TIDM32SS
RNS Number : 1168I
National Bank of Canada
30 November 2022
National Bank reports its 2022 fourth-quarter and annual results
and raises its quarterly dividend by 5 cents to 97 cents per
share
The financial information reported in this document is based on
the unaudited interim condensed consolidated financial statements
for the fourth quarter of fiscal 2022 and on the audited annual
consolidated financial statements for the year ended October 31,
2022 and is prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB), unless otherwise indicated. IFRS
represent Canadian generally accepted accounting principles (GAAP).
All amounts are presented in Canadian dollars.
MONTREAL, November 30, 2022 - For the fourth quarter of 2022,
National Bank is reporting net income of $738 million, down 4% from
$769 million in the fourth quarter of 2021. Fourth-quarter diluted
earnings per share stood at $2.08 compared to $2.17 in the fourth
quarter of 2021. Solid performance in all of the business segments
was offset by higher provisions for credit losses recorded to
reflect a less favourable macroeconomic outlook in the fourth
quarter of 2022, whereas, in the fourth quarter of 2021, reversals
of allowances for credit losses had been recorded to reflect a more
favourable macroeconomic outlook. Income before provisions for
credit losses and income taxes totalled $988 million in the fourth
quarter of 2022 compared to $943 million in the fourth quarter of
2021, a 5% increase arising from total revenue growth in all of the
business segments.
For the year ended October 31, 2022, the Bank's net income
totalled $3,383 million, up 8% from $3,140 million in fiscal 2021,
and its diluted earnings per share stood at $9.61 in fiscal 2022
versus $8.85 in fiscal 2021. Excellent performance in all of the
business segments, driven by revenue growth, contributed to these
increases in net income and diluted earnings per share, even with
the higher provisions for credit losses that were recorded to
reflect, in part, a less favourable macroeconomic outlook in the
second half of fiscal 2022. For fiscal 2022, income before
provisions for credit losses and income taxes totalled $4,422
million, a 10% year-over-year increase driven by revenue growth in
all of the business segments.
Commenting on the Bank's performance for fiscal year 2022,
Laurent Ferreira, President and Chief Executive Officer, said: "We
generated superior organic growth across all our business segments
and the operating leverage was positive for the year. We maintain
prudent allowances for credit losses and robust capital ratios. We
continue to prioritize deploying capital to support organic growth,
investing in efficiency improvements and returning capital to
shareholders."
"In the fourth quarter of fiscal 2022, the pre-tax,
pre-provision earnings for each business segment were up, with
strong double-digit growth for the Personal and Commercial and the
Wealth Management segments," added Mr. Ferreira.
Highlights
(millions of Canadian Quarter ended October Year ended October
dollars) 31 31
------------------------- --- --- ------------------------------- -------------------------------------
2022 2021(1) % Change 2022 2021(1) % Change
-------------------------------- ---- ------- -------- ------- ------- --------
Net income 738 769 (4) 3,383 3,140 8
Diluted earnings per
share (dollars) $ 2.08 $ 2.17 (4) $ 9.61 $ 8.85 9
Income before provisions
for
credit losses and income
taxes 988 943 5 4,422 4,024 10
Return on common
shareholders'
equity(2) 15.3 % 18.7% 18.8 % 20.7%
Dividend payout ratio(2) 36.8 % 31.7% 36.8 % 31.7%
------------------------- ------- ---- ------- -------- ------- ------- --------
As at
October
31, As at
October
2022 31, 2021
--- -------------------- --- --- ---- ------- -------- ----------- ----------- --------
CET1 capital ratio under
Basel
III(3) 12.7 % 12.4%
Leverage ratio under
Basel III(3) 4.5 % 4.4%
------------------------- ------- ---- ------- -------- ------- ------- --------
(1) Certain amounts have been adjusted to reflect an accounting
policy change applicable to cloud computing arrangements. For
additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022.
(2) For additional information on composition of these measures,
see the Glossary section on pages 122 to 125 of the Bank's 2022
Annual Report, which is available on the Bank's website at nbc.ca
or the SEDAR website at sedar.com.
(3) For additional information on capital management measures,
see the Financial Reporting Method section on pages 16 to 21 of the
Bank's 2022 Annual Report, which is available on the Bank's website
at nbc.ca or the SEDAR website at sedar.com.
Financial Reporting Method
The Bank's consolidated financial statements are prepared in
accordance with IFRS, as issued by the IASB. The financial
statements also comply with section 308(4) of the Bank Act
(Canada), which states that, except as otherwise specified by the
Office of the Superintendent of Financial Institutions (Canada)
(OSFI), the consolidated financial statements are to be prepared in
accordance with IFRS, which represent Canadian GAAP. None of the
OSFI accounting requirements are exceptions to IFRS.
The presentation of segment disclosures is consistent with the
presentation adopted by the Bank for the fiscal year beginning
November 1, 2021. This presentation reflects the fact that the loan
portfolio comprising borrowers in the "Oil and gas" and "Pipelines"
sectors as well as related activities, which had previously been
reported in the Personal and Commercial segment, is now reported in
the Financial Markets segment. The Bank made this change to better
align the monitoring of its activities with its management
structure.
In addition, a change in accounting policy, as described in the
"Accounting Policy Changes" section of Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022 was applied retrospectively during the year ended October 31,
2022, after the International Financial Reporting Interpretations
Committee (IFRIC) issued a final agenda decision on accounting for
the costs of configuring or customizing a supplier's software in a
cloud computing arrangement. The figures for the quarter and year
ended October 31, 2021 have been adjusted to reflect this change in
accounting policy.
Non-GAAP and Other Financial Measures
The Bank uses a number of financial measures when assessing its
results and measuring overall performance. Some of these financial
measures are not calculated in accordance with GAAP. Regulation
52-112 Respecting Non-GAAP and Other Financial Measures Disclosure
(Regulation 52-112) prescribes disclosure requirements that apply
to the following measures used by the Bank:
-- non-GAAP financial measures;
-- non-GAAP ratios;
-- supplementary financial measures;
-- capital management measures.
Non-GAAP Financial Measures
The Bank uses non-GAAP financial measures that do not have
standardized meanings under GAAP and that therefore may not be
comparable to similar measures used by other companies. Presenting
non-GAAP financial measures helps readers to better understand how
management analyzes results, shows the impacts of specified items
on the results of the reported periods, and allows readers to
better assess results without the specified items if they consider
such items not to be reflective of the underlying performance of
the Bank's operations. In addition, like many other financial
institutions, the Bank uses the taxable equivalent basis to
calculate net interest income, non-interest income, and income
taxes. This calculation method consists of grossing up certain
tax-exempt income (particularly dividends) by the income tax that
would have been otherwise payable. An equivalent amount is added to
income taxes. This adjustment is necessary in order to perform a
uniform comparison of the return on different assets regardless of
their tax treatment.
For additional information on non-GAAP financial measures,
non-GAAP ratios, supplementary financial measures, and capital
management measures, see the Financial Reporting Method section and
the Glossary section, on pages 16 to 21 and 122 to 125,
respectively, of the 2022 Annual Report, which is available on the
Bank's website at nbc.ca or the SEDAR website at sedar.com.
Reconciliation of Non-GAAP Financial Measures
Presentation of Results - Adjusted
Quarter ended
(millions of Canadian dollars) October 31
------------------------------ --------------- ----------- --------- ------ ---------------------
2022 2021(1)
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Personal Wealth Financial
and Commercial Management Markets USSF&I Other Total Total
----------------------------- --------------- ----------- --------- ------ ----- ----- -------
Net interest income 785 187 49 277 (91) 1,207 1,190
Taxable equivalent - - 64 - 1 65 39
Net interest income - Adjusted 785 187 113 277 (90) 1,272 1,229
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Non-interest income 286 426 420 (10) 5 1,127 1,021
Taxable equivalent - - 30 - - 30 2
Non-interest income - Adjusted 286 426 450 (10) 5 1,157 1,023
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Total revenues - Adjusted 1,071 613 563 267 (85) 2,429 2,252
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Non-interest expenses 551 343 252 90 110 1,346 1,268
Impairment losses on
intangible
assets(2) - - - - - - (9)
Non-interest expenses -
Adjusted 551 343 252 90 110 1,346 1,259
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Income before provisions for
credit
losses and income taxes -
Adjusted 520 270 311 177 (195) 1,083 993
Provisions for credit losses 42 2 32 10 1 87 (41)
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Income before income taxes -
Adjusted 478 268 279 167 (196) 996 1,034
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Income taxes 127 70 (20) 35 (49) 163 215
Taxable equivalent - - 94 - 1 95 41
Income taxes related to
impairment
losses on intangible
assets(2) - - - - - - 2
Income taxes - Adjusted 127 70 74 35 (48) 258 258
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Net income - Adjusted 351 198 205 132 (148) 738 776
Specified items after income
taxes - - - - - - (7)
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Net income 351 198 205 132 (148) 738 769
Non-controlling interests - - - - - - -
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Net income attributable to the
Bank ' s shareholders
and holders of other equity
instruments 351 198 205 132 (148) 738 769
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Net income attributable to the
Bank ' s shareholders
and holders of other equity
instruments
- Adjusted 351 198 205 132 (148) 738 776
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Dividends on preferred shares
and
distributions on
limited recourse capital
notes 30 26
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Net income attributable to
common
shareholders - Adjusted 708 750
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
(1) Certain amounts have been adjusted to reflect an accounting
policy change applicable to cloud computing arrangements. For
additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022.
(2) During the quarter ended October 31, 2021, the Bank recorded
$9 million ($7 million net of income taxes) in intangible asset
impairment losses related to technology developments, which were
considered a specified item.
(millions of Canadian dollars) Year ended October 31
------------------------------ --------------- ----------- --------- -----------------------------
2022 2021(1)
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Personal Wealth Financial
and Commercial Management Markets USSF&I Other Total Total
----------------------------- --------------- ----------- --------- ------ ----- ----- -------
Net interest income 2,865 594 1,029 1,090 (307) 5,271 4,783
Taxable equivalent - - 229 - 5 234 181
Net interest income - Adjusted 2,865 594 1,258 1,090 (302) 5,505 4,964
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Non-interest income 1,169 1,781 1,162 20 249 4,381 4,144
Taxable equivalent - - 48 - - 48 8
Non-interest income - Adjusted 1,169 1,781 1,210 20 249 4,429 4,152
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Total revenues - Adjusted 4,034 2,375 2,468 1,110 (53) 9,934 9,116
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Non-interest expenses 2,149 1,391 1,022 344 324 5,230 4,903
Impairment losses on
intangible
assets(2) - - - - - - (9)
Non-interest expenses -
Adjusted 2,149 1,391 1,022 344 324 5,230 4,894
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Income before provisions for
credit
losses and income taxes -
Adjusted 1,885 984 1,446 766 (377) 4,704 4,222
Provisions for credit losses 97 3 (23) 66 2 145 2
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Income before income taxes -
Adjusted 1,788 981 1,469 700 (379) 4,559 4,220
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Income taxes 474 260 112 143 (95) 894 882
Taxable equivalent - - 277 - 5 282 189
Income taxes related to
impairment
losses on intangible
assets(2) - - - - - - 2
Income taxes - Adjusted 474 260 389 143 (90) 1,176 1,073
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Net income - Adjusted 1,314 721 1,080 557 (289) 3,383 3,147
Specified items after income
taxes - - - - - - (7)
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Net income 1,314 721 1,080 557 (289) 3,383 3,140
Non-controlling interests - - - - (1) (1) -
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Net income attributable to the
Bank ' s shareholders
and holders of other equity
instruments 1,314 721 1,080 557 (288) 3,384 3,140
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Net income attributable to the
Bank's shareholders
and holders of other equity
instruments
- Adjusted 1,314 721 1,080 557 (288) 3,384 3,147
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Dividends on preferred shares
and
distributions
on limited recourse capital
notes 107 123
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
Net income attributable to
common
shareholders - Adjusted 3,277 3,024
------------------------------ --------------- ----------- --------- ------ ----- ----- -------
(1) Certain amounts have been adjusted to reflect an accounting
policy change applicable to cloud computing arrangements. For
additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022.
