The financial information reported in this document is based on the unaudited interim condensed consolidated financial
statements for the fourth quarter of fiscal 2017 and on the audited annual consolidated financial statements for the year ended
October 31, 2017 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, Dec. 1, 2017 /CNW Telbec/ - For the fourth quarter of
2017, National Bank is reporting net income of $525 million compared to $307
million in the fourth quarter of 2016. Diluted earnings per share stood at $1.39 in the
fourth quarter of 2017 compared to $0.78 in the same quarter last year.
Net income excluding specified items totalled $531 million in the fourth quarter of 2017, up 15%
from $463 million in the fourth quarter of 2016. Diluted earnings per share excluding specified
items stood at $1.40 for the quarter ended October 31, 2017 compared
to $1.24 in the same quarter of 2016. The specified items are described on page 2.
For fiscal 2017, the Bank posted record net income of $2,024 million compared to $1,256 million in fiscal 2016, and the 2017 diluted earnings per share stood at $5.38 versus $3.29 in 2016. These increases were driven by net income growth
across all of the Bank's business segments as well as by the year-over-year effects of several specified items recorded in fiscal
2016, in particular the sectoral provision, the Bank's write-off of its equity interest in associate Maple Financial Group Inc.,
and the restructuring charge. For the year ended October 31, 2017, net income excluding specified items was
$2,049 million, a 27% increase from $1,613 million in fiscal 2016,
and the 2017 diluted earnings per share excluding specified items stood at $5.45 compared to
$4.35 in 2016.
"The fourth quarter concludes a record year for the Bank in which its net income exceeded $2 billion for the first time,"
said Louis Vachon, President and Chief Executive Officer of National Bank. "This excellent
performance was driven by revenue growth across all of the Bank's business segments and by an effective management of operating
costs."
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars)
|
|
|
Quarter ended October 31
|
|
|
Year ended October 31
|
|
|
|
2017
|
|
|
|
2016
|
|
|
% Change
|
|
|
2017
|
|
|
|
2016
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
525
|
|
|
|
307
|
|
|
71
|
|
|
2,024
|
|
|
|
1,256
|
|
|
61
|
Diluted earnings per share (dollars)
|
$
|
1.39
|
|
|
$
|
0.78
|
|
|
78
|
|
$
|
5.38
|
|
|
$
|
3.29
|
|
|
64
|
Return on common shareholders' equity
|
|
17.8
|
%
|
|
|
11.0
|
%
|
|
|
|
|
18.1
|
%
|
|
|
11.7
|
%
|
|
|
Dividend payout ratio
|
|
42
|
%
|
|
|
66
|
%
|
|
|
|
|
42
|
%
|
|
|
66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding specified items (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding specified items
|
|
531
|
|
|
|
463
|
|
|
15
|
|
|
2,049
|
|
|
|
1,613
|
|
|
27
|
Diluted earnings per share excluding specified items
(dollars)
|
$
|
1.40
|
|
|
$
|
1.24
|
|
|
13
|
|
$
|
5.45
|
|
|
$
|
4.35
|
|
|
25
|
Return on common shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding specified items
|
|
18.0
|
%
|
|
|
17.4
|
%
|
|
|
|
|
18.3
|
%
|
|
|
15.5
|
%
|
|
|
Dividend payout ratio excluding specified items
|
|
41
|
%
|
|
|
50
|
%
|
|
|
|
|
41
|
%
|
|
|
50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at October 31,
2017
|
|
|
As at October 31,
2016
|
|
|
|
CET1 capital ratio under Basel III
|
|
|
|
|
|
|
|
|
|
|
|
11.2
|
%
|
|
|
10.1
|
%
|
|
|
Leverage ratio under Basel III
|
|
|
|
|
|
|
|
|
|
|
|
4.0
|
%
|
|
|
3.7
|
%
|
|
|
(1)
|
See the Financial Reporting Method section on page 2 for additional
information on non-GAAP financial measures.
|
FINANCIAL REPORTING
METHOD
The presentation of segment disclosures is consistent with the presentation adopted by the Bank for the fiscal year beginning
November 1, 2016. This presentation reflects the fact that the activities of subsidiary Credigy Ltd. (Credigy), which
had previously been presented in the Financial Markets segment, and that the activities of subsidiary Advanced Bank of Asia
Limited (ABA Bank) and of other international investments, which had previously been presented in the Other heading, are
now presented in the U.S. Specialty Finance and International (USSF&I) segment. The Bank made this change to better align the
monitoring of its activities with its management structure.
Non-GAAP Financial Measures
The Bank uses a number of financial measures when assessing its results and measuring Bank-wide 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 measures do not have a standardized meaning under GAAP and therefore may not be comparable to similar measures used
by other companies.
Financial Information
|
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars, except per share amounts)
|
Quarter ended October 31
|
|
|
Year ended October 31
|
|
|
2017
|
|
|
|
2016
|
% Change
|
|
|
2017
|
|
|
|
2016
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding specified items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal and Commercial
|
|
239
|
|
|
|
191
|
|
25
|
|
|
925
|
|
|
|
557
|
|
|
66
|
|
Wealth Management
|
|
116
|
|
|
|
92
|
|
26
|
|
|
439
|
|
|
|
347
|
|
|
27
|
|
Financial Markets
|
|
186
|
|
|
|
176
|
|
6
|
|
|
712
|
|
|
|
630
|
|
|
13
|
|
U.S. Specialty Finance and International
|
|
55
|
|
|
|
21
|
|
162
|
|
|
184
|
|
|
|
147
|
|
|
25
|
|
Other
|
|
(65)
|
|
|
|
(17)
|
|
|
|
|
(211)
|
|
|
|
(68)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding specified items
|
|
531
|
|
|
|
463
|
|
15
|
|
|
2,049
|
|
|
|
1,613
|
|
|
27
|
|
Items related to holding restructured notes(1)
|
|
−
|
|
|
|
(1)
|
|
|
|
|
−
|
|
|
|
(6)
|
|
|
|
|
Acquisition-related items(2)
|
|
(6)
|
|
|
|
(9)
|
|
|
|
|
(25)
|
|
|
|
(42)
|
|
|
|
|
Restructuring charge(3)
|
|
−
|
|
|
|
(96)
|
|
|
|
|
−
|
|
|
|
(96)
|
|
|
|
|
Impairment losses on intangible assets(4)
|
|
−
|
|
|
|
(32)
|
|
|
|
|
−
|
|
|
|
(32)
|
|
|
|
|
Litigation charges(5)
|
|
−
|
|
|
|
(18)
|
|
|
|
|
−
|
|
|
|
(18)
|
|
|
|
|
Write-off of an equity interest in an associate(6)
|
|
−
|
|
|
|
−
|
|
|
|
|
−
|
|
|
|
(145)
|
|
|
|
|
Impact of changes to tax measures(7)
|
|
−
|
|
|
|
−
|
|
|
|
|
−
|
|
|
|
(18)
|
|
|
|
Net income
|
|
525
|
|
|
|
307
|
|
71
|
|
|
2,024
|
|
|
|
1,256
|
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share excluding specified items
|
$
|
1.40
|
|
|
$
|
1.24
|
|
13
|
|
$
|
5.45
|
|
|
$
|
4.35
|
|
|
25
|
|
Items related to holding restructured notes(1)
|
|
−
|
|
|
|
(0.01)
|
|
|
|
|
−
|
|
|
|
(0.02)
|
|
|
|
|
Acquisition-related items(2)
|
|
(0.01)
|
|
|
|
(0.03)
|
|
|
|
|
(0.07)
|
|
|
|
(0.13)
|
|
|
|
|
Restructuring charge(3)
|
|
−
|
|
|
|
(0.28)
|
|
|
|
|
−
|
|
|
|
(0.28)
|
|
|
|
|
Impairment losses on intangible assets(4)
|
|
−
|
|
|
|
(0.09)
|
|
|
|
|
−
|
|
|
|
(0.09)
|
|
|
|
|
Litigation charges(5)
|
|
−
|
|
|
|
(0.05)
|
|
|
|
|
−
|
|
|
|
(0.05)
|
|
|
|
|
Write-off of an equity interest in an associate(6)
|
|
−
|
|
|
|
−
|
|
|
|
|
−
|
|
|
|
(0.43)
|
|
|
|
|
Impact of changes to tax measures(7)
|
|
−
|
|
|
|
−
|
|
|
|
|
−
|
|
|
|
(0.05)
|
|
|
|
|
Premium paid on preferred shares redeemed for
cancellation(8)
|
|
−
|
|
|
|
−
|
|
|
|
|
−
|
|
|
|
(0.01)
|
|
|
|
Diluted earnings per share
|
$
|
1.39
|
|
|
$
|
0.78
|
|
78
|
|
$
|
5.38
|
|
|
$
|
3.29
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on common shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Including specified items
|
|
17.8
|
%
|
|
|
11.0
|
%
|
|
|
|
18.1
|
%
|
|
|
11.7
|
%
|
|
|
|
Excluding specified items
|
|
18.0
|
%
|
|
|
17.4
|
%
|
|
|
|
18.3
|
%
|
|
|
15.5
|
%
|
|
|
(1)
|
During the quarter ended October 31, 2016, the Bank had recorded $2 million
in financing costs ($1 million net of income taxes) related to holding restructured notes. During the year ended
October 31, 2016, these financing costs stood at $9 million ($6 million net of income taxes).
|
(2)
|
During the quarter ended October 31, 2017, the Bank recorded $7 million in
charges ($6 million net of income taxes) related to acquisitions (2016: $11 million, $9 million net of income taxes). For
the year ended October 31, 2017, these charges stood at $30 million ($25 million net of income taxes) and, for fiscal
2016, they were $53 million ($42 million net of income taxes). These charges consisted mostly of retention bonuses and
also included the Bank's share in the integration costs incurred by Fiera Capital Corporation (Fiera Capital) as well as
the Bank's share in the integration costs arising from its equity interest in TMX Group Limited (TMX), particularly
goodwill and intangible asset impairment losses of $18 million ($13 million net of income taxes) recorded in fiscal
2016.
|
(3)
|
During the quarter ended October 31, 2016, the Bank had recorded a $131
million restructuring charge ($96 million net of income taxes) that had consisted essentially of severance
pay.
|
(4)
|
During the quarter ended October 31, 2016, the Bank had recorded $44
million ($32 million net of income taxes) in intangible asset impairment losses on internally-generated
software.
|
(5)
|
During the quarter ended October 31, 2016, the Bank had recorded $25
million in litigation charges ($18 million net of income taxes) to resolve litigation and other disputes arising from
claims, ongoing or potential, made against the Bank.
|
(6)
|
During the year ended October 31, 2016, the Bank had written off its equity
interest in associate Maple Financial Group Inc. (Maple) in an amount of $164 million ($145 million net of income taxes)
following the February 6, 2016 event described in the Analysis of the Consolidated Balance Sheet section on page 38 of
the 2017 Annual Report.
|
(7)
|
During the year ended October 31, 2016, an $18 million tax provision had
been recorded to reflect the impact of substantively enacted changes to tax measures.
|
(8)
|
During the year ended October 31, 2016, a $3 million premium had been paid
on the Series 20 First Preferred Shares redeemed for cancellation.
