Personal and Commercial
- Net income
totalled $366 million in the third quarter of 2024 versus $319
million in the third quarter of 2023, a 15% increase that was
driven by growth in total revenues.
- At $1,198
million, third-quarter total revenues rose $83 million or 7% year
over year, mainly due to an increase in net interest income (driven
by growth in loan and deposit volumes), partly offset by a lower
net interest margin.
- Compared to a
year ago, personal lending grew 4% and commercial lending grew
14%.
- The net interest
margin(1) stood at 2.31% in the third quarter of 2024,
down from 2.34% in the third quarter of 2023.
- Third-quarter
non-interest expenses stood at $615 million, up 3% year over
year.
- Provisions for
credit losses rose $4 million year over year.
- At 51.3%, the
third-quarter efficiency ratio(1) improved from 53.8% in
the third quarter of 2023.
Wealth Management
- Net income
totalled $217 million in the third quarter of 2024, a 19% increase
from $183 million in the third quarter of 2023.
- Third-quarter
total revenues amounted to $716 million compared to $629 million in
third-quarter 2023, an $87 million or 14% increase driven by growth
in fee-based revenues and net interest income.
- Third-quarter
non-interest expenses stood at $416 million versus $375 million in
third-quarter 2023, an 11% increase associated with revenue
growth.
- At 58.1%, the
third-quarter efficiency ratio(1) improved from 59.6% in
the third quarter of 2023.
Financial Markets
- Net income
totalled $318 million in the third quarter of 2024, up 55% from
$205 million in the third quarter of 2023.
- Third-quarter
total revenues on a taxable equivalent basis amounted to $781
million, a 39% increase that was due to growth in global markets
revenues and in corporate and investment banking
revenues.
- Third-quarter
non-interest expenses stood at $320 million compared to $272
million in third-quarter 2023, an increase that was partly due to
variable compensation and to the segment's technological
investments.
- Third-quarter
provisions for credit losses stood at $22 million compared to $5
million in the third quarter of 2023.
- At 41.0%, the
efficiency ratio(1) on a taxable equivalent basis
improved from 48.6% in the third quarter of 2023.
U.S. Specialty Finance and International
- Net income
totalled $158 million in the third quarter of 2024, up 23% from
$128 million in the third quarter of 2023.
- Third-quarter
total revenues amounted to $361 million, a 24% year-over-year
increase driven by revenue growth at both the Credigy and ABA Bank
subsidiaries.
- Third-quarter
non-interest expenses stood at $115 million, a 15% year-over-year
increase attributable to business growth at Credigy and
ABA Bank.
- Third-quarter
provisions for credit losses were up $17 million year over year,
with the increase being attributable to both Credigy and ABA
Bank.
- At 31.9%, the
efficiency ratio(1) improved from 34.2% in the third
quarter of 2023.
Other
- There was a net
loss of $26 million in the third quarter of 2024 compared to a net
loss of $5 million in the same quarter of 2023, a change that
essentially came from a year-over-year increase in non-interest
expenses (notably higher variable compensation associated with the
Bank's revenue growth), partly offset by a more favourable impact
of specified items(2) on net loss in the third quarter
of 2024.
CWB
Transaction
- On June 11, 2024,
the Bank entered into an agreement to acquire all of the issued and
outstanding common shares of CWB by way of a share exchange valuing
CWB at approximately $5.0 billion. This transaction will enable the
Bank to accelerate its growth across Canada. The transaction is
subject to the satisfaction of customary closing conditions,
including regulatory approvals, and is expected to close in 2025.
For additional information, see the CWB Transaction section
of in the Report to
Shareholders - Third Quarter 2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Capital Management
- As at July 31,
2024, the Common Equity Tier 1 (CET1) capital ratio under Basel
III(3) stood at 13.5%, unchanged from October 31,
2023.
- As at July 31,
2024, the Basel III(3) leverage ratio was 4.4%,
unchanged from October 31, 2023.
Dividends
- On August 27,
2024, the Board of Directors declared regular dividends on the
various series of first preferred shares and a dividend
of $1.10 per common share, payable on November 1, 2024 to
shareholders of record on September 30, 2024.
(1) For details on the composition of these measures, see the
Glossary section on pages 49 to 52 in the Report to Shareholders
-
Third Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(2) See the Financial Reporting Method section on pages 3 to 6 for
additional information on non-GAAP financial measures.
