National Bank Releases Its Fourth Quarter and Year-End 2011 Results
- Record net income of $1,213 million for fiscal 2011 - At 75 cents per share, the quarterly dividend increased by 6%
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwire) -- 12/08/11 -- (TSX: NA) - This press release provides unaudited financial information that is based on the interim unaudited consolidated financial statements and on the annual audited consolidated financial statements prepared in accordance with Canadian generally accepted accounting principles (GAAP). It should be read together with the 2011 Annual Report (which includes the annual audited consolidated financial statements and corresponding management's discussion and analysis) available on the Bank's website at . Additional information about National Bank of Canada, including the Annual Information Form, can be obtained from the SEDAR website at or the Bank's website at .
Highlights:
Highlights excluding specified items(1):
National Bank reports net income of $294 million in the fourth quarter of fiscal 2011, up 2% from $287 million in the fourth quarter of 2010. Diluted earnings per share for the quarter ended October 31, 2011 stood at $1.74, up $0.08 or 5% from $1.66 in the same quarter of 2010. These fourth quarter results include $4 million, net of income taxes, in charges related to the Wellington West Holdings Inc. acquisition and $5 million, net of income taxes, in severance pay resulting from the streamlining of certain financial markets activities. In fiscal 2010, the fourth quarter specified items had included a $15 million restructuring charge, net of income taxes, a $2 million impairment of an intangible asset, a $25 million reversal of provisions for income tax contingencies, and $3 million, net of income taxes, in holding charges for restructured notes. Excluding specified items, fourth quarter net income was $303 million, up 7% from $282 million in the fourth quarter of 2010, and fourth quarter diluted earnings per share were $1.80, up 10% from $1.63 in the fourth quarter of 2010.
For fiscal 2011, the Bank's net income totalled $1,213 million, up 17% from $1,034 million in fiscal 2010. Diluted earnings per share stood at $6.85 for fiscal 2011, up $0.91 or 15% from $5.94 in fiscal 2010. Excluding the specified items described on page 2, net income for fiscal 2011 was $1,203 million, up 11% from $1,084 million in fiscal 2010, and diluted earnings per share were $7.00 for fiscal 2011 compared to $6.25 for fiscal 2010.
"National Bank delivered record results for 2011 and raised its dividend by 6% to $0.75 per share for the next quarter. The One client, one bank program enjoyed steady progress during the year, and the Bank will continue deploying it in 2012. Given the economic and financial uncertainty, especially in Europe, the Bank will remain vigilant in the management of its operations," said President and Chief Executive Officer, Louis Vachon.
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 are not standard under GAAP and cannot be easily compared with similar measurements used by other companies.
Financial Information
(unaudited) (millions of dollars)
Highlights
(unaudited) (millions of dollars)
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 basis
Analysis of Results
TOTAL REVENUES
The Bank's total revenues for the fourth quarter of 2011 amounted to $1,190 million compared to $1,098 million in the same quarter of 2010. Including non-controlling interests, fourth quarter total revenues totalled $1,194 million, up $107 million or 10% from $1,087 million in the same quarter of 2010. Net interest income in the Personal and Commercial segment totalled $403 million in the fourth quarter of 2011, an $8 million increase owing mainly to growth in personal and commercial loan volumes that offset a decline in net interest margins. Fourth quarter trading activity revenues, including both net interest income and other income, totalled $69 million, down from $85 million in the fourth quarter of 2010.
Fourth quarter underwriting and advisory fees increased by $6 million year- over-year due to growth in transaction volume. Securities brokerage commissions rose to $89 million from $75 million, a 19% increase that owes mainly to the inclusion of the activities of Wellington West Holdings Inc. Card service revenues were up $4 million, while lending fees remained stable. Revenues from acceptances, letters of credit and letters of guarantee totalled $45 million, up $7 million mainly due to volume growth for this type of financing. At $118 million, fourth quarter securitization revenues grew by $32 million, due to new securitizations of insured mortgage loans. At $113 million, revenues from trust services and mutual fund fees rose $13 million as assets under management and administration increased, in part from the acquisition of Wellington West Holdings Inc. In contrast to these revenue increases, there was a year-over-year decrease in fourth quarter foreign exchange revenues, which went from $33 million to $27 million.
