The financial information reported in this document is
based on the unaudited interim condensed consolidated financial
statements for the quarter and the six-month period ended
April 30, 2020 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,
May 26, 2020 /CNW Telbec/
- For the second quarter of 2020, National Bank is
reporting net income of $379 million
compared to $558 million in the second quarter of 2019.
Second-quarter diluted earnings per share stood at $1.01 compared to $1.51 in the second quarter of 2019. The decrease
in net income stems from a considerable increase in provisions for
credit losses recorded to reflect a significant deterioration in
the macroeconomic outlook caused by COVID-19 and the expected
impacts on our clients. However, income before provisions for
credit losses and income taxes on a taxable equivalent basis
totalled $991 million in
the second quarter of 2020, a 20% year-over-year increase driven by
revenue growth across all business segments.
"The world is enduring extremely challenging
times, both from a health and financial perspective. Since the
onset of the current crisis, we have prioritized the well-being of
our employees, clients, and communities. We have deployed
exceptional efforts to support clients by way of uninterrupted
service, numerous financial relief measures, and an extension of
our balance sheet," said Louis
Vachon, President and Chief Executive Officer of National
Bank of Canada.
"Despite these unprecedented events, our business has held
up well with revenue growth being generated across all business
segments, led by Financial Markets and Wealth Management. For the
second quarter, we are reporting provisions for credit losses
totalling $504 million,
reflecting our most prudent estimate ahead of an uncertain
macroeconomic outlook. At the same time, we have maintained strong
capital and liquidity levels with a CET1 ratio of 11.4% and a
liquidity coverage ratio of 149%,'' added Mr. Vachon.
"At this point in time, the severity and duration of the
COVID-19 pandemic and its impact on the economy are impossible to
predict. I am confident that the resilience of the Bank's
franchise, our defensive positioning, the quality of our credit
portfolios, and our strong balance sheet will serve us well as we
manage through these uncertain times.''
Highlights
|
(millions of Canadian
dollars)
|
|
Quarter ended
April 30
|
|
|
Six months ended
April 30
|
|
|
2020
|
|
|
|
2019
|
|
% Change
|
|
2020
|
|
|
2019
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
379
|
|
|
|
558
|
|
(32)
|
|
989
|
|
|
1,110
|
|
(11)
|
Diluted earnings per
share (dollars)
|
$
|
1.01
|
|
|
$
|
1.51
|
|
(33)
|
$
|
2.68
|
|
$
|
3.01
|
|
(11)
|
Return on common
shareholders' equity
|
|
10.7
|
%
|
|
|
17.8
|
%
|
|
|
14.3
|
%
|
|
17.5
|
%
|
|
Dividend payout
ratio
|
|
45.9
|
%
|
|
|
41.6
|
%
|
|
|
45.9
|
%
|
|
41.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
April 30,
2020
|
|
As at
October 31,
2019
|
|
|
CET1 capital ratio
under Basel III
|
|
|
|
|
|
|
|
|
|
11.4
|
%
|
|
11.7
|
%
|
|
Leverage ratio under
Basel III
|
|
|
|
|
|
|
|
|
|
4.4
|
%
|
|
4.0
|
%
|
|
Personal and Commercial
- Net income totalled $65
million in the second quarter of 2020 compared to
$230 million in the second quarter of
2019, a decrease essentially due to an increase in provisions for
credit losses on non-impaired loans recorded to reflect a
significant deterioration in the macroeconomic outlook caused by
COVID-19 and the expected impacts on clients.
- Income before provisions for credit losses and income
taxes totalled $389 million in the
second quarter of 2020, up 3% from $376
million in the second quarter of 2019.
- At $848 million,
second-quarter total revenues rose $14
million or 2% year over year.
- Compared to a year ago, personal lending grew 4%,
particularly due to mortgage lending, while commercial lending grew
6% from a year ago.
- The net interest margin was 2.22% in the second quarter
of 2020 compared to 2.23% in the second quarter of
2019.
- Second-quarter non-interest expenses stood at
$459 million, stable compared to the
second quarter of 2019.
