Financial Performance and Digital Progress Update
Canadian Banking
$MM
Q4/23
Y/Y
Q/Q
Reported
Net Income¹
$810
(31%)
(24%)
Pre-Tax, Pre-Provision Profit²
$1,816
5%
3%
Revenue
$3,329
6%
4%
Expenses
$1,513
8%
4%
PCLS
$700
331%
129%
Productivity Ratio³
45.4%
80 bps
40 bps
Net Interest Margin²
2.47%
21 bps
12 bps
•
PCL Ratio³
63 bps
48 bps
36 bps
PCL Ratio on Impaired Loans³
26 bps
12 bps
3 bps
Adjusted²
Net Income¹
$810
(31%)
(24%)
Pre-Tax, Pre-Provision Profit
$1,816
4%
3%
•
Expenses
$1,513
9%
4%
Productivity Ratio 45.4%
100 bps
40 bps
REPORTED NET INCOME¹ ($MM) AND NIM²
2.26%
2.26%
2.30%
2.35%
2.47%
1,170
1,087
1,060
1,062
810
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Y/Y HIGHLIGHTS
Net income¹ down 31%
o Higher PCLs as a result of performing allowance
build and higher retail and commercial formations
Revenue up 6%
o Net interest income up 8%
■ Strong deposit growth, along with improved
margins
NIM up 21 bps (up 12 bps Q/Q)
o Higher loan margins and favourable changes in
business mix
Adjusted expenses up 9% (reported up 8%)
o Higher personnel costs
FY23 adjusted operating leverage of -2.5%
Loans in line with prior year
o Business loans up 11%
o Credit cards up 18%
o Residential mortgages down 4%
Deposit growth of 10%, primarily in term products
o Personal deposits up 11%
o Non-personal deposits up 9%
•
LDR5 of 125%, down 13%
1 Attributable to equity holders of the Bank
2 See non-GAAP reconciliations beginning on slide 43
3 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
4 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
5 This metric is calculated as Total Average Net Loans and Acceptances to Customers/Total Average Deposits of the business line
8View entire presentation