Economic Forecasts and Performance Review
Canadian Banking
Margin expansion, strong deposit growth, positive operating leverage
YEAR-OVER-YEAR HIGHLIGHTS
Adjusted Net Income up 1%³
o Lower real estate gains reduced net income
growth by 2%
o Margin expansion. Higher PCLS
o Wealth Management earnings up 15%
Revenue up 4%
o Net interest income up 5%
$MM, except EPS
Q4/19
Y/Y
Q/Q
Reported
•
Net Income¹
$1,143
+3%
(1%)
Pre-Tax, Pre Provision Profit
$1,787
+5%
(1%)
Revenue
$3,566
+4%
+1%
Expenses
$1,779
+2%
+3%
PCLS
$247
+25%
+3%
Productivity Ratio
49.9%
(80 bps)
+110 bps
Net Interest Margin
2.47%
+2 bps
(2 bps)
PCL Ratio²
0.27%
+4 bps
•
PCL Ratio Impaired Loans²
0.28%
+6 bps
(1 bp)
Adjusted³
Net Income¹
$1,160
+1%
(1%)
Pre-Tax, Pre Provision Profit
$1,811
+4%
(1%)
•
Expenses
$1,755
+3%
+3%
Productivity Ratio
49.2%
(30 bps)
+90 bps
.
NIM up 2 bps
1,3
ADJUSTED NET INCOME¹³ ($MM) AND NIM (%)
2.45%
2.44%
2.46%
2.49%
2.47%
1,146
1,089
1,062
1,174
1,160
•
o Excluding M&A and IFRS 15, revenue was up 3%
Loan growth of 5%
o Residential mortgages up 5%; credit cards up 6%
o Business loans up 11%
Deposit growth of 9%
o Personal up 6%; Non-Personal up 16%
o Primarily driven by the impact of prior rate
increases
Expenses up 3%³
o Technology and regulatory initiatives
o Excluding M&A and IFRS15, expenses were up 2%
Quarterly operating leverage of +0.6%³; full-year
operating leverage flat³
Q2/19
Q3/19
Q4/19
•
PCL ratio² up 4 bps to 27 bps
2 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures
3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions
Q4/18
Q1/19
1 Attributable to equity holders of the Bank
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