National Bank Financial Group
TSX : NA

National Bank Financial Group

November 30, 2010 16:44 ET

National Bank of Canada Releases Its Fourth Quarter and Year-End 2010 Results

- Record net income of $1,034 million for fiscal 2010

- Increase of quarterly dividend of 4 cents per share

MONTREAL, QUEBEC--(Marketwire - Nov. 30, 2010) - National Bank Financial Group (TSX:NA) -

This press release provides unaudited financial information and should be read in conjunction with the supplementary financial information and the analyst and investor presentation available on the Bank's website at www.nbc.ca. Additional information about National Bank of Canada, including the Annual Information Form, can be obtained from the SEDAR website at www.sedar.com and the Bank's website at www.nbc.ca.

HIGHLIGHTS:    

  • Fourth quarter net income of $287 million, up 19% from $241 million in the fourth quarter of 2009

  • Diluted earnings per share of $1.66 for the fourth quarter of 2010, up 19% from the diluted earnings per share of $1.39 for the same quarter of 2009

  • Record net income of $1,034 million for fiscal 2010, up 21% from $854 million in net income last fiscal year

  • Diluted earnings per share of $5.94 for fiscal 2010, up 20% from $4.94 in fiscal 2009

  • Tier 1 capital ratio of 14.0% as at October 31, 2010 versus 10.7% as at October 31, 2009

HIGHLIGHTS EXCLUDING SPECIFIED ITEMS(1):

  • Net income of $282 million in the fourth quarter of 2010, up 16% from $243 million during the same period in 2009

  • Diluted earnings per share of $1.63 for the fourth quarter of 2010 compared to $1.40 for the same quarter of 2009

  • Record net income of $1,084 million for fiscal 2010, up 2% from $1,061 million in net income for fiscal 2009

  • Diluted earnings per share of $6.25 for fiscal 2010 versus $6.22 in fiscal 2009

(1) The financial reporting method is explained in detail on page 2.

National Bank announced net income of $287 million in the fourth quarter of 2010, up 19% from $241 million in net income in the fourth quarter of 2009. Diluted earnings per share for the quarter ended October 31, 2010 stood at $1.66 versus $1.39 for the same quarter of 2009. The quarterly results include a $15 million restructuring charge, net of income taxes, a $2 million impairment of an intangible asset, a $25 million reversal of a provision for income tax contingencies, and $3 million, net of income taxes, ($2 million in the fourth quarter of 2009) in charges related to holding the restructured notes. Excluding specified items, net income for the fourth quarter of 2010 would have totalled $282 million, up 16% from $243 million in the fourth quarter of 2009. Diluted earnings per share would have totalled $1.63 in the fourth quarter of 2010 compared to $1.40 in the fourth quarter of 2009.

The Bank's net income for fiscal 2010 totalled $1,034 million, up 21% from $854 million in the same period of 2009. Diluted earnings per share stood at $5.94 for fiscal 2010, up $1.00 or 20% from $4.94 in the same period of 2009. Excluding the specified items described on page 2, net income for fiscal 2010 would have been $1,084 million, up 2% from $1,061 million in the same period of 2009. Diluted earnings per share would have been $6.25 for fiscal 2010 compared to $6.22 for fiscal 2009.

"Implementation of the One client, one Bank strategy continued at a steady pace, as can be seen in the fourth quarter results of 2010. The Personal and Commercial segment has enjoyed solid growth in loan volumes, and Wealth Management and Financial Markets have both posted quarter-over-quarter increases in earnings. Such solid results, combined with our strong capital position and the quality of our credit portfolio, have allowed us to raise shareholder dividends," stated Louis Vachon, President and Chief Executive Officer.

Financial Indicators     Results       Results  
  Results   excluding   Results   excluding  
  4th quarter   specified   Fiscal   specified  
  2010   items (1)   2010   items (1)  
Growth in diluted earnings per share 19 % 16 % 20 % -  
Return on common shareholders' equity 18.0 % 17.5 % 17.0 % 17.7 %
Tier 1 capital ratio under Basel II 14.0 % 14.0 % 14.0 % 14.0 %
Dividend payout ratio 37 % 38 % 41 % 39 %

(1) See "Financial Reporting Method" on page 2.

Financial Reporting Method

The Bank uses certain measurements that are not in accordance with generally accepted accounting principles (GAAP) to assess results. Securities regulators require companies to caution readers that net income and other measurements adjusted using non-GAAP criteria have no standard meaning under GAAP and cannot be easily compared with similar measurements used by other companies.

Financial Information  
(unaudited) (millions of dollars)  
  Notes     Quarter ended           Fiscal year ended      
    October 31, 2010   October 31, 2009   % Change   October 31, 2010   October 31, 2009   % Change  
   
Excluding specified items                          
  Personal and Commercial   145   108   34   587   482   22  
  Wealth Management   33   26   27   112   113   (1 )
  Financial Markets   119   147   (19 ) 486   513   (5 )
  Other   (15 ) (38 )     (101 ) (47 )    
Net income excluding specified items   282   243   16   1,084   1,061   2  
  Less: Charges related to holding the restructured notes of the                          
  MAV conduits 1 (3 ) (2 )     (8 ) (121 )    
  Less: Restructuring charge 2 (15 ) -       (15 ) -      
  Less: Impairment of an intangible asset 3 (2 ) -       (2 ) -      
  Less: Administrative penalty 4 -   -       (75 ) -      
  Less: Charge related to commitments to extend credit 5 -   -       -   (86 )    
  Plus: Reversals of provisions for income tax contingencies 6 25   -       50   -      
Net income   287   241   19   1,034   854   21  
   
Diluted earnings per common share excluding specified items   $1.63   $1.40   16   $6.25   $6.22   -  
  Less: Charges related to holding the restructured notes of the                          
  MAV conduits 1 (0.02 ) (0.01 )     (0.05 ) (0.74 )    
  Less: Restructuring charge 2 (0.09 ) -       (0.09 ) -      
  Less: Impairment of an intangible asset 3 (0.01 ) -       (0.01 ) -      
  Less: Administrative penalty 4 -   -       (0.46 ) -      
  Less: Charge related to commitments to extend credit 5 -   -       -   (0.54 )    
  Plus: Reversals of provisions for income tax contingencies 6 0.15   -       0.30   -      
Diluted earnings per common share   $1.66   $1.39   19   $5.94   $4.94   20  
   
