
Bank to analyze its results are described below, and a quantitative
reconciliation of these measures is presented in the tables in the
Reconciliation of Non-GAAP Financial Measures section on page 4.
Note that no specified items have been excluded from results for
the quarter ended January 31, 2024. In the first quarter of 2023, a
$24 million tax expense related to the Canadian government's 2022
tax measures had been excluded from results given the one-time
nature of the item. This amount had included a $32 million tax
expense with respect to the Canada Recovery Dividend, i.e., a
one-time, 15% tax on the fiscal 2021 and 2020 average taxable
income above $1 billion as well as an $8 million tax recovery
related to the 1.5% increase in the statutory tax rate, which
included the impact related to current and deferred taxes for
fiscal 2022.
For additional information on non-GAAP financial
measures, non-GAAP ratios, supplementary financial measures, and
capital management measures, see the Financial Reporting Method
section and the Glossary section, on pages 4 to 8 and 43 to 46,
respectively, in the Report to shareholders for the first quarter
of 2024, which is available on the Bank's website at nbc.ca or the SEDAR+ website at sedarplus.ca.
Reconciliation of Non-GAAP Financial
Measures
Presentation
of Results - Adjusted
|
(millions of Canadian
dollars)
|
|
|
|
|
|
|
|
|
Quarter
ended January 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023(1)
|
|
|
|
|
Personal and
Commercial
|
|
Wealth
Management
|
|
Financial
Markets
|
|
USSF&I
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Total
|
|
|
Net interest income
|
870
|
|
198
|
|
(553)
|
|
301
|
|
(65)
|
|
751
|
|
1,099
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
35
|
|
−
|
|
2
|
|
37
|
|
78
|
|
|
Net
interest income - Adjusted
|
870
|
|
198
|
|
(518)
|
|
301
|
|
(63)
|
|
788
|
|
1,177
|
|
|
Non-interest income
|
284
|
|
462
|
|
1,200
|
|
25
|
|
(12)
|
|
1,959
|
|
1,463
|
|
|
Taxable equivalent
|
−
|
|
−
|
|
73
|
|
−
|
|
−
|
|
73
|
|
52
|
|
|
Non-interest income - Adjusted
|
284
|
|
462
|
|
1,273
|
|
25
|
|
(12)
|
|
2,032
|
|
1,515
|
|
|
Total revenues - Adjusted
|
1,154
|
|
660
|
|
755
|
|
326
|
|
(75)
|
|
2,820
|
|
2,692
|
|
|
Non-interest expenses
|
615
|
|
390
|
|
313
|
|
100
|
|
31
|
|
1,449
|
|
1,390
|
|
|
Income before provisions for credit losses and income taxes -
Adjusted
|
539
|
|
270
|
|
442
|
|
226
|
|
(106)
|
|
1,371
|
|
1,302
|
|
|
Provisions for credit losses
|
71
|
|
−
|
|
17
|
|
36
|
|
(4)
|
|
120
|
|
86
|
|
|
Income before income taxes - Adjusted
|
468
|
|
270
|
|
425
|
|
190
|
|
(102)
|
|
1,251
|
|
1,216
|
|
|
Income taxes
|
129
|
|
74
|
|
9
|
|
40
|
|
(33)
|
|
219
|
|
210
|
|
|
Taxable equivalent
|
−
|
|
−
|
|
108
|
|
−
|
|
2
|
|
110
|
|
130
|
|
|
Income taxes related to the Canadian
government's 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
tax
measures(3)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
(24)
|
|
|
Income taxes - Adjusted
|
129
|
|
74
|
|
117
|
|
40
|
|
(31)
|
|
329
|
|
316
|
|
|
Net
income - Adjusted
|
339
|
|
196
|
|
308
|
|
150
|
|
(71)
|
|
922
|
|
900
|
|
|
Specified items after income taxes
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
(24)
|
|
|
Net
income
|
339
|
|
196
|
|
308
|
|
150
|
|
(71)
|
|
922
|
|
876
|
|
|
Non-controlling interests
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to the Bank's
shareholders
and holders of other equity
instruments
|
339
|
|