- At 54.1%, the second-quarter efficiency ratio improved
from 54.9% in the second quarter of 2019.
Wealth Management
- Net income totalled $141
million in the second quarter of 2020, a 21% increase from
$117 million in the second quarter of
2019.
- Second-quarter total revenues amounted to $474 million compared to $426 million in second quarter 2019, a
$48 million or 11% increase driven
mainly by growth in transaction-based and other revenues as well as
in fee-based revenues.
- Second-quarter non-interest expenses stood at
$278 million, up 4% from $267 million in the second quarter of
2019.
- At 58.6%, the efficiency ratio improved from 62.7% in the
second quarter of 2019.
Financial Markets
- Net income totalled $159
million in the second quarter of 2020 compared to
$158 million in the second quarter of
2019.
- Income before provisions for credit losses and income
taxes on a taxable equivalent basis(1) totalled
$378 million in the second quarter of
2020, up 70% from $223 million in the
second quarter of 2019.
- Total revenues on a taxable equivalent
basis(1) amounted to $598
million, a $193 million or 48%
year-over-year increase attributable essentially to the global
markets revenue category.
- Second-quarter non-interest expenses stood at
$220 million compared to $182 million in the second quarter of
2019.
- The segment recorded $162
million in provisions for credit losses in the second
quarter of 2020 versus $7 million in
the second quarter of 2019, with the increase stemming from a
significant deterioration in the macroeconomic outlook caused by
COVID-19 and the expected impacts on clients.
- At 36.8%, the second-quarter efficiency ratio on a
taxable equivalent basis(1) improved from 44.9% in the
second quarter of 2019.
U.S. Specialty Finance and International
- Net income totalled $74
million in the second quarter of 2020, a 3% increase from
$72 million in the second quarter of
2019.
- Second-quarter total revenues amounted to $183 million, a 3% year-over-year increase driven
by revenue growth at the ABA Bank subsidiary.
- Second-quarter non-interest expenses stood at
$82 million, an $8 million year-over-year increase attributable
to the expansion of ABA Bank's banking network.
Other
- The Other heading of segment results posted a net
loss of $60 million in the second
quarter of 2020 compared to a net loss of $19 million in the second quarter of 2019. This
change came mainly from an increase in non-interest expenses, in
particular expenses incurred to implement health and safety
measures for employees and clients in response to the
pandemic.
Capital Management
- As at April 30, 2020, the
Common Equity Tier 1 (CET1) capital ratio under Basel III was
11.4%, compared to 11.7% as at October 31,
2019.
- As at April 30, 2020, the
Basel III leverage ratio was 4.4%, an increase from October 31, 2019.
Dividends
- On May 26, 2020, the Board
of Directors declared regular dividends on the various series of
first preferred shares and a dividend of 71
cents per common share, payable on August 1, 2020 to shareholders of record on
June 29, 2020.
(1)
|
See the Financial
Reporting Method section on page 5 for additional information on
non-GAAP financial measures.
|
COVID-19
Pandemic
On March 11, 2020,
the WHO declared that the COVID-19
outbreak constituted a pandemic, requiring
important protective measures be taken to
prevent overcrowding at intensive care units and also to strengthen
preventive hygiene (limiting physical contact, prohibiting
gatherings and major events as well as unnecessary travel and
movement, promoting handwashing, enforcing lockdown, etc.). The
global pandemic prompted many countries, including Canada, to implement lockdown and
social distancing measures designed to slow the
development of new contagion hotbeds. Those measures included the
closing of borders in many countries and the cancellation of
sporting and cultural events around the world, triggering a
sudden and widespread drop in market
capitalizations on all major stock exchanges around the
world arising from the uncertainty and fears about the
global economy.
In Canada, banking
services are considered essential services and are therefore being
maintained despite the lockdown and social distancing
measures. Given the current economic and social
conditions, the Bank is committed to supporting its employees,
clients, and communities. The Bank has ensured the
continuity of all its activities since the beginning of this
unprecedented crisis. All of its experts have been mobilized to
guide and support clients and answer their questions during this
period of uncertainty.
