The financial information reported in this document is based on
the unaudited interim condensed consolidated financial statements
for the quarter and six-month period ended April 30, 2021
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 28, 2021 /CNW Telbec/ - For the second
quarter of 2021, National Bank is reporting net income of
$801 million compared to $379 million in the second quarter of 2020.
Second-quarter diluted earnings per share stood at $2.25 compared to $1.01 in the second quarter of 2020. This strong
growth was driven by increases in total revenues across most
business segments and by a substantial reduction in provisions for
credit losses in the second quarter of 2021, whereas, in the second
quarter of 2020, significant provisions had been recorded to
reflect a deterioration in macroeconomic conditions caused by the
COVID–19 pandemic. Income before provisions for credit losses and
income taxes(1) totalled $1,039
million in the second quarter of 2021 compared to
$915 million in the second quarter of 2020, a 14% increase
arising from good performance in most of the business segments.
For the six month-period ended April 30,
2021, the Bank's net income totalled $1,562 million compared to $989 million in the same period of
2020. First-half diluted earnings per share stood at
$4.40 compared to $2.68 in the same period of 2020. This
significant increase was driven by net income increases across all
the business segments, i.e., increases that were notably due to
lower provisions for credit losses recorded in the first half of
2021 given an improved macroeconomic outlook compared to the same
period of 2020. Income before provisions for credit losses and
income taxes(1) totalled $2,083
million for the six-month period ended April 30, 2021, a 19% year-over-year increase
driven by revenue growth across all business segments.
"For the second quarter 2021, the Bank delivered another strong
performance. We continue to operate in an improving economic
environment more conducive to business growth, with our Q1 momentum
carrying over into Q2. Our solid results once again reflect the
fact that we have made the right strategic choices and have built a
strong, diversified and agile franchise,'' commented Louis Vachon, President and Chief Executive
Officer of the National Bank of Canada. "With an industry-leading ROE, strong
capital levels and prudent allowances for credit losses, we are
well-positioned to selectively seize growth opportunities as we
gradually exit the pandemic,'' added Mr. Vachon.
Highlights
(millions of Canadian
dollars)
|
|
Quarter ended
April 30
|
|
|
Six months ended
April 30
|
|
|
2021
|
|
|
|
2020
|
|
|
% Change
|
|
|
2021
|
|
|
|
2020
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
801
|
|
|
|
379
|
|
|
111
|
|
|
1,562
|
|
|
|
989
|
|
|
58
|
Diluted earnings per
share (dollars)
|
$
|
2.25
|
|
|
$
|
1.01
|
|
|
123
|
|
$
|
4.40
|
|
|
$
|
2.68
|
|
|
64
|
Income before
provisions for credit losses and income
taxes(1)
|
|
1,039
|
|
|
|
915
|
|
|
14
|
|
|
2,083
|
|
|
|
1,747
|
|
|
19
|
Return on common
shareholders' equity(1)
|
|
22.0
|
%
|
|
|
10.7
|
%
|
|
|
|
|
21.6
|
%
|
|
|
14.3
|
%
|
|
|
Dividend payout
ratio
|
|
38.0
|
%
|
|
|
45.9
|
%
|
|
|
|
|
38.0
|
%
|
|
|
45.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
at
April 30,
2021
|
|
|
|
As at
October 31,
2020
|
|
|
|
CET1 capital ratio
under Basel III
|
|
|
|
|
|
|
|
|
|
|
|
12.2
|
%
|
|
|
11.8
|
%
|
|
|
Leverage ratio under
Basel III
|
|
|
|
|
|
|
|
|
|
|
|
4.4
|
%
|
|
|
4.4
|
%
|
|
|
|
|
(1)
|
See the Financial
Reporting Method section on page 5 for additional information on
non-GAAP financial measures.
|
Personal and Commercial
- Net income totalled $321 million
in the second quarter of 2021 compared to $56 million in the second quarter of 2020, strong
growth that was due essentially to higher provisions for credit
losses on non-impaired loans recorded in the second quarter of 2020
to reflect a significant deterioration in the macroeconomic outlook
caused by COVID-19.
- Income before provisions for credit losses and income
taxes(1) totalled $423
million in the second quarter of 2021, up 12% from
$377 million in the second quarter of
2020.
- At $902 million, the
second-quarter total revenues were up $56
million or 7% year over year, due to an increase in net
interest income driven by growth in loan and deposit volumes as
well as to an increase in non-interest income.
- Compared to a year ago, personal lending grew 7% and commercial
lending grew 5%.