Return on common shareholders' equity                          
  Including specified items   18.0 % 16.7 %     17.0 % 15.6 %    
  Excluding specified items   17.5 % 16.3 %     17.7 % 19.0 %    
(1) The restructured notes of the master asset vehicle (MAV) conduits replaced asset-backed commercial paper (ABCP) under the restructuring plan for these instruments. During the quarter ended October 31, 2010, the financing cost of holding the restructured notes of the MAV conduits was $3 million ($2 million in 2009), net of income taxes. During the year ended October 31, 2010, the following items, net of income taxes, were recorded related to the holding of the restructured notes of the MAV conduits: a gain on economic hedge transactions at a negligible amount (loss of $19 million in 2009) and $8 million in financing costs ($11 million in 2009). During the year ended October 31, 2009, the Bank had also recorded the following items, net of income taxes, with respect to the holding of the restructured notes of the MAV conduits: a $129 million loss on available-for-sale securities, $41 million in interest received or receivable, and $3 million in professional fees.
(2) During the quarter ended October 31, 2010, the Bank recognized a $15 million restructuring charge, net of income taxes. This charge consisted mostly of severance pay related to the restructuring of certain activities in the investment dealer subsidiary.
(3) During the quarter ended October 31, 2010, the Bank recognized a $2 million impairment of an intangible asset related to Altamira's activities.
(4) During the year ended October 31, 2010, a $75 million administrative penalty was recognized as part of the settlement of an ABCP industry-wide agreement.
(5) During the year ended October 31, 2009, an $86 million provision for credit losses, net of income taxes, had been recorded with respect to commitments to extend credit to clients holding the restructured notes of the MAV conduits.
(6) During the quarter ended October 31, 2010, an income tax provision of $25 million was reversed as a result of the revaluation of future income tax liabilities. During the year ended October 31, 2010, $50 million in income tax provisions were reversed as a result of a revaluation of future income tax liabilities.
   
   
   
Highlights  
(unaudited) (millions of dollars)  
   
      Quarter ended       Fiscal year ended      
   
  October 31, 2010   October 31, 2009   %
Change
October 31, 2010   October 31, 2009   %
Change
 
Operating results                      
Total revenues $1,095   $1,092   - $4,278   $4,131   4  
Total revenues adjusted for non-controlling interest(1) 1,084   1,080   - 4,273   4,133   3  
Net income 287   241   19 1,034   854   21  
Return on common shareholders' equity 18.0 % 16.7 %   17.0 % 15.6 %    
Per common share (dollars)                      
Earnings - basic $1.67   $1.40   19 $5.99   $4.96   21  
Earnings - diluted 1.66   1.39   19 5.94   4.94   20  
EXCLUDING SPECIFIED ITEMS(2)                      
Operating results                      
Total revenues $1,098   $1,093   - $4,289   $4,309   -  
Total revenues adjusted for non-controlling interest(1) 1,087   1,081   1 4,284   4,311   (1 )
Net income 282   243   16 1,084   1,061   2  
Return on common shareholders' equity 17.5 % 16.3 %   17.7 % 19.0 %    
Per common share (dollars)                      
Earnings - basic $1.64   $1.41   16 $6.30   $6.25   1  
Earnings - diluted 1.63   1.40   16 6.25   6.22   -  
Per common share (dollars)                      
Dividends declared $0.62   $0.62     $2.48   $2.48      
Book value           37.59   33.43      
Stock trading range                      
  High 67.87   62.08     67.87   62.08      
  Low 55.53   56.00     54.45   25.62      
  Close 67.13   56.39     67.13   56.39      
   
   
  As at October 31, 2010   As at October 31, 2009   % Change  
Financial position            
Total assets $145,301   $132,138   10  
Loans and acceptances(3) 63,134   58,370   8  
Deposits 81,785   75,170   9  
Subordinated debentures and shareholders' equity 9,241   8,494   9  
Capital ratios - BIS under Basel II            
  Tier 1 14.0 %(4) 10.7 %(5)    
  Total 17.5 %(4) 14.3 %(5)    
Capital ratios - BIS under Basel I            
  Tier 1 12.1 % 11.5 %    
  Total 15.6 % 15.2 %    
Impaired loans, net of specific and general allowances (267 ) (233 )    
  As a % of loans and acceptances (0.4 )% (0.4 )%    
Assets under administration/management 231,470   192,551      
Total personal savings 118,098   106,458      
Interest coverage 9.03   8.04      
Asset coverage 4.48   4.19      
Other information            
Number of employees 18,322   17,747   3  
Number of branches in Canada 442   445   (1
Number of banking machines 869   866   -  
(1) Adjusted for gains or losses mainly attributable to third parties.
(2) See "Financial Reporting Method" on page 2. 
(3) Net of securitized assets.
(4) Calculated using the AIRB Approach.
(5) Calculated using the Standardized Approach.
 
 
 
Segment Disclosures            
(unaudited) (millions of dollars)            
 
Quarter ended
October 31
2010 2009 2010 2009 2010 2009 2010   2009   2010 2009
    Personal   Wealth   Financial            
  and Commercial   Management   Markets     Other     Total
 
Net interest income(1) 394 357 30 26 213 203 (148 ) (121 ) 489 465
Other income(1) 227 228 165 165 147 209 67   25   606 627
Total revenues 621 585 195 191 360 412 (81 ) (96 ) 1,095 1,092
Operating expenses 365 358 151 153 205 174 (5 ) 15   716 700
Contribution 256 227 44 38 155 238 (76 ) (111 ) 379 392
Provision for credit losses 53 66 - - 2 8 (18 ) (20 ) 37 54
Income (loss) before income taxes (recovery) and non-controlling interest 203 161 44 38 153 230 (58 ) (91 ) 342 338
Income taxes (recovery)(1) 58 53 12 11 37 71 (79 ) (66 ) 28 69
Non-controlling interest - - 1 1 12 12 14   15   27 28
Net income (loss) 145 108 31 26 104 147 7   (40 ) 287 241
Average assets 62,934 57,599 981 909 93,499 88,809 (14,659 ) (14,098 ) 142,755 133,219
 
 
 
Fiscal year
ended
October 31
2010 2009 2010 2009 2010 2009   2010   2009   2010 2009
    Personal   Wealth   Financial              
  and Commercial   Management   Markets       Other     Total
 
