Market Line IC National Bank of Canada Profile 291120 PDF

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National Bank of Canada

Table of Contents National Bank of Canada- Financial and Strategic Analysis Review ............................4 Company Overview....................................................................................................4 National Bank of Canada- Key Facts .........................................................................4 National Bank of Canada- Business Description .......................................................4 Canada ........................................................................................................................5 Performance............................................................................................................5 Financial Markets .......................................................................................................5 Overview ................................................................................................................5 Financial Markets .......................................................................................................5 Performance............................................................................................................5 Financial Markets .......................................................................................................5 Key Stats.................................................................................................................5 Other...........................................................................................................................6 Performance............................................................................................................6 Other...........................................................................................................................6 Target Markets .......................................................................................................6 Personal and Commercial...........................................................................................6 Overview ................................................................................................................6 Personal and Commercial...........................................................................................6 Performance............................................................................................................6 Personal and Commercial...........................................................................................6 Key Stats.................................................................................................................6 U.S. Specialty Finance and International ...................................................................7 Overview ................................................................................................................7 U.S. Specialty Finance and International ...................................................................7 Performance............................................................................................................7 U.S. Specialty Finance and International ...................................................................7 Key Stats.................................................................................................................7 United States...............................................................................................................7 Performance............................................................................................................7 Wealth Management...................................................................................................8 Overview ................................................................................................................8 Wealth Management...................................................................................................8 Performance............................................................................................................8 Wealth Management...................................................................................................8 Key Stats.................................................................................................................8 National Bank of Canada- Major Products and Services ...........................................8 National Bank of Canada- History .............................................................................9 National Bank of Canada- SWOT Analysis.............................................................17 National Bank of Canada- Strengths ........................................................................17 Strengths-Market Position....................................................................................17 Strengths-Cost Efficiency.....................................................................................17 Strengths-Capital Adequacy.................................................................................18 Published: 10 Aug 2020 Extracted: 29 Nov 2020

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National Bank of Canada Strengths-Adequate Liquidity ..............................................................................18 National Bank of Canada- Weaknesses....................................................................18 Weaknesses-Asset Quality ...................................................................................18 National Bank of Canada- Opportunities .................................................................18 Opportunities-Growing Markets for Payment Channels: Canada........................18 Opportunities-Growing Wealth Management Prospects: Canada........................19 Opportunities-Emergence of FinTech ..................................................................19 National Bank of Canada- Threats ...........................................................................19 Threats-Competition.............................................................................................19 Threats-Prolonged Low-Interest-Rate Environment ............................................20 Threats-Risks related to Online Identity Theft and Hacking ...............................20 National Bank of Canada- Key Competitors............................................................20 National Bank of Canada- Key Employees..............................................................21 National Bank of Canada- Company Statement.......................................................24 National Bank of Canada- Locations & Subsidiaries...............................................27 Head office ...........................................................................................................27 Other Locations & Subsidiaries ...............................................................................27 National Bank of Canada, Other locations...........................................................27 National Bank of Canada, Subsidiaries....................................................................27 Advanced Bank of Asia Ltd .................................................................................27 Natcan Trust Company.........................................................................................28 National Bank Acquisition Holding Inc...............................................................28 National Bank Financial Inc.................................................................................28 National Bank Group Inc. ....................................................................................28 National Bank Investments Inc. ...........................................................................28 National Bank Life Insurance Company ..............................................................28 National Bank of Canada Financial Group Inc. ...................................................28 National Bank Realty Inc. ....................................................................................28 National Bank Trust Inc. ......................................................................................28 NBCN, Inc............................................................................................................29 NBF International Holdings Inc ...........................................................................29 NBC Financial Markets Asia Ltd.........................................................................29 NBC Global Finance Limited...............................................................................29 Natcan Global Holdings Ltd.................................................................................29 Advanced Technology Asia IT Ltd ......................................................................29 Ata It Limited .......................................................................................................29 Credigy Ltd...........................................................................................................29 Natbank NA..........................................................................................................29 NatBC Holding Corporation ................................................................................30 Summarized Statement.............................................................................................30 National Bank of Canada, Annual Statements .........................................................30 Income Statements ...............................................................................................30 Balance Sheet .......................................................................................................30 Cash Flow.............................................................................................................30 Detailed Statement ...................................................................................................31 National Bank of Canada, Full Annual Statements..................................................31 Income Statements ...............................................................................................31 Balance Sheet .......................................................................................................32 Cash Flow.............................................................................................................33 Published: 10 Aug 2020 Extracted: 29 Nov 2020

