Personal and Commercial
- Net income
totalled $311 million in the second quarter of 2024 versus $320
million in the second quarter of 2023, a 3% decrease that was
mainly due to higher provisions for credit losses.
- Income before
provisions for credit losses and income taxes totalled $519 million
in the second quarter of 2024, up 9% from $478 million in the
second quarter of 2023.
- At $1,131
million, second-quarter total revenues rose $64 million or 6% year
over year, mainly due to an increase in net interest income (driven
by growth in loan and deposit volumes) and to a higher net interest
margin.
- Compared to a
year ago, personal lending grew 3% and commercial lending grew
12%.
- The net interest
margin(1) stood at 2.36% in the second quarter of 2024,
up from 2.34% in the second quarter of 2023.
- Second-quarter
non-interest expenses stood at $612 million, up 4% from the second
quarter of 2023.
- Second-quarter
provisions for credit losses rose $52 million year over year,
mainly due to higher provisions for credit losses on impaired
loans.
- At 54.1%, the
second-quarter efficiency ratio(1) improved from 55.2%
in the second quarter of 2023.
Wealth Management
- Net income
totalled $205 million in the second quarter of 2024, a 15% increase
from $178 million in the second quarter of 2023.
- Second-quarter
total revenues amounted to $683 million compared to $617 million in
second-quarter 2023, a $66 million or 11% increase driven mostly by
growth in fee-based revenues.
- Second-quarter
non-interest expenses stood at $400 million versus $372 million in
second-quarter 2023, an 8% increase associated with the revenue
growth.
- At 58.6%, the
second-quarter efficiency ratio(1) improved from 60.3%
in the second quarter of 2023.
Financial Markets
- Net income
totalled $322 million in the second quarter of 2024, up 20% from
$268 million in the second quarter of 2023.
- Second-quarter
total revenues on a taxable equivalent basis amounted to $766
million, up $94 million or 14% given increases in global markets
revenues and in revenues from corporate and investment banking
services.
- Second-quarter
non-interest expenses stood at $312 million compared to $283
million in second-quarter 2023, an increase that was partly due to
compensation and employee benefits as well as to the segment's
technological investments.
- Second-quarter
provisions for credit losses stood at $11 million, down $8 million
year over year.
- At 40.7%, the
efficiency ratio(1) on a taxable equivalent basis
improved from 42.1% in the second quarter of 2023.
U.S. Specialty Finance and International
- Net income
totalled $163 million in the second quarter of 2024, up 27% from
$128 million in the second quarter of 2023.
- Second-quarter
total revenues amounted to $350 million, a 23% year-over-year
increase driven by revenue growth at both the Credigy and ABA Bank
subsidiaries.
- Second-quarter
non-interest expenses stood at $108 million, a 10% year-over-year
increase attributable mainly to business growth at ABA
Bank.
- Second-quarter
provisions for credit losses were up $11 million year over year,
with the increase being attributable to both Credigy and ABA
Bank.
- At 30.9%, the
efficiency ratio(1) improved from 34.4% in the second
quarter of 2023.
Other
- Net loss stood at
$95 million in the second quarter of 2024 versus a $62 million net
loss in the second quarter of 2023 due to a lower contribution from
Treasury activities and to higher non-interest expenses.
Capital Management
- As at April 30,
2024, the Common Equity Tier 1 (CET1) capital ratio under Basel
III(2) stood at 13.2%, down from 13.5% as at October 31,
2023, notably due to a negative impact of implementing the revised
market risk and credit valuation adjustment (CVA) risk
frameworks.
- As at April 30,
2024, the Basel III(2) leverage ratio was 4.4%, stable
compared to October 31, 2023.
Dividends
- On May 28, 2024,
the Board of Directors declared regular dividends on the various
series of first preferred shares and a dividend
of $1.10 per common share, up 4 cents or 4%, payable on
August 1, 2024 to shareholders of record on June 24,
2024.
(1) For details on the composition of these measures, see the
Glossary section on pages 47 to 50 in the Report to Shareholders
-
Second Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(2) For additional information on capital management measures, see
the Financial Reporting Method section on pages 4 to 10 in the
Report to
Shareholders - Second Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
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, 2023. This presentation reflects the
retrospective application of accounting policy changes arising from
the adoption of IFRS 17- Insurance Contracts (IFRS 17). For
additional information, see Note 2 to the consolidated financial
statements. The figures for the 2023 quarters have been adjusted to
reflect these accounting policy changes.
