REG - Nat Bank of Canada - Financial Statements - Part 2 <Origin Href="QuoteRef">NA.TO</Origin> - Part 6
29/10/2014 15:46
- Part 6: For the preceding part double click ID:nRSb1668Qe
Securitization entity for the Bank's credit card receivables(7)(8) 341 1,633 328 1,621
National Bank hedge fund managed accounts (Innocap platform)(3)(8) 465 553 508 617
Investment funds(8)(9) 303 303 411 411
Covered bonds(10) 6,911 7,173 3,506 3,939
Building(11) 77 70 78 71
Private investments(12) − − − 2
NBC Asset Trust(13) 938 1,695 938 1,710
9,035 11,427 5,769 8,371
11,433 22,091 8,472 18,200
(1) Certain amounts have been adjusted to reflect changes in accounting standards. See Note 2.
(2) The main underlying assets, located in Canada, are residential mortgages, automobile loans, automobile inventory
financings, and other receivables. As at July 31, 2014, the notional committed amount of the global-style liquidity
facilities totalled $2,038 million ($2,104 million as at October 31, 2013), representing the total amount of commercial
paper outstanding. The Bank also provides series-wide credit enhancement facilities for a notional committed amount of $30
million ($30 million as at October 31, 2013). The maximum exposure to loss cannot exceed the amount of commercial paper
outstanding. As at July 31, 2014, the Bank held $7 million in commercial paper ($6 million as at October 31, 2013) and,
consequently, the maximum potential amount of future payments as at July 31, 2014 was limited to $2,031 million ($2,098
million as at October 31, 2013), which represents the amount of undrawn liquidity and credit enhancement facilities.
(3) The underlying assets are various financial instruments (trading portfolio). The total assets of the Innocap
platform are presented on a net asset basis.
(4) See the Master Asset Vehicles section in Note 5. The total amount outstanding of restructured notes of the MAV
conduits totalled $24 billion as at July 31, 2014 ($25 billion as at October 31, 2013). The undrawn margin funding
facilities amounted to $835 million as at July 31, 2014 ($886 million as at October 31, 2013).
(5) The underlying assets are mainly private investments. The amount of total assets of the structured entities
corresponds to the amount for the most recent available period.
(6) The underlying asset is a deposit note from the Bank. See Note 9.
(7) The underlying assets are credit card receivables.
(8) The Bank's exposure is presented net of third-party holdings.
(9) The underlying assets are various financial instruments and are presented on a net asset basis. Certain
investment funds are in a trading portfolio.
(10) For the covered bonds issued under the new covered bond legislative program, the underlying assets are uninsured
residential mortgage loans totalling $4,495 million as at July 31, 2014. The average maturity of these underlying assets is
two years. For covered bonds issued under the structured covered bond program, the underlying assets are insured
residential mortgage loans totalling $2,678 million as at July 31, 2014($3,939 million as at October 31, 2013). The average
maturity of these underlying assets is two years. See Note 9.
(11) The underlying asset is a building located in Canada.
(12) The underlying assets are private investments.
(13) The underlying assets are insured and uninsured residential mortgage loans of the Bank. As at July 31, 2014,
insured loans amounted to $237 million ($277 million as at October 31, 2013). The average maturity of the underlying assets
is two years.
NOTE 22 - Segment Disclosures
Quarter ended July 31
Personal and Commercial Wealth Management Financial Markets Other Total
2014 2013(1) 2014 2013(1) 2014 2013(1) 2014 2013(1) 2014 2013(1)
Net interest income(2) 433 407 79 68 209 225 (81) (71) 640 629
Non-interest income 263 258 254 221 236 156 67 21 820 656
Total revenues 696 665 333 289 445 381 (14) (50) 1,460 1,285
Non-interest expenses 388 374 246 221 188 170 57 43 879 808
Contribution 308 291 87 68 257 211 (71) (93) 581 477
Provisions for credit losses 48 46 1 1 − − − 1 49 48
Income before income taxes (recovery) 260 245 86 67 257 211 (71) (94) 532 429
Income taxes (recovery)(2) 70 66 22 18 70 56 (71) (113) 91 27
Net income 190 179 64 49 187 155 − 19 441 402
Non-controlling interests − − − − 5 1 13 14 18 15
Net income attributable to the Bank's
shareholders 190 179 64 49 182 154 (13) 5 423 387
Average assets 82,129 77,251 10,349 9,061 87,673 89,986 26,348 20,042 206,499 196,340
Nine months ended July 31
Personal and Commercial Wealth Management Financial Markets Other Total
2014 2013(1) 2014 2013(1) 2014 2013(1) 2014 2013(1) 2014 2013(1)
Net interest income(3) 1,263 1,205 235 202 613 628 (208) (190) 1,903 1,845
Non-interest income 740 729 752 652 534 419 171 255 2,197 2,055
Total revenues 2,003 1,934 987 854 1,147 1,047 (37) 65 4,100 3,900
Non-interest expenses 1,142 1,115 714 653 518 500 120 111 2,494 2,379
Contribution 861 819 273 201 629 547 (157) (46) 1,606 1,521
Provisions for credit losses 149 142 2 2 − (12) − 1 151 133
Income before income taxes (recovery) 712 677 271 199 629 559 (157) (47) 1,455 1,388
Income taxes (recovery)(3) 192 182 71 53 170 150 (186) (189) 247 196
Net income 520 495 200 146 459 409 29 142 1,208 1,192
Non-controlling interests − − − − 10 6 41 41 51 47
Net income attributable to the Bank's
shareholders 520 495 200 146 449 403 (12) 101 1,157 1,145
Average assets 80,793 76,022 10,486 9,051 85,472 86,516 28,386 20,743 205,137 192,332
(1) Certain amounts have been adjusted to reflect changes in accounting standards. See Note 2.