To protect its clients and employees, the Bank has
implemented measures to prevent the spread of COVID-19.
It has temporarily adjusted the number of open service points
and modified the business hours of its branches while ensuring safe
access to banking services, with particular attention being paid to
banking machines. In addition, since March
13, 2020, the Bank has asked all employees whose tasks allow
them to work from home to do so until further notice. Employees who
were required to work on site received clear health guidelines, and
some have used alternate sites in order to comply with the
requested social distancing.
The Bank's Financial Performance
In
light of COVID-19 and its impact on global and local economies,
Canadian banks are facing a difficult situation. This
exceptional situation has led to significant changes in the overall
market, such as business closures and temporary layoffs, low
interest rates, declining and volatile stock markets, declining oil
prices, and government measures implemented in response to
COVID-19.
Impact on Results
Major disruptions in the
global environment in which the Bank operates have affected its
financial results, in particular its provisions for credit losses,
which were increased considerably to reflect a significant
deterioration in the macroeconomic outlook caused by COVID-19 and
the expected impacts on our clients. However, income
before provisions for credit losses and income taxes increased, as
revenue was up across all business segments, especially in the
Financial Markets segment, which experienced strong growth.
Non-interest expenses were also affected by measures taken to
protect the health and safety of employees serving clients in these
exceptional circumstances as well as by decreases in certain
variable expenses and other discretionary costs.
For additional information, refer to the Financial
Analysis and Business Segment Analysis sections of the MD&A
of the Report to Shareholders of the second quarter of
2020.
Relief Measures for Clients
In
response to the economic and financial environment resulting from
COVID-19, the Bank announced a series of support measures for the
clients of its main business segments during March and April 2020. Some of these measures
were initiated by the Canadian government and regulatory
authorities, together with the Canadian banks, and were implemented
quickly to come to the assistance of individuals and businesses.
These measures are designed to provide financial support to clients
facing the economic consequences of COVID-19. The main relief
measures are described on pages 6 and 7 in the
MD&A of the Report to Shareholders of the second quarter of
2020.
Key Measures Introduced by the Regulatory
Authorities
Like all Canadian financial
institutions, the Bank is facing regulatory changes that are being
implemented at an increasing rate. As
part of a coordinated effort by Government of Canada agencies, OSFI and other
regulatory authorities governing the Bank's activities have
taken a number of actions to reinforce the resilience of
Canadian banks and improve the stability of the Canadian financial
system and economy in response to challenges posed by COVID-19 and
current market conditions. Regulatory authorities are
also stepping up their oversight activities and focusing on the
effects of the pandemic on the activities, capital strength, and
liquidity of regulated entities. The main key measures
are described on pages 7 to 9 in the MD&A of the
Report to Shareholders of the second quarter of 2020.
Highlights
|
|
(millions of Canadian
dollars, except per share amounts)
|
Quarter ended