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, 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 revenues taxed at lower
rates (notably dividends) by the income tax to a level that would
make it comparable to revenues from taxable sources in Canada. 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.
However, in light of the proposed legislation with respect to
Canadian dividends, the Bank did not either recognize an income tax
deduction or use the taxable equivalent basis method to adjust
revenues related to affected dividends received after January 1,
2024 (for additional information see the Income Taxes - Proposed
Legislation section in the Report to shareholders for
the second quarter of 2024, which is available on the Bank's
website at nbc.ca or the SEDAR+ website at
sedarplus.ca).
The key non-GAAP financial measures used by the
Bank to analyze its results are described below, and a quantitative
reconciliation of these measures is presented in the tables in the
Reconciliation of Non-GAAP Financial Measures section on pages 4 to
6. Note that no specified items have been excluded from results for
the quarter and six-month period ended April 30, 2024. In the
first six-month period of 2023, a $24 million tax expense
related to the Canadian government's 2022 tax measures had been
excluded from results given the one-time nature of the item. This
amount had included a $32 million tax expense with respect to
the Canada Recovery Dividend, i.e., a one-time, 15% tax on the
fiscal 2021 and 2020 average taxable income above $1 billion as
well as an $8 million tax recovery related to the 1.5% increase in
the statutory tax rate, which included the impact related to
current and deferred taxes for fiscal 2022.
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 4 to 10 and 47 to 50,
respectively, in the Report to shareholders for the second quarter
of 2024, which is available on the Bank's website at nbc.ca or the SEDAR+ website at sedarplus.ca.
Reconciliation of Non-GAAP Financial
Measures
Presentation
of Results - Adjusted
|
(millions of Canadian
dollars)
|
|
|
|
|
|
|
Quarter
ended April 30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023(1)
|
|
|
|
|
Personal and
Commercial
|
|
Wealth
Management
|
|
Financial
Markets
|
|
USSF&I
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Total
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
870
|
|
203
|
|
(659)
|
|
318
|
|
(97)
|
|
635
|
|
882
|
|
|
Non-interest income
|
261
|
|
480
|
|
1,425
|
|
32
|
|
(83)
|
|
2,115
|
|
1,564
|
|
|
Total revenues
|
1,131
|
|
683
|
|
766
|
|
350
|
|
(180)
|
|
2,750
|
|
2,446
|
|
|
Non-interest expenses
|
612
|
|
400
|
|
312
|
|
108
|
|
40
|
|
1,472
|
|
1,362
|
|
|
Income before provisions for credit
losses and income taxes
|
519
|
|
283
|
|
454
|
|
242
|
|
(220)
|
|
1,278
|
|
1,084
|
|
|
Provisions for credit
losses
|
89
|
|
−
|
|
11
|
|
37
|
|
1
|
|
138
|
|
85
|
|
|
Income before income taxes
(recovery)
|
430
|
|
283
|
|
443
|
|
205
|
|
(221)
|
|
1,140
|
|
999
|
|
|
Income taxes (recovery)
|
119
|
|
78
|
|
121
|
|
42
|
|
(126)
|
|
234
|
|
167
|
|
|
Net
income
|
311
|
|
205
|
|
322
|
|
163
|
|
(95)
|
|
906
|
|
832
|
|
|
