Fourth Quarter 2018 Investor Presentation
Q4 2018 Canadian Banking Financial Performance
Solid asset and deposit growth, margin expansion and positive operating leverage4
FINANCIAL PERFORMANCE AND METRICS ($MM)¹
Q4/18
Y/Y
Q/Q
Reported
Revenue
$3,443
+5%
+2%
Expenses
$1,747
+7%
+5%
PCLS
$198
(9%)
+9%
Net Income
$1,115
+4% (1%)
Productivity Ratio
50.7%
+80bps +150bps
Net Interest Margin
2.45%
+4bps (1bp)
PCL Ratio 2, 3
0.23%
PCL Ratio on Impaired Loans², 3
0.22%
(4bps)
(5bps) +1bp
+2bps
Adjusted4
Expenses
$1,705
+5%
+4%
·
Net Income
$1,146
Productivity Ratio
+7%
49.5% (20bps) +70bps
YEAR-OVER-YEAR HIGHLIGHTS
Adjusted Net Income up 7%4
。 Asset and deposit growth, margin expansion
Revenue up 5%
。 Net interest income up 6%
Loan growth of 5%
。 Business loans up 13%
。 Residential mortgages up 3%; credit cards up 7%
Deposit growth of 6%
。 Personal up 5%; Non-Personal up 7%
•
NIM up 4 bps
1,4
ADJUSTED NET INCOME ($MM) AND NIM (%)
2.41%
2.41%
2.43%
2.46%
2.45%
.
1,073
1,107
1,022
1,141
1,146
•
Q4/17
Q1/18
Q2/18
1 Attributable to equity holders of the Bank
2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39
Q3/18
Q4/18
•
。 Rising rate environment and improved business mix
Expenses up 5%4
О
Investments in technology and regulatory initiatives
。 Full-year productivity ratio improvement of 90bps4
Full-year operating leverage of +1.9%4
PCL ratio², 3 improved by 4 bps due to lower
retail PCLs
3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures
4 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions
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