(2) During the year ended October 31, 2021, the Bank recorded $9
million ($7 million net of income taxes) in intangible asset
impairment losses related to technology developments, which were
considered a specified item.
Presentation of Basic and Diluted Earnings Per Share -
Adjusted
Quarter ended October Year ended October
(Canadian dollars) 31 31
-------------------------------------- -------------------------- ----------------------
2022 2021(1) 2022 2021(1)
-------------------------------------- --- -------- -------- -------- -------
Basic earnings per share $ 2.10 $ 2.20 $ 9.72 $ 8.95
Impairment losses on intangible
assets(2) - 0.02 - 0.02
Basic earnings per share - Adjusted $ 2.10 $ 2.22 $ 9.72 $ 8.97
-------------------------------------- --- -------- -------- -------- -------
Diluted earnings per share $ 2.08 $ 2.17 $ 9.61 $ 8.85
Impairment losses on intangible
assets(2) - 0.02 - 0.02
Diluted earnings per share -
Adjusted $ 2.08 $ 2.19 $ 9.61 $ 8.87
-------------------------------------- --- -------- -------- -------- -------
(1) Certain amounts have been adjusted to reflect an accounting
policy change applicable to cloud computing arrangements. For
additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022.
(2) During the quarter and the year ended October 31, 2021, the
Bank recorded $9 million ($7 million net of income taxes) in
intangible asset impairment losses related to technology
developments, which were considered a specified item.
Highlights
(millions of Canadian dollars, Quarter ended October Year ended October
except per share amounts) 31 31
------------------------------ -------------------------------- ------------------------------------------
2022 2021(1) % Change 2022 2021(1) % Change
----------------------------- ------- ------- -------- ------- ------- --------
Operating results
Total revenues 2,334 2,211 6 9,652 8,927 8
Income before provisions for
credit losses and income
taxes 988 943 5 4,422 4,024 10
Net income 738 769 (4) 3,383 3,140 8
Net income attributable to
the Bank's shareholders and
holders of other equity
instruments 738 769 (4) 3,384 3,140 8
Return on common
shareholders'
equity(2) 15.3% 18.7% 18.8 % 20.7 %
Earnings per share
Basic $ 2.10 $ 2.20 (5) $ 9.72 $ 8.95 9
Diluted 2.08 2.17 (4) 9.61 8.85 9
--------------------------------- ------- ------- -------- ------- ------- --------
Operating results - Adjusted
(3)
Total revenues - Adjusted(3) 2,429 2,252 8 9,934 9,116 9
Income before provisions for
credit losses
and income taxes -
Adjusted(3) 1,083 993 9 4,704 4,222 11
Net income - Adjusted(3) 738 776 (5) 3,383 3,147 7
Return on common
shareholders'
equity - Adjusted(4) 15.3% 18.9% 18.8 % 20.7 %
Operating leverage -
Adjusted(4) 1.0% (1.1)% 2.1 % 1.9 %
Efficiency ratio -
Adjusted(4) 55.4% 55.9% 52.6 % 53.7 %
Earnings per share - Adjusted
(3)
Basic $ 2.10 $ 2.22 (5) $ 9.72 $ 8.97 8
Diluted 2.08 2.19 (5) 9.61 8.87 8
--------------------------------- ------- ------- -------- ------- ------- --------
Common share information
Dividends declared $ 0.92 $ 0.71 30 $ 3.58 $ 2.84 26
Book value(2) 55.24 47.44 55.24 47.44
Share price
High 94.37 104.32 105.44 104.32
Low 83.12 95.00 83.12 65.54
Close 92.76 102.46 92.76 102.46
Number of common shares
(thousands) 336,582 337,912 336,582 337,912
Market capitalization 31,221 34,622 31,221 34,622
----------------------------- ------- ------- -------- ------- ------- --------
As at As at
October October
31, 31,
(millions of Canadian dollars) 2022 2021(1) % Change
Balance sheet and off-balance-sheet
Total assets 403,740 355,621 14
Loans and acceptances, net of allowances 206,744 182,689 13
Deposits 266,394 240,938 11
Equity attributable to common shareholders 18,594 16,029 16
Assets under administration(2) 616,165 651,530 (5)
Assets under management(2) 112,346 117,186 (4)
-------------------------------------------------------------------- ----------- ----------- --------
Regulatory ratios under Basel III (5)
Capital ratios
Common Equity Tier 1 (CET1) 12.7 % 12.4 %
Tier 1 15.4 % 15.0 %
Total 16.9 % 15.9 %
Leverage ratio 4.5 % 4.4 %
-------------------------------------------------------------------- ----------- ----------- --------
TLAC ratio(5) 27.7 % 26.3 %
TLAC leverage ratio(5) 8.1 % 7.8 %
-------------------------------------------------------------------- ----------- ----------- --------
Liquidity coverage ratio (LCR)(5) 140 % 154 %
Net stable funding ratio (NSFR)(5) 117 % 117 %
-------------------------------------------------------------------- ----------- ----------- --------
Other information
Number of employees - Worldwide 29,509 26,920 10
Number of branches in Canada 378 384 (2)
Number of banking machines in Canada 939 927 1
-------------------------------------------------------------------- ----------- ----------- --------
(1) Certain amounts have been adjusted to reflect an accounting
policy change applicable to cloud computing arrangements. For
additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022.
(2) For additional information on the composition of these
measures, see the Glossary section on pages 122 to 125 of the
Bank's 2022 Annual Report, which is available on the Bank's website
at nbc.ca or the SEDAR website at sedar.com.
(3) See the Financial Reporting Method section on pages 2 to 4
for additional information on non-GAAP financial measures.
(4) For additional information on non-GAAP ratios, see the
Financial Reporting Method section on pages 16 to 21 of the Bank's
2022 Annual Report, which is available on the Bank's website at
nbc.ca or the SEDAR website at sedar.com.
(5) For additional information on capital management measures,
see the Financial Reporting Method section on pages 16 to 21 of the
Bank's 2022 Annual Report, which is available on the Bank's website
at nbc.ca or the SEDAR website at sedar.com.
Financial Analysis
This press release should be read in conjunction with the 2022
Annual Report (which includes the audited annual consolidated
financial statements and MD&A) available on the Bank's website
at nbc.ca. Additional information about the Bank, including the
Annual Information Form, can be obtained from the Bank's website at
nbc.ca or SEDAR's website at sedar.com.
Total Revenues
For the fourth quarter of 2022, the Bank's total revenues
amounted to $2,334 million, up $123 million or 6% from the fourth
quarter of 2021. In the Personal and Commercial segment,
fourth-quarter total revenues rose 15% year over year owing to loan
and deposit growth, to a higher net interest margin resulting from
recent interest rate hikes, and to increases in credit card
revenues, revenues from bankers' acceptances, and revenues from
foreign exchange activities, partly offset by a decrease in
insurance revenues. In the Wealth Management segment,
fourth-quarter total revenues grew 9% year over year, mainly due to
the higher net interest income resulting from interest rate hikes.
This increase was partly offset by a decrease in fee-based
revenues, notably mutual fund revenues and revenues from investment
management and trust service fees. In addition, securities
brokerage commissions decreased year over year given fewer
commission-generating transactions. In the Financial Markets
segment, fourth-quarter total revenues on a taxable equivalent
basis increased by 14% year over year due to increases in global
markets revenues and in corporate and investment banking revenues.
In the USSF&I segment, fourth-quarter total revenues were up
10% year over year owing to a sustained increase in the ABA Bank
subsidiary's revenues as a result of business growth, partly offset
by a decrease in the Credigy subsidiary's revenues, notably due to
a less favourable impact from fair value remeasurements of certain
loan portfolios. For the Other heading, fourth-quarter total
revenues were down year over year, mainly due to a lower
contribution from Treasury activities and to lower gains on
investments.
For the year ended October 31, 2022, total revenues amounted to
$9,652 million, up $725 million or 8% from $8,927 million in fiscal
2021. In the Personal and Commercial segment, fiscal 2022 total
revenues rose $419 million or 12% year over year as net interest
income increased owing to loan and deposit growth, a higher net
interest margin arising from interest rate hikes, and increases in
credit card revenues, insurance revenues, revenues from bankers'
acceptances, revenues from derivative financial instruments, and
revenues from foreign exchange activities. In the Wealth Management
segment, fiscal 2022 total revenues grew 10% year over year, mainly
due to higher net interest income as well as to an increase in
fee-based revenues given growth in average assets under
administration and assets under management and given greater market
performance compared to the year ended October 31, 2021. In the
Financial Markets segment, fiscal 2022 total revenues on a taxable
equivalent basis were up $250 million or 11% year over year given
growth in global markets revenues, partly offset by a decrease in
corporate and investment banking revenues. In the USSF&I
segment, fiscal 2022 total revenues rose 11% year over year owing
to revenue growth at ABA Bank, which was driven by higher loans and
deposits, partly offset by a decrease in Credigy's revenues,
notably due to a gain that had been realized in fiscal 2021 upon a
disposal of loan portfolios and to a more favourable impact of
remeasuring certain loan portfolios during fiscal 2021. For fiscal
2022, the total revenues of the Other heading decreased year over
year, as there was a lower contribution from Treasury activities
and lower gains on investments in fiscal 2022.
Non-Interest Expenses
For the fourth quarter of 2022, the Bank's non-interest expenses
stood at $1,346 million, a 6% year-over-year increase that was
essentially driven by higher compensation, notably due to wage
growth and a greater number of employees as well as to the variable
compensation associated with revenue growth. In addition,
fourth-quarter occupancy expenses were also up, partly due to the
expansion to ABA Bank's banking network. Fourth-quarter other
expenses increased as well, essentially due to an increase in
travel and business development expenses given that activities with
clients resumed and also due to higher advertising expenses.
For the year ended October 31, 2022, the Bank's non-interest
expenses stood at $5,230 million, a 7% year-over-year increase that
was essentially attributable to higher compensation and employee
benefits, notably due to wage growth and a greater number of
employees as well as to the variable compensation associated with
revenue growth. Fiscal 2022 technology expenses, including
amortization, were also up year over year, as significant
investments were made to support the Bank's technological evolution
and business development plan. Other expenses also rose year over
year, due to an increase in travel and business development
expenses as activities with clients resumed. These higher expenses
were tempered by decreases in certain expenses; in particular,
there was a $20 million reversal of the provision for the
compensatory tax on salaries paid in Quebec during the first
quarter of 2022 as well as a decrease in COVID-19-response
expenses, which had been higher during fiscal 2021. Furthermore, a
portion of the overall increase in non-interest expenses was
attributable to the acquisition of the Flinks Technology Inc.
(Flinks) subsidiary at the end of fiscal 2021.
Provisions for Credit Losses
For the fourth quarter of 2022, the Bank recorded $87 million in
provisions for credit losses compared to $41 million in recoveries
of credit losses in the fourth quarter of 2021. This increase stems
mainly from higher provisions for credit losses on non-impaired
loans recorded to reflect less favourable macroeconomic conditions,
notably greater inflationary pressures, in the fourth quarter of
2022. In the fourth quarter of 2021, the Bank had recorded
reversals of provisions for credit losses on non-impaired loans
given more favourable macroeconomic conditions at that time.
Provisions for credit losses on impaired loans excluding purchased
or originated credit-impaired (POCI)(1) loans were also up, rising
$50 million year over year given higher provisions for credit
losses on the impaired loans of Personal Banking (including credit
card receivables), the Financial Markets segment, the Credigy
subsidiary (excluding POCI loans), and the ABA Bank subsidiary.
Lastly, the provisions for credit losses on Credigy's POCI loans
were down given a favourable remeasurement of certain portfolios in
the fourth quarter of 2022.