Non-controlling interests
|
−
|
|
−
|
|
−
|
|
−
|
|
(1)
|
|
(1)
|
|
(1)
|
|
|
Net income attributable to the
Bank's shareholders and
holders of other equity
instruments
|
311
|
|
205
|
|
322
|
|
163
|
|
(94)
|
|
907
|
|
833
|
|
|
Dividends on preferred shares and
distributions on limited recourse
capital notes
|
|
|
|
|
|
|
|
|
|
|
37
|
|
35
|
|
|
Net income attributable to common
shareholders
|
|
|
|
|
|
|
|
|
|
|
870
|
|
798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that have an impact on results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
14
|
|
14
|
|
76
|
|
|
Impact on net interest
income
|
−
|
|
−
|
|
−
|
|
−
|
|
14
|
|
14
|
|
76
|
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
73
|
|
73
|
|
56
|
|
|
Impact on non-interest
income
|
−
|
|
−
|
|
−
|
|
−
|
|
73
|
|
73
|
|
56
|
|
|
Income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
87
|
|
87
|
|
132
|
|
|
Impact on income taxes
|
−
|
|
−
|
|
−
|
|
−
|
|
87
|
|
87
|
|
132
|
|
|
Impact on net income
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Operating results - Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income -
Adjusted
|
870
|
|
203
|
|
(659)
|
|
318
|
|
(83)
|
|
649
|
|
958
|
|
|
Non-interest income -
Adjusted
|
261
|
|
480
|
|
1,425
|
|
32
|
|
(10)
|
|
2,188
|
|
1,620
|
|
|
Total revenues - Adjusted
|
1,131
|
|
683
|
|
766
|
|
350
|
|
(93)
|
|
2,837
|
|
2,578
|
|
|
Non-interest expenses -
Adjusted
|
612
|
|
400
|
|
312
|
|
108
|
|
40
|
|
1,472
|
|
1,362
|
|
|
Income before provisions for credit
losses and income taxes - Adjusted
|
519
|
|
283
|
|
454
|
|
242
|
|
(133)
|
|
1,365
|
|
1,216
|
|
|
Provisions for credit
losses
|
89
|
|
−
|
|
11
|
|
37
|
|
1
|
|
138
|
|
85
|
|
|
Income before income taxes
(recovery) - Adjusted
|
430
|
|
283
|
|
443
|
|
205
|
|
(134)
|
|
1,227
|
|
1,131
|
|
|
Income taxes (recovery) -
Adjusted
|
119
|
|
78
|
|
121
|
|
42
|
|
(39)
|
|
321
|
|
299
|
|
|
Net
income - Adjusted
|
311
|
|
205
|
|
322
|
|
163
|
|
(95)
|
|
906
|
|
832
|
|
|
Non-controlling interests
|
−
|
|
−
|
|
−
|
|
−
|
|
(1)
|
|
(1)
|
|
(1)
|
|
|
Net income attributable to the
Bank's shareholders and
holders of other equity
instruments - Adjusted
|
311
|
|
205
|
|
322
|
|
163
|
|
(94)
|
|
907
|
|
833
|
|
|
Dividends on preferred shares and
distributions on limited recourse
capital notes
|
|
|
|
|
|
|
|
|
|
|
37
|
|
35
|
|
|
Net income attributable to common
shareholders - Adjusted
|
|
|
|
|
|
|
|
|
|
|
870
|
|
798
|
|
(1) Certain amounts have been adjusted to reflect accounting
policy changes arising from the adoption of IFRS 17. For additional
information, see Note 2 to the unaudited interim condensed
consolidated financial statements in the
Report to
Shareholders - Second Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(2) In light of the proposed legislation with respect to Canadian
dividends, the Bank did not recognize an income tax deduction or
use the taxable equivalent basis method to adjust revenues related
to affected dividends received after January 1, 2024 (for
additional information see the Income Taxes - Proposed Legislation
section in the Report to Shareholders
-
Second Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca).