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National Bank of Canada Summarized Interim Statement ................................................................................34 National Bank of Canada, Summarized Interim Statements....................................34 Balance Sheet .......................................................................................................34 Cash Flow.............................................................................................................34 Detailed Interim Statement.......................................................................................34 National Bank of Canada, Detailed Interim Statement ............................................34 Balance Sheet .......................................................................................................35 Cash Flow.............................................................................................................36 Capital Market Ratios...............................................................................................37 National Bank of Canada, Capital Market Ratios ....................................................37 Interim Ratios ...........................................................................................................37 National Bank of Canada, Interim Ratios ................................................................37 Annual Ratios ...........................................................................................................38 National Bank of Canada, Annual Ratios ................................................................38

Published: 10 Aug 2020 Extracted: 29 Nov 2020

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National Bank of Canada

National Bank of Canada- Financial and Strategic Analysis Review Company Overview National Bank of Canada (NBC) offers a range of personal and commercial banking, wealth management, and related financial solutions. Personal and commercial banking comprises accounts and deposits such as checking, savings and business investment accounts; card products such as debit and credit cards; lending solutions for personal usage, car, lines of credit, and mortgage among others; investment products; insurance solutions for mortgage, travel, and credit card payment; international trade; foreign exchange transactions; payroll; and cash management services. Wealth management provides wealth management advisory, investment solutions, financial and succession planning, portfolio management, and pension services. The bank offers various capital market related and corporate and investment banking products and services. NBC also provides specialty finance through Credigy, and banking services in Cambodia through ABA Bank. It has presence in Canada, the US, Cambodia, Ireland, Malta, Thailand, and China. NBC is headquartered in Montreal, Quebec, Canada.

National Bank of Canada- Key Facts National Bank of Canada- Key Facts Corporate 600 De la Gauchetiere St Ticker Symbol, NA[TSE] Address W Exchange No. of Telephone 1 514 3945000 25487 Employees Fax 1 514 3948434 Fiscal Year End October Revenue (in URL www.nbc.ca 9053.2529 US$ Million) Source : GlobalData Research analysis / © GlobalData Research

National Bank of Canada- Business Description National Bank of Canada (NBC) is a provider of a diverse range of personal, commercial banking and investment banking products, wealth management and capital markets solutions. As of October 31, 2019, it had assets of CAD281,458 million, net loans of CAD146,358 million, and deposits of CAD189,566 million. NBC conduct its business through five segments: Personal and Commercial, Financial Markets, Wealth Management, U.S. Specialty Finance and International and Others. Geographically, the bank offers its products and services through the following segments: Canada, the US and Others. As of October 31, 2019, the bank operated through 495 branches and 1,480 banking machines in Canada and served 2.7 million customers.

Published: 10 Aug 2020 Extracted: 29 Nov 2020

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National Bank of Canada

Canada Performance Reported net revenue of CAD5,968 million for FY2019, which decreased 0.8% YoY, and reported a CAGR of 2.3% during 2015-19. Accounted for 80.3% of the bank's net revenue in FY2019.

Financial Markets Overview Includes global markets solutions and corporate and investment banking services. Global markets solutions include risk management, structured products and marketmaking of ETFs. Also offers advisory on new product development to asset managers and fund companies. Corporate and investment banking services comprise advisory for M&A transactions, origination and syndication for project financing, debt and equity underwriting, and securitization financing for mortgage-backed securities, and Government-of-Canada-insured mortgages. Intends to continue automation process, utilize AI, and expand data sharing. Focuses on developing new and strengthening existing client relationships; and enhancing market share in all corporate fee-based products. The segment also intends to maintain tight cost control and an industry leading efficiency ratio.

