The financial
information reported in this document is based on the unaudited
interim condensed consolidated financial statements for the quarter
ended January 31, 2024 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, Feb. 28,
2024 /CNW/ - For the first quarter of 2024, National
Bank is reporting net income of $922
million, up 5% from $876
million in the first quarter of 2023. First-quarter diluted
earnings per share stood at $2.59
compared to $2.47 in the first
quarter of 2023. These increases were driven by total revenue
growth in all of the business segments as well as by the impact of
the Canadian government's 2022 tax measures on income taxes in the
first quarter of 2023. Excluding the impact of those measures,
adjusted net income(1) and adjusted diluted earnings per
share(1) both increased by 2% compared to the first
quarter of 2023.
"National Bank delivered strong performance and excellent return
on equity for the first quarter of 2024, underpinned by sustained
momentum and execution across our business segments. These results
reflect the earnings power of our diversified business mix and
relevance of our defensive posture," said Laurent Ferreira, President and Chief Executive
Officer of National Bank of Canada.
"Our effective capital deployment, active cost management, and
commitment to maintaining a prudent credit profile are serving us
well, particularly in an uncertain macroeconomic environment.
We enter the second quarter on solid footing," added Mr.
Ferreira.
Highlights
(millions of Canadian
dollars)
|
|
|
Quarter ended
January 31
|
|
|
|
|
|
2024
|
|
|
|
2023(2)
|
|
|
% Change
|
|
Net income
|
|
|
922
|
|
|
|
876
|
|
|
5
|
|
Diluted earnings per
share (dollars)
|
|
$
|
2.59
|
|
|
$
|
2.47
|
|
|
5
|
|
Income before
provisions for credit losses and income taxes
|
|
|
1,261
|
|
|
|
1,172
|
|
|
8
|
|
Return on common
shareholders' equity(3)
|
|
|
17.1
|
%
|
|
|
17.9
|
%
|
|
|
|
Dividend payout
ratio(3)
|
|
|
43.1
|
%
|
|
|
38.6
|
%
|
|
|
|
Operating
results – Adjusted(1)
|
|
|
|
|
|
|
|
|
|
|
|
Net income –
Adjusted
|
|
|
922
|
|
|
|
900
|
|
|
2
|
|
Diluted earnings per
share – Adjusted (dollars)
|
|
$
|
2.59
|
|
|
$
|
2.54
|
|
|
2
|
|
Income before
provisions for credit losses and income taxes – Adjusted
|
|
|
1,371
|
|
|
|
1,302
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
January 31,
2024
|
|
|
As at
October 31,
2023
|
|
|
|
|
CET1 capital ratio
under Basel III(4)
|
|
|
13.1
|
%
|
|
|
13.5
|
%
|
|
|
|
Leverage ratio under
Basel III(4)
|
|
|
4.3
|
%
|
|
|
4.4
|
%
|
|
|
|
(1)
|
See the Financial
Reporting Method section on pages 3 and 4 for additional
information on non-GAAP financial measures.
|
(2)
|
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.
|
(3)
|
For details on the
composition of these measures, see the Glossary section on pages 43
to 46 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.
|
(4)
|
For additional
information on capital management measures, see the Financial
Reporting Method section on pages 4 to 8 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.
|
Personal and Commercial
- Net income totalled $339 million
in the first quarter of 2024 versus $326
million in the first quarter of 2023, a 4% increase that was
driven by growth in total revenues, partly offset by higher
non-interest expenses and higher provisions for credit losses.
- Income before provisions for credit losses and income taxes
totalled $539 million in the first
quarter of 2024, up 5% from $511
million in the first quarter of 2023.
- At $1,154 million, first-quarter
total revenues rose $50 million or 5%
year over year due mainly 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 2% and commercial
lending grew 11%.
- Net interest margin(1) stood at 2.36% in the first
quarter of 2024, up from 2.35% in the first quarter of 2023.
- First-quarter non-interest expenses stood at $615 million, up 4% year over year.
- First-quarter provisions for credit losses rose $10 million year over year, mainly due to higher
allowances for credit losses on impaired loans.
- At 53.3%, the efficiency ratio(1) improved from
53.7% in the first quarter of 2023.
Wealth Management
- Net income totalled $196 million
in the first quarter of 2024, down 1% from $198 million in the first quarter of 2023.
- First-quarter total revenues amounted to $660 million compared to $637 million in first-quarter 2023, a
$23 million or 4% increase driven
essentially by growth in fee-based revenues owing to strong stock
market performance.