|
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars, except per share amounts)
|
|
Quarter ended October 31
|
|
|
Year ended October 31
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
|
|
2017
|
|
|
2016
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
1,704
|
|
|
1,569
|
|
|
9
|
|
|
6,609
|
|
|
5,840
|
|
13
|
Net income
|
|
525
|
|
|
307
|
|
|
71
|
|
|
2,024
|
|
|
1,256
|
|
61
|
Net income attributable to the Bank's shareholders
|
|
506
|
|
|
289
|
|
|
75
|
|
|
1,940
|
|
|
1,181
|
|
64
|
Return on common shareholders' equity
|
|
17.8
|
%
|
|
11.0
|
%
|
|
|
|
|
18.1
|
%
|
|
11.7
|
%
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.40
|
|
$
|
0.79
|
|
|
77
|
|
$
|
5.44
|
|
$
|
3.31
|
|
64
|
|
Diluted
|
|
1.39
|
|
|
0.78
|
|
|
78
|
|
|
5.38
|
|
|
3.29
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results on a taxable equivalent basis
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and excluding specified items (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues on a taxable equivalent basis and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding specified items
|
|
1,760
|
|
|
1,632
|
|
|
8
|
|
|
6,864
|
|
|
6,279
|
|
9
|
Net income excluding specified items
|
|
531
|
|
|
463
|
|
|
15
|
|
|
2,049
|
|
|
1,613
|
|
27
|
Return on common shareholders' equity excluding specified items
|
|
18.0
|
%
|
|
17.4
|
%
|
|
|
|
|
18.3
|
%
|
|
15.5
|
%
|
|
Efficiency ratio on a taxable equivalent basis and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding specified items
|
|
55.2
|
%
|
|
58.5
|
%
|
|
|
|
|
55.9
|
%
|
|
58.2
|
%
|
|
Earnings per share excluding specified items
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.42
|
|
$
|
1.25
|
|
|
14
|
|
$
|
5.52
|
|
$
|
4.38
|
|
26
|
|
Diluted
|
|
1.40
|
|
|
1.24
|
|
|
13
|
|
|
5.45
|
|
|
4.35
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
|
$
|
0.58
|
|
$
|
0.55
|
|
|
|
|
$
|
2.28
|
|
$
|
2.18
|
|
|
Book value
|
|
|
|
|
|
|
|
|
|
|
31.51
|
|
|
28.52
|
|
|
Share price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
62.74
|
|
|
47.88
|
|
|
|
|
|
62.74
|
|
|
47.88
|
|
|
|
Low
|
|
55.29
|
|
|
44.14
|
|
|
|
|
|
46.83
|
|
|
35.83
|
|
|
|
Close
|
|
62.61
|
|
|
47.88
|
|
|
|
|
|
62.61
|
|
|
47.88
|
|
|
Number of common shares (thousands)
|
|
339,592
|
|
|
338,053
|
|
|
|
|
|
339,592
|
|
|
338,053
|
|
|
Market capitalization
|
|
21,262
|
|
|
16,186
|
|
|
|
|
|
21,262
|
|
|
16,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
As at
October 31,
2017
|
|
|
As at
October 31,
2016
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet and off-balance-sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
245,827
|
|
|
232,206
|
|
6
|
Loans and acceptances, net of allowances
|
|
|
|
|
|
|
|
|
|
|
134,443
|
|
|
126,178
|
|
7
|
Impaired loans, net of total allowances
|
|
|
|
|
|
|
|
|
|
|
(339)
|
|
|
(289)
|
|
|
|
As a % of average loans and acceptances
|
|
|
|
|
|
|
|
|
|
|
(0.3)
|
%
|
|
(0.2)
|
%
|
|
Deposits(3)
|
|
|
|
|
|
|
|
|
|
|
156,671
|
|
|
142,066
|
|
10
|
Equity attributable to common shareholders
|
|
|
|
|
|
|
|
|
|
|
10,700
|
|
|
9,642
|
|
11
|
Assets under administration and under management
|
|
|
|
|
|
|
|
|
|
|
477,358
|
|
|
397,342
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings coverage
|
|
|
|
|
|
|
|
|
|
|
13.61
|
|
|
7.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory ratios under Basel III
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 (CET1)
|
|
|
|
|
|
|
|
|
|
|
11.2
|
%
|
|
10.1
|
%
|
|
|
Tier 1(5)
|
|
|
|
|
|
|
|
|
|
|
14.9
|
%
|
|
13.5
|
%
|
|
|
Total(5)
|
|
|
|
|
|
|
|
|
|
|
15.1
|
%
|
|
15.3
|
%
|
|
Leverage ratio(4)
|
|
|
|
|
|
|
|
|
|
|
4.0
|
%
|
|
3.7
|
%
|
|
Liquidity coverage ratio (LCR)
|
|
|
|
|
|
|
|
|
|
|
132
|
%
|
|
134
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of employees – Worldwide
|
|
|
|
|
|
|
|
|
|
|
21,635
|
|
|
21,770
|
|
(1)
|
Number of branches in Canada
|
|
|
|
|
|
|
|
|
|
|
429
|
|
|
450
|
|
(5)
|
Number of banking machines in Canada
|
|
|
|
|
|
|
|
|
|
|
931
|
|
|
938
|
|
(1)
|
|
|
(1)
|
For additional information, see the Segment Disclosures section on page
20.
|
(2)
|
See the Financial Reporting Method section on page 2 for additional
information on non-GAAP financial measures.
|
(3)
|
An amount of $2.2 billion classified in Due to clients, dealers and
brokers on the Consolidated Balance Sheet as at October 31, 2016 is now reported in Deposits.
|
(4)
|
The ratios are calculated using the "all-in" methodology.
|
(5)
|
The ratios as at October 31, 2017 include the redemption of the Series 28
preferred shares on November 15, 2017.
|
FINANCIAL ANALYSIS
This press release should be read in conjunction with the 2017 Annual Report (which includes the audited annual
consolidated financial statements and MD&A) available on the Bank's website at nbc.ca . Additional information about the Bank, including the Annual Information
Form, can be obtained from the Bank's website at nbc.ca and
SEDAR's website at sedar.com.
Consolidated Results
On November 1, 2016, the Bank had reclassified certain amounts in the Consolidated Statement of
Income to better reflect the nature of the income reported in the Personal and Commercial segment. Accordingly, for the quarter
ended October 31, 2016, an amount of $9 million reported in
Non-interest income – Credit fees was reclassified to Interest income – Loans ($36
million for the year ended October 31, 2016). This reclassification had no impact on Net
income.
Total Revenues
For the fourth quarter of 2017, the Bank's total revenues amounted to $1,704 million, up
$135 million or 9% from the same quarter of 2016. Its fourth-quarter net interest income was up
year over year, mainly because of growth in the loans and deposits of the Personal and Commercial segment; the net interest
income growth at Wealth Management attributable in part to improved margins; the net interest income growth at Credigy; and the
revenues generated by the ABA Bank subsidiary. These increases were partly offset by a decrease in the net interest income
generated by the Financial Markets segment. Fourth-quarter non-interest income was also up, posting year-over-year growth of 9%
owing to increases in trading revenues and gains on available-for-sale securities, which rose by $51
million and $27 million, respectively. Furthermore, there were year-over-year increases in
mutual fund revenues, trust service revenues, revenues from credit fees, card revenues, revenues from deposit and payment service
charges, and the share in the net income of associates and joint ventures. These increases were somewhat tempered by
year-over-year decreases in fourth-quarter revenues from underwriting and advisory fees, revenues from securities brokerage
commissions, insurance revenues, and the other revenues item, in particular the portion of Credigy revenues included in
non-interest income. Total revenues on a taxable equivalent basis and excluding specified items amounted to $1,760 million in the fourth quarter of 2017, up 8% from $1,632 million in the
fourth quarter of 2016.
For the year ended October 31, 2017, total revenues amounted to $6,609
million compared to $5,840 million in fiscal 2016, a 13% year-over-year increase that was
driven, in part, by 8% growth in net interest income that was essentially attributable to the same reasons provided above for the
quarter. The 2017 non-interest income was up 19% year over year, mainly due to increases in trading revenues, gains on
available-for-sale securities, Wealth Management revenues, revenues from credit fees, card revenues, revenues from deposit and
payment service charges, and insurance revenues. The Bank's share in the net income of associates and joint ventures also
increased year-over-year, partly due to an $18 million amount representing the Bank's share in the
goodwill and intangible asset impairment losses arising from its interest in TMX that had been recorded in fiscal 2016. The
increase in other income is attributable to the $164 million write-off of the equity interest in
associate Maple that had been recorded in fiscal 2016, tempered by a non-taxable gain of $41
million recorded in 2016 (following the revaluation of the previously held equity interest in ABA Bank), and by a decrease
in Credigy revenues included in non-interest income in 2017. However, these increases were tempered by lower revenues from
underwriting and advisory fees and from securities brokerage commissions, while other-than-trading foreign exchange revenues were
unchanged. Total revenues on a taxable equivalent basis and excluding specified items amounted to $6,864
million for year ended October 31, 2017 compared to $6,279 million in fiscal 2016.
Provisions for Credit Losses
For the fourth quarter of 2017, the Bank recorded $70 million in provisions for credit losses
compared to $59 million in the fourth quarter of 2016. This increase stems mainly from higher
credit loss provisions recorded for the U.S. Specialty Finance and International segment and essentially attributable to the
Credigy subsidiary, partly offset by lower credit loss provisions recorded for Commercial Banking loans.
For the year ended October 31, 2017, the Bank recorded $244
million in provisions for credit losses, $240 million less than in fiscal 2016. This
decrease is related mainly to the sectoral provision on non-impaired loans recorded for the oil and gas producer and service
company loan portfolio, which was reversed by $40 million in fiscal 2017 compared to the
$250 million recording of this provision in fiscal 2016, as well as to a decrease in the provisions
for credit losses on Commercial Banking loans. These lower credit loss provisions were partly offset by a $40 million increase in the collective allowance for credit risk on non-impaired loans recorded to reflect
growth in the Bank's overall credit portfolio as well as by higher credit loss provisions recorded for loans in the U.S.
Specialty Finance and International segment that are essentially attributable to the Credigy subsidiary.
As at October 31, 2017, gross impaired loans stood at $380
million, declining $112 million since October 31, 2016, mainly
due to decreases in impaired loans in the personal and commercial loan portfolios. Impaired loans represented 4.3% of the
tangible capital adjusted for allowances as at October 31, 2017, down 2.0 percentage points from
6.3% as at October 31, 2016. As at October 31, 2017, allowances for
credit losses exceeded gross impaired loans by $339 million versus $289
million as at October 31, 2016.
Non-Interest Expenses
For the fourth quarter of 2017, non-interest expenses stood at $976 million, a 16%
year-over-year decrease that was essentially due to a $131 million restructuring charge, consisting
mainly of severance pay, that had been recorded in the fourth quarter of 2016. The fourth quarter of 2016 had also included
intangible asset impairment losses of $44 million reported in Technology expenses and
litigation charges of $25 million reported in Other expenses. In addition, the 2017
fourth-quarter professional fees were down year over year due to servicing fees related to the activities of the Credigy
subsidiary. These decreases were partly offset by increases in compensation and employee benefits (in particular the variable
compensation associated with revenue growth and the cost of pension plans) and in technology investment expenses. Non-interest
expenses excluding specified items stood at $971 million in the fourth quarter of 2017 compared to
$954 million in the fourth quarter of 2016.