Net interest income(2) 1,511 1,407 108 127 824 790   (531 ) (358 ) 1,912 1,966
Other income(2) 915 880 661 630 565 640   225   15   2,366 2,165
Total revenues 2,426 2,287 769 757 1,389 1,430   (306 ) (343 ) 4,278 4,131
Operating expenses 1,383 1,356 604 588 707 664   117   54   2,811 2,662
Contribution 1,043 931 165 169 682 766   (423 ) (397 ) 1,467 1,469
Provision for credit losses 207 214 - - 2 27   (65 ) 64   144 305
Income (loss) before income taxes (recovery) and non-controlling interest 836 717 165 169 680 739   (358 ) (461 ) 1,323 1,164
Income taxes (recovery)(2) 249 235 52 53 199 227   (279 ) (263 ) 221 252
Non-controlling interest - - 3 3 10 (1 ) 55   56   68 58
Net income (loss) 587 482 110 113 471 513   (134 ) (254 ) 1,034 854
Average assets 60,671 56,070 940 873 92,990 97,805   (14,243 ) (13,770 ) 140,358 140,978

Personal and Commercial

The Personal and Commercial segment comprises the branch network, intermediary services, credit cards, insurance, business banking services, and real estate.

Wealth Management

The Wealth Management segment comprises full-service retail brokerage, direct brokerage, mutual funds, trust services, and portfolio management.

Financial Markets

The Financial Markets segment encompasses corporate financing and lending, trading activities, treasury operations, including asset and liability management for the Bank, and corporate brokerage.

Other

This heading comprises securitization transactions, certain non-recurring items, and the unallocated portion of corporate services.

Taxable Equivalent

(1) The accounting policies are the same as those presented in Note 1 of the 2009 Annual Report, with the exception of the net interest income, other income and income taxes (recovery) of the operating segments, which 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 otherwise been payable. For the operating segments as a whole, net interest income was grossed up by $58 million ($36 million in 2009) and other income was grossed up by a negligible amount ($6 million in 2009). An equivalent amount was added to income taxes (recovery). The impact of these adjustments is reversed under the Other heading.
(2) For the year ended October 31, 2010, net interest income was grossed up by $206 million ($129 million in 2009) and other income was grossed up by a negligible amount ($19 million in 2009). An equivalent amount was added to income taxes (recovery). The impact of these adjustments is reversed under the Other heading.

Analysis of Results

TOTAL REVENUES

For the fourth quarter of 2010, the Bank's total revenues stood at $1,095 million compared to $1,092 million in the same quarter of 2009. The increase was partly due to higher net interest income in the Personal and Commercial segment, which rose by $37 million to total $394 million in the fourth quarter of fiscal 2010, resulting from growth in personal and commercial loan volumes. In addition, securitization revenues increased $31 million due to a higher volume of securitized mortgage loans, foreign exchange revenues rose by $7 million or 27%, and trust service and mutual fund revenues increased by $12 million, mainly due to growth in assets under administration. These increases were partly offset by lower trading activity revenues, which were down $59 million compared to the same quarter in 2009 when market conditions were more favourable, and by a $12 million decrease in net gains on available-for-sale securities and a $3 million decrease in card service revenues.

For fiscal 2010, total revenues amounted to $4,278 million, up $147 million or 4% from $4,131 million in the same period of 2009. Trading revenues were down $164 million due to less favourable market conditions, and securitization revenues decreased by $62 million due to narrower rate spreads. These decreases were more than offset by a $104 million increase in net interest income from the Personal and Commercial segment owing to higher loan volumes, a $19 million increase in securities brokerage commissions owing to a rebound in activity, and a combined $55 million increase in lending fees and revenues from acceptances, letters of credit and guarantee owing to fees collected on loan prepayments and greater activity with businesses. In addition, net gains on available-for-sale securities reached $113 million versus net losses of $97 million in fiscal 2009, largely due to the adjustment to the value of the restructured notes of the MAV conduits that had been recorded in the first quarter of 2009. Lastly, revenues from trust services and mutual fund fees totalled $374 million, up $47 million due to the increase in value of assets under management and administration.

OPERATING EXPENSES

In the fourth quarter of 2010, operating expenses totalled $716 million, up $16 million or 2% when compared to the same quarter of 2009. The increase was mainly due to a $28 million increase in salaries and staff benefits, which included severance pay related to the cost of restructuring certain activities of the Bank's investment dealer subsidiary. On the other hand, occupancy expenses decreased by $11 million as a charge for vacant premises had been recorded in the fourth quarter of 2009, and technology expenses decreased by $15 million as certain projects were completed in 2009.

For the year ended October 31, 2010, operating expenses stood at $2,811 million, up $149 million from fiscal 2009. The main factor underlying this change was the $75 million administrative penalty recorded as part of the settlement of an ABCP industry-wide agreement. Also, salaries and staff benefits increased by $86 million, the main factors being severance pay and staff hirings in the Bank network. On the other hand, occupancy and technology expenses decreased by $12 million due to the same reasons described for the fourth quarter.

PROVISION FOR CREDIT LOSSES

For the fourth quarter of 2010, the Bank recorded a $37 million provision for credit losses, $17 million less than in the same quarter of 2009, primarily due to more favourable economic conditions.

For the year ended October 31, 2010, the Bank recorded a $144 million provision for credit losses, down $161 million from fiscal 2009. The change stems mainly from a $126 million allowance for commitments to extend credit to clients that had been recorded in the first quarter of 2009 and a recovery of losses on commercial credit.

As at October 31, 2010, gross impaired loans stood at $369 million, a $38 million decrease since October 31, 2009. The decrease stems mainly from commercial and corporate loans. Impaired loans accounted for 6.7% of adjusted tangible capital and allowances, for a decrease of 1.6% compared to October 31, 2009.

As at October 31, 2010, the allowance for credit losses exceeded gross impaired loans by $267 million versus $233 million as at October 31, 2009. As at October 31, 2010, the impaired loans provisioning rate ratio was 56.1% compared to 45.2% as at October 31, 2009.

INCOME TAXES

Income taxes for the fourth quarter of 2010 stood at $28 million compared to $69 million in the fourth quarter of 2009 and $64 million in the previous quarter. The tax rate for the fourth quarter of 2010 was 8% compared to 20% in the same quarter of 2009 and 19% in the third quarter of 2010. The year-over-year drop in the tax rate was largely due to a $25 million reversal of a provision for income tax contingencies as well as to an increase in tax-exempt income. For fiscal 2010, the income tax expense was $221 million, for an effective tax rate of 17%. This expense includes $50 million in reversals of provisions for income tax contingencies, offset by the tax impact of the administrative penalty related to the ABCP industry-wide agreement. The income tax expense was $252 million for fiscal 2009, when the effective tax rate had been 22%.