- The net interest margin was 2.16% in the second quarter of 2021
compared to 2.22% in the second quarter of 2020.
- Second-quarter non-interest expenses stood at $479 million, up 2% from the second quarter of
2020.
- At 53.1%, the efficiency ratio(1) improved from
55.4% in the second quarter of 2020.
Wealth Management
- Net income totalled $165 million
in the second quarter of 2021, a 17% increase from $141 million in the second quarter of 2020.
- Second-quarter total revenues amounted to $541 million compared to $475 million in second quarter 2020, a
$66 million or 14% increase driven by
growth in fee-based revenues as well as in transaction-based and
other revenues.
- Second-quarter non-interest expenses stood at $315 million compared to $280 million in the second quarter of 2020, a 13%
increase related to revenue growth.
- At 58.2%, the second-quarter efficiency ratio(1)
improved from 58.9% in the second quarter of 2020.
Financial Markets
- Net income totalled $238 million
in the second quarter of 2021, a 50% increase from $159 million in the second quarter of 2020.
- Income before provisions for credit losses and income taxes on
a taxable equivalent basis(1) totalled $342 million in the second quarter of 2021, down
10% from $378 million in the second
quarter of 2020.
- Total revenues on a taxable equivalent basis(1)
amounted to $567 million, a
$31 million or 5% decrease
attributable to lower global markets revenues in the second quarter
of 2021.
- Second-quarter non-interest expenses stood at $225 million compared to $220 million in the second quarter of 2020, an
increase in part attributable to operations support charges.
- The segment recorded $18 million
in provisions for credit losses in the second quarter of 2021
versus $162 million in the second
quarter of 2020. This decrease is attributable to the significant
deterioration in the macroeconomic outlook caused by COVID-19
during the second quarter of 2020.
- At 39.7%, the second-quarter efficiency ratio on a taxable
equivalent basis(1) compares to 36.8% in the second
quarter of 2020.
U.S. Specialty Finance and International
- Net income totalled $129 million
in the second quarter of 2021, a 74% increase from $74 million in the second quarter of 2020.
- Second-quarter total revenues amounted to $237 million, a 30% year-over-year increase
driven by revenue growth at both the Credigy and ABA Bank
subsidiaries.
- Second-quarter non-interest expenses stood at $77 million, down 6%.
- At 32.5%, the second-quarter efficiency ratio(1)
improved by 12.3 percentage points compared to the same quarter in
2020.
- $1 million in provisions for
credit losses were recovered in the second quarter of 2021,
reflective of improving macroeconomic conditions in the United States, whereas, in the second
quarter of 2020, $32 million in
provisions for credit losses had been recorded.
Other
- For the Other heading of segment results, there was a
net loss of $52 million in the second
quarter of 2021 compared to a net loss of $51 million in the second quarter of 2020. An
increase in non-interest expenses associated with variable
compensation and technology investments was partly offset by an
increase in total revenues.
Capital Management
- As at April 30, 2021, the Common
Equity Tier 1 (CET1) capital ratio under Basel III stood at 12.2%,
up from 11.8% as at October 31,
2020.
- As at April 30, 2021, the Basel
III leverage ratio was 4.4%, unchanged from October 31, 2020.
Dividends
- On May 27, 2021, 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, 2021 to shareholders of record on
June 28, 2021.
(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 World
Health Organization (WHO) declared that the COVID-19 outbreak
constituted a pandemic, requiring that important protective
measures be taken to prevent overcrowding of health services and to
strengthen preventive hygiene. The global pandemic prompted
many countries, including Canada,
to implement lockdown and social distancing measures designed to
slow down new outbreaks. Those measures included the closing of
borders in many countries. This exceptional situation has led to
significant changes in the overall market environment, including
business closures, temporary layoffs, low interest rates and
government measures implemented in response to COVID-19.
Certain restrictions imposed at the start of the pandemic were
eased during the summer of 2020, but a second wave of COVID-19 in
early fall of 2020 forced authorities in a number of countries,
including Canada, to reintroduce
some lockdown measures, effectively shutting down parts of the
economy again. Although the introduction of several vaccines
against COVID-19 constitutes an encouraging development,
uncertainty remains as to their effectiveness, their distribution,
their acceptance by the public and the reduction of the anticipated
infection rates, in particular following the multiplication of
cases linked to COVID-19 variants, that appear to be more
contagious. Authorities in a number of countries, including
Canada, are working actively to
ensure that vaccines are administered as quickly as possible.
Certain measures by the public health authorities in Canada are expected to remain in place until
extensive immunization is achieved in order to continue to limit
the spread of COVID-19 and its variants.
