Embracing Fintech
Canadian Banking
64%
Q3/22
Average
Loan Mix
$434Bn
Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to
over 10 million Retail, Small Business and Commercial Banking customers. It serves these customers through its network of 947
branches and 3,734 automated banking machines (ABMs), as well as online, mobile and telephone banking, and specialized sales
teams. Canadian Banking also provides an alternative self directed banking solution to over 2 million Tangerine Bank customers.
Business Mix
Retail
74%
Q3/22
Revenue
Mix
$3.1Bn
Residential
Mortgages
Strategic Focus
•
•
Growing Commercial Banking in select industries
(agriculture, health care & professionals, real estate and
technology)
Growing in under-represented provinces (BC and Quebec)
Financial Results
$MM
Q3/22
Y/Y
Q/Q
26%
16%
Business and
Government Loans
10%
8%
Auto
Reported
Business Banking
2% Other Personal
Credit Cards Loans
Net Income¹
$1,213
12%
3%
Pre-Tax, Pre Provision Profit²
$1,734
13%
10%
Reported Net Income¹ ($MM) and NIM4 (%)
Revenue
$3,119
12%
7%
2.23%
2.20%
2.19%
2.22%
2.29%
Expenses
$1,385
9%
5%
PCLS
$93
34%
nmf
1,079
1,238
1,201
1,179
1,213
Productivity Ratio³
44.4%
(90 bps)
(120 bps)
Net Interest Margin4
2.29%
6 bps
7 bps
PCL Ratio 3,5
Q3/21
Q4/21
Q1/22
Q2/22
Q3/22
9 bps
2 bps
10 bps
PCL Ratio on Impaired
13 bps
(1 bp)
Medium-Term Financial Objectives
Net Income Growth 1,4
Loans 3,5
Adjusted4
Productivity Ratio4
Target6
5%+
<44%
Positive
Net Income¹
$1,217
12%
3%
Pre-Tax, Pre Provision Profit
$1,739
13%
10%
Expenses
Productivity Ratio
$1,380
9%
5%
44.2%
(90 bps) (120 bps)
Operating Leverage4
1 Net income attributed to equity shareholders; 2 Pre-Tax, Pre-Provision Profit defined as revenues less expenses; 3 Refer to page 51 of the Management's Discussion & Analysis in the Bank's Third Quarter
2022 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; 4 Refer to non-GAAP
measures on page 4 of the Management's Discussion & Analysis in the Bank's Third Quarter 2022 Report to Shareholders, available on http://www.sedar.com; 5 Provision for credit losses on certain
assets-loans, acceptances and off-balance sheet exposures; 63-5 year target from 2020 Investor Day
22
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