|
(millions of Canadian
dollars)
|
|
|
|
|
|
|
Six months
ended April 30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023(1)
|
|
|
|
|
Personal and
Commercial
|
|
Wealth
Management
|
|
Financial
Markets
|
|
USSF&I
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Total
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
1,740
|
|
401
|
|
(1,177)
|
|
619
|
|
(197)
|
|
1,386
|
|
1,981
|
|
|
Non-interest income
|
545
|
|
942
|
|
2,698
|
|
57
|
|
(168)
|
|
4,074
|
|
3,027
|
|
|
Total revenues
|
2,285
|
|
1,343
|
|
1,521
|
|
676
|
|
(365)
|
|
5,460
|
|
5,008
|
|
|
Non-interest expenses
|
1,227
|
|
790
|
|
625
|
|
208
|
|
71
|
|
2,921
|
|
2,752
|
|
|
Income before provisions for credit
losses and income taxes
|
1,058
|
|
553
|
|
896
|
|
468
|
|
(436)
|
|
2,539
|
|
2,256
|
|
|
Provisions for credit
losses
|
160
|
|
−
|
|
28
|
|
73
|
|
(3)
|
|
258
|
|
171
|
|
|
Income before income taxes
(recovery)
|
898
|
|
553
|
|
868
|
|
395
|
|
(433)
|
|
2,281
|
|
2,085
|
|
|
Income taxes (recovery)
|
248
|
|
152
|
|
238
|
|
82
|
|
(267)
|
|
453
|
|
377
|
|
|
Net
income
|
650
|
|
401
|
|
630
|
|
313
|
|
(166)
|
|
1,828
|
|
1,708
|
|
|
Non-controlling interests
|
−
|
|
−
|
|
−
|
|
−
|
|
(1)
|
|
(1)
|
|
(1)
|
|
|
Net income attributable to the
Bank's shareholders and
holders of other equity
instruments
|
650
|
|
401
|
|
630
|
|
313
|
|
(165)
|
|
1,829
|
|
1,709
|
|
|
Dividends on preferred shares and
distributions on limited recourse
capital notes
|
|
|
|
|
|
|
|
|
|
|
74
|
|
70
|
|
|
Net income attributable to common
shareholders
|
|
|
|
|
|
|
|
|
|
|
1,755
|
|
1,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that have an impact on results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
51
|
|
51
|
|
154
|
|
|
Impact on net interest
income
|
−
|
|
−
|
|
−
|
|
−
|
|
51
|
|
51
|
|
154
|
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
146
|
|
146
|
|
108
|
|
|
Impact on non-interest
income
|
−
|
|
−
|
|
−
|
|
−
|
|
146
|
|
146
|
|
108
|
|
|
Income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
197
|
|
197
|
|
262
|
|
|
|
Income taxes related to the Canadian
government's 2022 tax measures(3)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
(24)
|
|
|
Impact on income taxes
|
−
|
|
−
|
|
−
|
|
−
|
|
197
|
|
197
|
|
238
|
|
|
Impact on net income
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
(24)
|
|
|
Operating results - Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income -
Adjusted
|
1,740
|
|
401
|
|
(1,177)
|
|
619
|
|
(146)
|
|
1,437
|
|
2,135
|
|
|
Non-interest income -
Adjusted
|
545
|
|
942
|
|
2,698
|
|
57
|
|
(22)
|
|
4,220
|
|
3,135
|
|
|
Total revenues - Adjusted
|
2,285
|
|
1,343
|
|
1,521
|
|
676
|
|
(168)
|
|
5,657
|
|
5,270
|
|
|
Non-interest expenses -
Adjusted
|
1,227
|
|
790
|
|
625
|
|
208
|
|
71
|
|
2,921
|
|
2,752
|
|
|
Income before provisions for credit
losses and income taxes - Adjusted
|
1,058
|
|
553
|
|
896
|
|
468
|
|
(239)
|
|
2,736
|
|
2,518
|
|
|
Provisions for credit
losses
|
160
|
|
−
|
|
28
|
|
73
|
|
(3)
|
|
258
|
|
171
|
|
|
Income before income taxes
(recovery) - Adjusted
|
898
|
|
553
|
|
868
|
|
395
|
|
(236)
|
|
2,478
|
|
2,347
|
|
|
Income taxes (recovery) -
Adjusted
|
248
|
|
152
|
|
238
|
|
82
|
|
(70)
|
|
650
|
|
615
|
|
|
Net
income - Adjusted
|
650
|
|
401
|
|
630
|
|
313
|
|
(166)
|
|
1,828
|
|
1,732
|
|
|
Non-controlling interests
|
−
|
|
−
|
|
−
|
|
−
|
|
(1)
|
|
(1)
|
|
(1)
|
|
|
Net income attributable to the
Bank's shareholders and
holders of other equity
instruments - Adjusted
|
650
|
|
401
|
|
630
|
|
313
|
|
(165)
|
|
1,829
|
|
1,733
|
|
|
Dividends on preferred shares and
distributions on limited recourse
capital
notes
|
|
|
|
|
|
|
|
|
|
|
74
|
|
70
|
|
|
Net income attributable to common
shareholders - Adjusted
|
|
|
|
|
|
|
|
|
|
|
1,755
|
|
1,663
|
|
(1) Certain amounts have been adjusted to reflect accounting
policy changes arising from the adoption of IFRS 17. For additional
information, see Note 2 to the unaudited interim condensed
consolidated financial statements in the
Report to
Shareholders - Second
Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(2) In light of the proposed legislation with respect to Canadian
dividends, the Bank did not recognize an income tax deduction or
use the taxable equivalent basis method to adjust revenues related
to affected dividends received after January 1, 2024 (for
additional information, see the Income Taxes - Proposed Legislation
section in the Report to Shareholders
-
Second Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca).
