Financial Health and Performance Overview slide image

Financial Health and Performance Overview

Global Banking and Markets Global Banking and Markets (GBM) provides corporate clients with lending and transaction services, investment banking advice and access to capital markets. GBM is a full-service wholesale bank in the Americas, with operations in 21 countries, serving clients across Canada, the United States, Latin America, Europe and Asia-Pacific. BUSINESS MIX Asia 3% Canada Europe 6% Global Business Banking • 48% Equities 14% 59% Q2/23 Revenue¹ Q2/23 Revenue $1.4Bn $1.4Bn 26% 43% US FICC NET INCOME 2 ($MM) AND ROE5 (%) STRATEGIC FOCUS Executing a consistent strategy to be a top wholesale Bank in the Americas, that is focused on Geography, Client and Product Leverage strong balance sheet to support corporate lending and asset growth across the America's footprint to win increased financing business Well positioned to leverage the Bank's unique geographic footprint across the Americas to serve it's cross-border clients in Canada, US and LatAm FINANCIAL RESULTS ($MM) 15.6% 13.4% 13.2% $MM Q2/23 Y/Y Q/Q 11.1% 10.5% Reported Net Income² $401 (18%) (23%) 488 484 519 378 401 Pre-Tax, Pre-Provision Profit³ $600 (1%) (18%) Revenue $1,352 7% (10%) Expenses $752 15% (3%) Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 PCLs $53 nmf nmf MEDIUM-TERM FINANCIAL OBJECTIVES Productivity Ratio4 55.6% 390 bps 420 bps PCL Ratio4 15 bps 31 bps 11 bps PCL Ratio Impaired Loans4 1 bp Net Income Growth 2,4 Productivity Ratio4 Operating Leverage4 ~5% ~50% Positive 1 May not add due to rounding; 2 Attributable to equity holders of the Bank; 3 Pre-Tax, Pre-Provision Profit defined as revenues less expenses; See non-GAAP reconciliations beginning on slide 83; 4 Refer to page 54 of the Management's Discussion & Analysis in the Bank's Second Quarter 2023 Report to Shareholders, available on http://www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto; 5 Refer to non-GAAP measures on page 4 of the Management's Discussion & Analysis in the Bank's Second Quarter 2023 Report to Shareholders, available on http://www.sedar.com; 42
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