196
|
|
308
|
|
150
|
|
(71)
|
|
922
|
|
876
|
|
|
Net
income attributable to the Bank's
shareholders
and holders of other equity instruments -
Adjusted
|
339
|
|
196
|
|
308
|
|
150
|
|
(71)
|
|
922
|
|
900
|
|
|
Dividends on preferred shares and
distributions on
limited recourse capital
notes
|
|
|
|
|
|
|
|
|
|
|
37
|
|
35
|
|
|
Net
income attributable to common shareholders -
Adjusted
|
|
|
|
|
|
|
|
|
|
|
885
|
|
865
|
|
(1)
Certain amounts have been adjusted to reflect
accounting policy changes arising from the adoption of IFRS 17 for
the quarter ended January 31, 2024. For additional information, see
Note 2 to the unaudited interim condensed consolidated financial
statements in the Report to Shareholders
-
First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(2)
In light of the proposed legislation with respect
to Canadian dividends, the Bank did not either recognize an income
tax deduction or use the taxable equivalent basis method to adjust
revenues related to affected dividends received after January 1,
2024 (for additional information, see the Income Taxes section in
the Report to
Shareholders - First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca).
(3)
During the quarter ended January 31, 2023, the
Bank recorded, in the Other heading segment results, a $32
million tax expense with respect to the Canada Recovery Dividend,
i.e., a one-time, 15% tax on the fiscal 2021 and 2020 average
taxable income above $1 billion as well as an $8 million tax
recovery related to the 1.5% increase in the statutory tax rate,
which included the impact related to current and deferred taxes for
fiscal 2022. For additional information on these tax measures, see
the Income Taxes section in the
Report to
Shareholders - First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Presentation of Basic and Diluted Earnings Per Share -
Adjusted
|
(Canadian dollars)
|
|
|
Quarter
ended January 31
|
|
|
|
|
|
2024
|
|
|
2023(1)
|
|
|
Basic earnings per share
|
|
$
|
2.61
|
|
$
|
2.49
|
|
|
Income taxes related to the Canadian
government's 2022 tax measures(2)
|
|
|
−
|
|
|
0.07
|
|
|
Basic earnings per share - Adjusted
|
|
$
|
2.61
|
|
$
|
2.56
|
|
|
Diluted earnings per share
|
|
$
|
2.59
|
|
$
|
2.47
|
|
|
Income taxes related to the Canadian
government's 2022 tax measures(2)
|
|
|
−
|
|
|
0.07
|
|
|
Diluted earnings per share - Adjusted
|
|
$
|
2.59
|
|
$
|
2.54
|
|
(1)
Certain amounts have been adjusted to reflect
accounting policy changes arising from the adoption of IFRS 17. For
additional information, see Note 2 to the unaudited interim
condensed consolidated financial statements in the Report to Shareholders
-
First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(2)
During the quarter ended January 31, 2023, the
Bank recorded, in the Other heading segment results, a $32
million tax expense with respect to the Canada Recovery Dividend,
i.e., a one-time, 15% tax on the fiscal 2021 and 2020 average
taxable income above $1 billion as well as an $8 million tax
recovery related to the 1.5% increase in the statutory tax rate,
which included the impact related to current and deferred taxes for
fiscal 2022. For additional information on these tax measures, see
the Income Taxes section in the Report to Shareholders
-
First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Highlights
|
(millions of Canadian dollars,
except per share amounts)
|
|
Quarter
ended January 31
|
|
|
|
|
|
2024
|
|
|
|
2023(1)