For the year ended October 31, 2017, non-interest expenses were down $18
million year over year, the reasons for which are the same as those provided above for the fourth quarter. This decrease
in non-interest expenses was partly offset by an increase in all of the non-interest expenses of the ABA Bank subsidiary, which
have been consolidated into the Bank's results since the third quarter of 2016. Non-interest expenses excluding specified items
stood at $3,838 million for the year ended October 31, 2017, up 5%
from $3,653 million in fiscal 2016.
Income Taxes
For the fourth quarter of 2017, income taxes stood at $133 million compared to $44 million in the fourth quarter of 2016, and the 2017 fourth-quarter effective income tax rate was 20% versus
13% in the same quarter of 2016. This change in the effective income tax rate stems from the tax impact of the restructuring
charge recorded in the fourth quarter of 2016.
For the year ended October 31, 2017, the effective income tax rate stood at 19% compared to 15%
in fiscal 2016. This change in the effective income tax rate stems mainly from the impact of several specified items that were
recorded in fiscal 2016, in particular the sectoral provision on non-impaired loans for the oil and gas producer and service
company loan portfolio, the restructuring charge, the gain realized following the revaluation of the previously held equity
interest in ABA Bank, and the write-off of the equity interest in associate Maple. Also during fiscal 2016, a tax provision
had been recorded to reflect the impact of changes to tax measures.
Results by Segment
The Bank carries out its activities in four business segments. For presentation purposes, other operating
activities and Corporate Treasury activities are grouped in the Other heading. Each reportable segment is distinguished by
services offered, type of clientele and marketing strategy.
Personal and Commercial
|
|
|
|
|
|
|
|
(millions of Canadian dollars)
|
Quarter ended October 31
|
|
Year ended October 31
|
|
2017
|
|
|
2016(1)
|
|
|
% Change
|
|
2017
|
|
|
2016(1)
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
538
|
|
|
502
|
|
|
7
|
|
2,071
|
|
|
1,955
|
|
|
6
|
Non-interest income
|
249
|
|
|
237
|
|
|
5
|
|
990
|
|
|
945
|
|
|
5
|
Total revenues
|
787
|
|
|
739
|
|
|
6
|
|
3,061
|
|
|
2,900
|
|
|
6
|
Non-interest expenses
|
411
|
|
|
423
|
|
|
(3)
|
|
1,646
|
|
|
1,662
|
|
|
(1)
|
Contribution
|
376
|
|
|
316
|
|
|
19
|
|
1,415
|
|
|
1,238
|
|
|
14
|
Provisions for credit losses(2)
|
50
|
|
|
54
|
|
|
(7)
|
|
153
|
|
|
475
|
|
|
(68)
|
Income before income taxes
|
326
|
|
|
262
|
|
|
24
|
|
1,262
|
|
|
763
|
|
|
65
|
Income taxes
|
87
|
|
|
71
|
|
|
23
|
|
337
|
|
|
206
|
|
|
64
|
Net income
|
239
|
|
|
191
|
|
|
25
|
|
925
|
|
|
557
|
|
|
66
|
Net income excluding the impact of the sectoral provision
(2)
|
|
|
|
|
|
|
|
|
896
|
|
|
740
|
|
|
21
|
Net interest margin(3)
|
2.30
|
%
|
|
2.25
|
%
|
|
|
|
2.26
|
%
|
|
2.24
|
%
|
|
|
Average interest-bearing assets
|
92,637
|
|
|
88,842
|
|
|
4
|
|
91,461
|
|
|
87,153
|
|
|
5
|
Average assets
|
97,665
|
|
|
93,638
|
|
|
4
|
|
96,261
|
|
|
92,234
|
|
|
4
|
Average loans and acceptances
|
97,343
|
|
|
93,292
|
|
|
4
|
|
95,888
|
|
|
91,882
|
|
|
4
|
Net impaired loans
|
199
|
|
|
275
|
|
|
(28)
|
|
199
|
|
|
275
|
|
|
(28)
|
Net impaired loans as a % of average loans and acceptances
|
0.2
|
%
|
|
0.3
|
%
|
|
|
|
0.2
|
%
|
|
0.3
|
%
|
|
|
Average deposits
|
56,606
|
|
|
50,559
|
|
|
12
|
|
54,302
|
|
|
48,436
|
|
|
12
|
Efficiency ratio
|
52.2
|
%
|
|
57.2
|
%
|
|
|
|
53.8
|
%
|
|
57.3
|
%
|
|
|
(1)
|
For the quarter and year ended October 31, 2016, certain amounts have
been revised from those previously reported, including a reclassification between Non-interest income and Net
interest income to better reflect the nature of the revenues.
|
(2)
|
During the year ended October 31, 2017, the Bank recorded a reversal
of $40 million ($29 million net of income taxes) of the sectoral provision on non-impaired loans taken for the oil and
gas producer and service company loan portfolio. For the year ended October 31, 2016, the provisions for credit
losses had included the $250 million ($183 million net of income taxes) recording of this sectoral provision on
non-impaired loans for the oil and gas producer and service company loan portfolio. Given the materiality of this
sectoral provision, recorded in accordance with GAAP, net income excluding the impact of the sectoral provision has been
presented to provide a better assessment of the segment's results.
|
(3)
|
Net interest margin is calculated by dividing net interest income by
average interest-bearing assets.
|
In the Personal and Commercial segment, net income totalled $239 million in the fourth quarter
of 2017 compared to $191 million in the fourth quarter of 2016. The segment's fourth-quarter total
revenues increased by $48 million year over year owing to growth in net interest income, which rose
$36 million, and to a $12 million increase in non-interest income.
The increase in net interest income came from growth in personal and commercial loan and deposit volumes and from a higher net
interest margin (2.30% in the fourth quarter of 2017 versus 2.25% in the fourth quarter of 2016) that was driven mainly by
deposit margins.
Personal Banking's fourth-quarter total revenues rose $22 million year over year. Net interest
income was up, owing to growth in loan and deposit volumes and wider deposit margins, and non-interest income was also up, owing
mainly to increases in revenues from deposit and payment service charges, card revenues, and internal commission revenues
generated by the distribution of Wealth Management products. These increases were tempered somewhat by a decrease in insurance
revenues. Commercial Banking's total revenues rose $26 million year over year, mainly due to an
increase in net interest income as a result of growth in loan and deposit volumes and improved margins on loans. Also
contributing to Commercial Banking's revenue growth were revenues from credit fees, revenues from derivative financial
instruments, and foreign exchange revenues.
For the fourth quarter of 2017, the segment's non-interest expenses were down $12 million year
over year, mainly due to the compensation and employee benefits related to the transformation plan adopted by the Bank to improve
operational efficiency and due to operations support charges. The fourth-quarter efficiency ratio was 52.2%, improving 5.0
percentage points from fourth quarter 2016. The segment recorded $50 million in provisions for
credit losses in the fourth quarter of 2017, $4 million less than in the same quarter last year as
a result of lower credit loss provisions on commercial loans.
For the year ended October 31, 2017, the Personal and Commercial segment posted net income of
$925 million, up from $557 million in fiscal 2016. This change is
mainly related to the sectoral provision on non-impaired loans for the oil and gas producer and service company loan portfolio,
which was reversed by $29 million, net of income taxes, in the second quarter of 2017 compared to
the $183 million, net of income taxes, recording of this provision in the second quarter of 2016.
Net income excluding the impact of the sectoral provision was $896 million, for a $156 million or 21% year-over-year increase, and the segment's fiscal 2017 total revenues grew 6% year over
year. At Personal Banking, the 2017 total revenues grew year over year, mainly due to the same reasons provided for the quarter,
except for insurance revenues, which were up in large part due to the gain realized in the first quarter of 2017 following a
change to the distribution model for property and casualty insurance. At Commercial Banking, the 2017 total revenues were also up
year over year owing to growth in loan and deposit volumes, a higher net interest margin, and increases in revenues from credit
fees and foreign exchange activities. These increases were partly offset by a decrease in revenues from bankers' acceptances
related essentially to business activities with companies in the oil and gas sector. For the year ended October 31, 2017, the segment's non-interest expenses were down $16 million year
over year, mainly due to decreases in compensation and employee benefits (related to the transformation plan adopted by the Bank
to improve operational efficiency), communications expenses and operations support charges. These decreases were partly offset by
an increase in technology expenses related to business development. The segment's 2017 contribution increased $177 million or 14% year over year. Its provisions for credit losses were $322
million less than those recorded in fiscal 2016, essentially related to the impact of the sectoral provision, which was
reversed by $40 million in the second quarter of 2017 compared to the $250
million recording of this provision in the second quarter of 2016. Furthermore, there was a year-over-year decrease in the
credit loss provisions recorded for commercial loans. At 53.8% for the year ended October 31, 2017, the efficiency
ratio improved by 3.5 percentage points versus fiscal 2016.
Wealth Management
|
|
|
|
|
|
|
|
(millions of Canadian dollars)
|
Quarter ended October 31
|
|
Year ended October 31
|
|
2017
|
|
|
2016(1)
|
|
|
% Change
|
|
2017
|
|
|
2016(1)
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
117
|
|
|
98
|
|
|
19
|
|
431
|
|
|
372
|
|
|
16
|
Fee-based revenues
|
233
|
|
|
213
|
|
|
9
|
|
906
|
|
|
803
|
|
|
13
|
Transaction-based and other revenues
|
61
|
|
|
60
|
|
|
2
|
|
267
|
|
|
266
|
|
|
−
|
Total revenues
|
411
|
|
|
371
|
|
|
11
|
|
1,604
|
|
|
1,441
|
|
|
11
|
Non-interest expenses
|
260
|
|
|
255
|
|
|
2
|
|
1,036
|
|
|
999
|
|
|
4
|
Contribution
|
151
|
|
|
116
|
|
|
30
|
|
568
|
|
|
442
|
|
|
29
|
Provisions for credit losses
|
1
|
|
|
1
|
|
|
−
|
|
3
|
|
|
5
|
|
|
(40)
|
Income before income taxes
|
150
|
|
|
115
|
|
|
30
|
|
565
|
|
|
437
|
|
|
29
|
Income taxes
|
40
|
|
|
30
|
|
|
33
|
|
149
|
|
|
116
|
|
|
28
|
Net income
|
110
|
|
|
85
|
|
|
29
|
|
416
|
|
|
321
|
|
|
30
|
Specified items after income taxes(2)
|
6
|
|
|
7
|
|
|
|
|
23
|
|
|
26
|
|
|
|
Net income excluding specified items (2)
|
116
|
|
|
92
|
|
|
26
|
|
439
|
|
|
347
|
|
|
27
|
Average assets
|
12,115
|
|
|
11,053
|
|
|
10
|
|
11,652
|
|
|
11,006
|
|
|
6
|
Average loans and acceptances
|
10,353
|
|
|
9,448
|
|
|
10
|
|
9,924
|
|
|
9,379
|
|
|
6
|
Net impaired loans
|
4
|
|
|
5
|
|
|
|
|
4
|
|
|
5
|
|
|
|
Average deposits
|
30,087
|
|
|
30,096
|
|
|
−
|
|
31,192
|
|
|
28,344
|
|
|
10
|
Assets under administration and under management
|
477,358
|
|
|
397,342
|
|
|
20
|
|
477,358
|
|
|
397,342
|
|
|
20
|
Efficiency ratio excluding specified items(2)
|
61.7
|
%
|
|
66.7
|
%
|
|
|
|
63.1
|
%
|
|
67.3
|
%
|
|
|
(1)
|
For the quarter and year ended October 31, 2016, certain amounts have
been revised from those previously reported.
|
(2)
|
See the Financial Reporting Method section on page 2 for additional
information on non-GAAP financial measures.
|
In the Wealth Management segment, net income totalled $110 million in the fourth quarter of
2017, a 29% increase from $85 million in the same quarter of 2016. At $116
million in the fourth quarter of 2017, the segment's net income excluding specified items (with the specified items
including the acquisition-related items of recent years) rose 26% from $92 million in the same
quarter of 2016. The segment's fourth-quarter total revenues amounted to $411 million compared to
$371 million in the fourth quarter of 2016, an 11% year-over-year increase that was mainly driven
by growth in net interest income, attributable to improved margins, and by fee-based revenues given net inflows across all
solutions and a steady rise in stock market performance during the fourth quarter of 2017.
