Canadian Banking and Residential Mortgages Overview slide image

Canadian Banking and Residential Mortgages Overview

Canadian Banking Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to over 10 million Retail, Small Business and Commercial Banking customers. It serves these customers through its network of 954 branches and 3,746 automated banking machines (ABMS), as well as online, mobile and telephone banking, and specialized sales teams. Canadian Banking also provides an alternative self directed banking solution to over 2 million Tangerine Bank customers. Business Mix Retail 76% Residential Mortgages Financial Results 65% $MM Q1/22 Y/Y Q/Q Q1/22 Revenue Mix $2.9Bn Q1/22 24% Business Banking Average Loan Mix $408Bn 14% 11% Auto Business and 8% Government Loans 2% Credit Cards Other Personal Loans Reported Net Income¹ $1,201 32% (3%) Pre-Tax, Pre Provision Profit² $1,592 10% 1% Revenue $2,874 9% 2% Expenses $1,282 6% 2% PCLs ($35) nmf 63% Reported Net Income¹ ($MM) and NIM4 (%) Productivity Ratio³ 44.6% (90 bps) 40 bps 2.26% 2.26% 2.23% 2.20% 2.19% Net Interest Margin4 2.19% (7 bps) (1 bp) PCL Ratio 3,5 (3 bps) (26 bps) 7 bps PCL Ratio on Impaired 911 927 1,079 1,238 1,201 12 bps (11 bps) 2 bps Loans 3,5 Adjusted4 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Net Income¹ $1,205 32% (3%) Medium-Term Financial Objectives Net Income Growth 1,4 Pre-Tax, Pre Provision Profit Expenses Productivity Ratio $1,598 10% 1% $1,276 6% 2% 44.4% (90 bps) 40 bps Productivity Ratio4 Operating Leverage4 Target6 5%+ <44% Positive 1 Net income attributed to equity shareholders; 2 Pre-Tax, Pre-Provision Profit defined as revenues less expenses; ³ Refer to page 48 of the Management's Discussion & Analysis in the Bank's First Quarter 2022 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; 4 Refer to non-GAAP measures on page 4 of the Management's Discussion & Analysis in the Bank's First Quarter 2022 Report to Shareholders, available on http://www.sedar.com; 5 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures; 63-5 year target from 2020 Investor Day 22 22
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