For fiscal 2011, total revenues amounted to $4,592 million, up 7% from $4,289 million in fiscal 2010. In the Personal and Commercial segment, net interest income totalled $1,585 million, a $70 million increase that stems from growth in loan and deposit volumes that more than offset narrowing net interest margins. Trading activity revenues, including both net interest income and other income, totalled $318 million in fiscal 2011, down from $357 million in fiscal 2010. Most of the Other income items were higher in fiscal 2011 than in fiscal 2010 due to sustained business levels during the year. Underwriting and advisory fees and securities brokerage commissions rose 15% and 9%, respectively, as a result of higher transaction volume and the inclusion of the results of Wellington West Holdings Inc. Securitization revenues increased $56 million, and revenues from trust services and mutual fund fees increased by $52 million to total $427 million. Net gains on available-for-sale securities stood at $85 million versus $112 million in fiscal 2010. Card service revenues were also down, declining by $4 million when compared to fiscal 2010, mainly due to higher securitization volume in 2011. Lending fees, which totalled $163 million, were down $5 million as a higher amount of fees had been collected on loan prepayments in 2010.
OPERATING EXPENSES
In the fourth quarter of 2011, operating expenses totalled $776 million, up $57 million or 8% when compared to the same quarter of 2010. Over half of the increase comes from the activities of Wellington West Holdings Inc., whose results are included in the quarter ended October 31, 2011. Another major factor in the higher operating expense was the salaries and staff benefits expense, particularly variable compensation, which rose as a result of revenue growth. Professional fees were also up, mainly as a result of technology investments.
For fiscal 2011, operating expenses totalled $2,922 million, up $100 million or 4% when compared to fiscal 2010. The acquisition of Wellington West Holdings Inc. accounted for approximately 30% of the increase, and the fiscal 2011 salaries and staff benefits and professional fees expenses also increased year-over-year for the same reasons provided for the quarterly results. Other expenses were lower mainly because an administrative penalty had been recorded in fiscal 2010.
PROVISIONS FOR CREDIT LOSSES
For the fourth quarter of 2011, the Bank's provisions for credit losses stood at $36 million, slightly lower than the provisions recorded in the fourth quarter of fiscal 2010.
For fiscal 2011, the Bank recorded $119 million in provisions for credit losses, $25 million less than in fiscal 2010. Excluding the $15 million specified item related to the reversal of allowances for credit losses taken for loans and credit facilities secured by restructured notes of the MAV conduits, provisions for credit losses would have been $134 million, $10 million less than in fiscal 2010. This change was mainly due to lower provisions for personal and credit card loan losses and to recoveries of corporate loan losses. The lower provisions for these credit losses were partly mitigated by the higher provisions for losses on commercial credit.
As at October 31, 2011, gross impaired loans stood at $407 million, a $38 million increase since October 31, 2010 that is attributable mostly to commercial loans. Impaired loans were 7.4% of adjusted tangible capital and allowances, up 0.7% since October 31, 2010. As at October 31, 2011, the allowance for credit losses exceeded gross impaired loans by $143 million versus $267 million as at October 31, 2010.
INCOME TAXES
Fourth quarter income taxes stood at $74 million compared to $28 million in the same quarter of 2010 and $53 million in the previous quarter, and the fourth quarter tax rate was 20% compared to 8% year-over-year and 14% quarter-over- quarter. The increase in the effective rate for the fourth quarter of 2011 was due to a reversal of provisions for income tax contingencies in the same quarter of 2010 and in the previous quarter. Income taxes for fiscal years 2011 and 2010 were $284 million and $221 million, respectively, for effective tax rates of 18% and 17%, respectively.
