December 2013

Growth in FY 2013 for Canada's Top 6 Banks

The top 6 Canadian banks reported FY 2013 collective net income of almost $ 31 billion, or an increase of 4.6 % vs. the year before. While the big 5 Canadian banks improved profits vs. FY 2012, National Bank actually saw a decline of -4.9%

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 FY 2013 results)

Top 6 Banks FY 2013 % Share of Top 6 Revenue

Overall revenue growth improved vs. FY 2012, but not at the same rate Scotia led in terms of % growth National Banks revenue actually dipped slightly VYA

Total Revenue RBC TD Scotia BMO CIBC National Bank

$MM -FY 2013 30,867.0 27,262.0 21,343.0 16,263.0 12,783.0 5,163.0 113,681.0

FY 2012 % Change VYA 29,772.0 3.7 25,546.0 19,701.0 16,130.0 12,549.0 5,313.0 6.7 8.3 0.8 1.9 -2.8

109,011.0

4.3

Top 6 Banks FY 2013 % Share of Top 6 Net Income

While RBC showed an impressive growth in net income, the rest of the major banks saw single-digit growth - National Bank actually saw a dip of 4.9% VYA Scotia edged ahead of TD in Reported Net Income

Reported Net Income RBC TD Scotia BMO CIBC National Bank

$ - FY 2013 8,429.0
6,662.0 6,697.0 4,248.0 3,400.0 1,554.0 30,990.0

FY 2012 % Change VYA 7,539.0 11.8

6,471.0 6,466.0 4,189.0 3,339.0 1,634.0 29,638.0 3.0 3.6 1.4 1.8 -4.9 4.6

Top 6 Banks FY 2013 Return on Equity (ROE)

With the exception of RBC, the major banks reported negative ROE figures for FY 2013 vs. FY 2012

Reported ROE - % RBC TD Scotia BMO CIBC National Bank

FY 2013 19.4 14.0 16.4 14.9 20.9 20.6

FY 2012 % Change VYA 19.3 0.5 14.9 19.7 15.9 22.0 24.5 -6.0 -16.8 -6.3 -5.0 -15.9

Top 6 Banks FY 2013 Earnings Per Share (EPS)

While RBC led in terms of a % increase in EPS vs. FY 2012, it was the National Bank that led in EPS, albeit declining VYA

Preventing a clean sweep by RBC, National Bank led in Earnings per Share (EPS) Both CIBC and RBC however posted significant improvements vs. Q3 2011

Reported EPS (diluted) RBC TD Scotia BMO CIBC National Bank

$ - FY 2013 5.54 6.91 5.15 6.26 8.23 8.80

FY 2012 % Change VYA 4.93 12.4 6.76 5.22 6.15 7.85 9.32 2.2 -1.3 1.8 4.8 -5.6

Deepak Pershad, Principal dpershad@insightsbydesign.ca www.insightsbydesign.ca