The segment's fourth-quarter non-interest expenses stood at $260 million, a 2% year-over-year
increase attributable to the higher variable compensation associated with the revenue growth arising from greater business
volume. The efficiency ratio excluding specified items was 61.7% for the fourth quarter of 2017, an improvement of 5.0 percentage
points from the same quarter of 2016.
For the year ended October 31, 2017, the Wealth Management segment's net income totalled $416 million, up 30%
from $321 million in fiscal 2016, while its net income excluding specified items totalled $439 million, a
year-over-year increase of $92 million or 27%. The segment's total revenues amounted to $1,604 million in fiscal 2017 versus $1,441 million in fiscal 2016, a
year-over-year increase driven by net interest income growth as a result of deposit growth and improved margins as well as by an
increase in fee-based revenues due to the same reasons provided for the quarter. The segment's 2017 non-interest expenses stood
at $1,036 million compared to $999 million in 2016, a year-over-year increase due to the
higher variable compensation and external management fees associated with higher revenues and produced by greater business
volume, operations support charges, and the costs incurred to develop affluent client services in Western Canada. As for the efficiency ratio, it improved to 63.1% for fiscal 2017 compared to 67.3% for
fiscal 2016.
Assets under administration and under management increased by $80.0 billion or 20% from a year
ago due to net inflows in various solutions and to a steady rise in stock market performance.
Financial Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(taxable equivalent basis)(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars)
|
Quarter ended October 31
|
|
Year ended October 31
|
|
2017
|
|
|
2016(2)
|
|
|
% Change
|
|
2017
|
|
|
2016(2)
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading activity revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
131
|
|
|
118
|
|
|
11
|
|
496
|
|
|
438
|
|
|
13
|
|
Fixed-income
|
76
|
|
|
80
|
|
|
(5)
|
|
304
|
|
|
263
|
|
|
16
|
|
Commodities and foreign exchange
|
20
|
|
|
24
|
|
|
(17)
|
|
103
|
|
|
116
|
|
|
(11)
|
|
227
|
|
|
222
|
|
|
2
|
|
903
|
|
|
817
|
|
|
11
|
Financial market fees
|
65
|
|
|
74
|
|
|
(12)
|
|
305
|
|
|
288
|
|
|
6
|
Gains (losses) on available-for-sale securities, net
|
21
|
|
|
5
|
|
|
|
|
60
|
|
|
16
|
|
|
|
Banking services
|
92
|
|
|
91
|
|
|
1
|
|
338
|
|
|
322
|
|
|
5
|
Other
|
10
|
|
|
9
|
|
|
11
|
|
24
|
|
|
(130)
|
|
|
|
Total revenues on a taxable equivalent basis
|
415
|
|
|
401
|
|
|
3
|
|
1,630
|
|
|
1,313
|
|
|
24
|
Non-interest expenses
|
161
|
|
|
160
|
|
|
1
|
|
658
|
|
|
615
|
|
|
7
|
Contribution on a taxable equivalent basis
|
254
|
|
|
241
|
|
|
5
|
|
972
|
|
|
698
|
|
|
39
|
Provisions for credit losses
|
−
|
|
|
−
|
|
|
|
|
−
|
|
|
−
|
|
|
|
Income before income taxes on a taxable equivalent basis
|
254
|
|
|
241
|
|
|
5
|
|
972
|
|
|
698
|
|
|
39
|
Income taxes on a taxable equivalent basis
|
68
|
|
|
65
|
|
|
5
|
|
260
|
|
|
213
|
|
|
22
|
Net income
|
186
|
|
|
176
|
|
|
6
|
|
712
|
|
|
485
|
|
|
47
|
Specified items after income taxes(3)
|
−
|
|
|
−
|
|
|
|
|
−
|
|
|
145
|
|
|
|
Net income excluding specified items (3)
|
186
|
|
|
176
|
|
|
6
|
|
712
|
|
|
630
|
|
|
13
|
Average assets
|
93,044
|
|
|
94,008
|
|
|
(1)
|
|
95,004
|
|
|
87,504
|
|
|
9
|
Average loans and acceptances (Corporate Banking only)
|
13,931
|
|
|
13,364
|
|
|
4
|
|
13,118
|
|
|
12,552
|
|
|
5
|
Average deposits
|
21,660
|
|
|
16,668
|
|
|
30
|
|
20,926
|
|
|
15,201
|
|
|
38
|
Efficiency ratio on a taxable equivalent basis and
excluding specified items(3)
|
38.8
|
%
|
|
39.9
|
%
|
|
|
|
40.4
|
%
|
|
41.6
|
%
|
|
|
(1)
|
For additional information, see the Segment Disclosures section on page
20.
|
(2)
|
For the quarter and year ended October 31, 2016, certain amounts have
been revised from those previously reported, notably amounts related to the Credigy subsidiary, which are now reported in
the USSF&I segment.
|
(3)
|
See the Financial Reporting Method section on page 2 for additional
information on non-GAAP financial measures.
|
In the Financial Markets segment, net income totalled $186 million in the fourth quarter of 2017
compared to $176 million in the same quarter of 2016, and fourth-quarter total revenues on a
taxable equivalent basis amounted to $415 million compared to $401
million in the fourth quarter of 2016. Fourth-quarter trading activity revenues were up 2% year over year, mainly due to
an increase in revenues from equity securities, which rose 11%, whereas revenues from fixed-income securities were down 5% and
commodity and foreign exchange revenues were down 17%. As for financial market fees, they were down 12% year over year, while
revenues from banking services rose 1%. Both gains on available-for-sale securities and other revenues posted higher results in
the fourth quarter of 2017 compared to the fourth quarter of 2016.
At $161 million, the segment's fourth-quarter non-interest expenses remained stable compared to
the fourth quarter of 2016. At 38.8%, the fourth-quarter efficiency ratio on a taxable equivalent basis and excluding specified
items improved by 1.1 percentage points compared to fourth quarter 2016. This segment's provisions for credit losses were nil in
the fourth quarters of both 2017 and 2016.
For the year ended October 31, 2017, the segment's net income totalled $712 million, up $227 million from fiscal 2016. Its total revenues on a taxable
equivalent basis amounted to $1,630 million compared to $1,313
million in fiscal 2016, a $317 million year-over-year increase driven by all revenue
categories, in particular the Other revenue category, which in 2016 had included the $164
million write-off of the Bank's equity interest in associate Maple. In addition, given favourable market conditions,
trading activity revenues were up 11%, driven mainly by year-over-year increases in revenues from equity securities and from
fixed-income securities, which rose 13% and 16%, respectively. As for revenues from financial market fees and revenues from
banking services, they increased by 6% and 5%, respectively. Furthermore, the 2017 gains on available-for-sale securities were
higher than those recorded in 2016.
The 2017 non-interest expenses were up 7% year over year, mainly due to an increase in the variable compensation associated
with revenue growth and to higher operations support charges. At 40.4%, the 2017 efficiency ratio on a taxable equivalent basis
and excluding specified items improved by 1.2 percentage points from 2016. The segment did not record any provisions for
credit losses for the years ended October 31, 2017 and 2016.
Excluding the write-off of the Bank's equity interest in associate Maple recorded in 2016, the segment's 2017 net income
excluding specified items rose 13% when compared to fiscal 2016.
U.S. Specialty Finance and International
|
|
|
|
|
|
|
|
(millions of Canadian dollars)
|
Quarter ended October 31
|
|
Year ended October 31
|
|
2017
|
|
|
2016(1)
|
|
|
% Change
|
|
2017
|
|
|
2016(1)
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
99
|
|
|
29
|
|
|
241
|
|
262
|
|
|
71
|
|
|
269
|
Non-interest income
|
55
|
|
|
73
|
|
|
(25)
|
|
279
|
|
|
340
|
|
|
(18)
|
Total revenues
|
154
|
|
|
102
|
|
|
51
|
|
541
|
|
|
411
|
|
|
32
|
|
Credigy
|
111
|
|
|
80
|
|
|
39
|
|
409
|
|
|
324
|
|
|
26
|
|
ABA Bank and International
|
43
|
|
|
22
|
|
|
95
|
|
132
|
|
|
87
|
|
|
52
|
Non-interest expenses
|
56
|
|
|
66
|
|
|
(15)
|
|
225
|
|
|
207
|
|
|
9
|
|
Credigy
|
38
|
|
|
53
|
|
|
(28)
|
|
163
|
|
|
182
|
|
|
(10)
|
|
ABA Bank and International
|
18
|
|
|
13
|
|
|
38
|
|
62
|
|
|
25
|
|
|
148
|
Contribution
|
98
|
|
|
36
|
|
|
172
|
|
316
|
|
|
204
|
|
|
55
|
Provisions for credit losses
|
19
|
|
|
4
|
|
|
375
|
|
48
|
|
|
4
|
|
|
|
Income before income taxes
|
79
|
|
|
32
|
|
|
147
|
|
268
|
|
|
200
|
|
|
34
|
Income taxes
|
24
|
|
|
11
|
|
|
118
|
|
84
|
|
|
53
|
|
|
58
|
Net income
|
55
|
|
|
21
|
|
|
162
|
|
184
|
|
|
147
|
|
|
25
|
Non-controlling interests
|
6
|
|
|
4
|
|
|
50
|
|
29
|
|
|
20
|
|
|
45
|
Net income attributable to the Bank's shareholders
|
49
|
|
|
17
|
|
|
188
|
|
155
|
|
|
127
|
|
|
22
|
Average assets
|
8,658
|
|
|
6,312
|
|
|
37
|
|
7,519
|
|
|
5,319
|
|
|
41
|
Average loans and receivables
|
7,565
|
|
|
4,363
|
|
|
73
|
|
6,062
|
|
|
3,499
|
|
|
73
|
Average other revenue-bearing assets
|
113
|
|
|
927
|
|
|
(88)
|
|
449
|
|
|
1,162
|
|
|
(61)
|
Average deposits
|
1,418
|
|
|
1,095
|
|
|
29
|
|
1,265
|
|
|
487
|
|
|
|
Efficiency ratio
|
36.4
|
%
|
|
64.7
|
%
|
|
|
|
41.6
|
%
|
|
50.4
|
%
|
|
|
(1)
|
The amounts presented for the quarter and year ended October 31, 2016
are consistent with the segment disclosure presentation adopted by the Bank for the fiscal year beginning November 1,
2016.
|
In the U.S. Specialty Finance and International segment, net income totalled $55 million in the
fourth quarter of 2017 compared to $21 million in the same quarter of 2016. The segment's
fourth-quarter total revenues amounted to $154 million compared to $102 million in the fourth quarter of 2016, a 51%
year-over-year increase driven by higher net interest income, both at the Credigy subsidiary, owing to growth in loan volume, and
at the ABA Bank subsidiary, owing to growth in loan and deposit volumes. As for fourth-quarter non-interest income, it was down
$18 million year over year, mainly because of a decrease in Credigy revenues included in
non-interest income in fourth quarter 2017 than in fourth quarter 2016.