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 ongoing period of uncertainty.
In addition to the impacts of the COVID-19 pandemic on the
global economy and in the countries where the Bank conducts
business, the pandemic has affected and may continue to affect the
Bank, the way it conducts business, and its clients. The Bank
continues to closely monitor the effects and potential consequences
of the COVID-19 pandemic. The actual impacts will depend on future
events that are highly uncertain, including the extent, severity
and duration of the COVID-19 pandemic and its variants, as well as
the effectiveness of actions and measures taken by governments,
monetary authorities, and regulators over the long term.
For additional information on the impact of the COVID-19 risk
factor, on relief measures offered to the Bank's clients, and on
the measures introduced by regulators, see the
COVID-19 Pandemic section on pages 16 to 21 of the 2020
Annual Report and the Regulatory Developments section of the
Report to Shareholders – Second Quarter 2021 applicable to
capital management as well as to credit risk and, liquidity and
funding risk.
A number of relief measures offered to the Bank's clients ended
at the end of 2020, although some new measures are being offered as
part of government programs in which the Bank continues to
participate. These new measures mainly consist of loans subject to
government guarantees, particularly for businesses operating in
sectors hit hardest by the pandemic. The Bank is continuing to
address the specific needs of its clients in the normal course of
business to support them during this unprecedented crisis.
Highlights
(millions of Canadian
dollars, except per share amounts)
|
|
Quarter ended
April 30
|
|
|
Six months ended
April 30
|
|
|
2021
|
|
|
|
2020
|
|
|
% Change
|
|
|
2021
|
|
|
|
2020
|
|
% Change
|
Operating
results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
2,238
|
|
|
|
2,036
|
|
|
10
|
|
|
4,462
|
|
|
|
3,959
|
|
13
|
Income before provisions for credit losses and income taxes(1)
|
|
1,039
|
|
|
|
915
|
|
|
14
|
|
|
2,083
|
|
|
|
1,747
|
|
19
|
Net income
|
|
801
|
|
|
|
379
|
|
|
111
|
|
|
1,562
|
|
|
|
989
|
|
58
|
Net income
attributable to the Bank's shareholders and holders of other equity instruments
|
|
801
|
|
|
|
368
|
|
|
118
|
|
|
1,562
|
|
|
|
962
|
|
62
|
Return on common
shareholders' equity(1)
|
|
22.0
|
%
|
|
|
10.7
|
%
|
|
|
|
|
21.6
|
%
|
|
|
14.3
|
%
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
2.28
|
|
|
$
|
1.01
|
|
|
126
|
|
$
|
4.44
|
|
|
$
|
2.70
|
|
64
|
|
Diluted
|
|
2.25
|
|
|
|
1.01
|
|
|
123
|
|
|
4.40
|
|
|
|
2.68
|
|
64
|
Operating results
on a taxable equivalent basis and excluding specified
items(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues on a
taxable equivalent basis
|
|
2,282
|
|
|
|
2,112
|
|
|
8
|
|
|
4,563
|
|
|
|
4,122
|
|
11
|
Income before
provisions for credit losses and income taxes on a taxable
equivalent basis and excluding specified items
|
|
1,083
|
|
|
|
991
|
|
|
9
|
|
|
2,184
|
|
|
|
1,923
|
|
14
|
Net income excluding
specified items
|
|
801
|
|
|
|
379
|
|
|
111
|
|
|
1,562
|
|
|
|
999
|
|
56
|
Return on common
shareholders' equity excluding specified items
|
|
22.0
|
%
|
|
|
10.7
|
%
|
|
|
|
|
21.6
|
%
|
|
|
14.5
|
%
|
|
Efficiency ratio on a
taxable equivalent basis and excluding specified items
|
|
52.5
|
%
|
|
|
53.1
|
%
|
|
|
|
|
52.1
|
%
|
|
|
53.3
|
%
|
|
Earnings per share
excluding specified items(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
2.28
|
|
|
$
|
1.01
|
|
|
126
|
|
$
|
4.44
|
|
|
$
|
2.73
|
|
63
|
|
Diluted
|
|
2.25
|
|
|
|
1.01
|
|
|
123
|
|
|
4.40
|
|
|
|
2.71
|
|
62
|
Common share
information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared
|
$
|
0.71
|
|
|
$
|
0.71
|
|
|
|
|
$
|
1.42
|
|
|
$
|
1.42
|
|
|
Book value
|
|
43.59
|
|
|
|
38.74
|
|
|
|
|
|
43.59
|
|
|
|
38.74
|
|
|
Share
price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
89.42
|