Results by Segment
PERSONAL AND COMMERCIAL
In the Personal and Commercial segment, fourth quarter net income rose 6% to total $156 million. Total revenues rose $28 million to total $653 million, mainly due to an increase in Other income, which reached $250 million for the fourth quarter of 2011 compared to $230 million for the same quarter of 2010. This increase was due to growth in card service revenues. At $403 million, fourth quarter net interest income posted an $8 million year-over-year increase that owes mainly to growth in personal and commercial loan volumes tempered by a narrowing of the net interest margin, which was 2.27% in the fourth quarter of 2011 compared to 2.48% in the same quarter of 2010, mainly due to lower spreads on loans and deposits.
Personal Banking's total revenues for the fourth quarter amounted to $434 million, a $20 million increase that was mostly due to higher loan volumes, especially consumer and mortgage loans, partly offset by a narrowing of net interest margins. At $163 million, fourth quarter other income posted year-over- year growth of $15 million that stems partly from higher card service revenues and insurance revenues. Commercial Banking's total revenues amounted to $219 million, an $8 million increase owing mainly to growth in loan volumes, which in turn created a $6 million increase in lending fees.
Operating expenses for the Personal and Commercial segment stood at $382 million in the fourth quarter of 2011, up $15 million from the same quarter of 2010. Despite this increase, the fourth quarter efficiency ratio improved to 58% from the ratio of 59% in the fourth quarter of 2010. At $51 million, the segment's provisions for credit losses were $2 million lower, as the lower provisions for personal and credit card loan losses more than offset the higher provisions for commercial credit losses.
For fiscal 2011, the Personal and Commercial segment's net income stood at $630 million, a $52 million or 9% increase from the $578 million in net income recorded in fiscal 2010. Total revenues amounted to $2,549 million, a 4% increase that comes mainly from higher net interest income, which, at $1,585 million, rose $70 million. Personal Banking's total revenues were up $64 million or 4%, mainly due to higher consumer and mortgage loan volumes mitigated by a decline in the spreads on loans and deposits, and Commercial Banking's total revenues rose $43 million or 5% for the same reasons provided for the quarter. The segment's provisions for credit losses were $205 million for fiscal 2011, $2 million lower than in fiscal 2010. The efficiency ratio for fiscal 2011 improved to 57% from 58% in fiscal 2010.
WEALTH MANAGEMENT
In the Wealth Management segment, fourth quarter net income was $35 million, up $4 million or 13% from $31 million in the fourth quarter of 2010. Fourth quarter total revenues amounted to $234 million compared to $197 million in the fourth quarter of 2010, an increase that owes mainly to Other income, which rose $31 million or 19%. A large part of this increase is attributable to the acquisition of Wellington West Holdings Inc. The greater volume of assets under management and administration also generated revenue growth from trust services and mutual funds. In addition, commission revenues increased on the strength of greater brokerage activity. At $186 million, fourth quarter operating expenses posted a year-over-year increase of $34 million, which was mostly due to the acquisition of Wellington West Holdings Inc. that generated $29 million in additional expenses for the quarter.
For fiscal 2011, the Wealth Management segment posted net income of $159 million, a 42% increase compared to $112 million for fiscal 2010. Total revenues amounted to $882 million versus $774 million during fiscal 2010. Other income grew $85 million or 13%, partly due to the acquisition of Wellington West Holdings Inc., and revenues from trust services and mutual fund fees and from securities brokerage commissions also increased. Operating expenses stood at $658 million compared to $606 million in fiscal 2010, with over half of the increase being attributable to Wellington West Holdings Inc. The increase in salaries and variable compensation stems from growth in brokerage activity revenues. This 9% increase in expenses combined with the 14% revenue growth improved the efficiency ratio to 75% in fiscal 2011 from 78% in fiscal 2010.
FINANCIAL MARKETS
In the Financial Markets segment, fourth quarter net income totalled $108 million, unchanged from the fourth quarter of 2010. Fourth quarter total revenues amounted to $339 million compared to $352 million in the fourth quarter of 2010. On a taxable-equivalent basis and including non-controlling interests related to trading activities, the fourth quarter revenues were $343 million compared to $341 million in the same quarter of 2010. Trading activity revenues on a taxable equivalent basis were $109 million for the quarter, down $32 million from the same year-earlier quarter, mainly due to lower revenues from equity and fixed income securities. All revenue types other than trading were up compared to the same quarter in 2010. The 10% growth in financial market fees came from greater capital issuance activity, and banking service revenues increased by 12%. The other Financial Market revenues also rose, benefitting from greater business activity experienced by treasury operations and the Credigy Ltd. subsidiary.