For fiscal 2022, the Bank recorded $145 million in provisions
for credit losses compared to $2 million in fiscal 2021. This
increase was primarily due to higher provisions for credit losses
on non-impaired loans resulting from a less favourable
macroeconomic outlook in the second half of 2022 resulting from
higher inflationary pressure, geopolitical instability, and global
supply chain disruptions. In fiscal 2021, the Bank had recorded
reversals of allowances for credit losses on non-impaired loans
given more favourable macroeconomic conditions at that time. The
fiscal 2022 provisions for credit losses on Credigy's POCI loans
were also up given a favourable remeasurement of certain portfolios
in fiscal 2021. Conversely, the provisions for credit losses on
impaired loans excluding POCI(1) loans were down, in both
Commercial Banking and Financial Markets, partly offset by higher
provisions for credit losses on impaired Personal Banking loans
(including credit card receivables) and impaired ABA Bank loans,
resulting from the end of the COVID-19 relief measures that had
been granted to the subsidiary's clients.
Income Taxes
For the fourth quarter of 2022, income taxes stood at $163
million compared to $215 million in the same quarter of 2021. The
2022 fourth-quarter effective income tax rate was 18%, compared to
22% in the same quarter of 2021. The change in effective income tax
rate stems mainly from a higher level of tax-exempt dividend income
compared to the same quarter of 2021.
For the year ended October 31, 2022, the effective income tax
rate was 21% compared to 22% in fiscal 2021. This change in the
effective income tax rate stems from the same reason as that
provided for the quarter.
(1) For additional information on the composition of these
measures, see the Glossary section on pages 122 to 125 of the
Bank's 2022 Annual Report, which is available on the Bank's website
at nbc.ca or the SEDAR website at sedar.com.
Results by Segment
The Bank carries out its activities in four business segments:
Personal and Commercial, Wealth Management, Financial Markets, and
U.S. Specialty Finance and International. Other operating
activities, certain specified items, Treasury activities, and the
activities of the Flinks Technology Inc. (Flinks) subsidiary are
grouped in the Other heading. Each reportable segment is
distinguished by services offered, type of clientele, and marketing
strategy.
Personal and Commercial
Quarter ended October
(millions of Canadian dollars) 31 Year ended October 31
------------------------------- ---------------------------------- ----------------------------------
2022 2021(1) % Change 2022 2021(1) % Change
------------------------------- ------- ------- -------- ------- ------- --------
Operating results
Net interest income 785 654 20 2,865 2,547 12
Non-interest income 286 276 4 1,169 1,068 9
-------------------------------- ------- ------- -------- ------- ------- --------
Total revenues 1,071 930 15 4,034 3,615 12
Non-interest expenses 551 511 8 2,149 2,008 7
-------------------------------- ------- ------- -------- ------- ------- --------
Income before provisions for
credit losses and income taxes 520 419 24 1,885 1,607 17
Provisions for credit losses 42 (5) 97 40
-------------------------------- ------- ------- -------- ------- ------- --------
Income before income taxes 478 424 13 1,788 1,567 14
Income taxes 127 113 12 474 416 14
-------------------------------- ------- ------- -------- ------- ------- --------
Net income 351 311 13 1,314 1,151 14
-------------------------------- ------- ------- -------- ------- ------- --------
Net interest margin(2) 2.25 % 2.05% 2.14 % 2.11%
Average interest-bearing
assets(2) 138,299 126,816 9 133,754 120,956 11
Average assets(3) 145,382 133,393 9 140,514 126,637 11
Average loans and acceptances(3) 144,532 132,319 9 139,749 125,917 11
Net impaired loans(2) 193 213 (9) 193 213 (9)
Net impaired loans as a % of
total loans and acceptances(2) 0.1 % 0.2% 0.1 % 0.2%
Average deposits(3) 85,911 79,826 8 82,005 76,442 7
Efficiency ratio(2) 51.4 % 54.9% 53.3 % 55.5%
-------------------------------- ------- ------- -------- ------- ------- --------
(1) For the quarter and the year ended October 31, 2021, certain
amounts have been reclassified, in particular amounts of the loan
portfolio of borrowers in the Oil and gas and Pipelines sectors as
well as related activities, which were transferred from the
Personal and Commercial segment to the Financial Markets segment.
Moreover, certain amounts have been adjusted to reflect an
accounting policy change applicable to cloud computing arrangements
(for additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022).
(2) For additional information on the composition of these
measures, see the Glossary section on pages 122 to 125 of the
Bank's 2022 Annual Report, which is available on the Bank's website
at nbc.ca or the SEDAR website at sedar.com.
(3) Represents an average of the daily balances for the period.
In the Personal and Commercial segment, net income totalled $351
million in the fourth quarter of 2022 compared to $311 million in
the fourth quarter of 2021, a 13% increase resulting from growth in
total revenues, partly offset by higher provisions for credit
losses. The segment's fourth-quarter income before provisions for
credit losses and income taxes grew 24% year over year. Its
fourth-quarter net interest income rose 20% year over year owing to
growth in personal and commercial loans and deposits as well as to
a higher net interest margin, which, as a result of recent interest
rate hikes, was 2.25% in fourth--quarter 2022 compared to 2.05% in
fourth-quarter 2021. As for the segment's fourth-quarter
non-interest income, it grew $10 million or 4% year over year.
Personal Banking's fourth-quarter total revenues increased by
$25 million year over year. This increase came from an increase in
net interest income driven by loan and deposit growth, from an
improved deposit margin, and from an increase in credit card
revenues given a notable increase in purchasing volume partly
offset by a decrease in insurance revenues. Commercial Banking's
fourth-quarter total revenues grew $116 million year over year,
mainly due to an increase in net interest income, driven by loan
and deposit growth, to an improved margin on deposits, as well as
to increases in revenues from foreign exchange activities and from
bankers' acceptances.
For the fourth quarter of 2022, the Personal and Commercial
segment's non-interest expenses stood at $551 million, an 8%
year-over-year increase that was mainly due to higher compensation
and employee benefits (given wage growth and a greater number of
employees), to operations support charges, and to investments made
as part of the segment's technological evolution. At 51.4%, the
segment's fourth-quarter efficiency ratio improved by 3.5
percentage points year over year as a result of strong revenue
growth. The segment recorded $42 million in provisions for credit
losses in the fourth quarter of 2022 compared to $5 million in
recoveries of credit losses in the fourth quarter of 2021. This
increase came from higher provisions for credit losses on impaired
Personal Banking loans and from higher provisions for credit losses
on non-impaired Personal Banking loans (including credit card
receivables) and non-impaired Commercial Banking loans recorded to
reflect a less favourable macroeconomic outlook, whereas, in the
fourth quarter of 2021, a more favourable macroeconomic outlook had
led to reversals of allowances for credit losses on non-impaired
loans.
For fiscal 2022, the Personal and Commercial segment's net
income totalled $1,314 million, up from $1,151 million in fiscal
2021. This increase stems mainly from 12% growth in the segment's
total revenues. The segment's income before provisions for credit
losses and income taxes totalled $1,885 million in fiscal 2022, a
17% year-over-year increase. Personal Banking's fiscal 2022 total
revenues were up, mainly due to growth in loans and deposits and
improved deposit margin (partly offset by a lower margin on loans)
as well as to increases in credit card revenues, insurance revenues
(reflecting a revision to actuarial reserves), and internal
commission revenues related to the distribution of Wealth
Management products. In addition, Commercial Banking's total
revenues rose 21% owing to loan and deposit growth, to an increase
in the net interest margin arising from higher interest rates in
fiscal 2022, and to higher revenues from bankers' acceptances,
revenues from derivative financial instruments, and revenues from
foreign exchange activities.
For the year ended October 31, 2022, the Personal and Commercial
segment's non-interest expenses stood at $2,149 million, a 7%
year-over-year increase that was mainly due to higher compensation
and employee benefits, expenses incurred for the segment's
technological evolution, and higher operations support charges.
Furthermore, travel and business development costs increased as
activities with clients resumed. At 53.3% for the year ended
October 31, 2022, the efficiency ratio improved by 2.2 percentage
points versus fiscal 2021. For fiscal 2022, the segment recorded
$97 million in provisions for credit losses compared to $40 million
in fiscal 2021. This increase came mainly from provisions for
credit losses on non-impaired Personal Banking loans (including
credit card receivable) recorded to reflect less favourable
macroeconomic conditions, whereas, in fiscal 2021, a more
favourable macroeconomic environment had led to significant
reversals of allowances for credit losses on non-impaired loans.
These increases were tempered by lower provisions for credit losses
on impaired Commercial Banking loans as well as by lower provisions
for credit losses on non-impaired Commercial Banking loans
resulting from more favourable risk parameters in fiscal 2022.
Wealth Management
Quarter ended October
(millions of Canadian dollars) 31 Year ended October 31
------------------------------- ---------------------------------- ----------------------------------
2022 2021(1) % Change 2022 2021(1) % Change
------------------------------- ------- ------- -------- ------- ------- --------
Operating results
Net interest income 187 114 64 594 446 33
Fee-based revenues 347 359 (3) 1,429 1,322 8
Transaction-based and other
revenues 79 88 (10) 352 398 (12)
-------------------------------- ------- ------- -------- ------- ------- --------
Total revenues 613 561 9 2,375 2,166 10
Non-interest expenses 343 342 - 1,391 1,293 8
-------------------------------- ------- ------- -------- ------- ------- --------
Income before provisions for
credit losses and income taxes 270 219 23 984 873 13
Provisions for credit losses 2 1 3 1
-------------------------------- ------- ------- -------- ------- ------- --------
Income before income taxes 268 218 23 981 872 13
Income taxes 70 58 21 260 231 13
-------------------------------- ------- ------- -------- ------- ------- --------
Net income 198 160 24 721 641 12
-------------------------------- ------- ------- -------- ------- ------- --------
Average assets(2) 8,345 7,699 8 8,226 7,146 15
Average loans and acceptances(2) 7,278 6,556 11 7,132 5,998 19
Net impaired loans(3) 15 16 (6) 15 16 (6)
Average deposits(2) 37,600 33,659 12 35,325 33,934 4
Assets under administration(3) 616,165 651,530 (5) 616,165 651,530 (5)
Assets under management(3) 112,346 117,186 (4) 112,346 117,186 (4)
Efficiency ratio(3) 56.0 % 61.0% 58.6 % 59.7%
-------------------------------- ------- ------- -------- ------- ------- --------
(1) For the quarter and year ended October 31, 2021, certain
amounts have been reclassified; in particular, certain amounts have
been adjusted to reflect an accounting policy change applicable to
cloud computing arrangements (for additional information, see Note
1 to the audited annual consolidated financial statements for the
year ended October 31, 2022).
(2) Represents an average of the daily balances for the period.
(3) For additional information on the composition of these
measures, see the Glossary section on pages 122 to 125 of the
Bank's 2022 Annual Report, which is available on the Bank's website
at nbc.ca or the SEDAR website at sedar.com.
In the Wealth Management segment, net income totalled $198
million in the fourth quarter of 2022, a 24% increase from $160
million in the fourth quarter of 2021. The segment's fourth-quarter
total revenues amounted to $613 million, up $52 million or 9% from
$561 million in the fourth quarter of 2021. This revenue growth was
mainly driven by a $73 million or 64% increase in net interest
income owing to higher interest rates and to growth in loan and
deposit volumes in the fourth quarter of 2022. Fee-based revenues
were down 3% as there was a decrease in assets under administration
and assets under management as a result of a decline in stock
market performance compared to the fourth quarter of 2021. As for
fourth-quarter transaction-based and other revenues, they were down
10% year over year given lower commissions on transactions in
fourth-quarter 2022 attributable to a less favourable market.
For the fourth quarter of 2022, the segment's non-interest
expenses stood at $343 million, a slight $1 million year-over-year
increase that was due to higher compensation and employee benefits
as well as to higher operations support charges, partly offset by a
decrease in variable compensation and in revenues from external
management fees. At 56.0%, the segment's fourth-quarter efficiency
ratio improved by 5.0 percentage points from 61.0% in the fourth
quarter of 2021. The segment recorded $2 million in provisions for
credit losses in the fourth quarter of 2022, whereas $1 million in
provisions for credit losses had been recorded for the fourth
quarter of 2021.
For fiscal 2022, Wealth Management's net income totalled $721
million, up 12% from $641 million in fiscal 2021. The segment's
total revenues amounted to $2,375 million in fiscal 2022, a 10%
increase from $2,166 million in 2021. Net interest income grew $148
million or 33% year over year owing to higher interest rates, to
growth in loan and deposit volumes, and to the deposit margin.