The segment's 2017 fourth-quarter non-interest expenses stood at $56 million, a $10 million year-over-year decrease
that was mainly due to a decrease in the servicing fees related to the Credigy subsidiary. The segment recorded $19 million in provisions for credit losses in the fourth quarter of 2017, $15
million more than in the same quarter last year and essentially due to the provisions taken for the Credigy
subsidiary.
For the year ended October 31, 2017, the segment generated net income of $184 million compared to $147 million in fiscal 2016. Its 2017 total revenues
amounted to $541 million compared to $411 million in 2016, growth that was driven in part by a 26% increase in
Credigy's revenues, owing to growth in loan volume, and in part by the revenues of the ABA Bank subsidiary, which have been
consolidated into the Bank's results since the third quarter of 2016 and that are experiencing sustained growth owing to higher
loan and deposit volumes. These revenue increases more than offset the $41 million non-taxable gain
on the revaluation of the previously held equity interest in ABA Bank that had been recorded in the third quarter of 2016.
The segment's 2017 non-interest expenses stood at $225 million, an $18
million year-over-year increase attributable essentially to all of ABA Bank's non-interest expenses, which have been
consolidated into the Bank's results since the third quarter of 2016. As for the non-interest expenses of the Credigy subsidiary,
they were down 10% year over year and primarily due to lower servicing fees. For fiscal 2017, the segment's provisions for credit
losses stood at $48 million and were mainly due to the provisions recorded for Credigy as a result of business growth.
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(taxable equivalent basis)(1)
|
|
|
|
|
|
|
|
(millions of Canadian dollars)
|
Quarter ended October 31
|
|
Year ended October 31
|
|
2017
|
|
2016(2)
|
|
2017
|
|
2016(2)
|
|
|
|
|
|
|
|
|
Operating results
|
|
|
|
|
|
|
|
Net interest income
|
(40)
|
|
(23)
|
|
(105)
|
|
(113)
|
Non-interest income
|
31
|
|
34
|
|
122
|
|
123
|
Total revenues on a taxable equivalent basis
|
(9)
|
|
11
|
|
17
|
|
10
|
Non-interest expenses
|
88
|
|
255
|
|
292
|
|
392
|
Contribution on a taxable equivalent basis
|
(97)
|
|
(244)
|
|
(275)
|
|
(382)
|
Provisions for credit losses(3)
|
−
|
|
−
|
|
40
|
|
−
|
Income before income taxes on a taxable equivalent basis
|
(97)
|
|
(244)
|
|
(315)
|
|
(382)
|
Income taxes (recovery) on a taxable equivalent basis
|
(32)
|
|
(78)
|
|
(102)
|
|
(128)
|
Net loss
|
(65)
|
|
(166)
|
|
(213)
|
|
(254)
|
Non-controlling interests
|
13
|
|
14
|
|
55
|
|
55
|
Net loss attributable to the Bank's shareholders
|
(78)
|
|
(180)
|
|
(268)
|
|
(309)
|
Specified items after income taxes(4)
|
−
|
|
149
|
|
2
|
|
186
|
Net loss excluding specified items (4)
|
(65)
|
|
(17)
|
|
(211)
|
|
(68)
|
Average assets
|
39,820
|
|
38,273
|
|
37,915
|
|
39,850
|
(1)
|
For additional information, see the Segment Disclosures section on page
20.
|
(2)
|
For the quarter and year ended October 31, 2016, certain amounts have
been revised from those previously reported, notably amounts related to the ABA Bank subsidiary and the other
international investments that are now reported in the USSF&I segment.
|
(3)
|
For the year ended October 31, 2017, the $40 million in provisions for
credit losses reflects an increase in the collective allowance for credit risk on non-impaired loans.
|
(4)
|
See the Financial Reporting Method section on page 2 for additional
information on non-GAAP financial measures.
|
For the Other heading of segment results, there was a net loss of $65 million in the
fourth quarter of 2017 compared to a net loss of $166 million in the same quarter of 2016. This
change stems mainly from the specified items that had been recorded in the fourth quarter of 2016. The 2016 specified items, net
of income taxes, had consisted of a $96 million restructuring charge, $32
million in intangible asset impairment losses, and $18 million in litigation charges.
Excluding the specified items for the fourth quarter of 2016, non-interest expenses were up due to an increase in compensation
and employee benefits, in particular the cost of pension plans and variable compensation, and to an increase in technology
expenses resulting from the Bank's transformation plan. As for the net loss excluding specified items, it stood at $65 million in the fourth quarter of 2017 compared to $17 million in the same
quarter of 2016.
For the year ended October 31, 2017, there was a net loss of $213
million compared to a net loss of $254 million in fiscal 2016, a change that can be
attributed to the same reasons provided for the quarter. The change can also be explained by an increase of $40 million ($29 million net of income taxes) in the collective allowance on
non-impaired loans for credit risk, which was recorded to reflect growth in the Bank's overall credit portfolio during 2017.
Furthermore, the net loss for the year ended October 31, 2016 had included the Bank's share in the
charges related to its equity interest in TMX, particularly goodwill and intangible asset impairment losses of $13 million, net of income taxes, as well as an $18 million tax provision
reflecting the impact of changes to tax measures. As for the net loss excluding specified items, it was $211 million for the year ended October 31, 2017 versus $68 million in fiscal 2016.
Consolidated Balance Sheet
The Bank changed the classification of certain amounts reported in the Deposits item and the Due to clients, dealers
and brokers item of the Consolidated Balance Sheet to better reflect the nature of the balances presented. As a result, as at
October 31, 2016, an amount of $2.2 billion was reclassified from the
Due to clients, dealers and brokers item to the Deposits item.
Consolidated Balance Sheet Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars)
|
As at October 31, 2017
|
|
As at October 31, 2016(1)
|
|
% Change
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and deposits with financial institutions
|
8,802
|
|
8,183
|
|
8
|
Securities
|
65,343
|
|
64,541
|
|
1
|
Securities purchased under reverse repurchase agreements
|
|
|
|
|
|
|
and securities borrowed
|
20,789
|
|
13,948
|
|
49
|
Loans and acceptances (net of allowances for credit losses)
|
134,443
|
|
126,178
|
|
7
|
Other
|
16,450
|
|
19,356
|
|
(15)
|
|
|
245,827
|
|
232,206
|
|
6
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
Deposits
|
156,671
|
|
142,066
|
|
10
|
Other
|
75,589
|
|
77,026
|
|
(2)
|
Subordinated debt
|
9
|
|
1,012
|
|
(99)
|
Equity attributable to the Bank's shareholders
|
12,750
|
|
11,292
|
|
13
|
Non-controlling interests
|
808
|
|
810
|
|
−
|
|
|
245,827
|
|
232,206
|
|
6
|
(1)
|
On November 1, 2016, the Bank changed the presentation of certain items on
the Consolidated Balance Sheet, and certain figures as at October 31, 2016 were adjusted to reflect those
changes.
|
Assets
As at October 31, 2017, the Bank had total assets of $245.8
billion, a 6% or $13.6 billion increase from $232.2 billion as
at October 31, 2016. Cash and deposits with financial institutions, totalling $8.8 billion as at October 31, 2017, rose $0.6
billion, mainly due to deposits with financial institutions, while securities rose $0.8
billion since October 31, 2016. Available-for-sale securities were down $6.0 billion, essentially due to a decrease in securities issued or guaranteed by the Canadian federal,
provincial and municipal governments. This decrease was partly offset by a $5.3 billion increase in
held-to-maturity securities and a $1.5 billion increase in securities at fair value through profit
or loss, mainly due to securities issued or guaranteed by the Canadian government and equity securities. Securities purchased
under reverse repurchase agreements and securities borrowed rose $6.9 billion resulting mainly
from the activities of the Financial Markets segment.
As at October 31, 2017, loans and acceptances, net of allowances for credit losses, increased by
$8.2 billion since October 31, 2016 owing to sustained growth in
mortgage lending, to growth in the lending activities of the Credigy and ABA Bank subsidiaries, and to the performance of
Commercial Banking operations. The following table provides a breakdown of the main loan and acceptance portfolios.
(millions of Canadian dollars)
|
|
As at October 31, 2017
|
|
As at October 31, 2016
|
Loans and acceptances
|
|
|
|
|
Consumer
|
|
34,716
|
|
31,787
|
Residential mortgage
|
|
50,518
|
|
48,868
|
Credit card receivables
|
|
2,247
|
|
2,177
|
Business and government
|
|
47,681
|
|
44,127
|
|
|
135,162
|
|
126,959
|
Consumer loans increased by 9% since October 31, 2016, mainly due to growth at the Credigy and
ABA Bank subsidiaries and to Personal Banking operations. At $50.5 billion, residential
mortgage loans rose $1.6 billion since October 31, 2016, with this growth being
attributable to sustained demand in mortgage lending. Loans and acceptances to business and government rose $3.6 billion since October 31, 2016 due to business growth at Credigy and at
Commercial Banking.
Liabilities
As at October 31, 2017, the Bank had total liabilities of $232.3
billion compared to $220.1 billion as at October 31, 2016.
(millions of Canadian dollars)
|
|
As at October 31, 2017
|
|
As at October 31, 2016(1)
|
Balance sheet
|
|
|
|
|
Deposits
|
|
53,719
|
|
52,521
|
Off-balance-sheet
|
|
|
|
|
Brokerage
|
|
124,212
|
|
117,298
|
Mutual funds
|
|
32,192
|
|
28,706
|
Other
|
|
408
|
|
463
|
|
|
156,812
|
|
146,467
|
Total personal savings
|
|
210,531
|
|
198,988
|
(1)
|
Certain amounts have been revised from those previously
reported.
|
The Bank's total deposit-liability was $156.7 billion at year-end 2017 versus $142.1 billion at year-end 2016, rising $14.6 billion or 10%. At $53.7 billion as at October 31, 2017, personal deposits increased by $1.2 billion since October 31, 2016 essentially as a result of the Bank's initiatives to raise
this type of deposit. As at October 31, 2017, total personal savings amounted to $210.5 billion, rising 6% from $199.0 billion since October 31, 2016. Overall, off-balance-sheet personal savings stood at $156.8
billion, rising $10.3 billion or 7% since year-end 2016 and driven by excellent net inflows
to mutual funds and by a stock market recovery.
At $97.6 billion, business and government deposits rose $13.7
billion since October 31, 2016. This increase came mainly from growth in banking and
governmental activities and in term deposits. At $75.6 billion, other liabilities decreased
$1.4 billion since October 31, 2016 due to a $0.8 billion decrease in obligations related to securities sold under repurchase agreements and securities
loaned and a $1.1 billion decrease in derivative financial instruments, partly offset by a
$1.2 billion increase in obligations related to securities sold short. Subordinated debt decreased
by $1.0 billion since October 31, 2016 as the result of an early
redemption, in April 2017, of medium-term notes maturing on April 11,
2022.
Equity
As at October 31, 2017, the equity attributable to the Bank's shareholders amounted to
$12.8 billion, up $1.5 billion since October
31, 2016. This increase was essentially driven by retained earnings growth, attributable to net income net of dividends,
and by common share issuances under the stock option plan, partly offset by common share repurchases for cancellation and by the
$400 million issuance of Series 38 preferred shares.