April 30
|
Six months ended
April 30
|
|
|
2020
|
|
|
2019
|
|
%
Change
|
|
2020
|
|
|
2019
|
|
%
Change
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
2,036
|
|
|
1,770
|
|
15
|
|
3,959
|
|
|
3,569
|
|
11
|
Income before
provisions for credit losses and income taxes
|
|
915
|
|
|
744
|
|
23
|
|
1,747
|
|
|
1,517
|
|
15
|
Net income
|
|
379
|
|
|
558
|
|
(32)
|
|
989
|
|
|
1,110
|
|
(11)
|
Net income
attributable to the Bank's shareholders
|
|
368
|
|
|
539
|
|
(32)
|
|
962
|
|
|
1,075
|
|
(11)
|
Return on common
shareholders' equity
|
|
10.7
|
%
|
|
17.8
|
%
|
|
|
14.3
|
%
|
|
17.5
|
%
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.01
|
|
$
|
1.52
|
|
(34)
|
$
|
2.70
|
|
$
|
3.03
|
|
(11)
|
Diluted
|
|
1.01
|
|
|
1.51
|
|
(33)
|
|
2.68
|
|
|
3.01
|
|
(11)
|
Operating results
on a taxable equivalent basis and
excluding specified items(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues on a
taxable equivalent basis
|
|
2,112
|
|
|
1,850
|
|
14
|
|
4,122
|
|
|
3,712
|
|
11
|
Income before
provisions for credit losses and income taxes on a taxable
equivalent basis and excluding specified items
|
|
991
|
|
|
824
|
|
20
|
|
1,923
|
|
|
1,660
|
|
16
|
Net income excluding
specified items
|
|
379
|
|
|
558
|
|
(32)
|
|
999
|
|
|
1,110
|
|
(10)
|
Return on common
shareholders' equity excluding specified items
|
|
10.7
|
%
|
|
17.8
|
%
|
|
|
14.5
|
%
|
|
17.5
|
%
|
|
Efficiency ratio on a
taxable equivalent basis and excluding specified items
|
|
53.1
|
%
|
|
55.5
|
%
|
|
|
53.3
|
%
|
|
55.3
|
%
|
|
Earnings per share excluding specified
items(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.01
|
|
$
|
1.52
|
|
(34)
|
$
|
2.73
|
|
$
|
3.03
|
|
(10)
|
Diluted
|
|
1.01
|
|
|
1.51
|
|
(33)
|
|
2.71
|
|
|
3.01
|
|
(10)
|
Common share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared
|
$
|
0.71
|
|
$
|
0.65
|
|
|
$
|
1.42
|
|
$
|
1.30
|
|
|
Book value
|
|
38.74
|
|
|
35.49
|
|
|
|
38.74
|
|
|
35.49
|
|
|
Share
price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
74.79
|
|
|
63.82
|
|
|
|
74.79
|
|
|
63.82
|
|
|
Low
|
|
38.73
|
|
|
60.31
|
|
|
|
38.73
|
|
|
54.97
|
|
|
Close
|
|
56.14
|
|
|
63.82
|
|
|
|
56.14
|
|
|
63.82
|
|
|
Number of common
shares (thousands)
|
|
335,400
|
|
|
335,116
|
|
|
|
335,400
|
|
|
335,116
|
|
|
Market
capitalization
|
|
18,829
|
|
|
21,387
|
|
|
|
18,829
|
|
|
21,387
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
As at
April 30,
2020
|
As at
October
31,
2019
|
% Change
|
Balance sheet and
off-balance-sheet
|
|
|
|
|
|
Total
assets
|
316,950
|
|
281,458
|
|
13
|
Loans and
acceptances, net of allowances
|
162,728
|
|
153,251
|
|
6
|
Deposits
|
201,445
|
|
189,566
|
|
6
|
Equity attributable
to common shareholders
|
12,995
|
|
12,328
|
|
5
|
Assets under
administration and under management
|
548,677
|
|
565,396
|
|
(3)
|
Regulatory ratios under Basel
III(2)
|
|
|
|
|
|
Capital
ratios
|
|
|
|
|
|
Common Equity Tier 1
(CET1)
|
11.4
|
%
|
11.7
|
%
|
|
Tier 1
|
14.4
|
%
|
15.0
|
%
|
|
Total
|
15.5
|
%
|
16.1
|
%
|
|
Leverage
ratio
|
4.4
|
%
|
4.0
|
%
|
|
Liquidity coverage
ratio (LCR)
|
149
|
%
|
146
|
%
|
|
Regulatory ratios under Basel III
(adjusted)(3)
|
|
|
|
|
|
Capital
ratios
|
|
|
|
|
|
CET1
|
11.2
|
%
|
|
|
|
Tier 1
|
14.2
|
%
|
|
|
|
Total
|
15.5
|
%
|
|
|
|
Leverage
ratio
|
4.3
|
%
|
|
|
|
Other information
|
|
|
|
|
|
Number of employees
–Worldwide
|
26,589
|
|
25,487
|
|
4
|
Number of branches in
Canada
|
413
|
|
422
|
|
(2)
|
Number of banking
machines in Canada
|
933
|
|
939
|
|
(1)
|
|
(1)
|
See the Financial
Reporting Method section on page 5 for additional information
on non-GAAP financial measures.