Fee-based revenues rose 8% year over year thanks to growth in
average assets under administration and average assets under
management as a result of net inflows into various solutions and of
stronger stock market performance in the first half of fiscal 2022
compared to that of fiscal 2021. As for transaction and other
revenues, they decreased 12% year over year as a result of lower
commission-generating trading volume during fiscal 2022. Also for
fiscal 2022, Wealth Management's non-interest expenses stood at
$1,391 million compared to $1,293 million in fiscal 2021, an
increase that is attributable to higher compensation and employee
benefits, notably the variable compensation associated with revenue
growth, as well as to higher operations support charges related to
the segment's business growth and initiatives. At 58.6%, the
efficiency ratio for the year ended October 31, 2022 improved by
1.1 percentage points compared to 59.7% in fiscal 2021. For fiscal
2022, the Bank recorded $3 million in provisions for credit losses
reflecting a less favourable macroeconomic environment, compared to
$1 million in fiscal 2021.
Financial Markets
(taxable equivalent
basis)(1)
(millions of Canadian Quarter ended October
dollars) 31 Year ended October 31
---------------------------- ---------------------------------- -----------------------------------
2022 2021(2) % Change 2022 2021(2) % Change
---------------------------- ------- ------- -------- ------- ------- ---------
Operating results
Global markets
Equities 207 175 18 979 685 43
Fixed-income 71 58 22 367 357 3
Commodities and foreign
exchange 26 34 (24) 156 128 22
---------------------------- ------- ------- -------- ------- ------- ---------
304 267 14 1,502 1,170 28
Corporate and investment
banking 259 229 13 966 1,048 (8)
---------------------------- ------- ------- -------- ------- ------- ---------
Total revenues(1) 563 496 14 2,468 2,218 11
Non-interest expenses 252 213 18 1,022 906 13
---------------------------- ------- ------- -------- ------- ------- ---------
Income before provisions for
credit losses and income
taxes 311 283 10 1,446 1,312 10
Provisions for credit losses 32 (40) (23) (24) 4
---------------------------- ------- ------- -------- ------- ------- ---------
Income before income taxes 279 323 (14) 1,469 1,336 10
Income taxes(1) 74 85 (13) 389 353 10
---------------------------- ------- ------- -------- ------- ------- ---------
Net income 205 238 (14) 1,080 983 10
---------------------------- ------- ------- -------- ------- ------- ---------
Average assets(3) 160,778 152,001 6 154,349 151,240 2
Average loans and
acceptances(3)
(Corporate Banking only) 24,576 19,825 24 22,311 19,630 14
Net impaired loans(4) 91 14 91 14
Net impaired loans as a % of
total loans and
acceptances(4) 0.4 % 0.1% 0.4 % 0.1%
Average deposits(3) 49,487 47,394 4 47,242 44,006 7
Efficiency ratio (4) 44.8 % 42.9% 41.4 % 40.8%
---------------------------- ------- ------- -------- ------- ------- ---------
(1) The Total revenues and Income taxes items of the Financial
Markets segment are presented on a taxable equivalent basis.
Taxable equivalent basis is a calculation method that consists in
grossing up certain tax-exempt income by the amount of income tax
that would have been otherwise payable. For the quarter ended
October 31, 2022, Total revenues were grossed up by $94 million
($40 million in 2021) and an equivalent amount was recognized in
Income taxes. For the year ended October 31, 2022, Total revenues
were grossed up by $277 million ($183 million in 2021) and an
equivalent amount was recognized in Income taxes. The effect of
these adjustments is reversed under the Other heading in the
segment results.
(2) For the quarter and year ended October 31, 2021, certain
amounts have been reclassified, in particular amounts of the loan
portfolio of borrowers in the Oil and gas and Pipelines sectors as
well as related activities, which were transferred from the
Personal and Commercial segment to the Financial Markets segment.
In addition, certain amounts have been adjusted to reflect an
accounting policy change applicable to cloud computing arrangements
(for additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022).
(3) Represents an average of the daily balances for the period.
(4) For additional information on the composition of these
measures, see the Glossary section on pages 122 to 125 of the
Bank's 2022 Annual Report, which is available on the Bank's website
at nbc.ca or the SEDAR website at sedar.com.
In the Financial Markets segment, net income totalled $205
million in the fourth quarter of 2022 compared to $238 million in
the fourth quarter of 2021, a 14% decrease resulting from higher
provisions for credit losses. Income before provisions for credit
losses and income taxes totalled $311 million in the fourth quarter
of 2022, up 10% from the fourth quarter of 2021. The segment's
fourth-quarter total revenues amounted to $563 million, up $67
million or 14% from $496 million in the fourth quarter of 2021.
Fourth-quarter global markets revenues rose 14% year over year,
mainly due to higher revenues from equity securities and
fixed-income securities, partly offset by a decrease in revenues
from commodities and foreign exchange activities. Fourth-quarter
corporate and investment banking revenues rose 13% year over year
given an increase in revenues from merger and acquisition activity
and in banking service revenues driven by growth in loan volumes,
partly offset by a decrease in revenues from capital markets
activities.
The segment's fourth-quarter non-interest expenses stood at $252
million, an 18% year-over-year increase that was due to higher
compensation and employee benefits, notably the variable
compensation associated with revenue growth, as well as to higher
technology investment expenses and higher operations support
charges. At 44.8%, the segment's fourth-quarter efficiency ratio
compares to 42.9% in the same quarter of 2021. For the fourth
quarter of 2022, Financial Markets recorded $32 million in
provisions for credit losses compared to $40 million in recoveries
of credit losses recorded in the fourth quarter of 2021. This
increase was due to a $47 million increase in provisions for credit
losses on non-impaired loans resulting from reversals of allowances
for credit losses on non-impaired loans that had been recorded in
the fourth quarter of 2021 given a more favourable macroeconomic
outlook during that period as well as a $25 million increase in
provisions for credit losses on impaired loans compared to the same
period of fiscal 2021.
For fiscal 2022, the Financial Markets segment's net income
totalled $1,080 million, a 10% year-over-year increase arising from
growth in total revenues. The segment's income before provisions
for credit losses and income taxes totalled $1,446 million in
fiscal 2022, a 10% year-over-year increase. Its fiscal 2022 total
revenues amounted to $2,468 million versus $2,218 million, up $250
million or 11% year over year. Global markets revenues rose 28%
year over year owing to growth across every revenue category,
notably revenues from equities as market conditions favoured
greater client activity. As for the fiscal 2022 corporate and
investment banking revenues, they were down 8% year over year,
mainly due to a decrease in revenues related to capital markets
activity, tempered by revenues generated by favourable merger and
acquisition activity and by growth in loan volumes.
For fiscal 2022, the segment's non-interest expenses rose 13%
year over year, essentially attributable to higher compensation and
employee benefits, notably the variable compensation associated
with revenue growth, and to higher technology investment expenses
and operations support charges. At 41.4%, the segment's efficiency
ratio for fiscal 2022 compares to 40.8% in fiscal 2021. Financial
Markets recorded $23 million in recoveries of credit losses during
fiscal 2022 compared to $24 million in recoveries of credit losses
in fiscal 2021. A $78 million increase in credit losses on
non-impaired loans, resulting from a less favourable macroeconomic
outlook in fiscal 2022, was offset by a $77 million decrease in
credit losses on impaired loans.
U.S. Specialty Finance and International (USSF&I)
Quarter ended October Year ended October
(millions of Canadian dollars) 31 31
--------------------------------- -------------------------------- --------------------------------
2022 2021 % Change 2022 2021 % Change
--------------------------------- ------ ------ -------- ------ ------ --------
Total revenues
Credigy 88 100 (12) 439 486 (10)
ABA Bank 179 139 29 669 510 31
International - 3 2 5
--------------------------------- ------ ------ -------- ------ ------ --------
267 242 10 1,110 1,001 11
-------------------------------- ------ ------ -------- ------ ------ --------
Non-interest expenses
Credigy 32 30 7 131 139 (6)
ABA Bank 58 45 29 212 173 23
International - 1 1 3
--------------------------------- ------ ------ -------- ------ ------ --------
90 76 18 344 315 9
--------------------------------- ------ ------ -------- ------ ------ --------
Income before provisions for
credit losses and income taxes 177 166 7 766 686 12
--------------------------------- ------ ------ -------- ------ ------ --------
Provisions for credit losses
Credigy (2) - 35 (41)
ABA Bank 12 3 31 26 19
--------------------------------- ------ ------ -------- ------ ------ --------
10 3 66 (15)
-------------------------------- ------ ------ -------- ------ ------ --------
Income before income taxes 167 163 2 700 701 -
--------------------------------- ------ ------ -------- ------ ------ --------
Income taxes
Credigy 12 15 (20) 57 86 (34)
ABA Bank 23 19 21 86 60 43
------ ------ --------
35 34 3 143 146 (2)
-------------------------------- ------ ------ -------- ------ ------ --------
Net income
Credigy 46 55 (16) 216 302 (28)
ABA Bank 86 72 19 340 251 35
International - 2 1 2
--------------------------------- ------ ------ -------- ------ ------ --------
132 129 2 557 555 -
-------------------------------- ------ ------ -------- ------ ------ --------
Average assets(1) 20,395 17,143 19 18,890 16,150 17
Average loans and receivables(1) 16,642 13,479 23 15,283 12,558 22
Purchased or originated
credit-impaired
(POCI) loans 459 464 (1) 459 464 (1)
Net impaired loans excluding
POCI loans(2) 180 40 180 40
Average deposits(1) 9,343 7,351 27 8,577 6,699 28
Efficiency ratio(2) 33.7 % 31.4% 31.0 % 31.5%
--------------------------------- ------ ------ -------- ------ ------ --------
(1) Represents an average of the daily balances for the period.
(2) For additional information on the composition of these
measures, see the Glossary section on pages 122 to 125 of the
Bank's 2022 Annual Report, which is available on the Bank's website
at nbc.ca or the SEDAR website at sedar.com.
In the USSF&I segment, net income totalled $132 million in
the fourth quarter of 2022 compared to $129 million in the fourth
quarter of 2021, a 2% increase attributable to the ABA Bank
subsidiary, notably its revenue growth. The segment's
fourth-quarter total revenues amounted to $267 million, up $25
million or 10% from $242 million in the fourth quarter of 2021.
This growth in total revenues was mainly driven by a $40 million
increase in ABA Bank's revenues, whereas Credigy's fourth-quarter
revenues declined $12 million year over year. For fiscal 2022, the
segment's net income totalled $557 million, relatively stable
compared to $555 million in fiscal 2021.
Credigy
For the fourth quarter of 2022, the Credigy subsidiary's net
income totalled $46 million, a $9 million or 16% year-over-year
decrease that was essentially due to lower total revenues. The
subsidiary's income before provisions for credit losses and income
taxes amounted to $56 million in the fourth quarter of 2022, a 20%
year-over-year decrease attributable to the lower revenues, which
totalled $88 million in fourth-quarter 2022 versus $100 million in
fourth-quarter 2021, due to an unfavourable impact of a fair value
remeasurement of certain portfolios in the fourth quarter of 2022.
Credigy's fourth-quarter non-interest expenses stood at $32
million, up $2 million year over year. Its fourth-quarter
provisions for credit losses were $2 million lower than those of
fourth-quarter 2021, mainly due to a favourable remeasurement of
the POCI loan portfolios in the fourth quarter of 2022.
For fiscal 2022, the Credigy subsidiary's net income totalled
$216 million, a 28% year-over-year decrease that was notably due to
lower revenues and significantly higher provisions for credit
losses. Its income before provisions for credit losses and income
taxes totalled $308 million in fiscal 2022, down 11% year over
year. Credigy's fiscal 2022 total revenues amounted to $439
million, down from $486 million in fiscal 2021. While there was
growth in net interest income, it was more than offset by a
decrease in non-interest income, as a $26 million gain had been
realized in the first quarter of 2021 upon a disposal of loan
portfolios, a favourable impact of the fair value remeasurements of
certain portfolios during fiscal 2021, and an unfavourable impact
upon remeasurements of certain portfolios in fiscal 2022. Credigy's
non-interest expenses were down $8 million year over year, mainly
due to a decrease in variable compensation. Its provisions for
credit losses rose $76 million year over year, whereas in fiscal
2021, reversals of allowances for credit losses on non-impaired
loans had been recorded to reflect more favourable macroeconomic
conditions at that time and more favourable remeasurements of POCI
loan portfolios had been carried out.