Results by Segment

PERSONAL AND COMMERCIAL

Net income for the Personal and Commercial segment rose 34% to total $145 million for the fourth quarter of 2010. Total revenues for the Personal and Commercial segment increased by $36 million to total $621 million, mainly due to the segment's growth in net interest income, which increased by $37 million to total $394 million for the fourth quarter of 2010. This growth came mainly from a solid increase in loan volumes and to a slight increase in the net interest margin, which was 2.48% in the fourth quarter of 2010 versus 2.46% in the same quarter of 2009.

Total revenues at Personal Banking were $416 million, a $20 million increase arising mainly from higher loan volumes, partly offset by a narrowing of net interest margins on deposits. Total revenues at Commercial Banking were $205 million, a $16 million increase owing mainly to higher loan volumes, higher acceptances and lending fees, and higher net interest margins on deposits.

Operating expenses for the Personal and Commercial segment increased by $7 million, or 2%, to total $365 million in the fourth quarter of 2010. However, the efficiency ratio was 59% for the fourth quarter of 2010 compared to 61% for the same quarter of 2009. The segment's provision for credit losses was down $13 million to total $53 million, with the main decline relating to credit card receivables.

For fiscal 2010, the Personal and Commercial segment's net income stood at $587 million, a $105 million or 22% increase from the $482 million in net income recorded in fiscal 2009. Total revenues for the segment rose 6% to total $2,426 million. Total revenues at Personal Banking grew $101 million or 7%, mainly due to higher loan volumes. Total revenues at Commercial Banking rose $38 million or 5%. The segment's provision for credit losses was $7 million lower than in fiscal 2009. This decrease was mainly attributable to loans to businesses. The efficiency ratio fell to 57% for fiscal 2010 compared to 59% for fiscal 2009.

WEALTH MANAGEMENT

Net income for the Wealth Management segment, excluding specified items, totalled $33 million in the fourth quarter of 2010, up $7 million or 27% from $26 million in the same quarter of 2009. Total revenues were $195 million compared to $191 million in the fourth quarter of 2009. Assets under management and administration increased during the fourth quarter of 2010, generating growth in trust service and mutual fund revenues. Owing to strict cost control, operating expenses fell by $2 million to stand at $151 million in the fourth quarter of 2010.

For fiscal 2010, excluding specified items, net income for Wealth Management totalled $112 million compared to $113 million in the same period of 2009. Total revenues for the segment stood at $769 million, as against $757 million in the same period of 2009, primarily due to other income, which was up $31 million or 5%. This increase was attributable to robust brokerage activities and mutual fund revenues and was tempered by a narrower net interest margin on deposits. Operating expenses increased $16 million to stand at $604 million. The increase in salaries and variable compensation was due to higher revenues from retail securities brokerage commissions, as brokerage activity rebounded.

FINANCIAL MARKETS

The Financial Markets segment posted net income, excluding specified items, of $119 million in the fourth quarter of 2010, down $28 million from the same quarter of 2009 when market conditions were favourable to trading activity. On a taxable equivalent basis, total revenues stood at $360 million compared to $412 million in the fourth quarter of 2009. Including revenues adjusted for non-controlling interest related to trading activities, fourth quarter revenues totalled $349 million compared to $400 million for the same quarter of 2009. On a taxable equivalent basis, trading activity revenues stood at $141 million for the quarter, down $55 million from the same year-earlier quarter, mainly because revenues from fixed-income securities were down due to the highly favourable financial market conditions that had characterized the fourth quarter of 2009. The increase in the Other revenues of the Financial Markets segment was mainly due to the contribution from the Credigy Ltd subsidiary.

Fourth quarter operating expenses stood at $205 million, up $31 million from the fourth quarter of 2009. The increase stems mainly from a fourth quarter restructuring charge of $22 million, consisting mainly of severance pay related to the restructuring of certain activities in the investment dealer subsidiary. Costs related to the operations of Credigy Ltd increased during the quarter. For the fourth quarter of 2010, the segment recorded a $2 million provision for credit losses, down $6 million year over year.

For fiscal 2010, net income for the segment, excluding specified items, was $486 million, down $27 million from the same period in 2009. On a taxable equivalent basis, total revenues amounted to $1,389 million compared to $1,430 million for fiscal 2009. Including revenues adjusted for non-controlling interest related to trading activities, the revenues from Financial Markets totalled $1,384 million, down $48 million from fiscal 2009. This decrease can be explained by the decline in trading activity revenues, offset by the increase in Other income, revenues from banking services, and financial market fee revenues, which benefited from the recovery during the first six months of 2010. Operating expenses stood at $707 million, a $43 million increase from fiscal 2009. Besides the $22 million restructuring charge, the increase in operating expenses was mainly due to the costs related to the operations of Credigy Ltd and transaction-related expenses. For fiscal 2010, the segment recorded a provision for credit losses of $2 million, a $25 million decrease compared to fiscal 2009. This decrease was mainly due to the recovery of credit losses realized during fiscal 2010.

Financial Market Revenues
(taxable equivalent basis(1))
(millions of dollars)
    Q4   Fiscal year
  2010 2009 2010 2009
 
Trading activity revenues        
  Equity 73 68 243 205
  Fixed income 46 110 199 388
  Commodity and foreign exchange 22 18 85 91
  141 196 527 684
Financial market fees 60 59 244 227
Gains on available-for-sale securities, net 7 20 89 93
Banking services 66 64 262 239
Other 75 61 262 189
Total(2) 349 400 1,384 1,432
(1) See "Financial Reporting Method" on page 2.
(2) Excluding non-controlling interest.

OTHER

The Other heading of segment results posted a net gain of $7 million in the fourth quarter of 2010 versus a net loss of $40 million in the same quarter of 2009. This year-over-year change is explained mostly by higher revenues from securitization activities and by the reversal of a provision for income tax contingencies. Charges related to holding the restructured notes of the MAV conduits were negligible for the fourth quarters of 2010 and 2009.

