Canadian Retail: Loans and Provisions Financial Overview
Canadian Banking
Top 3 bank in personal & commercial banking in Canada
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. Through Tangerine, Canadian Banking also provides digital
banking solutions to over 2 million customers.
Business Mix
Retail
67%
Residential
Mortgages
63%
Financial Results
$MM
FY/20 FY/FY
Revenue
Mix 1,2
$2.6B
33%
Average
Loan Mix¹
$360B
12%
14%
Auto
Business and
2% 9%
Reported
Business Banking
Government Loans Credit Other Personal
Cards
Adjusted Net Income³ ($MM) and NIM4 (%)
Loans
Net Income³ $2,536 (27%)
Pre-Tax, Pre Provision Profit $5,488 (4%)
Revenue $10,299 (2%)
Expenses $4,811
+1%
PCLs
$2,073
+113%
Productivity Ratio
46.7%
+110 bps
2.41%
2.36%
2.33%
2.26%
2.26%
Net Interest Margin4
2.30%
(11 bps)
PCL Ratio5
0.59%
+30 bps
902
908
782
481
433
PCL Ratio Impaired Loans5
0.32%
+3 bps
Adjusted³
Q4/19
Q1/20
Q2/20
Q3/20
Q4/20
Net Income
$2,604
(26%)
Medium-Term Financial Objectives
NIAT Growth³
Target6
5%+
Pre-Tax, Pre Provision Profit $5,510
Expenses $4,789
PCLS $2,002
(4%)
+1%
+106%
Productivity Ratio
Productivity Ratio 46.5%
+110 bps
Operating Leverage
<44%
Positive
1 For the three months ended October 31, 2020; 2 Reflects the adoption new leases accounting standards, IFRS16; 3 Adjusted Net income attributed to equity shareholders; 4 Net Interest Margin is on a
reported basis; 5 Provision for credit losses on certain assets – loans, acceptances and off-balance sheet exposures; 63-5 year target from 2020 Investor Day
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