(3) During the six-month period ended April 30, 2023, the
Bank recorded, in the Other heading of segment results, a
$32 million tax expense with respect to the Canada Recovery
Dividend, i.e., a one-time, 15% tax on the fiscal 2021 and 2020
average taxable income above $1 billion as well as an $8 million
tax recovery related to the 1.5% increase in the statutory tax
rate, which included the impact related to current and deferred
taxes for fiscal 2022. For additional information on these tax
measures, see the Income Taxes section in
the Report to
Shareholders - Second
Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Presentation of Basic and Diluted Earnings Per Share -
Adjusted
|
(Canadian dollars)
|
|
Quarter
ended April 30
|
|
Six months
ended April 30
|
|
|
|
|
2024
|
|
|
|
2023(1)
|
|
|
2024
|
|
|
2023(1)
|
|
|
Basic earnings per share
|
|
$
|
2.56
|
|
|
$
|
2.37
|
|
$
|
5.18
|
|
$
|
4.86
|
|
|
Income taxes related to the Canadian
government's 2022 tax measures(2)
|
|
|
−
|
|
|
|
−
|
|
|
−
|
|
|
0.07
|
|
|
Basic earnings per share - Adjusted
|
|
$
|
2.56
|
|
|
$
|
2.37
|
|
$
|
5.18
|
|
$
|
4.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
2.54
|
|
|
$
|
2.34
|
|
$
|
5.13
|
|
$
|
4.81
|
|
|
Income taxes related to the Canadian
government's 2022 tax measures(2)
|
|
|
−
|
|
|
|
−
|
|
|
−
|
|
|
0.07
|
|
|
Diluted earnings per share - Adjusted
|
|
$
|
2.54
|
|
|
$
|
2.34
|
|
$
|
5.13
|
|
$
|
4.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Certain amounts have been adjusted to reflect accounting
policy changes arising from the adoption of IFRS 17. For additional
information, see Note 2 to the unaudited interim condensed
consolidated financial statements in the Report to Shareholders
-
First Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(2) During the six-month period ended April 30, 2023, the Bank
recorded, in the Other
heading segment results, a $32 million tax expense with respect to
the Canada Recovery Dividend, i.e., a one-time, 15% tax on the
fiscal 2021 and 2020 average taxable income above $1 billion as
well as an $8 million tax recovery related to the 1.5% increase in
the statutory tax rate, which included the impact related to
current and deferred taxes for fiscal 2022. For additional
information on these tax measures, see the Income Taxes section in
the Report to
Shareholders - Second Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Highlights
|
(millions of Canadian dollars,
except per share amounts)
|
|
Quarter
ended April 30
|
|
|
Six months
ended April 30
|
|
|
|
|
|
2024
|
|
|
|
2023(1)
|
|
|
%
Change
|
|
|
2024
|
|
|
|
2023(1)
|
|
%
Change
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
2,750
|
|
|
|
2,446
|
|
|
12
|
|
|
5,460
|
|
|
|
5,008
|
|
9
|
|
|
Income before provisions for credit losses and
income taxes
|
|
|
1,278
|
|
|
|
1,084
|
|
|
18
|
|
|
2,539
|
|
|
|
2,256
|
|
13
|
|
|
Net income
|
|
|
906
|
|
|
|
832
|
|
|
9
|
|
|
1,828
|
|
|
|
1,708
|
|
7
|
|
|
Return on common shareholders'
equity(2)
|
|
|
16.9
|
%
|
|
|
17.2
|
%
|
|
|
|
|
17.0
|
%
|
|
|
17.5
|
%
|
|
|
|
Operating
leverage(2)
|
|
|
4.3
|
%
|
|
|
(4.5)
|
%
|
|
|
|
|
2.9
|
%
|
|
|
(4.6)
|
%
|
|
|
|
Efficiency
ratio(2)
|
|
|
53.5
|
%
|
|
|
55.7
|
%
|
|
|
|
|
53.5
|
%
|
|
|
55.0
|
%
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.56
|
|
|
$
|
2.37
|
|
|
8
|
|
$
|
5.18
|
|
|
$
|
4.86
|
|
7
|
|
|
|
Diluted
|
|
$
|
2.54
|
|
|
$
|
2.34
|
|
|
9