For fiscal 2010, the net loss was $134 million compared to a $254 million net loss for fiscal 2009. During fiscal 2010, the Bank recorded $8 million, net of income taxes, in charges related to holding the restructured notes, a $75 million administrative penalty, and $50 million in reversals of provisions for income tax contingencies. In fiscal 2009, the Bank had recorded $121 million, net of income taxes, in charges related to holding these notes and an $86 million charge, net of income taxes, related to commitments to extend credit to clients holding restructured notes. Lastly, there was a decrease in revenues from securitization activities.

Balance Sheet

As at October 31, 2010, the Bank had total assets of $145.3 billion compared to $132.1 billion as at October 31, 2009. Loan and acceptance balances increased $4.8 billion. Cash, deposits with financial institutions, securities, and securities purchased under reverse repurchase agreements increased by $7.3 billion since October 31, 2009, mainly due to increases in held-for-trading securities and securities purchased under reverse repurchase agreements.

The following table presents the main portfolios:

Average Monthly Volumes
(millions of dollars)
  October 2010 October 2009
 
Loans and acceptances(1)    
Consumer loans 19,553 17,135
Residential mortgages 25,413 23,310
Credit card receivables 1,907 1,950
SME loans 17,263 15,805
Corporate loans 6,219 7,016
  70,355 65,216
 
Personal savings (balance)    
Deposits 34,112 34,609
 
Full-service brokerage 65,762 54,620
Mutual funds 13,193 11,864
Other 5,031 5,365
  83,986 71,849
 
Business deposits 14,872 13,288
(1) Including securitized assets.

Loan and acceptance volumes increased $5.2 billion or 8% from a year ago, totalling $70.4 billion as at October 31, 2010. At October 31, 2010, consumer loans totalled $19.6 billion, rising 14% since October 31, 2009, with the increase coming mainly from secured home equity lines of credit. Residential mortgages were up 9% from October 31, 2009, totalling $25.4 billion as at October 31, 2010. SME loans also contributed to this increase, as volumes reached $17.3 billion as at October 31, 2010, up $1.5 billion or 9% from a year earlier. At $6.2 billion as at October 31, 2010, corporate loans were down 11% from a year ago.

At $34.1 billion as at October 31, 2010, personal deposits were down $0.5 billion or 1% since October 31, 2009. Off-balance sheet personal savings administered by the Bank totalled $84.0 billion at the end of the fourth quarter of 2010, up 17% since October 31, 2009, mainly due to a rebound in stock markets. Business deposits were up 12% or $1.6 billion since October 31, 2009, amounting to $14.9 billion as at October 31, 2010.

As at October 31, 2010, the Bank's shareholders' equity was $7.2 billion compared to $6.5 billion as at October 31, 2009. This increase is explained by net income less dividends and by the reinvestment of dividends into common shares. Moreover, accumulated other comprehensive income amounted to $168 million as at October 31, 2010 compared to $96 million as at October 31, 2009. This change was mainly due to the increase in unrealized gains on available-for-sale securities, net of fair value hedging transactions, and the increase in gains on derivative financial instruments designated as cash flow hedges.

Shares and Stock Options as at October 31, 2010  
 
  Number    
  of shares   $ million
First Preferred Shares      
  Series 15 8,000,000   200
  Series 16 8,000,000   200
  Series 20 6,900,000   173
  Series 21 8,050,000   201
  Series 24 6,800,000   170
  Series 26 5,800,000   145
  43,550,000   1,089
Common shares 162,771,816 (1) 1,804
Stock options 8,485,086 (1)  
(1) As at November 26, 2010, there were 162,548,262 common shares and 8,470,111 stock options outstanding.

MASTER ASSET VEHICLES

As at October 31, 2010, the face value of the restructured notes of the master asset vehicle (MAV) conduits held by the Bank was $1,926 million ($1,954 million as at October 31, 2009), of which $1,664 million was designated as Held-for-trading securities under the fair value option, and an amount of $262 million was classified in Available-for-sale securities ($1,685 million designated as Held-for- trading securities and $269 million classified in Available-for-sale securities as at October 31, 2009). The table below provides a breakdown of the face value of the restructured notes of the MAV conduits (which replaced asset-backed commercial paper "ABCP" under the restructuring plan for these instruments) held by the Bank:

(millions of dollars) As at
October 31, 2010
As at
October 31, 2009
MAV I    
  Class A-1 601 604
  Class A-2 553 553
  Class B 94 94
  Class C 39 39
  IA tracking notes for ineligible assets 44 77
Total MAV I 1,331 1,367
MAV II    
  Class A-1 106 98
  Class A-2 87 79
  Class B 18 14
  Class C 7 6
  IA tracking notes for ineligible assets 12 11
Total MAV II 230 208
MAV III    
  TA tracking notes for traditional assets 53 85
  IA tracking notes for ineligible assets 171 148
Total MAV III 224 233
ABCP not included in the Pan-Canadian restructuring plan 141 146
Total 1,926 1,954

As part of the Montreal Accord restructuring, swap counterparties to MAV I and MAV II agreed to an 18-month post-closing moratorium period during which time margin calls could not occur. On July 16, 2010, the moratorium period expired. As a result, certain transactions held by the MAVs are now exposed to collateralization triggers. The Bank has committed to contribute $911 million to a margin funding facility in order to finance potential collateral calls. As at October 31, 2010, no amount had been advanced by the Bank.

Establishing Fair Value

To determine the value of the restructured notes of the MAV conduits it is holding, the Bank has established ranges of estimated fair value. The carrying value of the notes held by the Bank in an investment portfolio as at October 31, 2010, designated as Held-for-trading securities, was $1,147 million, and $53 million was classified in Available-for-sale securities ($1,147 million designated as Held-for- trading securities and $78 million classified in Available-for-sale securities as at October 31, 2009). The notes held in an investment portfolio with one or more embedded derivatives were designated as Held-for-trading securities under the fair value option, and the other notes were classified in Available-for-sale securities. The table below provides a breakdown of the carrying value of the restructured notes of the MAV conduits held by the Bank:

(millions of dollars) As at
October 31, 2010
  As at
October 31, 2009
 
MAV I and MAV II 1,118   1,109  
MAV III 44   72  
ABCP not included in the Pan-Canadian restructuring plan 38   44  
Carrying value of the notes 1,200   1,225  
Margin funding facilities (55 ) (63 )
Total 1,145   1,162  

Since the carrying value of the restructured notes of the MAV conduits held by the Bank as at October 31, 2009 was within the range of the estimated fair value as at October 31, 2010, no change was made to the carrying value as at October 31, 2010. On September 21, 2010, the ratings of MAV I and MAV II Class A-1 notes were upgraded to "A (high) (sf)" from "A (sf)," and the ratings were removed from "under review with positive implications" where they had been placed on June 22, 2010. At the same time, the ratings on MAV I Class A-2 notes were confirmed at "A (sf)" and "BBB (low) (sf)" for the MAV II Class A-2 notes.