ABA Bank
For the fourth quarter of 2022, the ABA Bank subsidiary's net
income totalled $86 million, up $14 million or 19% from the fourth
quarter of 2021. The subsidiary's fourth-quarter total revenues
grew 29% year over year owing to sustained loan growth, partly
offset by lower interest rates on loans. The subsidiary's
fourth-quarter non-interest expenses stood at $58 million, a $13
million year-over-year increase resulting from higher compensation
and employee benefits (notably due to salaries given a greater
number of employees and variable compensation associated with
revenue growth) and from higher occupancy expenses attributable to
the subsidiary's business growth. Provisions for credit losses,
which stood at $12 million in the fourth quarter of 2022, rose $9
million year over year, due to higher provisions for credit losses
on impaired loans.
For fiscal 2022, ABA Bank's net income totalled $340 million, up
35% from fiscal 2021. Growth in the subsidiary's business
activities, mainly in the form of sustained loan and deposit
growth, drove total revenues up 31% year over year. This increase
was, however, partly offset by lower interest rates on loans given
a competitive environment in Cambodia. The subsidiary's fiscal 2022
non-interest expenses stood at $212 million, a 23% year-over-year
increase that was due to the same reasons provided above for the
fourth quarter. ABA Bank recorded $31 million in provisions for
credit losses in fiscal 2022, which is $5 million more than last
year, as provisions for credit losses on impaired loans increased
to reflect the end of COVID-19 relief measures that had been
granted to the subsidiary's clients.
Other
Quarter ended Year ended October
(millions of Canadian dollars) October 31 31
------------------------------------------------- ---------------- --------------------
2022 2021(1) 2022 2021(1)
------------------------------------------------- ------- ------- --------- ---------
Operating results
Net interest income(2) (155) (106) (536) (379)
Non-interest income(2) (25) 88 201 306
-------------------------------------------------- ------- ------- --------- ---------
Total revenues (180) (18) (335) (73)
Non-interest expenses 110 126 324 381
-------------------------------------------------- ------- ------- --------- ---------
Income before provisions for credit losses
and income taxes (290) (144) (659) (454)
Provisions for credit losses 1 - 2 -
------------------------------------------------- ------- ------- --------- ---------
Income before income taxes (291) (144) (661) (454)
Income taxes (recovery)(2) (143) (75) (372) (264)
-------------------------------------------------- ------- ------- --------- ---------
Net loss (148) (69) (289) (190)
Non-controlling interests - - (1) -
-------------------------------------------------- ------- ------- --------- ---------
Net loss attributable to the Bank's shareholders
and holders of other equity instruments (148) (69) (288) (190)
-------------------------------------------------- ------- ------- --------- ---------
Specified items after income taxes(3) - (7) - (7)
-------------------------------------------------- ------- ------- --------- ---------
Net loss - Adjusted (3) (148) (62) (289) (183)
-------------------------------------------------- ------- ------- --------- ---------
Average assets(4) 74,921 61,352 71,868 62,333
-------------------------------------------------- ------- ------- --------- ---------
(1) For the quarter and year ended October 31, 2021, certain amounts have been reclassified.
(2) For the quarter ended October 31, 2022, Net interest income
was reduced by $65 million ($39 million in 2021), Non-interest
income was reduced by $30 million ($2 million in 2021), and an
equivalent amount was recorded in Income taxes. For the year ended
October 31, 2022, Net interest income was reduced by $ 234 million
($ 181 million in 2021 ), Non-interest income was reduced by $ 48
million ($8 million in 2021) , and an equivalent amount was
recorded in Income taxes. These adjustments include a reversal of
the taxable equivalent of the Financial Markets segment and the
Other heading. Taxable equivalent basis is a calculation method
that consists in grossing up certain tax-exempt income by the
amount of income tax that would have otherwise been payable.
(3) See the Financial Reporting Method section on pages 2 to 4
for additional information on non-GAAP financial measures.
(4) Represents an average of the daily balances for the period.
For the Other heading of segment results, there was a net loss
of $148 million in the fourth quarter of 2022 compared to a net
loss of $69 million in the same quarter of 2021. This change in net
loss stems essentially from a decrease in total revenues,
attributable to a lower contribution from treasury activities, as
well as higher gains on investments in the fourth quarter of 2021.
This decrease was tempered, however, by a reduction in non-interest
expenses, mainly due to the pension plan expense.
The specified items, net of income taxes, recorded in the fourth
quarter of 2021 had consisted of $7 million in intangible asset
impairment losses. The fourth--quarter net loss stood at $148
million compared to a $62 million adjusted net loss in the fourth
quarter of 2021.
For the year ended October 31, 2022, net loss stood at $289
million compared to a net loss of $190 million in fiscal 2021. This
change in net loss was due to a decrease in total revenues arising
mainly from a lower contribution from treasury activities and from
lower gains on investments in fiscal 2022. This decrease was partly
offset by a reduction in non-interest expenses, notably variable
compensation, the pension plan expense, and a $20 million reversal
of the provision for the compensatory tax on salaries paid in
Quebec. In fiscal 2021, the net loss had included a $33 million
gain on a remeasurement of the previously held equity interest in
Flinks and a $30 million loss ($26 million net of income taxes)
related to the fair value measurement of the Bank's equity interest
in Afrasia.
Consolidated Balance Sheet
Consolidated Balance Sheet Summary
As at October As at October
(millions of Canadian dollars) 31, 2022 31, 2021(1) % Change
------------------------------------------------ ------------- ------------- --------
Assets
Cash and deposits with financial institutions 31,870 33,879 (6)
Securities 109,719 106,304 3
Securities purchased under reverse repurchase
agreements and securities borrowed 26,486 7,516 252
Loans and acceptances, net of allowances 206,744 182,689 13
Other 28,921 25,233 15
------------------------------------------------ ------------- ------------- --------
403,740 355,621 14
----------------------------------------------- ------------- ------------- --------
Liabilities and equity
Deposits 266,394 240,938 11
Other 114,101 95,233 20
Subordinated debt 1,499 768 95
Equity attributable to the Bank's shareholders
and holders of other equity instruments 21,744 18,679 16
Non-controlling interests 2 3 (33)
------------------------------------------------ ------------- ------------- --------
403,740 355,621 14
----------------------------------------------- ------------- ------------- --------
(1) Certain amounts have been adjusted to reflect an accounting
policy change applicable to cloud computing arrangements. For
additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022.
Assets
As at October 31, 2022, the Bank had total assets of $403.7
billion, a $48.1 billion or 14% increase from $355.6 billion as at
October 31, 2021. Cash and deposits with financial institutions,
totalling $31.9 billion as at October 31, 2022, decreased by $2.0
billion, mainly due to a decrease in deposits with the Bank of
Canada, partly offset by an increase in deposits with the U.S.
Federal Reserve. The high level of cash and deposits with financial
institutions is explained in part by the excess liquidity related
to the accommodative monetary policies that have been applied by
central banks since 2020.
As at October 31, 2022, securities totalled $109.7 billion,
increasing $3.4 billion since October 31, 2021. Securities at fair
value through profit or loss increased by $2.6 billion or 3%,
essentially due to increases in securities issued or guaranteed by
the Canadian government and by U.S. Treasury, other U.S. agencies
and other foreign governments, partly offset by a decrease in
equity securities. Securities other than those measured at fair
value through profit or loss were also up, rising $0.8 billion.
Securities purchased under reverse repurchase agreements and
securities borrowed rose $19.0 billion, an increase that is mainly
related to the activities of the Financial Markets segment and of
Treasury.
Totalling $206.7 billion as at October 31, 2022, loans and
acceptances, net of allowances for credit losses, rose $24.0
billion or 13% since October 31, 2021. The following table provides
a breakdown of the main loan and acceptance portfolios.
As at October As at October
(millions of Canadian dollars) 31, 2022 31, 2021
------------------------------------------------------ ------------- -------------
Loans and acceptances
Residential mortgage and home equity lines of credit 109,648 99,146
Personal 15,804 14,449
Credit card 2,389 2,150
Business and government 79,858 67,942
------------------------------------------------------ ------------- -------------
207,699 183,687
Allowances for credit losses (955) (998)
------------------------------------------------------ ------------- -------------
206,744 182,689
----------------------------------------------------- ------------- -------------
Since October 31, 2021, residential mortgages (including home
equity lines of credit) rose $10.5 billion or 11% due to sustained
demand for mortgage credit in the Personal and Commercial segment,
as well as to the activities of the Financial Markets segment and
the ABA Bank and Credigy subsidiaries. Also since October 31, 2021,
personal loans were up as a result of business activity at Personal
Banking and ABA Bank, credit card receivables were up as the
consumer spending habits of clients gradually resumed and resulted
in an increase in purchasing volume, and loans and acceptances to
business and government were up $12.0 billion or 18%, mainly due to
business growth at Commercial Banking, in corporate banking
financial services, and at ABA Bank.
Impaired loans include loans classified in Stage 3 of the
expected credit loss model and the POCI loans of the Credigy
subsidiary. As at October 31, 2022, gross impaired loans stood at
$1,271 million compared to $1,126 million as at October 31, 2021.
As for net impaired loans, they totalled $1,030 million as at
October 31, 2022 compared to $836 million as at October 31, 2021.
Net impaired loans excluding POCI loans amounted to $479 million,
rising $196 million from $283 million as at October 31, 2021. This
increase was essentially due to the loan portfolio of the Financial
Markets segment and to the loan portfolio of ABA Bank, as the
COVID-19 relief measures that had been granted to this subsidiary's
clients ceased. The increase was partly offset by decreases in the
net impaired loans of the Commercial Banking loan portfolio and of
the Credigy loan portfolio (excluding POCI loans). Net POCI loans
stood at $551 million as at October 31, 2022 compared to $553
million as at October 31, 2021.
Other assets totalled $28.9 billion as at October 31, 2022,
rising $3.7 billion since October 31, 2021, mainly due to an
increase in derivative financial instruments related to the
activities of the Financial Markets segment, which were up $2.0
billion, as well as to a $1.4 billion increase in receivables,
prepaid expenses and other items.
Liabilities
As at October 31, 2022, the Bank had total liabilities of $382.0
billion compared to $336.9 billion as at October 31, 2021.
The Bank's total deposit liability stood at $266.4 billion as at
October 31, 2022, rising $25.5 billion or 11% from $240.9 billion
as at October 31, 2021. At $78.8 billion as at October 31, 2022,
personal deposits increased $8.7 billion since October 31, 2021.
This increase was driven by business growth in Personal Banking, in
both the Wealth Management and Financial Markets segments, and at
ABA Bank.
Business and government deposits totalled $184.2 billion as at
October 31, 2022, rising $16.3 billion since October 31, 2021. This
increase came from the funding activities of the Financial Markets
segment and of Treasury, including $2.0 billion in deposits subject
to bank recapitalization (bail-in) conversion regulations, as well
as from business and government deposits arising from the business
activities of Commercial Banking and Wealth Management. Deposits
from deposit-taking institutions stood at $3.4 billion as at
October 31, 2022, rising $0.4 billion since October 31, 2021.
Other liabilities stood at $114.1 billion as at October 31,
2022, rising $18.9 billion since October 31, 2021, essentially due
to a $16.2 billion increase in obligations related to securities
sold under repurchase agreements and securities loaned. Obligations
related to securities sold short and liabilities related to
transferred receivables were also up, rising $1.5 billion and $1.1
billion, respectively.
Subordinated debt increased since October 31, 2021 as a result
of the $750 million issuance, on July 25, 2022, of medium-term
notes, partly offset by the US$7 million redemption, on August 31,
2022, of debentures denominated in foreign currency.
