Q1 2023 Financial Results slide image

Q1 2023 Financial Results

Canadian Banking Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to over 10 million Retail, Small Business and Commercial Banking customers. It serves these customers through its network of 941 branches and 3,697 automated banking machines (ABMs), as well as online, mobile and telephone banking, and specialized sales teams. Canadian Banking also provides an alternative self-directed banking solution to over 2 million Tangerine Bank customers. Business Mix Retail 72% Q1/23 Revenue $3.2Bn Residential Mortgages 63% Q1/23 Average Strategic Focus Growing Commercial Banking in select industries (agriculture, healthcare & professionals, real estate and technology) Growing in under-represented provinces (BC and Quebec) Loans $446Bn Financial Results ($MM) 28% Credit Cards 2% Other Personal 8% 16% Business Q1/23 Y/Y Q/Q 11% Reported Business Banking Auto Net Income¹ Pre-Tax, Pre-Provision Profit² $1,087 (9%) (7%) $1,715 8% (1%) Reported Net Income¹ ($MM) and NIM4 (%) Revenue $3,164 10% 1% 2.19% 2.22% 2.29% 2.26% 2.26% Expenses $1,449 13% 4% PCLS $218 nmf 34% 1,201 1,179 1,213 1,170 1,087 Productivity Ratio³ 45.8% 120 bps 120 bps Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Net Interest Margin 4 PCL Ratio³ 2.26% 7 bps 19 bps 22 bps 4 bps Medium-Term Financial Objectives Net Income Growth 1,3 PCL Ratio on Impaired Loans³ 17 bps 5 bps 3 bps Target5 5%+ Adjusted 4 Productivity Ratio³ Operating Leverage³ <44% Positive Net Income¹ Pre-Tax, Pre-Provision Profit $1,088 (10%) (7%) $1,717 7% (2%) Expenses Productivity Ratio $1,447 13% 45.8% 140 bps 4% 140 bps 1 Net income attributed to equity shareholders; 2 Pre-Tax, Pre-Provision Profit defined as revenues less expenses. See non-GAAP reconciliations beginning on slide 81; 3 Refer to page 50 of the Management's Discussion & Analysis in the Bank's First Quarter 2023 Report to Shareholders, available on http://www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto; 4 Refer to non-GAAP measures on page 4 of the Management's Discussion & Analysis in the Bank's First Quarter 2023 Report to Shareholders, available on http://www.sedar.com; 53-5 year target from 2020 Investor Day 21 221
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