|
|
|
74.79
|
|
|
|
|
|
89.42
|
|
|
|
74.79
|
|
|
|
Low
|
|
72.30
|
|
|
|
38.73
|
|
|
|
|
|
65.54
|
|
|
|
38.73
|
|
|
|
Close
|
|
89.36
|
|
|
|
56.14
|
|
|
|
|
|
89.36
|
|
|
|
56.14
|
|
|
Number of common
shares (thousands)
|
|
337,372
|
|
|
|
335,400
|
|
|
|
|
|
337,372
|
|
|
|
335,400
|
|
|
Market
capitalization
|
|
30,148
|
|
|
|
18,829
|
|
|
|
|
|
30,148
|
|
|
|
18,829
|
|
|
(millions of Canadian
dollars)
|
|
As at
April 30,
2021
|
|
|
As at October
31,
2020
|
|
% Change
|
Balance sheet and
off-balance-sheet
|
|
|
|
|
|
|
|
Total
assets
|
|
350,742
|
|
|
331,625
|
|
6
|
Loans and
acceptances, net of allowances
|
|
171,632
|
|
|
164,740
|
|
4
|
Deposits
|
|
231,320
|
|
|
215,878
|
|
7
|
Equity attributable
to common shareholders
|
|
14,706
|
|
|
13,430
|
|
10
|
Assets under
administration and under management
|
|
702,167
|
|
|
596,656
|
|
18
|
Regulatory ratios
under Basel III(2)
|
|
|
|
|
|
|
|
Capital
ratios
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
(CET1)
|
|
12.2
|
%
|
|
11.8
|
%
|
|
|
Tier
1(3)
|
|
15.2
|
%
|
|
14.9
|
%
|
|
|
Total(3)
|
|
16.4
|
%
|
|
16.0
|
%
|
|
Leverage
ratio
|
|
4.4
|
%
|
|
4.4
|
%
|
|
Liquidity coverage
ratio (LCR)
|
|
150
|
%
|
|
161
|
%
|
|
Net stable funding
ratio (NSFR)
|
|
125
|
%
|
|
|
|
|
Regulatory ratios
under Basel III (adjusted)(4)
|
|
|
|
|
|
|
|
Capital
ratios
|
|
|
|
|
|
|
|
|
CET1
|
|
12.0
|
%
|
|
11.5
|
%
|
|
|
Tier
1(3)
|
|
15.1
|
%
|
|
14.6
|
%
|
|
|
Total(3)
|
|
16.4
|
%
|
|
16.0
|
%
|
|
Leverage
ratio
|
|
4.4
|
%
|
|
4.3
|
%
|
|
Other
information
|
|
|
|
|
|
|
|
Number of employees
– Worldwide
|
|
26,211
|
|
|
26,517
|
|
(1)
|
Number of branches in
Canada
|
|
401
|
|
|
403
|
|
−
|
Number of banking
machines in Canada
|
|
929
|
|
|
940
|
|
(1)
|
|
|
(1)
|
See the Financial
Reporting Method section on page 5 for additional information on
non-GAAP financial measures.
|
(2)
|
The ratios include
the transitional measures granted by the Office of the
Superintendent of Financial Institutions (Canada) (OSFI). For
additional information, see the section entitled COVID–19 Pandemic
– Key Measures Introduced by the Regulatory Authorities on pages 20
and 21 of the 2020 Annual Report.
|
(3)
|
Ratios as at April
30, 2021 include the redemption of the Series 34 preferred shares
on May 15, 2021.
|
(4)
|
The adjusted ratios
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 20 and 21 of the 2020 Annual
Report.
|
Financial Reporting
Method
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. The Bank cautions readers
that it uses non-GAAP financial measures that 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.
The Bank also uses the return on common shareholders' equity, which
is a financial performance measure calculated by dividing net
income attributable to common shareholders by the average value of
common shareholders' equity for the period. Finally, the efficiency
ratio is also used to assess the Bank's consolidated results and
results by segment. The efficiency ratio is calculated by dividing
non-interest expenses by total revenues.
Fiscal 2020 was marked by the effects of the COVID-19
pandemic on macroeconomic factors, which resulted in a significant
increase in the Bank's provisions for credit losses. Given the
materiality of the provisions for credit losses recorded in
accordance with IFRS, the Bank believes it is useful to show income
before provisions for credit losses and income taxes, income before
provisions for credit losses and income taxes on a taxable
equivalent basis as well as income before provisions for credit
losses and income taxes on a taxable equivalent basis and excluding
specified items (as presented in the Consolidated Results table on
page 8 and in the Results by Segment tables on pages 11 to 15 of
the Report to Shareholders for the second quarter of 2021),
thereby providing readers with additional information to help them
better understand the main components of the financial results of
the Bank and its business segments.