At $190 million, fourth quarter operating expense posted a year-over-year decrease of $1 million, as salaries and variable compensation decreased because charges for severance pay were lower this fourth quarter than they were in the fourth quarter of 2010. The lower operating expense was offset by higher costs related to the operations of the Credigy Ltd. subsidiary. No provisions for credit losses were recorded for the fourth quarter of 2011, whereas $2 million in provisions had been recorded in the same quarter of 2010.
For fiscal 2011, net income for the Financial Markets segment totalled $492 million, up $26 million or 6% from fiscal 2010. Total revenues amounted to $1,420 million compared to $1,347 million for fiscal 2010. On a taxable equivalent basis and including non-controlling interests related to trading activities, revenues totalled $1,425 million, up $83 million or 6% from fiscal 2010, mainly due to financial market fees, banking services, treasury operations, and the activities of the Credigy Ltd. subsidiary. The segment's fiscal 2011 operating expenses were $736 million, a $64 million increase from fiscal 2010. An increase in salaries and variable compensation and higher costs related to the activities of the Credigy Ltd. subsidiary contributed to higher expenses. For fiscal 2011, the segment recovered $5 million in credit losses, while $2 million in provisions for credit losses had been recorded for fiscal 2010.
OTHER
The Other heading of segment results posted a fourth quarter net loss of $5 million in 2011 versus net income of $1 million in the same quarter of 2010. During the fourth quarter of fiscal 2011, the Bank did not record any specified items, whereas in the fourth quarter of 2010, a reversal of $25 million in provisions for income tax contingencies and $3 million in holding charges for restructured notes of MAV conduits, net of income taxes, had been recorded. Excluding specified items, total revenues increased $37 million in the fourth quarter of 2011 compared to the same quarter of 2010, due to higher securitization revenues. The segment's operating expenses were up $9 million for the fourth quarter of 2011 due to an increase in variable compensation.
For fiscal 2011, the net loss was $68 million compared to a $122 million net loss for fiscal 2010. For fiscal 2011, litigation provisions and a reversal of allowances for credit losses were recorded in amounts of $8 million and $11 million, respectively, net of income taxes, as was a $21 million reversal of income tax provisions. During fiscal 2010, the Bank had recorded a $75 million administrative penalty, $50 million in reversals of provisions for income tax contingencies and $8 million in holding charges for restructured notes on MAV conduits, net of income taxes. Excluding specified items, the net loss for fiscal 2011 was $92 million versus $89 million for fiscal 2010.
Balance Sheet
As at October 31, 2011, the Bank had total assets of $156.3 billion compared to $145.3 billion as at October 31, 2010. Loan and acceptance balances were up $8.1 billion, and cash, deposits with financial institutions, securities, and securities purchased under reverse repurchase agreements increased by $3.0 billion since October 31, 2010, mainly due to an increase in securities. Lastly, goodwill increased since October 31, 2010 due to the acquisition of the remaining 82% interest in Wellington West Holdings Inc. during the third quarter of 2011.
At $87.1 billion, deposits rose $5.3 billion since October 31, 2010, in particular due to the US$2.4 billion in covered bonds issued in fiscal 2011. Growth in other financing activities came from securities sold under repurchase agreements and subsidiary debts to third parties, presented under Other liabilities.
As at October 31, 2011, the Bank's shareholders' equity was $7.3 billion compared to $7.2 billion as at October 31, 2010. This increase is explained by the increase in net income less dividends, mitigated by the $361 million repurchase for cancellation of preferred shares. The $171 million in common shares issued in relation to the acquisition of Wellington West Holdings Inc. and the $117 million in stock options exercised under the common share stock option plan were more than offset by the $473 million repurchase of common shares for cancellation. Accumulated other comprehensive income amounted to $142 million as at October 31, 2011 compared to $168 million as at October 31, 2010. This change was mainly due to net losses on derivative financial instruments designated as cash flow hedges.