|
|
$
|
5.13
|
|
|
$
|
4.81
|
|
7
|
|
|
Operating results - Adjusted(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues -
Adjusted(3)
|
|
|
2,837
|
|
|
|
2,578
|
|
|
10
|
|
|
5,657
|
|
|
|
5,270
|
|
7
|
|
|
Income before provisions for credit
losses
and income taxes -
Adjusted(3)
|
|
|
1,365
|
|
|
|
1,216
|
|
|
12
|
|
|
2,736
|
|
|
|
2,518
|
|
9
|
|
|
Net income -
Adjusted(3)
|
|
|
906
|
|
|
|
832
|
|
|
9
|
|
|
1,828
|
|
|
|
1,732
|
|
6
|
|
|
Return on common shareholders'
equity - Adjusted(4)
|
|
|
16.9
|
%
|
|
|
17.2
|
%
|
|
|
|
|
17.0
|
%
|
|
|
17.8
|
%
|
|
|
|
Operating leverage -
Adjusted(4)
|
|
|
1.9
|
%
|
|
|
(1.3)
|
%
|
|
|
|
|
1.2
|
%
|
|
|
(1.7)
|
%
|
|
|
|
Efficiency ratio -
Adjusted(4)
|
|
|
51.9
|
%
|
|
|
52.8
|
%
|
|
|
|
|
51.6
|
%
|
|
|
52.2
|
%
|
|
|
|
Diluted earnings per share -
Adjusted(3)
|
|
$
|
2.54
|
|
|
$
|
2.34
|
|
|
9
|
|
$
|
5.13
|
|
|
$
|
4.88
|
|
5
|
|
|
Common share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
|
|
$
|
1.06
|
|
|
$
|
0.97
|
|
|
9
|
|
$
|
2.12
|
|
|
$
|
1.94
|
|
9
|
|
|
Book value(2)
|
|
$
|
62.28
|
|
|
$
|
57.45
|
|
|
|
|
$
|
62.28
|
|
|
$
|
57.45
|
|
|
|
|
Share price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
114.68
|
|
|
$
|
103.45
|
|
|
|
|
$
|
114.68
|
|
|
$
|
103.45
|
|
|
|
|
|
Low
|
|
$
|
101.24
|
|
|
$
|
92.67
|
|
|
|
|
$
|
86.50
|
|
|
$
|
91.02
|
|
|
|
|
|
Close
|
|
$
|
110.54
|
|
|
$
|
101.03
|
|
|
|
|
$
|
110.54
|
|
|
$
|
101.03
|
|
|
|
|
Number of common shares (thousands)
|
|
|
340,056
|
|
|
|
337,720
|
|
|
|
|
|
340,056
|
|
|
|
337,720
|
|
|
|
|
Market capitalization
|
|
|
37,590
|
|
|
|
34,120
|
|
|
|
|
|
37,590
|
|
|
|
34,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
|
As at
April 30,
2024
|
|
|
As
at
October 31,
2023(1)
|
|
%
Change
|
|
|
Balance sheet and off-balance-sheet
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
441,690
|
|
|
423,477
|
|
4
|
|
|
Loans and acceptances, net of
allowances
|
|
234,770
|
|
|
225,443
|
|
4
|
|
|
Deposits
|
|
306,881
|
|
|
288,173
|
|
6
|
|
|
Equity attributable to common
shareholders
|
|
21,179
|
|
|
20,432
|
|
4
|
|
|
Assets under
administration(2)
|
|
691,554
|
|
|
652,631
|
|
6
|
|
|
Assets under
management(2)
|
|
138,848
|
|
|
120,858
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory ratios under Basel
III(5)
|
|
|
|
|
|
|
|
|
|
Capital ratios
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
(CET1)
|
|
13.2
|
%
|
|
13.5
|
%
|
|
|
|
|
Tier 1
|
|
15.5
|
%
|
|
16.0
|
%
|
|
|
|
|
Total
|
|
16.7
|
%
|
|
16.8
|
%
|
|
|
|
Leverage ratio
|
|
4.4
|
%
|
|
4.4
|
%
|
|
|
|
TLAC ratio(5)
|
|
30.2
|
%
|
|
29.2
|
%
|
|
|
|
TLAC leverage
ratio(5)
|
|
8.5
|
%
|
|
8.0
|
%
|
|
|
|
Liquidity coverage ratio
(LCR)(5)
|
|
155
|
%
|
|
155
|
%
|
|
|
|
Net stable funding ratio
(NSFR)(5)
|
|
120
|
%
|
|
118
|
%
|
|
|
|
Other information
|
|
|
|
|
|
|
|
|
|
Number of employees - Worldwide
(full-time equivalent)
|
|
28,665
|
|
|
28,916
|
|
(1)
|
|
|
Number of branches in
Canada
|
|
369
|
|
|
368
|
|
−
|
|
|
Number of banking machines in
Canada
|
|
939
|
|
|
944
|
|
(1)
|
|
(1) Certain amounts have been adjusted to reflect accounting
policy changes arising from the adoption of IFRS 17. For additional
information, see Note 2 to the unaudited interim condensed
consolidated financial statements in the Report to Shareholders - Second Quarter
2024, which is available on the Bank's website at
nbc.ca or the SEDAR+ website at
sedarplus.ca.