|
|
%
Change
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
2,710
|
|
|
|
2,562
|
|
6
|
|
|
Income before provisions for credit losses and income taxes
|
|
|
1,261
|
|
|
|
1,172
|
|
8
|
|
|
Net income
|
|
|
922
|
|
|
|
876
|
|
5
|
|
|
Return on common shareholders'
equity(2)
|
|
|
17.1
|
%
|
|
|
17.9
|
%
|
|
|
|
Operating
leverage(2)
|
|
|
1.6
|
%
|
|
|
(4.7)
|
%
|
|
|
|
Efficiency
ratio(2)
|
|
|
53.5
|
%
|
|
|
54.3
|
%
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.61
|
|
|
$
|
2.49
|
|
5
|
|
|
|
Diluted
|
|
$
|
2.59
|
|
|
$
|
2.47
|
|
5
|
|
|
Operating results - Adjusted(3)
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues -
Adjusted(3)
|
|
|
2,820
|
|
|
|
2,692
|
|
5
|
|
|
Income before provisions for credit
losses
and income taxes -
Adjusted(3)
|
|
|
1,371
|
|
|
|
1,302
|
|
5
|
|
|
Net income -
Adjusted(3)
|
|
|
922
|
|
|
|
900
|
|
2
|
|
|
Return on common shareholders'
equity - Adjusted(4)
|
|
|
17.1
|
%
|
|
|
18.4
|
%
|
|
|
|
Operating leverage -
Adjusted(4)
|
|
|
0.6
|
%
|
|
|
(2.2)
|
%
|
|
|
|
Efficiency ratio -
Adjusted(4)
|
|
|
51.4
|
%
|
|
|
51.6
|
%
|
|
|
|
Diluted earnings per share -
Adjusted(3)
|
|
$
|
2.59
|
|
|
$
|
2.54
|
|
2
|
|
|
Common share information
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
|
|
$
|
1.06
|
|
|
$
|
0.97
|
|
9
|
|
|
Book value(2)
|
|
$
|
61.18
|
|
|
$
|
55.76
|
|
|
|
|
Share price
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
103.38
|
|
|
$
|
99.95
|
|
|
|
|
|
Low
|
|
$
|
86.50
|
|
|
$
|
91.02
|
|
|
|
|
|
Close
|
|
$
|
102.83
|
|
|
$
|
99.95
|
|
|
|
|
Number of common shares (thousands)
|
|
|
339,166
|
|
|
|
337,318
|
|
|
|
|
Market capitalization
|
|
|
34,876
|
|
|
|
33,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
|
As at
January 31,
2024
|
|
|
As
at
October 31,
2023(1)
|
|
%
Change
|
|
|
Balance sheet and off-balance-sheet
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
433,927
|
|
|
423,477
|
|
2
|
|
|
Loans and acceptances, net of
allowances
|
|
230,157
|
|
|
225,443
|
|
2
|
|
|
Deposits
|
|
300,097
|
|
|
288,173
|
|
4
|
|
|
Equity attributable to common
shareholders
|
|
20,749
|
|
|
20,432
|
|
2
|
|
|
Assets under
administration(2)
|
|
712,488
|
|
|
652,631
|
|
9
|
|
|
Assets under
management(2)
|
|
132,822
|
|
|
120,858
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory ratios under Basel
III(5)
|
|
|
|
|
|
|
|
|
|
Capital ratios
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
(CET1)
|
|
13.1
|
%
|
|
13.5
|
%
|
|
|
|
|
Tier 1
|
|
15.5
|
%
|
|
16.0
|
%
|
|
|
|
|
Total
|
|
16.2
|
%
|
|
16.8
|
%
|
|
|
|
Leverage ratio
|
|
4.3
|
%
|
|
4.4
|
%
|
|
|
|
TLAC ratio(5)
|
|
28.1
|
%
|
|
29.2
|
%
|
|
|
|
TLAC leverage
ratio(5)
|
|
7.8
|
%
|
|
8.0
|
%
|
|
|
|
Liquidity coverage ratio
(LCR)(5)
|
|
145
|
%
|
|
155
|
%
|
|
|
|
Net stable funding ratio
(NSFR)(5)
|
|
117
|
%
|
|
118
|
%
|
|
|
|
Other information
|
|
|
|
|
|
|
|
|
|
Number of employees - Worldwide
(full-time equivalent)
|
|
28,730
|
|
|
28,916
|
|
(1)
|
|
|
Number of branches in
Canada
|
|
368
|
|
|
368
|
|
−
|
|
|
Number of banking machines in
Canada
|
|
945
|
|
|
944
|
|
−
|
|
(1)
Certain amounts have been adjusted to reflect
accounting policy changes arising from the adoption of IFRS 17. For
additional information, see Note 2 to the unaudited interim
condensed consolidated financial statements in the Report to Shareholders - First Quarter
2024, which is available on the Bank's website at
nbc.ca or the SEDAR+ website at
sedarplus.ca.
