Economic Forecasts and Performance Review
Q4 2019 Financial Performance
Strong revenue growth and positive operating leverage
$MM, except EPS Q4/19
Reported
Y/Y
Q/Q
•
Net Income
$2,308
+2%
+16%
Pre-Tax, Pre Provision Profit
$3,657
+8%
+6%
Diluted EPS
$1.73
+1%
+15%
.
Revenue
$7,968
+7%
+4%
Expenses
$4,311
+6%
+2%
•
Productivity Ratio
54.1%
(50 bps)
(90 bps)
•
Core Banking Margin
2.40%
(7 bps)
(5 bps)
.
PCL Ratio¹
50 bps
+11 bps
+2 bps
PCL Ratio on Impaired
49 bps
+7 bps
(3 bps)
Loans¹
Adjusted²
YEAR-OVER-YEAR HIGHLIGHTS
Adjusted Net Income up 2%²
○ Other items reduced net income growth by 2%³
○ Pre-tax, pre-provision profit (PTPP) up 8%²
Revenue up 7%²
О Net interest income up 3%
О
Non-interest income up 12%2
Expense growth of 6%2
Operating leverage of +1.0%2
Higher PCL ratio on impaired loans¹. Y/Y increase driven
by hurricane-related recoveries in Q4/18
ADJUSTED NET INCOME4, 5 BY BUSINESS SEGMENT ($MM)
Net Income
$2,400
+2%
(2%)
+1%
Y/Y
Pre-Tax, Pre Provision Profit
$3,765
+8%
(2%)
+4%
Y/Y4
Diluted EPS
$1.82
+3%
(3%)
1,146 1,160
Revenue
$7,962
+7%
746
Expenses
$4,197
+6%
+2%
Productivity Ratio
52.7%
(50 bps)
+100 bps
-3%
Y/Y
416
405
Canadian Banking
International Banking
Global Banking and
Markets
■ Q4/18
■ Q4/19
781
1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
2 Adjusted for Acquisition and divestiture-related amounts, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions
and losses on divestitures and related costs
3 See Slide 20 for Other Items Impacting Financial Results
4Y/Y growth rate is on a constant dollars basis
5 After non-controlling interest
11View entire presentation