As at November 24, 2017, there were 340,190,181 common shares outstanding and 14,526,844 stock
options outstanding. For additional information on share capital, see Note 19 to the audited annual consolidated financial
statements for the year ended October 31, 2017.
Event After the Consolidated Balance Sheet Date
Redemption of Preferred Shares
On November 15, 2017, the Bank redeemed all the issued and outstanding Non-Cumulative
5-Year Rate-Reset Series 28 First Preferred Shares. Pursuant to the share conditions, the redemption price was $25.00 per share plus the periodic dividend declared and unpaid. The Bank redeemed 8,000,000 Series 28
preferred shares for a total amount of $200 million, which will reduce Preferred share
capital.
Income Taxes
In March 2017, the Canada Revenue Agency (CRA) issued a proposed reassessment to the Bank for
the 2011 and 2012 taxation years. In May 2017, the CRA reassessed the Bank for the 2012 taxation
year. The transactions to which the proposed reassessment and the actual reassessment relate are similar to those prospectively
addressed by the synthetic equity arrangement rules introduced in the 2015 Canadian federal budget. The proposed reassessment and
the actual reassessment (including estimated provincial income taxes and interest) total approximately $173 million. The CRA
may issue reassessments to the Bank in respect of similar activities for fiscal years subsequent to 2012. The Bank is confident
that its tax position was appropriate and intends to vigorously defend its position. As a result, no amount has been recognized
in the consolidated financial statements as at October 31, 2017.
Contingent Liabilities
Litigation
In the normal course of business, the Bank and its subsidiaries are involved in various claims relating, among other
matters, to loan portfolios, investment portfolios and supplier agreements, including court proceedings, investigations or claims
of a regulatory nature, class actions or other legal remedies of varied natures. The recent developments in the main legal
proceeding involving the Bank are as follows:
Watson
In 2011, a class action was filed in the Supreme Court of British Columbia against Visa
Corporation Canada (Visa), MasterCard International Incorporated (MasterCard) as well as National Bank and a number of other
financial institutions. The plaintiff is alleging that the credit card networks and financial institutions engaged in a
price-fixing system to increase or maintain the fees paid by merchants on Visa and MasterCard transactions. In so doing, they
would have been in breach of the Competition Act. An unspecified amount of compensatory and punitive damages is being
claimed. During the year ended October 31, 2017, the Bank entered into an agreement-in-principle with the plaintiffs in
order to settle this dispute in the five jurisdictions where the class action was filed. This agreement is subject to the
approval of the Court in each of those jurisdictions.
It is impossible to determine the outcome of the claims instituted or which may be instituted against the Bank and its
subsidiaries. The Bank estimates, based on the information at its disposal, that while the amount of contingent liabilities
pertaining to these claims, taken individually or in the aggregate, could have a material impact on the Bank's consolidated
operating income for a particular period, it would not have a material adverse impact on the Bank's consolidated financial
position.
Capital Management
Regulatory Capital Ratios
As at October 31, 2017, the Bank's CET1, Tier 1 and Total capital ratios were, respectively, 11.2%, 14.9% and
15.1%, i.e., above the regulatory requirements, compared to ratios of, respectively, 10.1%, 13.5% and 15.3% a year earlier. The
increase in the CET1 capital ratio stems essentially from net income net of dividends, common share issuances under the Stock
Option Plan, remeasurements of pension plans and other post-employment benefit plans, and low growth in risk-weighted assets,
partly offset by common share repurchases during the year ended October 31, 2017. The increase in the Tier 1 capital ratio
stems essentially from the same items as well as from the June 13, 2017 issuance of preferred
shares for $400 million, partly offset by a $200 million redemption
of preferred shares on November 15, 2017, which is already excluded from capital ratio calculations
as at October 31, 2017. The decrease in the Total capital ratio is due to the April 11, 2017 redemption of $1.0 billion in medium-term notes maturing on
April 11, 2022. The leverage ratio as at October 31, 2017 was 4.0%
compared to 3.7% as at October 31, 2016.
Regulatory Capital and Ratios Under Basel III
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars)
|
|
As at October 31, 2017
|
|
|
As at October 31, 2016
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
CET1
|
|
7,856
|
|
|
6,865
|
|
|
Tier 1(2)
|
|
10,457
|
|
|
9,265
|
|
|
Total(2)
|
|
10,661
|
|
|
10,506
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets
|
|
|
|
|
|
|
|
CET1 capital
|
|
70,173
|
|
|
68,205
|
|
|
Tier 1 capital
|
|
70,327
|
|
|
68,430
|
|
|
Total capital
|
|
70,451
|
|
|
68,623
|
|
|
|
|
|
|
|
|
|
Total exposure
|
|
262,539
|
|
|
253,097
|
|
|
|
|
|
|
|
|
|
Capital ratios
|
|
|
|
|
|
|
|
CET1
|
|
11.2
|
%
|
|
10.1
|
%
|
|
Tier 1(2)
|
|
14.9
|
%
|
|
13.5
|
%
|
|
Total(2)
|
|
15.1
|
%
|
|
15.3
|
%
|
Leverage ratio
|
|
4.0
|
%
|
|
3.7
|
%
|
(1)
|
Figures are presented on an "all-in" basis.
|
(2)
|
Figures as at October 31, 2017 include the redemption of the Series 28
preferred shares on November 15, 2017.
|
Dividends
On November 30, 2017, the Board of Directors declared regular dividends on the various
series of first preferred shares and a dividend of 60 cents per common share, up 2 cents or 3%, payable on February 1, 2018 to shareholders of record on
December 27, 2017.
CONSOLIDATED BALANCE SHEETS
|
|
|
|
(unaudited) (millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
As at October 31, 2017
|
|
As at October 31, 2016
|
|
|
|
|
|
Assets
|
|
|
|
Cash and deposits with financial institutions
|
8,802
|
|
8,183
|
|
|
|
|
Securities
|
|
|
|
At fair value through profit or loss
|
47,536
|
|
45,964
|
Available-for-sale
|
8,552
|
|
14,608
|
Held-to-maturity
|
9,255
|
|
3,969
|
|
|
65,343
|
|
64,541
|
|
|
|
|
|
Securities purchased under reverse repurchase agreements
|
|
|
|
|
and securities borrowed
|
20,789
|
|
13,948
|
|
|
|
|
|
Loans
|
|
|
|
Residential mortgage
|
50,518
|
|
48,868
|
Personal and credit card
|
36,963
|
|
33,964
|
Business and government
|
41,690
|
|
37,686
|
|
|
129,171
|
|
120,518
|
Customers' liability under acceptances
|
5,991
|
|
6,441
|
Allowances for credit losses
|
(719)
|
|
(781)
|
|
|
134,443
|
|
126,178
|
|
|
|
|
|
Other
|
|
|
|
Derivative financial instruments
|
8,423
|
|
10,416
|
Purchased receivables
|
2,014
|
|
1,858
|
Investments in associates and joint ventures
|
631
|
|
645
|
Premises and equipment
|
558
|
|
1,338
|
Goodwill
|
1,409
|
|
1,412
|
Intangible assets
|
1,239
|
|
1,140
|
Other assets
|
2,176
|
|
2,547
|
|
|
16,450
|
|
19,356
|
|
|
245,827
|
|
232,206
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
Deposits
|
156,671
|
|
142,066
|
|
|
|
|
|
Other
|
|
|
|
Acceptances
|
5,991
|
|
6,441
|
Obligations related to securities sold short
|
15,363
|
|
14,207
|
Obligations related to securities sold under repurchase
agreements
|
|
|
|
|
and securities loaned
|
21,767
|
|
22,636
|
Derivative financial instruments
|
6,612
|
|
7,725
|
Liabilities related to transferred receivables
|
20,098
|
|
20,131
|
Other liabilities
|
5,758
|
|
5,886
|
|
|
75,589
|
|
77,026
|
|
|
|
|
|
Subordinated debt
|
9
|
|
1,012
|
|
|
|
|
|
Equity
|
|
|
|
Equity attributable to the Bank's shareholders
|
|
|
|
Preferred shares
|
2,050
|
|
1,650
|
Common shares
|
2,768
|
|
2,645
|
Contributed surplus
|
58
|
|
73
|
Retained earnings
|
7,706
|
|
6,706
|
Accumulated other comprehensive income
|
168
|
|
218
|
|
|
12,750
|
|
11,292
|
Non-controlling interests
|
808
|
|
810
|
|
|
13,558
|
|
12,102
|
|
|
245,827
|
|
232,206
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
(unaudited) (millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
Quarter ended October 31
|
|
Year ended October 31
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Interest income
|
|
|
|
|
|
|
|
Loans
|
1,246
|
|
1,023
|
|
4,511
|
|
3,872
|
Securities at fair value through profit or loss
|
132
|
|
144
|
|
598
|
|
620
|
Available-for-sale securities
|
47
|
|
86
|
|
227
|
|
330
|
Held-to-maturity securities
|
44
|
|
13
|
|
130
|
|
24
|
Deposits with financial institutions
|
39
|
|
15
|
|
114
|
|
65
|
|
1,508
|
|
1,281
|
|
5,580
|
|
4,911
|
Interest expense
|
|
|
|
|
|
|
|
Deposits
|
502
|
|
395
|
|
1,780
|
|
1,435
|
Liabilities related to transferred receivables
|
107
|
|
100
|
|
403
|
|
404
|
Subordinated debt
|
1
|
|
8
|
|
16
|
|
33
|
Other
|
57
|
|
−
|
|
149
|
|
47
|
|
667
|
|
503
|
|
2,348
|
|
1,919
|
Net interest income
|
841
|
|
778
|
|
3,232
|
|
2,992
|
|
|
|
|
|
|
|
|
Non-interest income
|
|
|
|
|
|
|
|
Underwriting and advisory fees
|
71
|
|
91
|
|
349
|
|
376
|
Securities brokerage commissions
|
50
|
|
57
|
|
216
|
|
235
|
Mutual fund revenues
|
105
|
|
98
|
|
412
|
|
364
|
Trust service revenues
|
136
|
|
117
|
|
518
|
|
453
|
Credit fees
|
95
|
|
87
|
|
361
|
|
346
|
Card revenues
|
33
|
|
30
|
|
132
|
|
119
|
Deposit and payment service charges
|
76
|
|
68
|
|
279
|
|
258
|
Trading revenues (losses)
|
134
|
|
83
|
|
374
|
|
150
|
Gains (losses) on available-for-sale securities, net
|
39
|
|
12
|
|
140
|
|
70
|
Insurance revenues, net
|
25
|
|
29
|
|
117
|
|
114
|
Foreign exchange revenues, other than trading
|
19
|
|
19
|
|
81
|
|
81
|
Share in the net income of associates and joint ventures
|
11
|
|
2
|
|
35
|
|
15
|
Other
|
69
|
|
98
|
|
363
|
|
267
|
|
863
|
|
791
|
|
3,377