Credit Facilities to Clients Holding the Restructured Notes of the MAV conduits

As at October 31, 2010, credit facilities outstanding provided to clients holding the restructured notes of the MAV conduits stood at $143 million ($285 million as at October 31, 2009) and the allowance for credit losses was $121 million ($148 million as at October 31, 2009). In total, the collateral related to the credit facilities offered to clients is estimated as follows:

(millions of dollars)       
      Credit
    Credit facilities
  Face facilities backed by the
  value backed by restructured
Collateral of the IA tracking notes of the
As at October 31, 2010 notes notes (1) MAV conduits (2)
MAV II      
  Class A-1 302 - 244
  Class A-2 277 - 225
  Class B 50 - 41
  Class C 19 - 15
  IA tracking notes for ineligible assets 107 70 -
Total MAV II 755 70 525
MAV III      
  TA tracking notes for traditional assets 15 - 13
  IA tracking notes for ineligible assets 110 79 -
Total MAV III 125 79 13
Total 880 149 538
 
 
 
(millions of dollars)      
      Credit
    Credit facilities
  Face facilities backed by the
  value backed by restructured
Collateral of the IA tracking notes of the
As at October 31, 2009 notes notes (1) MAV conduits (2)
MAV II      
  Class A-1 423 - 327
  Class A-2 405 - 311
  Class B 73 - 56
  Class C 28 - 22
  IA tracking notes for ineligible assets 130 94 -
Total MAV II 1,059 94 716
MAV III      
  TA tracking notes for traditional assets 45 - 27
  IA tracking notes for ineligible assets 156 130 -
Total MAV III 201 130 27
Total 1,260 224 743
(1) These credit facilities represent 75% of the face value of the notes and are guaranteed by the notes, less repayment of their capital.
(2) These credit facilities represent 75% of the face value of the notes, of which 30% are full recourse to the borrower and 45% guaranteed by the notes, less repayment of their capital.

Capital

Since November 1, 2009, the Bank has been applying the Advanced Internal Rating-Based Approach (AIRB Approach) for credit risk; before that date, it was using the Standardized Approach. For operational risk, the Bank is using the Standardized Approach and, for market risk, it continues to use the models and the Standardized Approach in accordance with the Basel II Accord.

According to the rules of the Bank for International Settlements (BIS) – Basel II – and using the AIRB Approach for credit risk, the Tier 1 capital ratio and the total capital ratio stood at 14.0% and 17.5%, respectively, as at October 31, 2010; as at October 31, 2009, under the Standardized Approach of Basel II, these same ratios were 10.7% and 14.3%, respectively. This increase in the capital ratios was largely due to the Bank's adoption of the AIRB Approach as well as to the growth in retained earnings.

The risk-weighted assets calculated under the rules of Basel II decreased and amounted to $49.8 billion as at October 31, 2010 compared to $58.6 billion as at October 31, 2009.

Dividends

The Board of Directors declared regular dividends on the various classes and series of preferred shares and a dividend of 66 cents per common share, an increase of 4 cents per share, payable on February 1, 2011 to shareholders of record on December 23, 2010.

CONSOLIDATED FINANCIAL STATEMENTS  
   
Consolidated Balance Sheets  
(unaudited) (millions of dollars)  
   
  As at October 31, 2010   As at
July 31, 2010
  As at October 31, 2009  
   
ASSETS            
Cash 261   272   296  
Deposits with financial institutions 2,013   2,586   1,932  
   
Securities            
Available-for-sale 10,997   10,149   13,281  
Held-for-trading 43,271   41,892   36,952  
  54,268   52,041   50,233  
   
Securities purchased under reverse repurchase agreements 10,878   15,192   7,637  
   
Loans            
Residential mortgage 15,806   15,784   14,961  
Personal and credit card 20,549   20,039   18,313  
Business and government 21,469   21,276   20,003  
  57,824   57,099   53,277  
Allowances for credit losses (636 ) (655 ) (640 )
  57,188   56,444   52,637  
   
Other            
Customers' liability under acceptances 5,946   5,984   5,733  
Fair value of derivative financial instruments 8,120   6,981   7,516  
Premises and equipment 381   379   362  
Goodwill 744   744   746  
Intangible assets 480   459   397  
Due from clients, dealers and brokers 2,909   3,082   2,578  
Other assets 2,113   2,169   2,071  
  20,693   19,798   19,403  
  145,301   146,333   132,138  
   
LIABILITIES AND SHAREHOLDERS' EQUITY            
Deposits            
Personal 34,112   34,072   34,609  
Business and government 41,985   38,760   36,698  
Deposit-taking institutions 5,463   8,569   3,638  
Deposit from NBC Capital Trust 225   225   225  
  81,785   81,626   75,170  
   
Other            
Acceptances 5,946   5,984   5,733  
Obligations related to securities sold short 18,292   19,265   13,221  
Securities sold under repurchase agreements 12,513   13,876   12,736  
Fair value of derivative financial instruments 6,631   6,182   5,947  
Due to clients, dealers and brokers 3,131   3,393   3,017  
Other liabilities 6,563   6,087   6,623  
  53,076   54,787   47,277  
Subordinated debentures 2,033   2,019   2,017  
Non-controlling interest 1,199   966   1,197  
   
Shareholders' equity            
Preferred shares 1,089   1,089   1,089  
Common shares 1,804   1,784   1,729  
Contributed surplus 66   59   48  
Retained earnings 4,081   3,912   3,515  
Accumulated other comprehensive income 168   91   96  
  7,208   6,935   6,477  
  145,301   146,333   132,138  
   
   
   
Consolidated Statements of Income  
(unaudited) (millions of dollars)  
   
          Quarter ended     Fiscal year ended  
  October
31, 2010
  July 31, 2010   October
31, 2009
October
31, 2010
  October
31, 2009
 