Equity
As at October 31, 2022, equity attributable to the Bank's
shareholders and holders of other equity instruments totalled $21.7
billion, rising $3.0 billion from $18.7 billion since October 31,
2021. This increase was due to net income net of dividends, to the
$500 million issuance of LRCN - Series 3, to the issuances of
common shares under the Stock Option Plan, to the net fair value
change attributable to the credit risk on financial liabilities
designated at fair value through profit or loss, and to accumulated
other comprehensive income, notably net unrealized foreign currency
translation gains on investments in foreign operations. These
increases were partly offset by the repurchase of common shares for
cancellation and by remeasurements of pension plans and other
post-employment benefit plans.
Income Taxes
Notice of Assessment
In September 2022, the Bank was reassessed by the Canada Revenue
Agency (CRA) for additional income tax and interest of
approximately $150 million (including estimated provincial tax and
interest) in respect of certain Canadian dividends received by the
Bank during the 2017 taxation year.
In prior fiscal years, the Bank had been reassessed for
additional income tax and interest of approximately $725 million
(including provincial tax and interest) in respect of certain
Canadian dividends received by the Bank during the 2012-2016
taxation years.
In the reassessments, the CRA alleges that the dividends were
received as part of a "dividend rental arrangement".
The CRA may issue reassessments to the Bank for taxation years
subsequent to 2017 in regard to activities similar to those that
were the subject of the above-mentioned reassessments. The Bank
remains confident that its tax position was appropriate and intends
to vigorously defend its position. As a result, no amount has
been
recognized in the consolidated financial statements as at October 31, 2022.
Proposed Legislation
On November 4, 2022, the Government of Canada introduced Bill
C-32 - An Act to implement certain provisions of the fall economic
statement table in Parliament on November 3, 2022 and certain
provisions of the budget tabled in Parliament on April 7, 2022 to
implement tax measures applicable to certain entities of banking
and life insurer groups, as presented in its budget of April 7,
2022. These tax measures include the Canada Recovery Dividend
(CRD), which is a one-time 15% tax on the fiscal 2021 and 2020
average taxable income above $1 billion, and also include a 1.5%
increase in the statutory tax rate. The amount of CRD for the Bank
is estimated at $32 million. Since these tax measures were not
substantively enacted at the reporting date, no amount has been
recognized in the Bank's consolidated financial statements as at
October 31, 2022.
Event After the Consolidated Balance Sheet
Repurchase of Common Shares
On November 29, 2022, the Bank's Board of Directors approved a
normal course issuer bid, beginning December 12, 2022, to
repurchase for cancellation up to 7,000,000 common shares
(representing approximately 2.08% of its outstanding common shares)
over the 12-month period ending December 11, 2023. Any repurchase
through the Toronto Stock Exchange will be done at market prices.
The common shares may also be repurchased through other means
authorized by the Toronto Stock Exchange and applicable
regulations, including private agreements or share repurchase
programs under issuer bid exemption orders issued by the securities
regulators. A private purchase made under an exemption order issued
by a securities regulator will be done at a discount to the
prevailing market price. The amounts that are paid above the
average book value of the common shares are charged to Retained
earnings. This normal course issuer bid is subject to the approval
of OSFI and the Toronto Stock Exchange (TSX).
Capital Management
As at October 31, 2022, the Bank's CET1, Tier 1, and Total
capital ratios were, respectively, 12.7 %, 15.4 % and 16.9 %,
compared to ratios of, respectively, 12.4%, 15.0% and 15.9% as at
October 31, 2021. All of the capital ratios have therefore
increased since October 31, 2021, essentially due to net income net
of dividends and to common share issuances under the Stock Option
Plan. These factors were partly offset by growth in RWA, common
share repurchases, and the impact of the transitional measures
applicable to ECL provisioning, of which the scaling factor
decreased from 50% to 25%. The increase in the Tier 1 capital ratio
was also due to the $500 million issuance of limited recourse
capital notes, i.e., Limited Recourse Capital Notes (LRCN) - Series
3, on September 8, 2022. The increase in the Total capital ratio
was also due to the $750 million issuance of medium-term notes on
July 25, 2022 . As at October 31, 2022, the leverage ratio was 4.5
% compared to 4.4 % as at October 31, 2021. The growth in Tier 1
capital was partly offset by growth in total exposure, which will
continue to benefit, until April 1, 2023, from the temporary
measure permitted by OSFI with respect to the exclusion of
exposures from central bank reserves.
As at October 31, 2022, the Bank's TLAC ratio and TLAC leverage
ratio were, respectively, 27.7% and 8.1%, compared with 26.3% and
7.8%, respectively, as at October 31, 2021. The increase in the
TLAC ratio was due to the same factors as those provided for the
Total capital ratio and to the net TLAC instrument issuances during
the period. The increase in the TLAC leverage ratio was due to the
same factors as those provided for the leverage ratio and to the
net TLAC instrument issuances.
During the fiscal year ended October 31, 2022, the Bank was in
compliance with all of OSFI's regulatory capital, leverage, and
TLAC requirements.
Regulatory Capital (1) , Leverage Ratio(1) and TLAC(2)
(millions of Canadian dollars) As at October 31, 2022 As at October 31, 2021
-------------------------------- -------------------------- --------------------------
Adjusted
(3) Adjusted(3)
------------------------------- ----------- --------- ------------- -------
Capital
CET1 14,763 14,818 12,866 12,973
Tier 1 17,906 17,961 15,515 15,622
Total 19,727 19,727 16,643 16,643
-------------------------------- ----------- --------- ------------- -------
Risk-weighted assets 116,840 116,840 104,358 104,358
Total exposure 401,780 401,780 351,160 351,160
-------------------------------- ----------- --------- ------------- -------
Capital ratios
CET1 12.6 % 12.7 % 12.3% 12.4%
Tier 1 15.3 % 15.4 % 14.9% 15.0%
Total 16.9 % 16.9 % 15.9% 15.9%
-------------------------------- ----------- --------- ------------- -------
Leverage ratio 4.5 % 4.5 % 4.4% 4.4%
-------------------------------- ----------- --------- ------------- -------
Available TLAC (2) 32,351 32,351 27,492 27,492
TLAC ratio (2) 27.7 % 27.7 % 26.3% 26.3%
TLAC leverage ratio (2) 8.1 % 8.1 % 7.8% 7.8%
-------------------------------- ----------- --------- ------------- -------
(1) Capital, risk-weighted assets, total exposure, the capital
ratios, and the leverage ratio are calculated in accordance with
the Basel III rules, as set out in OSFI's Capital Adequacy
Requirements Guideline and Leverage Requirements Guideline.
(2) Available TLAC, the TLAC ratio, and the TLAC leverage ratio
are calculated in accordance with OSFI's Total Loss Absorbing
Capacity Guideline.
(3) Adjusted amounts are calculated in accordance with the Basel
III rules, as set out in OSFI's Capital Adequacy Requirements
Guideline, and exclude the transitional measure for provisioning
expected credit losses.
Dividends
On November 29, 2022, the Board of Directors declared regular
dividends on the various series of first preferred shares and a
dividend of 97 cents per common share, up 5 cents or 5%, payable on
February 1, 2023 to shareholders of record on December 26,
2022.
Consolidated Balance Sheets
(unaudited) (millions of Canadian dollars)
As at October As at October
31, 2022 31, 2021(1)
------------------------------------------------ ------------- -------------
Assets
Cash and deposits with financial institutions 31,870 33,879
------------------------------------------------ ------------- -------------
Securities
At fair value through profit or loss 87,375 84,811
At fair value through other comprehensive
income 8,828 9,583
At amortized cost 13,516 11,910
------------------------------------------------ ------------- -------------
109,719 106,304
----------------------------------------------- ------------- -------------
Securities purchased under reverse repurchase
agreements
and securities borrowed 26,486 7,516
-------------------------------------------------- ------------- -------------
Loans
Residential mortgage 80,129 72,542
Personal 45,323 41,053
Credit card 2,389 2,150
Business and government 73,317 61,106
------------------------------------------------ ------------- -------------
201,158 176,851
Customers' liability under acceptances 6,541 6,836
Allowances for credit losses (955) (998)
------------------------------------------------ ------------- -------------
206,744 182,689
----------------------------------------------- ------------- -------------
Other
Derivative financial instruments 18,547 16,484
Investments in associates and joint ventures 140 225
Premises and equipment 1,397 1,216
Goodwill 1,519 1,504
Intangible assets 1,360 1,274
Other assets 5,958 4,530
------------------------------------------------ ------------- -------------
28,921 25,233
----------------------------------------------- ------------- -------------
403,740 355,621
----------------------------------------------- ------------- -------------
Liabilities and equity
Deposits 266,394 240,938
------------------------------------------------ ------------- -------------
Other
Acceptances 6,541 6,836
Obligations related to securities sold short 21,817 20,266
Obligations related to securities sold under
repurchase agreements
and securities loaned 33,473 17,293
Derivative financial instruments 19,632 19,367
Liabilities related to transferred receivables 26,277 25,170
Other liabilities 6,361 6,301
------------------------------------------------ ------------- -------------
114,101 95,233
----------------------------------------------- ------------- -------------
Subordinated debt 1,499 768
------------------------------------------------ ------------- -------------
Equity
Equity attributable to the Bank's shareholders
and holders of
other equity instruments
Preferred shares and other equity instruments 3,150 2,650
Common shares 3,196 3,160
Contributed surplus 56 47
Retained earnings 15,140 12,854
Accumulated other comprehensive income 202 (32)
------------------------------------------------ ------------- -------------
21,744 18,679
Non-controlling interests 2 3
------------------------------------------------ ------------- -------------
21,746 18,682
----------------------------------------------- ------------- -------------
403,740 355,621
----------------------------------------------- ------------- -------------
(1) Certain amounts have been adjusted to reflect an accounting
policy change applicable to cloud computing arrangements. For
additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022.
Consolidated Statements of Income
(unaudited) (millions of Canadian dollars)
Quarter ended Year ended October
October 31 31
----------------------------------------------------- --------------- --------------------
2022 2021(1) 2022 2021(1)
----------------------------------------------------- ------ ------- -------- ----------
Interest income
Loans 2,400 1,369 7,136 5,460
Securities at fair value through profit or
loss 393 263 1,548 1,092
Securities at fair value through other comprehensive
income 54 44 163 181
Securities at amortized cost 107 43 263 178
Deposits with financial institutions 247 19 435 76
------------------------------------------------------ ------ ------- -------- ----------
3,201 1,738 9,545 6,987
----------------------------------------------------- ------ ------- -------- ----------
Interest expense
Deposits 1,586 405 3,291 1,635
Liabilities related to transferred receivables 147 102 472 372
Subordinated debt 15 4 28 17
Other 246 37 483 180
------------------------------------------------------ ------ ------- -------- ----------
1,994 548 4,274 2,204
----------------------------------------------------- ------ ------- -------- ----------
Net interest income (2) 1,207 1,190 5,271 4,783
------------------------------------------------------ ------ ------- -------- ----------
Non-interest income
Underwriting and advisory fees 94 80 324 415
Securities brokerage commissions 42 50 204 238
Mutual fund revenues 141 149 587 563
Investment management and trust service fees 244 251 997 900
Credit fees 125 126 490 506
Card revenues 47 42 186 148
Deposit and payment service charges 78 70 298 274
Trading revenues (losses) 229 55 543 268
Gains (losses) on non-trading securities, net (3) 20 113 151
Insurance revenues, net 26 33 158 131
Foreign exchange revenues, other than trading 57 45 211 202
Share in the net income of associates and joint
ventures 4 6 28 23
Other 43 94 242 325
------------------------------------------------------ ------ ------- -------- ----------
1,127 1,021 4,381 4,144
----------------------------------------------------- ------ ------- -------- ----------
Total revenues 2,334 2,211 9,652 8,927
------------------------------------------------------ ------ ------- -------- ----------
Non-interest expenses
Compensation and employee benefits 831 754 3,284 3,027
Occupancy 83 75 312 299
Technology 227 237 915 871
Communications 13 11 57 53
Professional fees 68 75 249 246
Other 124 116 413 407
------------------------------------------------------ ------ ------- -------- ----------
1,346 1,268 5,230 4,903
----------------------------------------------------- ------ ------- -------- ----------
Income before provisions for credit losses
and income taxes 988 943 4,422 4,024
Provisions for credit losses 87 (41) 145 2
------------------------------------------------------ ------ ------- -------- ----------
Income before income taxes 901 984 4,277 4,022
Income taxes 163 215 894 882
------------------------------------------------------ ------ ------- -------- ----------
Net income 738 769 3,383 3,140
------------------------------------------------------ ------ ------- -------- ----------
Net income attributable to
Preferred shareholders and holders of other
equity instruments 30 26 107 123
Common shareholders 708 743 3,277 3,017
------------------------------------------------------ ------ ------- -------- ----------
Bank shareholders and holders of other equity
instruments 738 769 3,384 3,140
Non-controlling interests - - (1) -
------------------------------------------------------ ------ ------- -------- ----------
738 769 3,383 3,140
----------------------------------------------------- ------ ------- -------- ----------
Earnings per share (dollars)
Basic 2.10 2.20 9.72 8.95
Diluted 2.08 2.17 9.61 8.85
Dividends per common share (dollars) 0.92 0.71 3.58 2.84
------------------------------------------------------ ------ ------- -------- ----------
(1) Certain amounts have been adjusted to reflect an accounting
policy change applicable to cloud computing arrangements. For
additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022.