(2) For details on the composition of these measures, see the
Glossary section on pages 47 to 50 in the Report to Shareholders
-
Second Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(3) See the Financial Reporting Method section on pages 3 to 6 for
additional information on non-GAAP financial measures.
(4) For additional information on non-GAAP ratios, see the
Financial Reporting Method section on pages 4 to 10 in the
Report to
Shareholders - Second Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(5) For additional information on capital management measures, see
the Financial Reporting Method section on pages 4 to 10 in the
Report to
Shareholders - Second Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
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. The forward-looking statements in this document may
include, but are not limited to, statements made about the economy,
market changes, the Bank's objectives, outlook, and priorities for
fiscal year 2024 and beyond, the strategies or actions that will be
taken to achieve them, expectations for the Bank's financial
condition, its activities, the regulatory environment in which it
operates, its environmental, social, and governance targets and
commitments, and certain risks to which the Bank is exposed. 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 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. 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
performance targets will not be achieved. 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.
Thus, the Bank recommends that readers not place undue reliance on
these 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. Investors and others who rely on the Bank's
forward-looking statements should carefully consider the factors
listed below 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.
Assumptions about the performance of the
Canadian and U.S. economies in 2024 and how that performance will
affect the Bank's business are among the factors considered in
setting the Bank's strategic priorities and objectives, including
allowances for credit losses. These assumptions appear in the
Economic Review and Outlook section and, for each business segment,
in the Economic and Market Review sections of the 2023 Annual Report and in the Economic
Review and Outlook section of the Report to Shareholders for the second
quarter of 2024, and may be updated in the quarterly reports to
shareholders filed thereafter.
The forward-looking statements made in this
document 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 the
other countries where the Bank operates; the impact of upheavals in
the U.S. banking industry; exchange rate and interest rate
fluctuations; inflation; global supply chain disruptions; 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; climate change, including physical
risks and those related to 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 key
short-term priorities and long-term strategies; the timely
development and launch of new products and services; the Bank's
ability to recruit and retain key personnel; technological
innovation, including advances in artificial intelligence and the
open banking system, 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; 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 by
financial and extra-financial rating agencies; potential
disruptions to key suppliers of goods and services to the Bank; the
potential impacts of disruptions to the Bank's information
technology systems, including cyberattacks as well as identity
theft and theft of personal information; the risk of fraudulent
activity; and possible impacts of major events affecting the
economy, market conditions, or the Bank's outlook, including
international conflicts, natural disasters, public health crises,
and the measures taken in response to these events.
The foregoing list of risk factors is not
exhaustive, and the forward-looking statements made in this
document are also subject to credit risk, market risk, liquidity
and funding risk, operational risk, regulatory compliance risk,
reputation risk, strategic risk, and social and environmental risk
as well as certain emerging risks or risks deemed significant.
Additional information about these factors is provided in the Risk
Management section of the 2023
Annual Report and in the Risk Management section of the
Report to Shareholders
for the second quarter of
2024, and may be updated in the quarterly reports to
shareholders filed thereafter.