- First-quarter non-interest expenses stood at $390 million, up 7% from $364 million in first-quarter 2023.
- At 59.1%, the efficiency ratio(1) compares to 57.1%
in the first quarter of 2023.
Financial Markets
- Net income totalled $308 million
in the first quarter of 2024, up 3% from $298 million in the first quarter of 2023.
- First-quarter total revenues on a taxable equivalent basis
amounted to $755 million, up
$66 million or 10% given an increase
in global markets revenues and an increase in revenues from
corporate and investment banking services.
- First-quarter non-interest expenses stood at $313 million compared to $287 million in first-quarter 2023, an increase
that was partly due to compensation and employee benefits as well
as to the segment's technological investments.
- Provisions for credit losses of $17
million were recorded in the first quarter of 2024 compared
to $9 million in credit loss
recoveries recorded in the first quarter of 2023.
- At 41.5%, the efficiency ratio(1) on a taxable
equivalent basis improved from 41.7% in the first quarter of
2023.
U.S. Specialty Finance and International
- Net income totalled $150 million
in the first quarter of 2024 versus $147
million in the first quarter of 2023.
- First-quarter total revenues amounted to $326 million, a 2% year-over-year increase that
was essentially driven by revenue growth at the ABA Bank
subsidiary.
- First-quarter non-interest expenses stood at $100 million, a 2% year-over-year increase
attributable mainly to business growth at ABA Bank.
- Provisions for credit losses rose $1
million year over year.
- At 30.7%, the efficiency ratio(1) was stable
compared to the first quarter of 2023.
Other
- There was a net loss of $71
million in the first quarter of 2024 versus a net loss of
$93 million in the first quarter of
2023, a change arising from a $24
million income tax expense related to the Canadian
government's 2022 tax measures recorded in the first quarter of
2023.
Capital Management
- As at January 31, 2024, the
Common Equity Tier 1 (CET1) capital ratio under Basel
III(2) stood at 13.1%, down from 13.5% as at
October 31, 2023, notably due to a
negative impact of implementing revised market risk and credit
valuation adjustment (CVA) risk frameworks.
- As at January 31, 2024, the Basel
III(2) leverage ratio was 4.3%, down from 4.4% as at
October 31, 2023.
Dividends
- On February 27, 2024, the Board
of Directors declared regular dividends on the various series of
first preferred shares and a dividend of $1.06 per common share, payable on May 1, 2024 to shareholders of record on
March 25, 2024.
(1)
|
For details on the
composition of these measures, see the Glossary section on pages 43
to 46 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)
|
For additional
information on capital management measures, see the Financial
Reporting Method section on pages 4 to 8 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.
|
|
|
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 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. 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 section in the Report
to shareholders for the first 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 page 4. Note that no
specified items have been excluded from results for the quarter
ended January 31, 2024. In the first
quarter 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 8 and 43 to 46, respectively,
in the Report to shareholders for the first 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 January
31
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023(1)
|
|
|
|
Personal
and
Commercial
|
|
Wealth
Management
|
|
Financial
Markets
|
|
USSF&I
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Total
|
|
Net interest
income
|
870
|
|
198
|
|
(553)
|
|
301
|
|
(65)
|
|
751
|
|
1,099
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
35
|
|
−
|
|
2
|
|
37
|
|
78
|
|
Net interest income
– Adjusted
|
870
|
|
198
|
|
(518)
|