(2)
For details on the composition of these measures,
see the Glossary section on pages 43 to 46 in the Report to Shareholders
-
First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(3)
See the Financial Reporting Method section on
pages 3 and 4 for additional information on non-GAAP financial
measures.
(4)
For additional information on non-GAAP ratios, see
the Financial Reporting Method section on pages 4 to 8 in the
Report to
Shareholders - First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(5)
For additional information on capital management
measures, see the Financial Reporting Method section on pages 4 to
8 in the Report to
Shareholders - First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Caution Regarding Forward-Looking Statements
Certain statements in this document are
forward-looking statements. All such statements are made in
accordance with applicable securities legislation in Canada and the
United States. The forward-looking statements in this document may
include, but are not limited to, statements made about the economy,
market changes, the Bank's objectives, outlook, and priorities for
fiscal year 2024 and beyond, the strategies or actions that will be
taken to achieve them, expectations for the Bank's financial
condition, its activities, the regulatory environment in which it
operates, its environmental, social, and governance targets and
commitments, and certain risks to which the Bank is exposed. These
forward-looking statements are typically identified by verbs or
words such as "outlook", "believe", "foresee", "forecast",
"anticipate", "estimate", "project", "expect", "intend" and "plan",
in their future or conditional forms, notably verbs such as "will",
"may", "should", "could" or "would" as well as similar terms and
expressions.
Such forward-looking statements are made for
the purpose of assisting the holders of the Bank's securities in
understanding the Bank's financial position and results of
operations as at and for the periods ended on the dates presented,
as well as the Bank's vision, strategic objectives, and performance
targets, and may not be appropriate for other purposes. These
forward-looking statements are based on current expectations,
estimates, assumptions and intentions and are subject to
uncertainty and inherent risks, many of which are beyond the Bank's
control. There is a strong possibility that the Bank's express or
implied predictions, forecasts, projections, expectations, or
conclusions will not prove to be accurate, that its assumptions may
not be confirmed, and that its vision, strategic objectives, and
performance targets will not be achieved. The Bank cautions
investors that these forward-looking statements are not guarantees
of future performance and that actual events or results may differ
significantly from these statements due to a number of factors.
Thus, the Bank recommends that readers not place undue reliance on
these forward-looking statements, as a number of factors could
cause actual results to differ significantly from the expectations,
estimates, or intentions expressed in these forward-looking
statements. Investors and others who rely on the Bank's
forward-looking statements should carefully consider the factors
listed below as well as the uncertainties they represent and the
risk they entail. Except as required by law, the Bank does not
undertake to update any forward-looking statements, whether written
or oral, that may be made from time to time, by it or on its
behalf.
Assumptions about the performance of the
Canadian and U.S. economies in 2024 and how that performance will
affect the Bank's business are among the factors considered in
setting the Bank's strategic priorities and objectives, including
provisions for credit losses. These assumptions appear in the
Economic Review and Outlook section and, for each business segment,
in the Economic and Market Review sections of the 2023 Annual Report and in the Economic
Review and Outlook section of the Report to Shareholders for the first
quarter of 2024, and may be updated in the quarterly reports to
shareholders filed thereafter.
