Mobilizing Finance for ESG Initiatives and Economic Resilience slide image

Mobilizing Finance for ESG Initiatives and Economic Resilience

Canadian Banking Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to over 11 million Retail, Small Business and Commercial Banking customers. Canadian Banking also provides an alternative self-directed banking solution to over 2 million Tangerine Bank customers. Business Mix Retail 66% Residential Mortgages 64% Financial Results $MM Q3/21 Y/Y Q/Q Revenue Average Reported Mix 1,2 $2.8B 34% Business Banking Loan Mix¹ $381B 11% 14% Auto Business and 9% Government Loans 2% Other Personal Credit Cards Loans Net Income³ $1,079 152% 16% Pre-Tax, Pre Provision Profit $1,528 15% 10% Revenue² $2,795 12% 7% Expenses² $1,267 8% 3% PCLS $69 (91%) (52%) Adjusted Net Income 3, 4 ($MM) and NIM5 (%) Productivity Ratio 45.3% (160 bps) (150 bps) 2.26% 2.26% 2.26% 2.26% 2.23% Net Interest Margin5 2.23% (3 bps) (3 bps) PCL Ratio6 0.07% (78 bps) (9 bps) 782 915 931 1,083 433 PCL Ratio on Impaired Loans Adjusted4 0.14% (22 bps) (13 bps) Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Net Income³ $1,083 150% 16% Medium-Term Financial Objectives Net Income Growth³ Target7 5%+ Pre-Tax, Pre Provision Profit Expenses Productivity Ratio $1,533 15% 9% $1,262 8% 3% 45.1% (160 bps) (150 bps) Productivity Ratio Operating Leverage <44% Positive 1 For the three months ended July 31, 2021; 2Reflects the adoption of leases accounting standards, IFRS16; 3 Net income attributed to equity shareholders; 4 Refer to Non-GAAP Measures on slide 80 for adjusted results. 5 Net Interest Margin is on a reported basis; 6 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures; 73-5 year target from 2020 Investor Day 22 22
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