The following table presents the main portfolios:
As at October 31, 2011, loan and acceptance volumes totalled $78.7 billion, up $8.3 billion or 12% since October 31, 2010. Consumer loans were up 12%, totalling $21.9 billion as at October 31, 2011, due primarily to home equity lines of credit, whereas credit card receivables remained stable. Traditional residential mortgages were also up by 12%, totalling $28.4 billion as at October 31, 2011. SME loans advanced 11% since October 31, 2010 to stand at $19.6 billion as at October 31, 2011. Corporate loans increased 18%, totalling $6.9 billion as at October 31, 2011.
At $35.7 billion as at October 31, 2011, personal deposits were up $1.6 billion or 5% since October 31, 2010, owing essentially to transactional deposits and to the CashPerformer account. Off-balance-sheet personal savings administered by the Bank rose 17% since the beginning of the fiscal year to total $98.1 billion as at October 31, 2011. The acquisition of Wellington West Holdings Inc. accounted for $10.9 billion of this increase, the other factors being growth in both the volume and value of administered assets. Business deposits were up 13% or $1.9 billion since October 31, 2010, amounting to $16.8 billion as at October 31, 2011.
MASTER ASSET VEHICLES
As at October 31, 2011, the face value of the restructured notes of the master asset vehicle (MAV) conduits held by the Bank was $2,015 million ($1,926 million as at October 31, 2010), of which $1,675 million was designated as Held-for-trading securities under the fair value option, and an amount of $340 million was classified in Available-for-sale securities ($1,664 million designated as Held-for-trading securities and $262 million classified in Available-for-sale securities as at October 31, 2010). The increase in the face value of the restructured notes of the MAV conduits during fiscal 2011 was mainly due to restructured notes taken back from clients who had credit facilities backed by these notes, mitigated by capital repayments and certain write-offs.
The Bank has committed to contribute $910 million to a margin funding facility related to the MAV conduits in order to finance potential collateral calls. As at October 31, 2011, no amount had been advanced by the Bank.
Establishing Fair Value
The carrying value of the restructured notes of the MAV conduits held by the Bank in an investment portfolio as at October 31, 2011, designated as Held-for-trading securities, was $1,150 million, and $86 million was classified in Available-for- sale securities ($1,147 million designated as Held-for-trading securities and $53 million classified in Available-for-sale securities as at October 31, 2010). 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 as Available-for-sale securities. The Bank took back restructured notes of the MAV conduits related to the credit facilities at a fair value of $14 million during the fourth quarter of 2011.
In establishing the fair value of restructured notes of the MAV conduits, the Bank applied the same methodology used as at October 31, 2010, adjusted to take into account the effects of broker quotes and market conditions on the MAV II Class A-1, A-2, B and C notes. Since the carrying value of the restructured notes of the MAV conduits was within the range of the estimated fair value, no change was made to the carrying value as at October 31, 2011.
Credit Facilities to Clients Holding Restructured Notes of the MAV Conduits
As at October 31, 2011, credit facilities outstanding provided to clients holding the restructured notes of the MAV conduits stood at $51 million ($143 million as at October 31, 2010) and the allowance for credit losses was $10 million ($121 million as at October 31, 2010). The decrease in allowances recognized during fiscal 2011 results from a $15 million reversal of allowances for credit losses taken for loans and credit facilities secured by restructured notes of the MAV conduits and $96 million applied against restructured notes of the MAV conduits relating to credit facilities taken back by the Bank.