|
(2)
|
The ratios as at
April 30, 2020 do not include the transitional measures
granted by OSFI. For additional information, see the section
entitled COVID-19 Pandemic – Key Measures Introduced by the
Regulatory Authorities on pages 7 to 9 in the MD&A of the
Report to Shareholders of the second quarter of 2020.
|
(3)
|
The adjusted ratios
as at April 30, 2020 do not include the transitional
measure applicable to expected credit loss provisioning. For
additional information, see the section entitled COVID-19 Pandemic
– Key Measures Introduced by the Regulatory Authorities on pages 7
to 9 in the MD&A of the Report to Shareholders of the second
quarter of 2020.
|
Financial Reporting
Method
As stated in Note 2 to its audited annual consolidated
financial statements for the year ended October 31, 2019, the Bank adopted IFRS 16 on
November 1, 2019. As permitted by the IFRS
16 transitional provisions, the Bank elected to apply IFRS 16 using
the modified retrospective basis, with no restatement of
comparative periods. Note 2 to the
unaudited interim condensed consolidated financial statements
for the quarter and six-month period ended April 30,
2020 presents the impacts of IFRS 16 adoption on the Bank's
Consolidated Balance Sheet as at November 1,
2019 and additional information on adoption of IFRS
16. Since interim consolidated financial statements do
not include all of the annual financial statement disclosures
required under IFRS, they should be read in conjunction with the
audited annual consolidated financial statements and accompanying
notes for the year ended October 31,
2019.
Non-GAAP 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, which are based on IFRS. 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 assess results without the
specified items if they consider such items not to be reflective of
the underlying performance of the Bank's operations. Securities
regulators require companies to caution readers that non-GAAP
financial measures do not have standardized meanings under GAAP and
therefore may not be comparable to similar measures used by other
companies.
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.
Financial Information
|
(millions of Canadian
dollars, except per share amounts)
|
Quarter ended
April 30
|
Six months ended
April 30
|
|
|
2020
|
|
|
2019
|
|
% Change
|
|
2020
|
|
|
2019
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding specified
items(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal and
Commercial
|
|
65
|
|
|
230
|
|
(72)
|
|
316
|
|
|
472
|
|
(33)
|
Wealth
Management
|
|
141
|
|
|
117
|
|
21
|
|
276
|
|
|
240
|
|
15
|
Financial
Markets
|
|
159
|
|
|
158
|
|
1
|
|
343
|
|
|
326
|
|
5
|
U.S. Specialty Finance
and International
|
|
74
|
|
|
72
|
|
3
|
|
159
|
|
|
132
|
|
20
|
Other
|
|
(60)
|
|
|
(19)
|
|
|
|
(95)
|
|
|
(60)
|
|
|
Net income excluding specified
items
|
|
379
|
|
|
558
|
|
(32)
|
|
999
|
|
|
1,110
|
|
(10)
|
Charge related to
Maple(2)
|
|
−
|
|
|
−
|
|
|
|
(10)
|
|
|
−
|
|
|
Net income
|
|
379
|
|
|
558
|
|
(32)
|
|
989
|
|
|
1,110
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share excluding specified
items
|
$
|
1.01
|
|
$
|
1.51
|
|
(33)
|
$
|
2.71
|
|
$
|
3.01
|
|
(10)
|
Charge related to
Maple(2)
|
|
−
|
|
|
−
|
|
|
|
(0.03)
|
|
|
−
|
|
|
Diluted earnings per share
|
$
|
1.01
|
|
$
|
1.51
|
|
(33)
|
$
|
2.68
|
|
$
|
3.01
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on common shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Including specified
items
|
|
10.7
|
%
|
|
17.8
|
%
|
|
|
14.3
|
%
|
|
17.5
|
%
|
|
Excluding specified
items
|
|
10.7
|
%
|
|
17.8
|
%
|
|
|
14.5
|
%
|
|
17.5
|
%
|
|
|
(1)
|
For the quarter and
six-month period ended April 30, 2019, certain amounts have
been reclassified.
