Financial Health and Performance Overview
Q2 2023 Financial Performance
$MM, except EPS
Q2/23
Y/Y
Q/Q
Reported
Net Income
$2,159
(21%)
22%
•
Pre-Tax, Pre-Provision Profit¹
$3,353
(11%)
(5%)
•
Diluted EPS
$1.69
(22%)
24%
Revenue
$7,929
(1%)
•
Expenses
$4,576
10%
3%
Productivity Ratio²
57.7%
530 bps
180 bps
Net Interest Margin³
2.13%
(10 bps)
2 bps
PCL Ratio²
37 bps
24 bps
4 bps
PCL Ratio on Impaired Loans²
33 bps
9 bps
4 bps
Return on Equity2
12.3%
(390 bps)
240 bps
Return on Tangible Common Equity³
15.4%
(500 bps)
300 bps
•
Adjusted³
Net Income
$2,174
(21%)
(8%)
Pre-Tax, Pre-Provision Profit¹
$3,374
(11%)
(5%)
Diluted EPS
$1.70
(22%)
(8%)
Revenue
$7,929
(1%)
•
Expenses
$4,555
10%
3%
Productivity Ratio
57.5%
540 bps
180 bps
Return on Equity
12.4%
(400 bps)
(100 bps)
YEAR-OVER-YEAR HIGHLIGHTS
Diluted EPS down 22%
Adjusted pre-tax, pre-provision profit down 11%
Revenues flat
o Net interest income: Loan growth of 12% was offset by
lower margins
o Non-interest income: Higher banking revenues, fees
and commissions offset by challenging markets
impacting wealth revenues
NIM down 10 bps (Q/Q NIM improved 2 bps)
Expenses up 10% (up 3% Q/Q)
o Impacted by unfavourable FX translation, inflationary
adjustments, higher personnel and advertising costs
PCL ratio of 37 bps
o Performing PCL ratio of 4 bps
Deposits up $13 billion Q/Q5
Return on Tangible Common Equity
REPORTED NET INCOME YEAR-OVER-YEAR ($ MM)
15.4%
(500 bps)
(140 bps)
REPORTED NET INCOME 4 BY SEGMENT ($MM)
■Q2/22 Q2/23
2,747
-10%
(7)
(6)
332
2,159
(417)
(490)
-18%
+0%
-13%
1,179 1,060
642 642
407
353
488 401
Q2/22
Net Interest Non-Interest Non-Interest
Income
Income
PCLS
Taxes
Q2/23
Expenses
Global Wealth
Management
1 Pre-Tax, Pre-Provision Profit defined as revenues less expenses. See non-GAAP reconciliations beginning on slide 83; 2 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; 3 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; 4 Attributable to equity holders of the Bank;
5 Excludes Other segment
9
Canadian Banking
Global Banking and
Markets
International Banking
(Constant FX)View entire presentation