Financial Information
(millions of Canadian
dollars, except per share amounts)
|
Quarter ended
April 30
|
|
|
Six months ended
April 30
|
|
|
2021
|
|
|
|
2020
|
|
% Change
|
|
|
2021
|
|
|
|
2020
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
excluding specified items(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal and
Commercial
|
|
321
|
|
|
|
56
|
|
473
|
|
|
583
|
|
|
|
298
|
|
|
96
|
|
Wealth
Management
|
|
165
|
|
|
|
141
|
|
17
|
|
|
325
|
|
|
|
274
|
|
|
19
|
|
Financial
Markets
|
|
238
|
|
|
|
159
|
|
50
|
|
|
488
|
|
|
|
342
|
|
|
43
|
|
U.S. Specialty
Finance and International
|
|
129
|
|
|
|
74
|
|
74
|
|
|
265
|
|
|
|
159
|
|
|
67
|
|
Other
|
|
(52)
|
|
|
|
(51)
|
|
|
|
|
(99)
|
|
|
|
(74)
|
|
|
|
Net income
excluding specified items
|
|
801
|
|
|
|
379
|
|
111
|
|
|
1,562
|
|
|
|
999
|
|
|
56
|
|
Charge related to
Maple(2)
|
|
−
|
|
|
|
−
|
|
|
|
|
−
|
|
|
|
(10)
|
|
|
|
Net
income
|
|
801
|
|
|
|
379
|
|
111
|
|
|
1,562
|
|
|
|
989
|
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share excluding specified items
|
$
|
2.25
|
|
|
$
|
1.01
|
|
123
|
|
$
|
4.40
|
|
|
$
|
2.71
|
|
|
62
|
|
Charge related to
Maple(2)
|
|
−
|
|
|
|
−
|
|
|
|
|
−
|
|
|
|
(0.03)
|
|
|
|
Diluted earnings
per share
|
$
|
2.25
|
|
|
$
|
1.01
|
|
123
|
|
$
|
4.40
|
|
|
$
|
2.68
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on common
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Including specified
items
|
|
22.0
|
%
|
|
|
10.7
|
%
|
|
|
|
21.6
|
%
|
|
|
14.3
|
%
|
|
|
|
Excluding specified
items
|
|
22.0
|
%
|
|
|
10.7
|
%
|
|
|
|
21.6
|
%
|
|
|
14.5
|
%
|
|
|
|
|
(1)
|
For the quarter and
six-month period ended April 30, 2020, certain amounts have
been reclassified.
|
(2)
|
During the six-month
period ended April 30, 2020, the Bank had recorded a charge of
$13 million ($10 million net of income taxes) related to the
company Maple Financial Group Inc. (Maple) following the event in
December 2019, as described in the Contingent Liabilities section
on page 111 of the 2020 Annual Report.
|
Caution Regarding Forward-Looking Statements
From time to time, the Bank makes written forward-looking
statements such as those contained in this document, in other
filings with Canadian securities regulators, and in other
communications. In addition, representatives of the Bank may make
forward-looking statements orally to analysts, investors, the media
and others. 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 2021 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 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 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 its financial performance targets, 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 2021, 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, including
allowances 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
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, 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 forward-looking statements. These
factors include credit risk, market risk, liquidity and funding
risk, operational risk, regulatory compliance risk, reputation
risk, strategic risk and environmental and social risk, all of
which are described in more detail in the Risk Management section
beginning on page 68 of the Bank's 2020 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 and
sociopolitical uncertainty; important changes in consumer
behaviour; the housing and household indebtedness situation and
real estate market in Canada;
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; changes to capital and
liquidity guidelines as well as 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
as well as identity theft and theft of personal information; 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 and its
results of operations, reputation, financial position and
liquidity, as well as 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 COVID-19 Pandemic and Risk Management sections of the Bank's
2020 Annual Report and in the Report to Shareholders for the
Second Quarter of 2021, notably in the COVID-19 Pandemic section.
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 2021 results
Conference Call
- A conference call for analysts and institutional investors will
be held on Friday, May 28, 2021 at
11:00 a.m. EDT.
- Access by telephone in listen-only mode: 1-800-898-3989 or
416-406-0743. The access code is 1995846#.
- A recording of the conference call can be heard until
June 25, 2021 by dialing
1-800-408-3053 or 905-694-9451. The access code is 1381684#.
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