Financial Overview and Sector Exposure slide image

Financial Overview and Sector Exposure

EXPENSE MANAGEMENT CONTINUED FOCUS ACROSS THE BANK Adjusted Revenue (1) - ($MM; YoY) $2,281 Q1 21 Adj. Rev. +11% +11% +4% $11 $23 $2,530 +14% $64 +9% $74 $77 P&C Wealth Financial Banking Management Markets Non-Interest Expenses ($MM; YoY) USSF&I Other Q1 22 Adj. Rev. +13% +8% +15% ($3) $29 ($12) (4%) $1,277 +7% $47 $36 $1,180 Eff. Ratio 51.7% 55.5% 59.5% 39.3% 28.1% Q1 21 Non-int. Exp. P&C Banking Wealth Management Financial Markets USSF&I Other 50.5% Q1 22 Non-int. Exp. (1) On a taxable equivalent basis. This is a non-GAAP financial measure. See slide 2. ■ P&C: Expense growth driven by salaries and continued IT investments to support our transformation ■ Wealth: Expense growth mostly related to variable comp. Shift in revenue growth mix (from higher transaction to higher fee-based) increases variable costs Additional FTE to support growth Q1 efficiency ratio <60% ■ FM: Expense growth mostly related to variable comp. Targeted IT investments to support future growth and further diversify our revenue streams Q1 efficiency ratio <40% ■ USSF&I: Low efficiency ratio ■ Other: ~$20MM reversal of provision for provincial compensatory tax on salaries Partly offset by higher IT investments and timing of employer's contributions to payroll taxes 8
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