   
Interest income                  
Loans 533   492   447 1,924   2,029  
Available-for-sale securities 53   50   41 216   399  
Held-for-trading securities 225   186   161 748   756  
Deposits with financial institutions 2   1   1 5   12  
  813   729   650 2,893   3,196  
   
Interest expense                  
Deposits 187   134   142 599   820  
Subordinated debentures 26   26   27 100   102  
Other 111   68   16 282   308  
  324   228   185 981   1,230  
Net interest income 489   501   465 1,912   1,966  
   
Other income                  
Underwriting and advisory fees 65   72   63 268   267  
Securities brokerage commissions 75   70   76 301   282  
Deposit and payment service charges 58   58   58 229   230  
Trading revenues (losses) (6 ) (90 ) 47 (78 ) 12  
Gains (losses) on available-for-sale securities, net 8   31   20 113   (97 )
Card service revenues 7   15   10 42   37  
Lending fees 40   48   40 168   140  
Insurance revenues 30   32   32 121   117  
Revenues from acceptances, letters of credit and guarantee 38   37   36 146   119  
Securitization revenues 89   69   58 289   351  
Foreign exchange revenues 33   27   26 109   110  
Trust services and mutual funds 100   92   88 374   327  
Other 69   92   73 284   270  
  606   553   627 2,366   2,165  
Total revenues 1,095   1,054   1,092 4,278   4,131  
Provision for credit losses 37   28   54 144   305  
  1,058   1,026   1,038 4,134   3,826  
   
Operating expenses                  
Salaries and staff benefits 431   403   403 1,624   1,538  
Occupancy 44   46   55 180   192  
Technology 85   88   100 364   390  
Communications 18   18   18 71   76  
Professional fees 53   48   52 205   180  
Other 85   78   72 367   286  
  716   681   700 2,811   2,662  
Income before income taxes and non-controlling interest 342   345   338 1,323   1,164  
Income taxes 28   64   69 221   252  
  314   281   269 1,102   912  
Non-controlling interest 27   10   28 68   58  
Net income 287   271   241 1,034   854  
Dividends on preferred shares 16   16   16 63   59  
Net income available to common shareholders 271   255   225 971   795  
Number of common shares outstanding (thousands)                  
  Average - basic 162,372   162,133   161,034 162,054   160,263  
  Average - diluted 163,751   163,259   162,276 163,337   160,901  
Earnings per common share (dollars)                  
  Basic 1.67   1.57   1.40 5.99   4.96  
  Diluted 1.66   1.56   1.39 5.94   4.94  
Dividends per common share (dollars) 0.62   0.62   0.62 2.48   2.48  
   
   
   
Consolidated Statements of Comprehensive Income  
(unaudited) (millions of dollars)  
   
          Quarter ended       Fiscal year ended  
  October
31, 2010
  July 31, 2010   October
31, 2009
  October
31, 2010
  October
31, 2009
 
   
Net income 287   271   241   1,034   854  
   
Other comprehensive income, net of income taxes                    
   
Net unrealized foreign currency gains (losses) on translating financial statements of self-sustaining foreign operations 1   (1 ) (11 ) (124 ) (185 )
Reclassification to net income of foreign currency (gains) losses on translating financial statements of self-sustaining foreign operations -   -   -   1   -  
Impact of hedging net foreign currency translation gains (losses) (2 ) (10 ) (2 ) 92   156  
Reclassification to net income of the impact of hedging foreign currency translation (gains) losses -   -   -   (2 ) -  
Net change in unrealized foreign currency translation gains (losses), net of hedging activities (1 ) (11 ) (13 ) (33 ) (29 )
   
Net unrealized gains (losses) on available-for-sale securities 64   31   56   171   265  
Reclassification to net income of (gains) losses on available-for-sale securities (8 ) (43 ) (15 ) (110 ) (94 )
Net change in unrealized gains (losses) on available-for-sale securities, net of fair value hedge transactions 56   (12 ) 41   61   171  
   
Net gains (losses) on derivative financial instruments designated as cash flow hedges 29   106   (4 ) 50   62  
Reclassification to net income of (gains) losses on derivative financial instruments designated as cash flow hedges (7 ) 6   (15 ) (6 ) (46 )
Net change in gains (losses) on derivative financial instruments designated as cash flow hedges 22   112   (19 ) 44   16  
   
Total other comprehensive income, net of income taxes 77   89   9   72   158  
   
Total comprehensive income 364   360   250   1,106   1,012  
   
   
   
INCOME TAXES - OTHER COMPREHENSIVE INCOME  
(unaudited) (millions of dollars)  
   
The income tax charge or recovery for each component of other comprehensive income is presented in the following table:  
   
          Quarter ended       Fiscal year ended  
  October
31, 2010
  July 31, 2010   October
31, 2009
  October
31, 2010
  October
31, 2009
 
   
Net unrealized foreign currency gains (losses) on translating financial statements of self-sustaining foreign operations (3 ) 2   (2 ) (7 ) (8 )
Impact of hedging net foreign currency translation gains (losses) 3   (5 ) -   30   63  
Net unrealized gains (losses) on available-for-sale securities 25   13   27   71   118  
Reclassification to net income of (gains) losses on available-for-sale securities (4 ) (19 ) (6 ) (48 ) (41 )
Net gains (losses) on derivative financial instruments designated as cash flow hedges 14   45   (7 ) 22   22  
Reclassification to net income of (gains) losses on derivative financial instruments designated as cash flow hedges  
(3
 
)
 
2
 
 
 
(7
 
)
 
(2
 
)
 
(21
 
)
Total income taxes 32   38   5   66   133  
   
   
   
Consolidated Statements of Changes in Shareholders' Equity  
(unaudited) (millions of dollars)  
   
Fiscal year ended October 31 2010   2009  
   
Preferred shares at beginning 1,089   774  
Issuances of preferred shares, Series 24 and 26 -   315  
Preferred shares at end 1,089   1,089  
   
Common shares at beginning 1,729   1,656  
Issuances of common shares        
  Dividend Reinvestment and Share Purchase Plan 29   29  
  Stock Option Plan 44   42  
  Other 2   2  
Common shares at end 1,804   1,729  
   
Contributed surplus at beginning 48   31  
Stock option expense 14   13  
Stock options exercised (7 ) (6 )
Other 11   10  
Contributed surplus at end 66   48  
   
