the top 6 canadian banks selected indicators of q1 2015 results - d pershad -mar 2015
TRANSCRIPT
Contents
Overview 3.
Key Performance Indicators 4.
Total Revenue 5.
Net Income 6.
Return on Equity 7.
Earnings Per Share 8.
Summation 9.
2
Canada's Top 6 Banks – A Challenging Environment Out of the Gate for 2015
• Net income for the top 6 Canadian banks for Q1 2015 grew just over 1% overall, perhaps reflecting the impact of low interest rates, oil prices, and a high level of consumer debt
• The stellar exception was RBC, which grew Q1 2015 net income by over 17% vs. Q1 2014
• Despite a notable drop vs. Q1 2014, CIBC still led by far in Earnings per Share among the top six banks
3
Key Performance Indicators
Among the key performance indicators for the top 6 banks are:
• Total Revenue
• Net Income
• ROE (Return on Equity)
• EPS (Earnings per Share)
The following charts show how each bank performed in a universe of top 6 bank results.(Sources: Reported Top 6 Banks’ Q1 2015 results)
4
Top 6 Banks – Q1 2015 % Share of Top 6 Revenue
• RBC continued unsurprisingly, to lead in total revenue for Q1 2015, followed by TD and Scotiabank
5
Total Revenue $MM - Q1 2015 $MM - Q1 2014 % Change VYA Total Revenue % Share of Top 6
RBC 9,644.0 8,460.0 14.0 RBC 29%
TD 7,614.0 7,565.0 0.6 TD 23%
Scotia 5,863.0 5,645.0 3.9 Scotia 18%
BMO 5,055.0 4,479.0 12.9 BMO 15%
CIBC 3,459.0 3,631.0 -4.7 CIBC 10%
National Bank 1,410.0 1,364.0 3.4 National Bank 4%
33,045.0 31,144.0 6.1 100.0%
Top 6 Banks – Q1 2015 % Share of Top 6 Net Income
6
• While most of the top six banks showed little or negative net income growth in Q1 2015 vs. the same period a year go, RBC delivered a stellar net income growth of 17.4%
Reported Net
Income $ - Q1 2015 $ - Q1 2014 % Change VYA
Reported Net
Income % Share of Top 6
RBC 2,456.0 2,092.0 17.4 RBC 29%
TD 2,060.0 2,042.0 0.9 TD 24%
Scotia 1,726.0 1,709.0 1.0 Scotia 20%
BMO 1,000.0 1,061.0 -5.7 BMO 12%
CIBC 923.0 1,177.0 -21.6 CIBC 11%
National Bank 415.0 405.0 2.5 National Bank 5%8,580.0 8,486.0 1.1
Top 6 Banks – Q1 2015 Return on Equity (ROE)
7
• Return on equity for Q1 2015 (the measure of a corporation's profitability in terms of how much profit a company generates with the money shareholders have invested), was negative for most of the top six banks, with the exception of RBC
• CIBC still led slightly in ROE, despite a significant drop vs. Q1 2014
Reported ROE - % % - Q1 2015 % - Q1 2014 % Change VYA ROE - % Index-RBC = 100
RBC 19.3 18.1 6.6 RBC 100
TD 14.6 16.4 -11.0 TD 76
Scotia 14.2 15.4 -7.8 Scotia 74
BMO 11.8 14.2 -16.9 BMO 61
CIBC 19.9 27.5 -27.6 CIBC 103
National Bank 17.8 19.8 -10.1 National Bank 92
Top 6 Banks Q1 2015 Earnings Per Share (EPS)
8
• While CIBC continued to lead in terms of EPS in Q1 2015 VYA, RBC showed the greatest improvement, at +19.6% vs. Q1 2014
Reported EPS
(diluted) $ - Q1 2015 $ - Q1 2014 % Change VYA EPS Index-RBC = 100
RBC 1.65 1.38 19.6 RBC 100
TD 1.09 1.07 1.9 TD 66
Scotia 1.35 1.32 2.3 Scotia 82
BMO 1.46 1.58 -7.6 BMO 88
CIBC 2.28 2.88 -20.8 CIBC 138
National Bank 1.16 1.15 0.9 National Bank 70
Deepak Pershad, Principal
www.insightsbydesign.ca
416.925.6536