(2) Net 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 in 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 $57 million ($62 million in 2013). An equivalent amount was added to Income taxes (recovery). The impact of
these adjustments is reversed under the Other heading.
(3) For the nine months ended July 31, 2014, Net interest income was grossed up by $162 million ($166 million in
2013). An equivalent amount was added to Income taxes (recovery). The impact of these adjustments is reversed under the
Other heading.
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
institutional clients. The segment is also active in proprietary trading and investment activities.
Other
This heading encompasses treasury activities, including the Bank's liquidity management and funding operations, certain
non-recurring items and the unallocated portion of corporate services.
INFORMATION FOR SHAREHOLDERS AND INVESTORS
Investor Relations
Financial analysts and investors who want to obtain financial information on the Bank may contact the Investor Relations
Department.
600 De La Gauchetière Street West, 7th Floor
Montreal, Quebec H3B 4L2
Toll-free: 1-866-517-5455
Fax: 514-394-6196
Email: investorrelations@nbc.ca
Website: nbc.ca/investorrelations
Public Affairs
600 De La Gauchetière Street West, 10th Floor
Montreal, Quebec H3B 4L2
Telephone: 514-394-8644
Fax: 514-394-6258
Quarterly Report Publication Dates for Fiscal 2014
(subject to approval by the Board of Directors of the Bank)
First quarter February 24
Second quarter May 27
Third quarter August 27
Fourth quarter December 5
Disclosure of Third Quarter 2014 Results Conference Call- A conference call for analysts and institutional investors will be held on Wednesday, August 27, 2014 at 1:00 p.m. EDT.- Access by telephone in listen-only mode: 1-866-862-3930 or 416-695-7806. The access code is 3390539#.- A recording of the conference call can be heard until September 6, 2014 by dialing 1-800-408-3053 or 905-694-9451. The access code is 5955220#. Webcast- The conference call will be webcast live at
nbc.ca/investorrelations.- A recording of the webcast will also be available on National Bank's website after the call. Financial Documents- The Report to Shareholders (which includes the quarterly consolidated financial statements) is available at all times on National Bank's website at nbc.ca/investorrelations.- The Report to Shareholders, the Supplementary Financial Information, the Supplementary Regulatory Capital 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.
Transfer Agent and Registrar
For information about stock transfers, address changes, dividends, lost certificates, tax forms, and estate transfers,
shareholders are asked to contact the transfer agent, Computershare Trust Company of Canada, at the address or telephone
number below.
Computershare Trust Company of Canada
Share Ownership Management
1500 University Street, 7th Floor
Montreal, Quebec H3A 3S8
Telephone: 1-888-838-1407
Fax: 1-888-453-0330
Email: service@computershare.com
Website: computershare.com
Direct Deposit Service for Dividends
Shareholders may elect to have their dividend payments deposited directly via electronic funds transfer to their bank
account at any financial institution that is a member of the Canadian Payments Association. To do so, they must send a
written request to the transfer agent, Computershare Trust Company of Canada.
Dividend Reinvestment and Share Purchase Plan
The Bank has a Dividend Reinvestment and Share Purchase Plan for Canadian holders of its common and preferred shares under
which they can acquire common shares of the Bank without paying commissions or administration fees. Canadian participants
acquire common shares through the reinvestment of cash dividends paid on the shares they hold or through optional cash
payments of at least $500 per payment, up to a maximum of $5,000 per quarter.
For more information, shareholders may contact National Bank's registrar and transfer agent, Computershare Trust Company of
Canada, at 1-888-838-1407. To participate in the plan, National Bank's beneficial or non-registered common shareholders
must contact their financial institution or broker.
Dividends
The dividends declared by the Bank constitute eligible dividends pursuant to the Income Tax Act (Canada).
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