Retained earnings at beginning 3,515   3,110  
Net income 1,034   854  
Dividends        
  Preferred shares (63 ) (59 )
  Common shares (402 ) (398 )
Share issuance and other expenses, net of income taxes (3 ) 8  
Retained earnings at end 4,081   3,515  
   
Accumulated other comprehensive income at beginning, net of income taxes 96   (62 )
Net change in unrealized foreign currency translation gains (losses), net of hedging activities (33 ) (29 )
Net change in unrealized gains (losses) on available-for-sale securities, net of fair value hedge transactions 61   171  
Net change in gains (losses) on derivative financial instruments designated as cash flow hedges 44   16  
Accumulated other comprehensive income at end, net of income taxes 168   96  
   
Shareholders' equity 7,208   6,477  
   
   
   
RETAINED EARNINGS AND ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF INCOME TAXES  
(unaudited) (millions of dollars)  
   
As at October 31 2010   2009  
   
Retained earnings 4,081   3,515  
   
Accumulated other comprehensive income, net of income taxes        
Unrealized foreign currency translation gains (losses), net of hedging activities (133 ) (100 )
Unrealized gains (losses) on available-for-sale securities, net of fair value hedge transactions 93   32  
Gains (losses) on derivative financial instruments designated as cash flow hedges 208   164  
  168   96  
   
Total 4,249   3,611  

Caution Regarding Forward-Looking Statements

From time to time, National Bank of Canada (the Bank) makes written and oral forward-looking statements, such as those contained in the "Major Economic Trends and Outlook" section and under the "Medium-term objectives" heading in the "Overview" section of the 2009 Annual Report, in other filings with Canadian securities regulators and in other communications, for the purpose of describing the economic environment in which the Bank will operate during fiscal 2011 and the objectives it has set for itself for that period. These forward-looking statements are made pursuant to the "safe harbour" provisions of Canadian and U.S. securities legislation. They include, among others, statements with respect to the economy—particularly the Canadian and U.S. economies—market changes, observations regarding the Bank's objectives and its strategies for achieving them, Bank projected financial returns and certain risks faced by the Bank. These forward-looking statements are typically identified by future or conditional verbs or words such as "outlook," "believe," "anticipate," "estimate," "project," "expect," "intend," "plan," and terms and expressions of similar import.

By their very nature, such forward-looking statements require assumptions to be made and involve inherent risks and uncertainties, both general and specific. Assumptions about the performance of the Canadian and U.S. economies in 2011 and how that will affect the Bank's business are among the main factors considered in setting the Bank's strategic priorities and objectives and in determining its financial targets, including provisions for credit losses. In determining its expectations for economic growth, both broadly and in the financial services sector in particular, the Bank primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. Tax laws in the countries in which the Bank operates, primarily Canada and the United States, are major factors it considers when establishing its effective tax rate. There is a strong possibility that express or implied projections contained in such statements will not materialize or will not be accurate. The Bank recommends that readers not place undue reliance on these statements, as a number of factors, many of which are beyond the Bank's control, could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. These factors include the management of credit, market and liquidity risks; the strength of the Canadian and U.S. economies and the economies of other countries in which the Bank conducts business; the impact of the movement of the Canadian dollar relative to other currencies, particularly the U.S. dollar;

the effects of changes in monetary policy, including changes in interest rate policies of the Bank of Canada and the U.S. Federal Reserve; the effects of competition in the markets in which the Bank operates; the impact of changes in the laws and regulations regulating financial services and enforcement thereof (including banking, insurance and securities); judicial proceedings, regulatory proceedings or claims, class actions or other recourses of various nature; the situation with respect to the restructured notes of the master asset vehicle conduits, in particular the realizable value of underlying assets; the Bank's ability to obtain accurate and complete information from or on behalf of its clients or counterparties; the Bank's ability to successfully realign its organization, resources and processes; its ability to complete strategic acquisitions and integrate them successfully; changes in the accounting policies and methods the Bank uses to report its financial condition, including uncertainties associated with critical accounting assumptions and estimates; the Bank's ability to recruit and retain key officers; operational risks, including risks related to the Bank's reliance on third parties to ensure access to the infrastructure essential to the Bank's business as well as other factors that may affect future results, including changes in trade policies; timely development of new products and services; changes in estimates relating to reserves; changes in tax laws; technological changes; unexpected changes in consumer spending and saving habits; natural disasters; the possible impact on the business from public health emergencies, conflicts, other international events and developments, including those relating to the war on terrorism; and the Bank's success in anticipating and managing the foregoing risks. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition, or liquidity.

The foregoing list of risk factors is not exhaustive. Additional information about these factors can be found under "Risk Management" and "Factors That Could Affect Future Results" in the 2009 Annual Report. Investors and others who base themselves on the Bank's forward- looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Bank also cautions readers not to place undue reliance on these forward-looking statements. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time, by it or on its behalf.

The forward-looking information contained in this document is presented for the purpose of interpreting the information contained herein and may not be appropriate for other purposes.

Information for Shareholders and Investors

DISCLOSURE OF FOURTH QUARTER 2010 RESULTS

Conference Call

  • A conference call for analysts and institutional investors will be held on December 1, 2010 at 9:30 a.m. ET.

  • Access by telephone in listen-only mode: 1-866-223-7781 or 416-340-8018.

  • A recording of the conference call can be heard until December 10, 2010 by calling 1-800-408-3053 or 416-695-5800. The access code is 7824042#.

Webcast

  • The conference call will be webcast live at www.nbc.ca/investorrelations.

  • A recording of the webcast will also be available on the Internet after the call.

Financial Documents

  • The quarterly consolidated financial statements are available at all times on National Bank's website at www.nbc.ca/investorrelations.

  • Supplementary financial information 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.

  • The audited consolidated financial statements and the MD&A for fiscal 2010 will soon be available on the National Bank's website.

Contact Information

  • National Bank Financial Group
    Patricia Curadeau-Grou
    Chief Financial Officer and Executive Vice-President
    Finance, Risk and Treasury
    514-394-6619
    or
    National Bank Financial Group
    Jean Dagenais
    Senior Vice-President
    Finance Taxation and Investor Relations
    514-394-6233
    or
    National Bank Financial Group
    Claude Breton
    Senior Director
    Public Relations
    514-394-8644
    or
    National Bank Financial Group
    Helene Baril
    Senior Director
    Investor Relations
    514-394-0296