|
301
|
|
(63)
|
|
788
|
|
1,177
|
|
Non-interest
income
|
284
|
|
462
|
|
1,200
|
|
25
|
|
(12)
|
|
1,959
|
|
1,463
|
|
Taxable
equivalent
|
−
|
|
−
|
|
73
|
|
−
|
|
−
|
|
73
|
|
52
|
|
Non-interest income
– Adjusted
|
284
|
|
462
|
|
1,273
|
|
25
|
|
(12)
|
|
2,032
|
|
1,515
|
|
Total revenues –
Adjusted
|
1,154
|
|
660
|
|
755
|
|
326
|
|
(75)
|
|
2,820
|
|
2,692
|
|
Non-interest
expenses
|
615
|
|
390
|
|
313
|
|
100
|
|
31
|
|
1,449
|
|
1,390
|
|
Income before
provisions for credit losses and income taxes –
Adjusted
|
539
|
|
270
|
|
442
|
|
226
|
|
(106)
|
|
1,371
|
|
1,302
|
|
Provisions for
credit losses
|
71
|
|
−
|
|
17
|
|
36
|
|
(4)
|
|
120
|
|
86
|
|
Income before income
taxes – Adjusted
|
468
|
|
270
|
|
425
|
|
190
|
|
(102)
|
|
1,251
|
|
1,216
|
|
Income taxes
|
129
|
|
74
|
|
9
|
|
40
|
|
(33)
|
|
219
|
|
210
|
|
Taxable
equivalent
|
−
|
|
−
|
|
108
|
|
−
|
|
2
|
|
110
|
|
130
|
|
Income taxes related to
the Canadian government's 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
tax
measures(3)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
(24)
|
|
Income taxes –
Adjusted
|
129
|
|
74
|
|
117
|
|
40
|
|
(31)
|
|
329
|
|
316
|
|
Net income –
Adjusted
|
339
|
|
196
|
|
308
|
|
150
|
|
(71)
|
|
922
|
|
900
|
|
Specified items
after income taxes
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
(24)
|
|
Net
income
|
339
|
|
196
|
|
308
|
|
150
|
|
(71)
|
|
922
|
|
876
|
|
Non-controlling
interests
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to the Bank's
shareholders
and holders
of other equity instruments
|
339
|
|
196
|
|
308
|
|
150
|
|
(71)
|
|
922
|
|
876
|
|
Net income
attributable to the Bank's
shareholders
and holders
of other equity instruments – Adjusted
|
339
|
|
196
|
|
308
|
|
150
|
|
(71)
|
|
922
|
|
900
|
|
Dividends on preferred
shares and distributions on
limited recourse
capital notes
|
|
|
|
|
|
|
|
|
|
|
37
|
|
35
|
|
Net income
attributable to common shareholders – Adjusted
|
|
|
|
|
|
|
|
|
|
|
885
|
|
865
|
|
(1)
|
Certain amounts have
been adjusted to reflect accounting policy changes arising from the
adoption of IFRS 17 for the quarter ended January 31, 2024. 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)
|
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 section 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).
|
(3)
|
During the quarter
ended January 31, 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 – First 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
January 31
|
|
|
|
|
2024
|
|
|
2023(1)
|
|
Basic earnings per
share
|
|
$
|
2.61
|
|
$
|
2.49
|
|
Income taxes related to
the Canadian government's 2022 tax
measures(2)
|
|
|
−
|
|
|
0.07
|
|
Basic earnings per
share – Adjusted
|
|
$
|
2.61
|
|
$
|
2.56
|
|
Diluted earnings per
share
|
|
$
|
2.59
|
|
$
|
2.47
|
|
Income taxes related to
the Canadian government's 2022 tax
measures(2)
|
|
|
−
|
|
|
0.07
|
|
Diluted earnings per
share – Adjusted
|
|
$
|
2.59
|
|
$
|
2.54
|
|
(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 quarter
ended January 31, 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 – First 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
January 31
|
|
|
|
|
2024
|
|
|
|
2023(1)
|
|
% Change
|
|
Operating
results
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
|
2,710
|
|
|
|
2,562
|
|
6
|
|
Income
before provisions for credit
losses and income
taxes
|
|
|
1,261
|
|
|
|
1,172
|
|
8
|
|
Net income
|
|
|
922
|
|
|
|
876
|
|
5
|
|
Return on common
shareholders' equity(2)
|
|
|
17.1
|
%
|
|
|
17.9
|
%
|
|
|
Operating
leverage(2)
|
|
|
1.6
|
%
|
|
|
(4.7)
|
%
|
|
|
Efficiency
ratio(2)
|
|
|
53.5
|
%
|
|
|
54.3
|
%
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.61
|
|
|
$
|
2.49
|
|
5
|
|
|
Diluted
|
|
$
|
2.59
|
|
|
$
|
2.47
|
|
5
|
|
Operating results –
Adjusted(3)
|
|
|
|
|
|
|
|
|
|
|
Total revenues –
Adjusted(3)
|
|
|
2,820
|
|
|
|
2,692
|
|
5
|
|
Income before
provisions for credit losses
and income taxes
– Adjusted(3)