|
|
2,848
|
Total revenues
|
1,704
|
|
1,569
|
|
6,609
|
|
5,840
|
Provisions for credit losses
|
70
|
|
59
|
|
244
|
|
484
|
|
1,634
|
|
1,510
|
|
6,365
|
|
5,356
|
|
|
|
|
|
|
|
|
Non-interest expenses
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
601
|
|
556
|
|
2,358
|
|
2,161
|
Occupancy
|
59
|
|
59
|
|
236
|
|
233
|
Technology
|
148
|
|
182
|
|
568
|
|
587
|
Communications
|
14
|
|
16
|
|
61
|
|
67
|
Professional fees
|
64
|
|
83
|
|
254
|
|
276
|
Restructuring charge
|
−
|
|
131
|
|
−
|
|
131
|
Other
|
90
|
|
132
|
|
380
|
|
420
|
|
976
|
|
1,159
|
|
3,857
|
|
3,875
|
Income before income taxes
|
658
|
|
351
|
|
2,508
|
|
1,481
|
Income taxes
|
133
|
|
44
|
|
484
|
|
225
|
Net income
|
525
|
|
307
|
|
2,024
|
|
1,256
|
|
|
|
|
|
|
|
|
Net income attributable to
|
|
|
|
|
|
|
|
Preferred shareholders
|
27
|
|
23
|
|
85
|
|
64
|
Common shareholders
|
479
|
|
266
|
|
1,855
|
|
1,117
|
Bank shareholders
|
506
|
|
289
|
|
1,940
|
|
1,181
|
Non-controlling interests
|
19
|
|
18
|
|
84
|
|
75
|
|
525
|
|
307
|
|
2,024
|
|
1,256
|
|
|
|
|
|
|
|
|
Earnings per share (dollars)
|
|
|
|
|
|
|
|
|
Basic
|
1.40
|
|
0.79
|
|
5.44
|
|
3.31
|
|
Diluted
|
1.39
|
|
0.78
|
|
5.38
|
|
3.29
|
Dividends per common share (dollars)
|
0.58
|
|
0.55
|
|
2.28
|
|
2.18
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
(unaudited) (millions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended October 31
|
|
Year ended October 31
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
525
|
|
307
|
|
2,024
|
|
1,256
|
Other comprehensive income, net of income taxes
|
|
|
|
|
|
|
|
|
Items that may be subsequently reclassified to net income
|
|
|
|
|
|
|
|
|
|
Net foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
Net unrealized foreign currency translation gains (losses) on investments
in foreign operations
|
61
|
|
38
|
|
(64)
|
|
62
|
|
|
|
Net foreign currency translation (gains) losses on investments in foreign
operations
|
|
|
|
|
|
|
|
|
|
|
|
reclassified to net income
|
−
|
|
−
|
|
−
|
|
(12)
|
|
|
|
Impact of hedging net foreign currency translation gains
(losses)
|
(18)
|
|
(17)
|
|
25
|
|
(33)
|
|
|
|
Impact of hedging net foreign currency translation (gains) losses
reclassified to net income
|
−
|
|
−
|
|
−
|
|
5
|
|
|
|
|
|
43
|
|
21
|
|
(39)
|
|
22
|
|
|
Net change in available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) on available-for-sale securities
|
37
|
|
23
|
|
119
|
|
113
|
|
|
|
Net (gains) losses on available-for-sale securities reclassified to net
income
|
(35)
|
|
(13)
|
|
(131)
|
|
(74)
|
|
|
|
|
|
2
|
|
10
|
|
(12)
|
|
39
|
|
|
Net change in cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on derivative financial instruments designated as cash
flow hedges
|
20
|
|
(23)
|
|
33
|
|
34
|
|
|
|
Net (gains) losses on designated derivative financial instruments
reclassified to net income
|
(8)
|
|
(5)
|
|
(26)
|
|
(18)
|
|
|
|
|
|
12
|
|
(28)
|
|
7
|
|
16
|
|
|
Share in the other comprehensive income of associates and joint
ventures
|
(9)
|
|
−
|
|
(10)
|
|
1
|
|
Items that will not be subsequently reclassified to net
income
|
|
|
|
|
|
|
|
|
|
Remeasurements of pension plans and other post-employment benefit
plans
|
(43)
|
|
(34)
|
|
97
|
|
(257)
|
|
|
Net fair value change attributable to the credit risk on financial
liabilities designated at
|
|
|
|
|
|
|
|
|
|
|
fair value through profit or loss
|
9
|
|
(22)
|
|
(21)
|
|
(66)
|
|
|
|
|
|
(34)
|
|
(56)
|
|
76
|
|
(323)
|
Total other comprehensive income (loss), net of income taxes
|
14
|
|
(53)
|
|
22
|
|
(245)
|
Comprehensive income
|
539
|
|
254
|
|
2,046
|
|
1,011
|
Comprehensive income attributable to
|
|
|
|
|
|
|
|
|
Bank shareholders
|
518
|
|
234
|
|
1,966
|
|
931
|
|
Non-controlling interests
|
21
|
|
20
|
|
80
|
|
80
|
|
|
539
|
|
254
|
|
2,046
|
|
1,011
|
INCOME TAXES – OTHER COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
The following table presents the income tax expense or recovery for each
component of other comprehensive income.
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended October 31
|
|
Year ended October 31
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
|
Net unrealized foreign currency translation gains (losses) on investments
in foreign operations
|
|
(3)
|
|
(3)
|
|
(2)
|
|
(1)
|
|
Net foreign currency translation (gains) losses on investments in foreign
operations
|
|
|
|
|
|
|
|
|
|
|
reclassified to net income
|
|
−
|
|
−
|
|
−
|
|
(2)
|
|
Impact of hedging net foreign currency translation gains
(losses)
|
|
(6)
|
|
(2)
|
|
1
|
|
(9)
|
|
Impact of hedging net foreign currency translation (gains) losses
reclassified to net income
|
|
−
|
|
−
|
|
−
|
|
2
|
|
|
|
|
(9)
|
|
(5)
|
|
(1)
|
|
(10)
|
Net change in available-for-sale securities
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) on available-for-sale securities
|
|
17
|
|
9
|
|
46
|
|
42
|
|
Net (gains) losses on available-for-sale securities reclassified to net
income
|
|
(13)
|
|
(5)
|
|
(48)
|
|
(27)
|
|
|
|
|
4
|
|
4
|
|
(2)
|
|
15
|
Net change in cash flow hedges
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on derivative financial instruments designated as cash
flow hedges
|
|
7
|
|
(7)
|
|
12
|
|
13
|
|
Net (gains) losses on designated derivative financial instruments
reclassified to net income
|
|
(2)
|
|
(3)
|
|
(9)
|
|
(7)
|
|
|
|
|
5
|
|
(10)
|
|
3
|
|
6
|
Share in the other comprehensive income of associates and joint
ventures
|
|
(3)
|
|
−
|
|
(3)
|
|
−
|
Remeasurements of pension plans and other post-employment benefit
plans
|
|
(15)
|
|
(13)
|
|
36
|
|
(94)
|
Net fair value change attributable to the credit risk on financial
liabilities designated at
|
|
|
|
|
|
|
|
|
|
fair value through profit or loss
|
|
3
|
|
(8)
|
|
(8)
|
|
(24)
|
|
|
|
|
(15)
|
|
(32)
|
|
25
|
|
(107)
|
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|
(unaudited) (millions of Canadian dollars)
|
|
|
|
|
|
|
Year ended October 31
|
|
2017
|
|
2016
|
|
|
|
|
|
Preferred shares at beginning
|
1,650
|
|
1,023
|
Issuances of Series 34, 36 and 38 preferred shares
|
400
|
|
800
|
Redemption of Series 20 preferred shares for cancellation
|
−
|
|
(173)
|
Preferred shares at end
|
2,050
|
|
1,650
|
|
|
|
|
|
Common shares at beginning
|
2,645
|
|
2,614
|
Issuances of common shares
|
|
|
|
|
Stock Option Plan
|
179
|
|
43
|
Repurchases of common shares for cancellation
|
(16)
|
|
−
|
Impact of shares purchased or sold for trading
|
(37)
|
|
(12)
|
Other
|
(3)
|
|
−
|
Common shares at end
|
2,768
|
|
2,645
|
|
|
|
|
|
Contributed surplus at beginning
|
73
|
|
67
|
Stock option expense
|
11
|
|
12
|
Stock options exercised
|
(26)
|
|
(6)
|
Contributed surplus at end
|
58
|
|
73
|
|
|
|
|
|
Retained earnings at beginning
|
6,706
|
|
6,705
|
Net income attributable to the Bank's shareholders
|
1,940
|
|
1,181
|
Dividends
|
|
|
|
|
Preferred shares
|
(85)
|
|
(61)
|
|
Common shares
|
(778)
|
|
(736)
|
Premium paid on preferred shares redeemed for cancellation
|
−
|
|
(3)
|
Premium paid on common shares repurchased for cancellation
|
(99)
|
|
−
|
Share issuance expenses, net of income taxes
|
(8)
|
|
(11)
|
Remeasurements of pension plans and other post-employment benefit
plans
|
97
|
|
(257)
|
Net fair value change attributable to the credit risk on financial
liabilities designated at fair value through profit or loss
|
(21)
|
|
(66)
|
Impact of a financial liability resulting from put options written to
non-controlling interests
|
(34)
|
|
(46)
|
Other
|
(12)
|
|
−
|
Retained earnings at end
|
7,706
|
|
6,706
|
|
|
|
|
|
Accumulated other comprehensive income at beginning
|
218
|
|
145
|
Net foreign currency translation adjustments
|
(39)
|
|
22
|
Net change in unrealized gains (losses) on available-for-sale
securities
|
(12)
|
|
39
|
Net change in gains (losses) on cash flow hedges
|
11
|
|
11
|
Share in the other comprehensive income of associates and joint
ventures
|
(10)
|
|
1
|
Accumulated other comprehensive income at end
|
168
|
|
218
|
|
|
|
|
|
Equity attributable to the Bank's shareholders
|
12,750
|
|
11,292
|
|
|
|
|
|
Non-controlling interests at beginning
|
810
|
|
801
|
Net income attributable to non-controlling interests
|
84
|
|
75
|
Other comprehensive income attributable to non-controlling
interests
|
(4)
|
|
5
|
Distributions to non-controlling interests
|
(82)
|
|
(71)
|
Non-controlling interests at end
|
808
|
|
810
|
|
|
|
|
|
Equity
|
13,558
|
|
12,102
|
|
|
|
|
ACCUMULATED OTHER COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
As at October 31, 2017
|
|
As at October 31, 2016
|
|
|
|
|
|
Accumulated other comprehensive income
|
|
|
|
Net foreign currency translation adjustments
|
(13)
|
|
26
|
Net unrealized gains (losses) on available-for-sale securities
|
39
|
|
51
|
Net gains (losses) on instruments designated as cash flow hedges
|
146
|
|
135
|
Share in the other comprehensive income of associates and joint
ventures
|
(4)
|
|
6
|
|
168
|
|
218
|
SEGMENT DISCLOSURES
(unaudited) (millions of Canadian dollars)
The presentation of segment disclosures is consistent with the presentation adopted by the Bank for the fiscal year beginning
November 1, 2016. This presentation reflects the fact that the activities of subsidiary Credigy Ltd. (Credigy), which
had previously been presented in the Financial Markets segment, and that the activities of subsidiary Advanced Bank of Asia
Limited (ABA Bank) and of other international investments, which had previously been presented in the Other heading, are
now presented in the U.S. Specialty Finance and International (USSF&I) segment. The Bank made this change to better align the
monitoring of its activities with its management structure.
Personal and Commercial
The Personal and Commercial segment encompasses the banking, financing, and investing services offered to individuals and
businesses as well as insurance operations.