(2) Net interest income includes dividend income. For additional
information, see Note 1 to the audited annual consolidated
financial statements for the year ended October 31, 2022.
Consolidated Statements of Comprehensive Income
(unaudited) (millions of Canadian dollars)
Quarter ended Year ended October
October 31 31
--------------------------------------------------- ---------------- --------------------
2022 2021(1) 2022 2021(1)
------------------------------------------------------- ------ ------- -------- ----------
Net income 738 769 3,383 3,140
------------------------------------------------------- ------ ------- -------- ----------
Other comprehensive income, net of income
taxes
Items that may be subsequently reclassified
to net income
Net foreign currency translation adjustments
Net unrealized foreign currency translation
gains (losses) on investments
in foreign operations 322 (37) 471 (314)
Net foreign currency translation (gains) losses
on investments in foreign operations
reclassified to net income - 16 - 16
Impact of hedging net foreign currency translation
gains (losses) (97) 9 (138) 95
225 (12) 333 (203)
----------------------------------------------------- ------ ------- -------- ----------
Net change in debt securities at fair value
through other comprehensive income
Net unrealized gains (losses) on debt securities
at fair value through other
comprehensive income (21) (13) (197) 6
Net (gains) losses on debt securities at fair
value through other comprehensive
income reclassified to net income 10 7 91 (34)
Change in allowances for credit losses on
debt securities at fair value through
other comprehensive income reclassified to
net income 1 (1) 1 (2)
---------------------------------------------------- ------ ------- -------- ----------
(10) (7) (105) (30)
--------------------------------------------------- ------ ------- -------- ----------
Net change in cash flow hedges
Net gains (losses) on derivative financial
instruments designated as cash flow hedges (50) 129 (25) 280
Net (gains) losses on designated derivative
financial instruments reclassified
to net income 10 9 33 26
---------------------------------------------------- ------ ------- -------- ----------
(40) 138 8 306
--------------------------------------------------- ------ ------- -------- ----------
Share in the other comprehensive income of
associates and joint ventures - - (2) -
----------------------------------------------------- ------ ------- -------- ----------
Items that will not be subsequently reclassified
to net income
Remeasurements of pension plans and other
post-employment benefit plans (257) 28 (126) 475
Net gains (losses) on equity securities designated
at fair value through
other comprehensive income (1) 5 (27) 64
Net fair value change attributable to the
credit risk on financial liabilities
designated at fair value through profit or
loss 10 17 601 (12)
---------------------------------------------------- ------ ------- -------- ----------
(248) 50 448 527
--------------------------------------------------- ------ ------- -------- ----------
Total other comprehensive income, net of income
taxes (73) 169 682 600
------------------------------------------------------- ------ ------- -------- ----------
Comprehensive income 665 938 4,065 3,740
------------------------------------------------------- ------ ------- -------- ----------
Comprehensive income attributable to
Bank shareholders and holders of other equity
instruments 665 938 4,066 3,753
Non-controlling interests - - (1) (13)
------------------------------------------------------ ------ ------- -------- ----------
665 938 4,065 3,740
------------------------------------------------------ ------ ------- -------- ----------
(1) Certain amounts have been adjusted to reflect an accounting
policy change applicable to cloud computing arrangements. For
additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022.
Consolidated Statements of Comprehensive Income (cont.)
(unaudited) (millions of Canadian dollars)
Income Taxes - Other Comprehensive Income
The following table presents the income tax expense or recovery
for each component of other comprehensive income.
Year ended October
Quarter ended October 31 31
----------------------------------------------------------------- --------------------
2022 2021 2022 2021
------------------------------------------------------ ----- ---- --------- ---------
Items that may be subsequently reclassified
to net income
Net foreign currency translation adjustments
Net unrealized foreign currency translation
gains (losses) on investments
in foreign operations (9) 1 (13) 10
Net foreign currency translation (gains) losses
on investments in foreign operations
reclassified to net income - 2 - 2
Impact of hedging net foreign currency translation
gains (losses) (19) 2 (28) 24
----------------------------------------------------- ----- ---- --------- ---------
(28) 5 (41) 36
--------------------------------------------------- ----- ---- --------- ---------
Net change in debt securities at fair value
through other comprehensive income
Net unrealized gains (losses) on debt securities
at fair value through other
comprehensive income (8) (5) (71) 2
Net (gains) losses on debt securities at fair
value through other comprehensive income
reclassified to net income 3 2 32 (12)
Change in allowances for credit losses on debt
securities at fair value through
other comprehensive income reclassified to
net income - - - -
---------------------------------------------------- ----- ---- --------- ---------
(5) (3) (39) (10)
--------------------------------------------------- ----- ---- --------- ---------
Net change in cash flow hedges
Net gains (losses) on derivative financial
instruments designated as cash flow hedges (18) 47 (9) 100
Net (gains) losses on designated derivative
financial instruments reclassified
to net income 4 3 12 9
----------------------------------------------------- ----- ---- --------- ---------
(14) 50 3 109
--------------------------------------------------- ----- ---- --------- ---------
Share in the other comprehensive income of
associates and joint ventures 1 - - -
------------------------------------------------------ ----- ---- --------- ---------
Items that will not be subsequently reclassified
to net income
Remeasurements of pension plans and other
post-employment benefit plans (92) 10 (45) 170
Net gains (losses) on equity securities designated
at fair value through
other comprehensive income (1) 3 (10) 24
Net fair value change attributable to the
credit risk on financial liabilities
designated at fair value through profit or
loss 4 6 216 (5)
----------------------------------------------------- ----- ---- --------- ---------
(89) 19 161 189
----- ---- --------- ---------
(135) 71 84 324
------------------------------------------------------ ----- ---- --------- ---------
Consolidated Statements of Changes in Equity
(unaudited) (millions of Canadian dollars)
Year ended October 31
------------------------------------------------------------ --------------------------
2022 2021(1)
------------------------------------------------------------- ----------- ----------
Preferred shares and other equity instruments at
beginning 2,650 2,950
Issuances of preferred shares and other equity instruments 500 500
Redemption of preferred shares and other equity instruments
for cancellation - (800)
------------------------------------------------------------- ----------- ----------
Preferred shares and other equity instruments at
end 3,150 2,650
------------------------------------------------------------- ----------- ----------
Common shares at beginning 3,160 3,057
Issuances of common shares pursuant to the Stock
Option Plan 61 104
Repurchases of common shares for cancellation (24) -
Impact of shares purchased or sold for trading (1) (1)
Common shares at end 3,196 3,160
------------------------------------------------------------- ----------- ----------
Contributed surplus at beginning 47 47
Stock option expense 17 11
Stock options exercised (7) (11)
Other (1) -
------------------------------------------------------------- ----------- ----------
Contributed surplus at end 56 47
------------------------------------------------------------- ----------- ----------
Retained earnings at beginning 12,854 10,444
Impact of an accounting policy change as at November
1, 2020 - (137)
Net income attributable to the Bank's shareholders
and holders of other equity instruments 3,384 3,140
Dividends on preferred shares and distributions on
other equity instruments (119) (131)
Dividends on common shares (1,206) (958)
Premium paid on common shares repurchased for cancellation (221) -
Issuance expenses for shares and other equity instruments,
net of income taxes (4) (4)
Remeasurements of pension plans and other post-employment
benefit plans (126) 475
Net gains (losses) on equity securities designated
at fair value through other comprehensive income (27) 64
Net fair value change attributable to the credit
risk on financial liabilities
designated at fair value through profit or loss 601 (12)
Impact of a financial liability resulting from put
options written to non-controlling interests (8) (25)
Other 12 (2)
------------------------------------------------------------- ----------- ----------
Retained earnings at end 15,140 12,854
------------------------------------------------------------- ----------- ----------
Accumulated other comprehensive income at beginning (32) (118)
Net foreign currency translation adjustments 333 (190)
Net change in unrealized gains (losses) on debt securities
at fair value through other comprehensive income (105) (30)
Net change in gains (losses) on cash flow hedges 8 306
Share in the other comprehensive income of associates
and joint ventures (2) -
------------------------------------------------------------- ----------- ----------
Accumulated other comprehensive income at end 202 (32)
------------------------------------------------------------- ----------- ----------
Equity attributable to the Bank's shareholders and
holders of other equity instruments 21,744 18,679
------------------------------------------------------------- ----------- ----------
Non-controlling interests at beginning 3 3
Non-controlling interest from the acquisition of
Flinks Technology Inc. - 3
Purchase of the non-controlling interest of the Credigy
Ltd. subsidiary - 10
Net income attributable to non-controlling interests (1) -
Other comprehensive income attributable to non-controlling
interests - (13)
Non-controlling interests at end 2 3
------------------------------------------------------------- ----------- ----------
Equity 21,746 18,682
------------------------------------------------------------- ----------- ----------
Accumulated Other Comprehensive Income
As at October As at October
31, 2022 31, 2021
------------------------------------------------------- ------------- -------------
Accumulated other comprehensive income
Net foreign currency translation adjustments 204 (129)
Net unrealized gains (losses) on debt securities at
fair value through other comprehensive income (34) 71
Net gains (losses) on instruments designated as cash
flow hedges 31 23
Share in the other comprehensive income of associates
and joint ventures 1 3
------------------------------------------------------- ------------- -------------
202 (32)
------------------------------------------------------- ------------- -------------
(1) Certain amounts have been adjusted to reflect an accounting
policy change applicable to cloud computing arrangements. For
additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022.
Segment Disclosures
(unaudited) (millions of Canadian dollars)
The Bank carries out its activities in four business segments,
which are defined below. For presentation purposes, other
activities are grouped in the Other heading. Each reportable
segment is distinguished by services offered, type of clientele,
and marketing strategy. The presentation of segment disclosures is
consistent with the presentation adopted by the Bank for the fiscal
year beginning November 1, 2021. This presentation reflects the
fact that the loan portfolio of borrowers in the Oil and gas and
Pipelines sectors as well as related activities, which had
previously been reported in the Personal and Commercial segment, is
now reported in the Financial Markets segment. The Bank made this
change to better align the monitoring of its activities with its
management structure.
Personal and Commercial
The Personal and Commercial segment encompasses the banking,
financing, and investing services offered to individuals, advisors,
and businesses as well as insurance operations.
Wealth Management
The Wealth Management segment comprises investment solutions,
trust services, banking services, lending services, and other
wealth management solutions offered through internal and
third-party distribution networks.
Financial Markets
The Financial Markets segment encompasses corporate banking and
investment banking and financial solutions for large and mid-size
corporations, public sector organizations, and institutional
investors.
U.S. Specialty Finance and International (USSF&I)
The USSF&I segment encompasses the specialty finance
expertise provided by the Credigy subsidiary; the activities of the
ABA Bank subsidiary, which offers financial products and services
to individuals and businesses in Cambodia; and the activities of
targeted investments in certain emerging markets.