Financial Markets Performance Reported net revenue of CAD1,750 million for FY2019, which grew 0.4% YoY, and reported a CAGR of 0.7% during 2015-19. Accounted for 22.8% of the bank's net revenue in FY2019. Reported net income of CAD717 million in FY2019, which decreased 6.2% YoY. Net revenue rose as a result of a YoY rise of 7% in Global Markets category with revenue from equity securities and fixed-income securities, which grew by 8% each, which was partially offset by a 3% fall in revenues from commodities and foreign exchange activities. The revenue in the corporate and investment banking revenues decreased 4% YoY, mainly due to a slowdown in capital markets activity as well as to a decrease in merger and acquisition activities in FY2019.

Financial Markets Key Stats As of October 31, 2019; Reported average loans and acceptances of CAD16,575 million and deposits of CAD30,311 million. Reported efficiency ratio of 42.5%.

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National Bank of Canada

Other Performance Reported net revenue of CAD829 million for FY2019, which grew 45.4% YoY. Accounted for 11.2% of the bank's net revenue in FY2019.

Other Target Markets Cambodia, Ireland, Malta, Thailand, and China.

Personal and Commercial Overview Offers financing and investment solutions, including, daily transaction solutions, consumer and mortgage loans, home equity lines of credit, payment solutions, savings and investment solutions, and insurance products, to individuals mainly in Quebec. Also provides credit, deposit, insurance, and investment solutions; and services such as international trade, cash management, foreign exchange transactions, payroll, electronic transactions and complementary services to SMEs and large corporates in industries such as health, technology, motion pictures, agriculture and agri-food, real estate and oil and gas. Focuses on enhancing client experience, continuing digital transformation, increasing operational efficiency, and maintaining growth pace.

Personal and Commercial Performance Reported net revenue of CAD3,452 million for FY2019, which grew 4.3% YoY, and reported a CAGR of 5.1% during 2015-19. Accounted for 45.1% of the bank's net revenue in FY2019. Reported net income of CAD1,027 million in FY2019, which grew 7.9% YoY.. Net revenue grew due to increase in personal and commercial loan and deposit volumes but was offset by a narrowing of the net interest margin, which was 2.23% in FY2019 as compared to 2.24% in the previous year.

Personal and Commercial Key Stats As of October 31, 2019; Served over 2.6 million individuals and 137,000 SMEs and large corporations. Reported average gross loans and acceptances of CAD112,290 million and deposits of CAD62,487 million. Reported net interest margin of 2.23% and efficiency ratio of 52.6%. Derived 79% of the net revenue from Quebec.

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National Bank of Canada

U.S. Specialty Finance and International Overview Operates through Credigy, a specialty finance company, which is active in performing assets covering a broad range of asset classes in the US market. Also includes activities of ABA Bank, which provides financial solutions to individuals and businesses in Cambodia; and makes targeted investments in certain emerging markets. Credigy holds minority positions in the financial entities that are operating in the French-speaking regions of Africa and Africa-Asia. Credigy aims at refining and enhancing its modeling and analytical tools for price optimization and consumer receivables portfolios servicing. It intends to deliver a continued growth by leveraging relationships with existing and prospective partners and leverage funding agreements to enhance asset growth. Credigy plans to utilize the changing market conditions to identify potential for large investment opportunities. It aims to continue its focus on asset diversification and a balancing its risk/return investment profile. ABA bank intends to continue focusing on MSME clients for loan growth, while increasing its deposits steadily. Also plans to open new branches in FY2019 to expand its reach into new regions of Canada and Cambodia.

U.S. Specialty Finance and International Performance Reported net revenue of CAD715 million for FY2019, which grew 11.9% YoY. Accounted for 9.3% of the bank's net revenue in FY2019. Reported net income of CAD279 milli...