Capital
In accordance with Basel II, the Bank uses the Advanced Internal Rating-Based Approach to manage credit risk. For operational risk, the Bank uses the Standardized Approach and, for market risk, it primarly uses an approach based on internal models but uses the Standardized Approach for certain exposures. Detailed information is provided in the "Capital Management" section of the 2011 Annual Report. The new Basel III capital standards will gradually come into force from January 1, 2013 to January 1, 2019. The Bank expects that it will be able to achieve compliance with these new standards without resorting to the regulatory event redemption clause included in the capital instruments in question. As at October 31, 2011, the pro forma Core Tier 1 capital ratio under Basel III stood at 7.6%.
According to the rules of the Bank for International Settlements (BIS) - Basel II, the Tier 1 capital ratio and the total capital ratio stood at 13.6% and 16.9%, respectively, as at October 31, 2011, down slightly from 14.0% and 17.5%, respectively as at October 31, 2010. Net income growth net of dividends and the common shares issued for the acquisition of Wellington West Holdings Inc. were offset by the added goodwill resulting from this acquisition and by the repurchase of preferred shares and common shares for cancellation.
The risk-weighted assets calculated under the rules of Basel II increased and amounted to $50.4 billion as at October 31, 2011 compared to $49.8 billion as at October 31, 2010.
Acquisition
On September 20, 2011, the Bank entered into an agreement with HSBC Bank Canada and some of its subsidiaries to acquire the full service investment advisory business of HSBC Securities (Canada) Inc. and certain assets related to the segregated fund and insurance business of HSBC Insurance Agency (Canada) Inc. The final purchase price will be subject to various adjustments to be determined at closing and post-closing. An additional amount has been set aside to ensure maximum retention of investment advisors. The transaction is expected to close in January 2012, subject to the necessary regulatory approvals.
Commitment - TMX Group Inc.
During fiscal 2011, Maple Group Acquisition Corporation (Maple), a corporation whose investors comprise the Bank and 12 other leading Canadian financial institutions and pension funds, commenced an offer to acquire TMX Group Inc. As part of the proposed transaction, the Bank has made an equity commitment to Maple for a maximum of $192 million. In addition, the Bank and certain other financial institutions have provided a commitment letter to Maple for $1.9 billion in credit facilities. The proceeds of both the equity investments in Maple and the credit facilities extended to Maple will be used to fund the acquisition of TMX Group Inc. and the related proposed acquisitions of Alpha Group and The Canadian Depository for Securities Limited. The Maple offer is set to expire on January 31, 2012 and is subject to obtaining the required regulatory approvals, including those from securities regulatory authorities and the Competition Bureau. On October 31, 2011, Maple announced that it had entered into a support agreement with TMX Group Inc. that included, among other things, a clause under which its intention would be to further extend its offer to April 30, 2012, and that also stipulated that Maple would pay a transaction termination fee to TMX Group Inc. in certain circumstances, related to regulatory approvals. If required to be paid, the termination fee could amount to approximately $39 million.
Subsequent Event
On November 2, 2011, the Bank redeemed for cancellation $500 million in subordinated debentures maturing on November 2, 2016, at par value plus accrued interest.
Dividends
The Board of Directors declared regular dividends on the various series of first preferred shares and a dividend of 75 cents per common share, payable on February 1, 2012 to shareholders of record on December 29, 2011.
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 for National Bank" sections of the 2011 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 2012 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 2012 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; general economic conditions of the financial market in Canada, the United States and other countries in which the Bank conducts business, including the impact of the debt crisis affecting certain European countries; the downward adjustment of the long-term sovereign debt rating of the United States attributed by Standard & Poor's; 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 (including banking, insurance and securities) and enforcement thereof; 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 vehicles (MAV), in particular the realizable value of the 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 in the "Risk Management" and "Factors That Could Affect Future Results" sections of the 2011 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 2011 RESULTS
Conference Call
Webcast
Financial Documents
Contacts:
Ghislain Parent
Chief Financial Officer and Executive Vice-President
Finance and Treasury
514-394-6807
Jean Dagenais
Senior Vice-President
Finance, Taxation and Investor Relations
514-394-6233
Claude Breton
Senior Director
Public Relations
514-394-8644
Helene Baril
Senior Director
Investor Relations
514-394-0296
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Datum: 08.12.2011 - 12:45 Uhr
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