The forward-looking statements made in this
document are based on a number of assumptions and are subject to
risk factors, many of which are beyond the Bank's control and the
impacts of which are difficult to predict. These risk factors
include, among others, the general economic environment and
financial market conditions in Canada, the United States, and the
other countries where the Bank operates; the impact of upheavals in
the U.S. banking industry; exchange rate and interest rate
fluctuations; inflation; global supply chain disruptions; higher
funding costs and greater market volatility; changes made to
fiscal, monetary, and other public policies; changes made to
regulations that affect the Bank's business; geopolitical and
sociopolitical uncertainty; climate change, including physical
risks and those related to the transition to a low-carbon economy,
and the Bank's ability to satisfy stakeholder expectations on
environmental and social issues; significant changes in consumer
behaviour; the housing situation, real estate market, and household
indebtedness in Canada; the Bank's ability to achieve its key
short-term priorities and long-term strategies; the timely
development and launch of new products and services; the Bank's
ability to recruit and retain key personnel; technological
innovation, including advances in artificial intelligence and the
open banking system, and heightened competition from established
companies and from competitors offering non-traditional services;
changes in the performance and creditworthiness of the Bank's
clients and counterparties; the Bank's exposure to significant
regulatory matters or litigation; changes made to the accounting
policies used by the Bank to report financial information,
including the uncertainty inherent to assumptions and critical
accounting estimates; changes to tax legislation in the countries
where the Bank operates; changes made to capital and liquidity
guidelines as well as to the presentation and interpretation
thereof; changes to the credit ratings assigned to the Bank by
financial and extra-financial rating agencies; potential
disruptions to key suppliers of goods and services to the Bank; the
potential impacts of disruptions to the Bank's information
technology systems, including cyberattacks as well as identity
theft and theft of personal information; the risk of fraudulent
activity; and possible impacts of major events affecting the
economy, market conditions, or the Bank's outlook, including
international conflicts, natural disasters, public health crises,
and the measures taken in response to these events.
The foregoing list of risk factors is not
exhaustive, and the forward-looking statements made in this
document are also subject to credit risk, market risk, liquidity
and funding risk, operational risk, regulatory compliance risk,
reputation risk, strategic risk, and social and environmental risk
as well as certain emerging risks or risks deemed significant.
Additional information about these factors is provided in the Risk
Management section of the 2023
Annual Report and in the Risk Management section of the
Report to Shareholders for
the first quarter of 2024, and may be updated in the quarterly
reports to shareholders filed thereafter.
Disclosure of the First Quarter 2024 results
Conference Call
-
A conference call for analysts and institutional
investors will be held on Wednesday, February 28, 2024 at 1:00 p.m.
ET.
-
Access by telephone in listen-only mode:
1-800-806-5484 or 416-340-2217. The access code is
8438144#.
-
A recording of the conference call can be heard
until May 24, 2024 by dialing 1-800-408-3053 or 905-694-9451. The
access code is 8808810#.
Webcast
-
The conference call will be webcast live at
nbc.ca/investorrelations.
-
A recording of the webcast will also be available
on National Bank's website after the call.
Financial Documents
-
The Report to
Shareholders (which includes the quarterly consolidated
financial statements) is available at all times on National Bank's
website at nbc.ca/investorrelations.
-
The Report to
Shareholders, the Supplementary Financial Information,
the Supplementary Regulatory
Capital and Pillar 3 Disclosure, and a slide presentation
will be available on the Investor Relations page of National Bank's
website on the morning of the day of the
conference call.
For
more information
-
Marianne Ratté, Vice-President and Head - Investor Relations,
1-866-517-5455
-
Debby Cordeiro, Senior Vice-President - Communication, Public
Affairs and ESG, 514-412-0538