Wealth Management
The Wealth Management segment comprises investment solutions, trust services, banking services, lending services and
other wealth management solutions offered through internal and third-party distribution networks.
Financial Markets
The Financial Markets segment encompasses banking services, investment banking services and financial solutions for
large and mid-size corporations, public sector organizations, and institutional investors. The segment is also active in
proprietary trading and investment activities for the Bank.
U.S. Specialty Finance and International (USSF&I)
The USSF&I segment encompasses the specialty finance expertise provided by subsidiary Credigy; the activities of
subsidiary ABA Bank, which offers financial products and services to individuals and businesses in Cambodia; and the activities of targeted investments in certain emerging markets.
Other
This heading encompasses Treasury activities, including the Bank's asset and liability management, liquidity
management and funding operations, certain non-recurring items and the unallocated portion of corporate services.
Results by Business Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended October 31(1)
|
|
|
Personal and
Commercial
|
|
Wealth
Management
|
|
Financial
Markets
|
|
|
USSF&I
|
|
Other
|
|
|
|
Total
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income(2)
|
538
|
|
502
|
|
117
|
|
98
|
|
167
|
|
225
|
|
99
|
|
29
|
|
(80)
|
|
(76)
|
|
841
|
|
778
|
Non-interest income(2)
|
249
|
|
237
|
|
294
|
|
273
|
|
248
|
|
176
|
|
55
|
|
73
|
|
17
|
|
32
|
|
863
|
|
791
|
Total revenues
|
787
|
|
739
|
|
411
|
|
371
|
|
415
|
|
401
|
|
154
|
|
102
|
|
(63)
|
|
(44)
|
|
1,704
|
|
1,569
|
Non-interest expenses
|
411
|
|
423
|
|
260
|
|
255
|
|
161
|
|
160
|
|
56
|
|
66
|
|
88
|
|
255
|
|
976
|
|
1,159
|
Contribution
|
376
|
|
316
|
|
151
|
|
116
|
|
254
|
|
241
|
|
98
|
|
36
|
|
(151)
|
|
(299)
|
|
728
|
|
410
|
Provisions for credit losses
|
50
|
|
54
|
|
1
|
|
1
|
|
−
|
|
−
|
|
19
|
|
4
|
|
−
|
|
−
|
|
70
|
|
59
|
Income before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(recovery)
|
326
|
|
262
|
|
150
|
|
115
|
|
254
|
|
241
|
|
79
|
|
32
|
|
(151)
|
|
(299)
|
|
658
|
|
351
|
Income taxes (recovery)(2)
|
87
|
|
71
|
|
40
|
|
30
|
|
68
|
|
65
|
|
24
|
|
11
|
|
(86)
|
|
(133)
|
|
133
|
|
44
|
Net income
|
239
|
|
191
|
|
110
|
|
85
|
|
186
|
|
176
|
|
55
|
|
21
|
|
(65)
|
|
(166)
|
|
525
|
|
307
|
Non-controlling interests
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
6
|
|
4
|
|
13
|
|
14
|
|
19
|
|
18
|
Net income attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to the Bank's shareholders
|
239
|
|
191
|
|
110
|
|
85
|
|
186
|
|
176
|
|
49
|
|
17
|
|
(78)
|
|
(180)
|
|
506
|
|
289
|
Average assets
|
97,665
|
|
93,638
|
|
12,115
|
|
11,053
|
|
93,044
|
|
94,008
|
|
8,658
|
|
6,312
|
|
39,820
|
|
38,273
|
|
251,302
|
|
243,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended October 31(1)
|
|
|
Personal and
Commercial
|
|
Wealth
Management
|
|
Financial
Markets
|
|
|
|
USSF&I
|
|
Other
|
|
|
|
Total
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income(3)
|
2,071
|
|
1,955
|
|
431
|
|
372
|
|
782
|
|
938
|
|
262
|
|
71
|
|
(314)
|
|
(344)
|
|
3,232
|
|
2,992
|
Non-interest income(3)
|
990
|
|
945
|
|
1,173
|
|
1,069
|
|
848
|
|
375
|
|
279
|
|
340
|
|
87
|
|
119
|
|
3,377
|
|
2,848
|
Total revenues
|
3,061
|
|
2,900
|
|
1,604
|
|
1,441
|
|
1,630
|
|
1,313
|
|
541
|
|
411
|
|
(227)
|
|
(225)
|
|
6,609
|
|
5,840
|
Non-interest expenses
|
1,646
|
|
1,662
|
|
1,036
|
|
999
|
|
658
|
|
615
|
|
225
|
|
207
|
|
292
|
|
392
|
|
3,857
|
|
3,875
|
Contribution
|
1,415
|
|
1,238
|
|
568
|
|
442
|
|
972
|
|
698
|
|
316
|
|
204
|
|
(519)
|
|
(617)
|
|
2,752
|
|
1,965
|
Provisions for credit losses(4)
|
153
|
|
475
|
|
3
|
|
5
|
|
−
|
|
−
|
|
48
|
|
4
|
|
40
|
|
−
|
|
244
|
|
484
|
Income before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(recovery)
|
1,262
|
|
763
|
|
565
|
|
437
|
|
972
|
|
698
|
|
268
|
|
200
|
|
(559)
|
|
(617)
|
|
2,508
|
|
1,481
|
Income taxes (recovery)(3)
|
337
|
|
206
|
|
149
|
|
116
|
|
260
|
|
213
|
|
84
|
|
53
|
|
(346)
|
|
(363)
|
|
484
|
|
225
|
Net income
|
925
|
|
557
|
|
416
|
|
321
|
|
712
|
|
485
|
|
184
|
|
147
|
|
(213)
|
|
(254)
|
|
2,024
|
|
1,256
|
Non-controlling interests
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
29
|
|
20
|
|
55
|
|
55
|
|
84
|
|
75
|
Net income attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to the Bank's shareholders
|
925
|
|
557
|
|
416
|
|
321
|
|
712
|
|
485
|
|
155
|
|
127
|
|
(268)
|
|
(309)
|
|
1,940
|
|
1,181
|
Average assets
|
96,261
|
|
92,234
|
|
11,652
|
|
11,006
|
|
95,004
|
|
87,504
|
|
7,519
|
|
5,319
|
|
37,915
|
|
39,850
|
|
248,351
|
|
235,913
|
(1)
|
For the quarter and year ended October 31, 2016, certain amounts have
been revised from those previously reported, particularly in the Personal and Commercial segment, where an amount of
$9 million reported in Non-interest income was reclassified to Net interest income ($36 million for
the year ended October 31, 2016).
|
(2)
|
Net interest income, Non-interest income and Income taxes
(recovery) of the business segments are presented on a taxable equivalent basis. Taxable equivalent basis is a
calculation method that consists of grossing up certain tax-exempt income by the amount of income tax that would have
been otherwise payable. For the business segments as a whole, Net interest income was grossed up by
$40 million ($53 million in 2016), Non-interest income was grossed up by $14 million
($2 million in 2016) and an equivalent amount was recognized in Income taxes (recovery). The effect of these
adjustments is reversed under the Other heading.
|
(3)
|
For the year ended October 31, 2017, Net interest income was
grossed up by $209 million ($231 million in 2016), Non-interest income was grossed up by $35 million ($4 million
in 2016), and an equivalent amount was recognized in Income taxes (recovery). The effect of these adjustments is
reversed under the Other heading.
|
(4)
|
During the year ended October 31, 2017, the Bank reversed, by $40
million, the sectoral provision on non-impaired loans recorded for the oil and gas producer and service company loan
portfolio presented in the Personal and Commercial segment, and the $40 million in provisions for credit losses in
the Other heading reflects an increase in the collective allowance for credit risk on non-impaired loans. For the
year ended October 31, 2016, the provisions for credit losses included the $250 million sectoral provision on
non-impaired loans recorded for the oil and gas producer and service company loan portfolio that was presented in the
Personal and Commercial segment.
|
CAUTION REGARDING FORWARD-LOOKING STATMENTS
From time to time, the Bank makes written and oral forward-looking statements, such as those contained in the Outlook for
National Bank and the Major Economic Trends sections of the 2017 Annual Report, in other filings with Canadian securities
regulators, and in other communications, for the purpose of describing the economic environment in which the Bank will operate
during fiscal 2018 and the objectives it hopes to achieve for that period. These forward-looking statements are made in
accordance with current securities legislation in Canada and the
United States. They include, among others, statements with respect to the economy—particularly the Canadian and U.S.
economies—market changes, observations regarding the Bank's objectives and its strategies for achieving them, Bank-projected
financial returns and certain risks faced by the Bank. These forward-looking statements are typically identified by future or
conditional verbs or words such as "outlook," "believe," "anticipate," "estimate," "project," "expect," "intend," "plan," and
similar terms and expressions.
By their very nature, such 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 2018 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 in determining its financial targets, including provisions for credit losses. In determining its expectations for
economic growth, both broadly and in the financial services sector in particular, the Bank primarily considers historical
economic data provided by the Canadian and U.S. governments and their agencies.
There is a strong possibility that express or implied projections contained in these forward-looking statements will not
materialize or will not be accurate. The Bank recommends that readers not place undue reliance on these statements, as a number
of factors, many of which are beyond the Bank's control, could cause actual future results, conditions, actions or events to
differ significantly from the targets, expectations, estimates or intentions expressed in the 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 risk, all of which are described in more detail in the Risk Management section beginning
on page 51 of the 2017 Annual Report, general economic environment and financial market conditions in Canada, the United States and certain other countries in which the Bank
conducts business, including regulatory changes affecting the Bank's business, capital and liquidity; 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; and potential disruptions to the Bank's information technology systems, including evolving
cyber attack risk.
The foregoing list of risk factors is not exhaustive. Additional information about these factors can be found in the Risk
Management section of the 2017 Annual Report. Investors and others who rely on the Bank's forward-looking statements
should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Except as
required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made
from time to time, by it or on its behalf.
The forward-looking information contained in this document is presented for the purpose of interpreting the information
contained herein and may not be appropriate for other purposes.
INFORMATION FOR SHAREHOLDERS AND INVESTORS
Disclosure of Fourth Quarter 2017 Results
Conference Call
- A conference call for analysts and institutional investors will be held on Friday, December 1,
2017 at 11:00 a.m. EST.
- Access by telephone in listen-only mode: 1-866-862-3930 or 416-695-7806. The access code is 6531436#.
- A recording of the conference call can be heard until December 30, 2017 by dialing
1-800-408-3053 or 905-694-9451. The access code is 5720923#.
Webcast
- The conference call will be webcast live at nbc.ca/investorrelations .
- A recording of the webcast will also be available on National Bank's website after the call.
Financial Documents
- The Press Release (which includes the quarterly consolidated financial statements) is available at all times on
National Bank's website at nbc.ca/investorrelations .
- The Press Release, the Supplementary Financial Information, the Supplementary Regulatory Capital
Disclosure, and a slide presentation will be available on the Investor Relations page of National Bank's website shortly
before the start of the conference call.
- The 2017 Annual Report (which includes the audited annual consolidated financial statements and management's
discussion and analysis) will also be available on National Bank's website.
- The Report to Shareholders for the first quarter ended January 31, 2018 will be
available on February 28, 2018 (subject to approval by the Bank's Board of Directors).
SOURCE National Bank of Canada
View original content: http://www.newswire.ca/en/releases/archive/December2017/01/c4150.html