Other
This heading encompasses treasury activities; liquidity
management; Bank funding; asset/liability management activities;
the activities of the Flinks subsidiary, a fintech company
specialized in financial data aggregation and distribution; certain
specified items; and the unallocated portion of corporate
units.
Results by Business Segment
Quarter ended October 31(1)
---------------- ------- ------- ----- ----- ------- ---------------------------------------------------------
Personal
and Wealth Financial
Commercial Management Markets USSF&I Other Total
---------------- ---------------- ------------ ---------------- ------ ------ -------------- ------- -------
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Net interest
income(2) 785 654 187 114 113 287 277 241 (155) (106) 1,207 1,190
Non-interest
income(2)(3) 286 276 426 447 450 209 (10) 1 (25) 88 1,127 1,021
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Total revenues 1,071 930 613 561 563 496 267 242 (180) (18) 2,334 2,211
Non-interest
expenses 551 511 343 342 252 213 90 76 110 126 1,346 1,268
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Income before
provisions
for credit
losses and
income
taxes 520 419 270 219 311 283 177 166 (290) (144) 988 943
Provisions for
credit
losses 42 (5) 2 1 32 (40) 10 3 1 - 87 (41)
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Income before
income
taxes (recovery) 478 424 268 218 279 323 167 163 (291) (144) 901 984
Income taxes
(recovery)(2) 127 113 70 58 74 85 35 34 (143) (75) 163 215
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Net income 351 311 198 160 205 238 132 129 (148) (69) 738 769
Non-controlling
interests - - - - - - - - - - - -
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Net income
attributable
to the Bank's
shareholders
and holders of
other
equity
instruments 351 311 198 160 205 238 132 129 (148) (69) 738 769
---------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Average assets(4) 145,382 133,393 8,345 7,699 160,778 152,001 20,395 17,143 74,921 61,352 409,821 371,588
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Total assets 146,915 135,209 8,363 7,914 157,803 141,007 21,217 17,393 69,442 54,098 403,740 355,621
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Year ended October 31(1)
---------------- ------- ------- ----- ----- ------- ---------------------------------------------------------
Personal
and Wealth Financial
Commercial Management Markets USSF&I Other Total
---------------- ---------------- ------------ ---------------- ------ ------ -------------- ------- -------
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Net interest
income(5) 2,865 2,547 594 446 1,258 1,262 1,090 907 (536) (379) 5,271 4,783
Non-interest
income(3)(5) 1,169 1,068 1,781 1,720 1,210 956 20 94 201 306 4,381 4,144
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Total revenues 4,034 3,615 2,375 2,166 2,468 2,218 1,110 1,001 (335) (73) 9,652 8,927
Non-interest
expenses 2,149 2,008 1,391 1,293 1,022 906 344 315 324 381 5,230 4,903
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Income before
provisions
for credit
losses and
income
taxes 1,885 1,607 984 873 1,446 1,312 766 686 (659) (454) 4,422 4,024
Provisions for
credit
losses 97 40 3 1 (23) (24) 66 (15) 2 - 145 2
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Income before
income
taxes (recovery) 1,788 1,567 981 872 1,469 1,336 700 701 (661) (454) 4,277 4,022
Income taxes
(recovery)(5) 474 416 260 231 389 353 143 146 (372) (264) 894 882
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Net income 1,314 1,151 721 641 1,080 983 557 555 (289) (190) 3,383 3,140
Non-controlling
interests - - - - - - - - (1) - (1) -
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Net income
attributable
to the Bank's
shareholders
and
holders of
other
equity
instruments 1,314 1,151 721 641 1,080 983 557 555 (288) (190) 3,384 3,140
---------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Average assets(4) 140,514 126,637 8,226 7,146 154,349 151,240 18,890 16,150 71,868 62,333 393,847 363,506
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
Total assets 146,915 135,209 8,363 7,914 157,803 141,007 21,217 17,393 69,442 54,098 403,740 355,621
----------------- ------- ------- ----- ----- ------- ------- ------ ------ ------ ------ ------- -------
(1) For the quarter and year ended October 31, 2021, certain
amounts have been reclassified, in particular amounts of the loan
portfolio of borrowers in the Oil and gas and P ipelines sectors as
well as related activities, which were transferred from the
Personal and Commercial segment to the Financial Markets segment.
Moreover, certain amounts have been adjusted to reflect an
accounting policy change applicable to cloud computing arrangements
(for additional information, see Note 1 to the audited annual
consolidated financial statements for the year ended October 31,
2022).
(2) The Net interest income, Non-interest income, and Income
taxes (recovery) items of the business segments are presented on a
taxable equivalent basis. Taxable equivalent basis is a calculation
method that consists in grossing up certain tax-exempt income by
the amount of income tax that would have otherwise been payable.
During the fourth quarter of 2022, for the business segments as a
whole, Net interest income was grossed up by $65 million ($39
million in 2021), Non-interest income was grossed up by $30 million
($2 million in 2021), and an equivalent amount was recognized in
Income taxes (recovery). The effect of these adjustments is
reversed under the Other heading.
(3) For the Other heading of segment results, for the quarter
and year ended October 31, 2021, the Non-interest income item had
included a $33 million gain following a remeasurement of the
previously held equity interest in Flinks and a $30 million loss
related to the fair value measurement of the Bank's equity interest
in AfrAsia.
(4) Represents an average of the daily balances for the period,
which is also the basis on which are reported in the business
segments.
(5) During the year ended October 31, 2022, for the business
segments as whole, Net interest income was grossed up by $234
million ($181 million in 2021), Non-interest income was grossed up
by $48 million ($8 million in 2021), and an equivalent amount was
recognized in Income taxes (recovery). The effect of these
adjustments has been reversed under the Other heading.
Caution Regarding Forward Looking Statements
Certain statements in this document are forward-looking
statements. All such statements are made in accordance with
applicable securities legislation in Canada and the United States.
Forward-looking statements in this document may include, but are
not limited to, statements with respect to the economy-particularly
the Canadian and U.S. economies-market changes, the Bank's
objectives, outlook and priorities for fiscal year 2023 and beyond,
the strategies or actions that will be taken to achieve them,
expectations for the Bank's financial condition, the regulatory
environment in which it operates, the impacts of-and the Bank's
response to-the COVID-19 pandemic, and certain risks it faces.
These forward-looking statements are typically identified by verbs
or words such as "outlook", "believe", "foresee", "forecast",
"anticipate", "estimate", "project", "expect", "intend" and "plan",
in their future or conditional forms, notably verbs such as "will",
"may", "should", "could" or "would" as well as similar terms and
expressions. Such forward-looking statements are made for the
purpose of assisting the holders of the Bank's securities in
understanding the Bank's financial position and results of
operations as at and for the periods ended on the dates presented,
as well as the Bank's vision, strategic objectives, and financial
performance targets, and may not be appropriate for other purposes.
These forward-looking statements are based on current expectations,
estimates, assumptions and intentions and are subject to
uncertainty and inherent risks, many of which are beyond the Bank's
control.
Assumptions about the performance of the Canadian and U.S.
economies in 2023 and how that performance will affect the Bank's
business are among the main factors considered in setting the
Bank's strategic priorities and objectives, including provisions
for credit losses. In determining its expectations for economic
conditions, both broadly and in the financial services sector in
particular, the Bank primarily considers historical economic data
provided by the governments of Canada, the United States and
certain other countries in which the Bank conducts business, as
well as their agencies.
Statements about the economy, market changes, and the Bank's
objectives, outlook and priorities for fiscal 2023 and thereafter
are based on a number of assumptions and are subject to risk
factors, many of which are beyond the Bank's control and the
impacts of which are difficult to predict. These risk factors
include, among others, the general economic environment and
financial market conditions in Canada, the United States, and other
countries where the Bank operates; exchange rate and interest rate
fluctuations; inflation; disruptions in global supply chains;
higher funding costs and greater market volatility; changes made to
fiscal, monetary, and other public policies; changes made to
regulations that affect the Bank's business; geopolitical and
sociopolitical uncertainty; the transition to a low-carbon economy
and the Bank's ability to satisfy stakeholder expectations on
environmental and social issues; significant changes in consumer
behaviour; the housing situation, real estate market, and household
indebtedness in Canada; the Bank's ability to achieve its long-term
strategies and key short-term priorities; the timely development
and launch of new products and services; the Bank's ability to
recruit and retain key personnel; technological innovation and
heightened competition from established companies and from
competitors offering non-traditional services; changes in the
performance and creditworthiness of the Bank's clients and
counterparties; the Bank's exposure to significant regulatory
matters or litigation; changes made to the accounting policies used
by the Bank to report financial information, including the
uncertainty inherent to assumptions and critical accounting
estimates; changes to tax legislation in the countries where the
Bank operates, i.e., primarily Canada and the United States;
changes made to capital and liquidity guidelines as well as to the
presentation and interpretation thereof; changes to the credit
ratings assigned to the Bank; potential disruptions to key
suppliers of goods and services to the Bank; potential disruptions
to the Bank's information technology systems, including evolving
cyberattack risk as well as identity theft and theft of personal
information; the risk of fraudulent activity; and possible impacts
of major events affecting the local and global economies, including
international conflicts, natural disasters, and public health
crises such as the COVID-19 pandemic, the evolution of which is
difficult to predict and could continue to have repercussions on
the Bank.
There is a strong possibility that the Bank's express or implied
predictions, forecasts, projections, expectations or conclusions
will not prove to be accurate, that its assumptions may not be
confirmed and that its vision, strategic objectives and financial
performance targets will not be achieved. The Bank recommends that
readers not place undue reliance on forward-looking statements, as
a number of factors could cause actual results to differ
significantly from the expectations, estimates or intentions
expressed in these forward-looking statements. These risk factors
include credit risk, market risk, liquidity and funding risk,
operational risk, regulatory compliance risk, reputation risk,
strategic risk, environmental and social risk, and certain emerging
risks or risks deemed significant, all of which are described in
greater detail in the Risk Management section beginning on page 65
of the 2022 Annual Report.
The foregoing list of risk factors is not exhaustive. Additional
information about these risk factors is provided in the Risk
Management section of the 2022 Annual Report. Investors and others
who rely on the Bank's forward-looking statements should carefully
consider the above factors as well as the uncertainties they
represent and the risk they entail. Except as required by law, the
Bank does not undertake to update any forward-looking statements,
whether written or oral, that may be made from time to time, by it
or on its behalf. The Bank cautions investors that these
forward-looking statements are not guarantees of future performance
and that actual events or results may differ significantly from
these statements due to a number of factors.
Information for Shareholders and Investors
Disclosure of Fourth Quarter 2022 Results
Conference Call
-- A conference call for analysts and institutional investors
will be held on Wednesday, November 30, 2022 at 1:00 p.m. EST.
-- Access by telephone in listen-only mode: 1-800-806-5484 or
416-340-2217. The access code is 8857500#.
-- A recording of the conference call can be heard until
December 30, 2022 by dialing 1-800-408-3053 or 905-694-9451. The
access code is 2455317# .
Webcast
-- The conference call will be webcast live at nbc.ca/investorrelations .
-- A recording of the webcast will also be available on National
Bank's website after the call.
Financial Documents
-- The Press Release (which includes the quarterly consolidated
financial statements) is available at all times on National Bank's
website at nbc.ca/investorrelations .
-- The Press Release, the Supplementary Financial Information,
the Supplementary Regulatory Capital and Pillar 3 Disclosure , and
a slide presentation will be available on the Investor Relations
page of National Bank's website on the morning of the day of the
conference call.
-- The 2022 Annual Report (which includes the audited annual
consolidated financial statements and management's discussion and
analysis) will also be available on National Bank's website.
-- The Report to Shareholders for the first quarter ended
January 31, 2023 will be available on March 1, 2023 (subject to
approval by the Bank's Board of Directors).
For more Marie Chantal Jean Dagenais Linda Boulanger Debby Cordeiro
information: Gingras Senior Vice-President Senior Vice-President Senior Vice-President
Chief Financial - - -
Officer and Finance Investor Relations Communications
Executive 514-394-6233 514-394-0296 and Corporate
Vice-President Social Responsibility
- 514-412-0538
Finance
514-412-2634
----------------------- ------------------------ ------------------------
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