Financial Health and Performance Overview
Canadian Banking
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 943 branches and 3,716
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%
Q2/23
Revenue
63%
Q2/23
Average
Residential
Mortgages
STRATEGIC FOCUS
Growing Commercial Banking in select industries (agriculture,
healthcare & professionals, real estate and technology)
Growing in under-represented provinces (BC and Quebec)
Loans6
$3.1Bn
$447Bn
FINANCIAL RESULTS ($MM)
26%
Credit Cards 2% 8%
17%
Business
Other Personal
Business Banking
11%
Auto
$MM
Q2/23
Y/Y
Q/Q
Reported
Net Income¹
$1,060
(10%)
(2%)
REPORTED NET INCOME1 ($MM) AND NIM 4 (%)
Pre-Tax, Pre-Provision Profit²
$1,677
6%
(2%)
Revenue
$3,134
8%
(1%)
2.22%
2.29%
2.26%
2.26%
2.30%
Expenses
$1,457
10%
1%
PCLS
$218
nmf
1,179
1,213
1,170
1,087
1,060
Productivity Ratio³
46.5%
90 bps
70 bps
Net Interest Margin4
2.30%
8 bps
4 bps
PCL Ratio³
20 bps
21 bps
1 bp
Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
PCL Ratio on Impaired Loans³
21 bps
8 bps
4 bps
MEDIUM-TERM FINANCIAL OBJECTIVES 5
Adjusted4
Net Income¹
$1,061
(10%)
(3%)
Net Income Growth 1,3
5%+
Productivity Ratio³
<44%
Positive
Pre-Tax, Pre-Provision Profit²
Expenses
Productivity Ratio
$1,678
6%
(2%)
$1,456
10%
1%
46.4%
100 bps
60 bps
Operating Leverage³
1 Net income attributed to equity shareholders; 2 Pre-Tax, Pre-Provision Profit defined as revenues less expenses. See non-GAAP reconciliations beginning on slide 83; 3 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; 4 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; 5 3-5 year
target from 2020 Investor Day; 6 May not add due to rounding
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