|
(2)
|
During the six-month
period ended April 30, 2020, the Bank recorded a charge
of $13 million ($10 million net of income taxes) related to
Maple Financial Group Inc. (Maple) in the
Other heading of segment results following the event that
occurred in December 2019, as described in the Contingent
Liabilities section on page 23 in the MD&A of the Report
to Shareholders of the second quarter 2020.
|
Caution Regarding Forward-Looking
Statements
From time to time, the Bank makes written and oral
forward-looking statements such as those contained in this
document, in other filings with Canadian securities regulators, and
in other communications. 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 2020 and beyond, its strategies or future actions for
achieving them, expectations for the Bank's financial condition,
the regulatory environment in which it operates, the potential
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 words such as "outlook", "believe",
"foresee", "forecast", "anticipate", "estimate", "project",
"expect", "intend", "plan", and similar expressions of future or
conditional verbs such as "will", "may", "should", "could" or
"would".
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
financial performance objectives, vision and strategic goals, and
may not be appropriate for other purposes.
By their very nature, these forward-looking statements
require assumptions to be made and involve inherent risks and
uncertainties, both general and specific. Assumptions about the
performance of the Canadian and U.S. economies in 2020, including
in the context of the COVID-19 pandemic, and how that will affect
the Bank's business are among the main factors considered in
setting the Bank's strategic priorities and objectives and,
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.
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 correct and that its financial performance objectives,
vision and strategic goals will not be achieved. The Bank
recommends that readers not place undue reliance on forward-looking
statements, as a number of factors, many of which are beyond the
Bank's control, including the impacts of the COVID-19 pandemic,
could cause actual results to differ significantly from the
expectations, estimates or intentions expressed in these
statements. These factors include credit risk, market risk,
liquidity and funding risk, operational risk, regulatory compliance
risk, reputation risk, strategic risk and environmental risk, all
of which are described in more detail in the Risk Management
section beginning on page 58 of the Bank's 2019 Annual
Report, and more specifically, general economic environment and
financial market conditions in Canada, the United
States and certain other countries in which the Bank
conducts business; regulatory changes affecting the Bank's
business; geopolitical uncertainty; important changes
in consumer behaviour; Canadian housing and household indebtedness;
changes in the Bank's customers' and counterparties' performance
and creditworthiness; changes in the accounting
policies the Bank uses to report its financial condition, including
uncertainties associated with assumptions and critical accounting
estimates; tax laws in the countries in which the Bank operates,
primarily Canada and the United States (including the U.S.
Foreign Account Tax Compliance Act (FATCA)); changes to capital
and liquidity guidelines and to the manner in which they are to be
presented and interpreted; changes to the credit ratings assigned
to the Bank; potential disruption to key suppliers of
goods and services to the Bank; potential disruptions
to the Bank's information technology systems, including evolving
cyberattack risk; and possible impacts of catastrophic events
affecting local and global economies, including natural disasters
and public health emergencies such as the COVID-19
pandemic.
Statements about the expected impacts of the COVID-19
pandemic on the Bank's business, results of operations, corporate
reputation, financial position and liquidity, and on the global
economy may be inaccurate and differ, possibly materially, from
what is currently expected as they depend on future
developments that are highly uncertain and cannot be
predicted.
The foregoing list of risk factors is not exhaustive.
Additional information about these factors can be found in the Risk
Management section of the Bank's 2019 Annual Report and in
the COVID-19 Pandemic section of the Report to Shareholders for the
Second Quarter of 2020. 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 risks
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.
Disclosure of the Second Quarter 2020
results
Conference Call
- A conference call for analysts and institutional
investors will be held on Tuesday, May 26,
2020 at 5:30 p.m.
EDT.
- Access by telephone in listen-only mode:
1-800-806-5484 or 416-340-2217. The access code is
2025893#.
- A recording of the conference call can be heard until
June 27, 2020 by dialing
1-800-408-3053 or 905-694-9451. The access code is
8176842#.
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
at the close of the stock markets on the day of the conference
call.
SOURCE National Bank of Canada