Financial Performance and Digital Progress Update
Q4 2023 Financial Performance
$MM, except EPS
Reported
Q4/23
Y/Y
Q/Q
Net Income
$1,385 (34%)
(37%)
Pre-Tax, Pre-Provision Profit¹
$2,779
(10%)
(21%)
Diluted EPS
$1.02
(37%)
(41%)
Revenue
$8,308
9%
3%
•
Expenses
$5,529
22%
21%
Productivity Ratio²
66.5%
710 bps
1,010 bps
Net Interest Margin³
2.16%
(2 bps)
6 bps
PCL Ratio²
65 bps
37 bps
23 bps
PCL Ratio on Impaired Loans²
42 bps
16 bps
4 bps
Return on Equity²
7.2%
(470 bps) (490 bps)
•
Return on Tangible Common Equity³
9.0%
(600 bps) (610 bps)
Adjusted³
Net Income
$1,674
(36%) (25%)
•
Pre-Tax, Pre-Provision Profit¹
$3,218
(13%) (9%)
Diluted EPS
$1.26
(39%)
(27%)
Revenue
Expenses
$7,941
(1%)
(2%)
$4,723
10%
4%
•
Productivity Ratio
59.5%
580 bps 340 bps
Return on Equity
8.9%
Return on Tangible Common Equity 11.0%
(610 bps) (330 bps)
(780 bps) (410 bps)
REPORTED NET INCOME Y/Y ($MM)
Y/Y HIGHLIGHTS
Adjusted diluted EPS down 39% (reported down 37%)
o Higher PCLS and expenses as well as lower non-interest
revenue, offset by lower taxes
Adjusted revenues down 1% (reported up 9%)
o Net interest income up 1%
o Adjusted non-interest income down 3%; lower trading
revenues and investment gains
Reported up 21%; includes the impact of
divestitures
Adjusted expenses up 10%
o Reported up 22%; impacted by the Q4 items of note³
NIM down 2 bps (up 6 bps Q/Q)
PCL ratio of 65 bps
o Performing PCL ratio of 23 bps
Loans up 2% (down 1% Q/Q)
Deposits up 8% (up 2% Q/Q)5
LDR6 of 110%, down 6%
REPORTED NET INCOME 4 BY SEGMENT ($ MM)
632
(31%)
■Q4/22 Q4/23
2,093
50
337
(1,000)
1,385
(14%)
(13%)
1,170
(9%)
(727)
810
643
361
327
484 414
562
Q4/22
Net Interest
Income
Non-Interest
Income
Non-Interest
Expenses
PCLS
Taxes
Q4/23
1 See non-GAAP reconciliations beginning on slide 43
Canadian Banking
Global Wealth
Management
Global Banking and International Banking
Markets
2 Refer to page 136 of the Management's Discussion & Analysis in the Bank's 2023 Annual Report, available on http://www.sedarplus.ca, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto
3 Refer to non-GAAP measures on page 20 of the Management's Discussion & Analysis in the Bank's 2023 Annual Report, available on http://www.sedarplus.ca
4 Attributable to equity holders of the Bank
5 Excludes Other segment
6 This metric is calculated as Total Average Net Loans and Acceptances to Customers/Total Deposits of Canadian Banking, International Banking (Reported FX), Global Wealth Management, and Global Banking and Markets
6View entire presentation