|
|
|
1,371
|
|
|
|
1,302
|
|
5
|
|
Net income –
Adjusted(3)
|
|
|
922
|
|
|
|
900
|
|
2
|
|
Return on common
shareholders' equity – Adjusted(4)
|
|
|
17.1
|
%
|
|
|
18.4
|
%
|
|
|
Operating leverage –
Adjusted(4)
|
|
|
0.6
|
%
|
|
|
(2.2)
|
%
|
|
|
Efficiency ratio –
Adjusted(4)
|
|
|
51.4
|
%
|
|
|
51.6
|
%
|
|
|
Diluted earnings per
share – Adjusted(3)
|
|
$
|
2.59
|
|
|
$
|
2.54
|
|
2
|
|
Common share
information
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared
|
|
$
|
1.06
|
|
|
$
|
0.97
|
|
9
|
|
Book
value(2)
|
|
$
|
61.18
|
|
|
$
|
55.76
|
|
|
|
Share price
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
103.38
|
|
|
$
|
99.95
|
|
|
|
|
Low
|
|
$
|
86.50
|
|
|
$
|
91.02
|
|
|
|
|
Close
|
|
$
|
102.83
|
|
|
$
|
99.95
|
|
|
|
Number of common shares
(thousands)
|
|
|
339,166
|
|
|
|
337,318
|
|
|
|
Market
capitalization
|
|
|
34,876
|
|
|
|
33,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
|
As at
January 31,
2024
|
|
|
As at
October
31,
2023(1)
|
|
% Change
|
|
Balance sheet and
off-balance-sheet
|
|
|
|
|
|
|
|
|
Total assets
|
|
433,927
|
|
|
423,477
|
|
2
|
|
Loans and acceptances,
net of allowances
|
|
230,157
|
|
|
225,443
|
|
2
|
|
Deposits
|
|
300,097
|
|
|
288,173
|
|
4
|
|
Equity attributable to
common shareholders
|
|
20,749
|
|
|
20,432
|
|
2
|
|
Assets under
administration(2)
|
|
712,488
|
|
|
652,631
|
|
9
|
|
Assets under
management(2)
|
|
132,822
|
|
|
120,858
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory ratios
under Basel III(5)
|
|
|
|
|
|
|
|
|
Capital
ratios
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
(CET1)
|
|
13.1
|
%
|
|
13.5
|
%
|
|
|
|
Tier 1
|
|
15.5
|
%
|
|
16.0
|
%
|
|
|
|
Total
|
|
16.2
|
%
|
|
16.8
|
%
|
|
|
Leverage
ratio
|
|
4.3
|
%
|
|
4.4
|
%
|
|
|
TLAC
ratio(5)
|
|
28.1
|
%
|
|
29.2
|
%
|
|
|
TLAC leverage
ratio(5)
|
|
7.8
|
%
|
|
8.0
|
%
|
|
|
Liquidity coverage
ratio (LCR)(5)
|
|
145
|
%
|
|
155
|
%
|
|
|
Net stable funding
ratio (NSFR)(5)
|
|
117
|
%
|
|
118
|
%
|
|
|
Other
information
|
|
|
|
|
|
|
|
|
Number of employees –
Worldwide (full-time equivalent)
|
|
28,730
|
|
|
28,916
|
|
(1)
|
|
Number of branches in
Canada
|
|
368
|
|
|
368
|
|
−
|
|
Number of banking
machines in Canada
|
|
945
|
|
|
944
|
|
−
|
|
(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.
|
(1)
|
For details on the
composition of these measures, see the Glossary section on pages 43
to 46 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)
|
See the Financial
Reporting Method section on pages 3 and 4 for additional
information on non-GAAP financial measures.
|
(3)
|
For additional
information on non-GAAP ratios, see the Financial Reporting Method
section on pages 4 to 8 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.
|
(4)
|
For additional
information on capital management measures, see the Financial
Reporting Method section on pages 4 to 8 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.
|
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 provisions 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 first 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 first quarter
of 2024, and may be updated in the quarterly reports to
shareholders filed thereafter.
Disclosure of the First Quarter 2024 results
Conference Call
- A conference call for analysts and institutional investors will
be held on Wednesday, February 28,
2024 at 1:00 p.m. ET.
- Access by telephone in listen-only mode: 1-800-806-5484 or
416-340-2217. The access code is 8438144#.
- A recording of the conference call can be heard until
May 24, 2024 by dialing
1-800-408-3053 or 905-694-9451. The access code is 8808810#.
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 Report to Shareholders (which includes the quarterly
consolidated financial statements) is available at all times on
National Bank's website at nbc.ca/investorrelations.
- The Report to Shareholders, 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.
SOURCE National Bank of Canada