(3) For additional information on capital management measures, see
the Financial Reporting Method section on pages 4 to 10 in the
Report to
Shareholders - Third Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Financial Reporting
Method
The Bank's consolidated financial statements
are prepared in accordance with IFRS, as issued by the
IASB. The financial statements also comply with
section 308(4) of the Bank
Act (Canada), which states that, except as otherwise
specified by the Office of the Superintendent of
Financial Institutions (Canada) (OSFI), the
consolidated financial statements are to be prepared in accordance
with IFRS, which represent Canadian GAAP. None of the OSFI
accounting requirements are exceptions to IFRS.
The presentation of segment disclosures is
consistent with the presentation adopted by the Bank for the fiscal
year beginning November 1, 2023. This presentation reflects the
retrospective application of accounting policy changes arising from
the adoption of IFRS 17- Insurance Contracts (IFRS 17). For
additional information, see Note 2 to the unaudited interim
condensed consolidated financial statements in the Report to Shareholders - Third Quarter
2024, which is available on the Bank's website at
nbc.ca or the SEDAR+ website at
sedarplus.ca. The figures for the 2023
quarters have been adjusted to reflect these accounting policy
changes.
Non-GAAP and Other Financial Measures
The Bank uses a number of financial measures
when assessing its results and measuring overall performance. Some
of these financial measures are not calculated in accordance with
GAAP. Regulation 52-112
Respecting Non-GAAP and Other Financial Measures Disclosure
(Regulation 52-112) prescribes disclosure requirements that apply
to the following measures used by the Bank:
·
non-GAAP financial measures;
·
non-GAAP ratios;
·
supplementary financial measures;
·
capital management measures.
Non-GAAP
Financial Measures
The Bank uses non-GAAP financial measures that
do not have standardized meanings under GAAP and that therefore may
not be comparable to similar measures used by other companies.
Presenting non-GAAP financial measures helps readers to better
understand how management analyzes results, shows the impacts of
specified items on the results of the reported periods, and allows
readers to better assess results without the specified items if
they consider such items not to be reflective of the underlying
performance of the Bank's operations. In addition, the Bank uses
the taxable equivalent basis to calculate net interest income,
non-interest income, and income taxes. This calculation method
consists of grossing up certain revenues taxed at lower rates
(notably dividends) by the income tax to a level that would make it
comparable to revenues from taxable sources in Canada. An
equivalent amount is added to income taxes. This adjustment is
necessary in order to perform a uniform comparison of the return on
different assets, regardless of their tax treatment. However, in
light of the enacted legislation with respect to Canadian
dividends, the Bank did not recognize an income tax deduction, nor
did it or use the taxable equivalent basis method to adjust
revenues related to affected dividends received after January 1,
2024 (for additional information see the Income Taxes
section in the Report to shareholders for the third
quarter of 2024, which is available on the Bank's website at
nbc.ca or the SEDAR+ website at
sedarplus.ca).
The key non-GAAP financial measures used by the
Bank to analyze its results are described below, and a quantitative
reconciliation of these measures is presented in the tables in the
Reconciliation of Non-GAAP Financial Measures section on pages 4 to
6. Note that, for the quarter and nine-month period ended July 31,
2024, after the agreement to acquire Canadian Western Bank (CWB)
was concluded, several acquisition-related items have been excluded
from results (in particular, the amortization of the subscription
receipt issuance costs of $5 million ($3 million net of income
taxes); a gain of $120 million ($86 million net of income taxes)
resulting from the remeasurement at fair value of the CWB common
shares already held by the Bank; the impact of managing fair value
changes, representing a loss of $7 million ($5 million net of
income taxes); and $7 million in acquisition and integration
charges ($5 million net of income taxes)). For the quarter and
nine-month period ended July 31, 2023, a gain of $91 million
($67 million net of income taxes) recorded upon the fair value
remeasurement of an equity interest and an expense related to the
retroactive impact of changes to the Excise Tax Act of $25 million ($18
million net of income taxes) had been excluded from results. In
addition, for the nine-month period ended July 31, 2023, a
$24 million tax expense related to the Canadian government's
2022 tax measures had been excluded from results given the one-time
nature of the item. This amount had included a $32 million tax
expense with respect to the Canada Recovery Dividend, i.e., a
one-time, 15% tax on the fiscal 2021 and 2020 average taxable
income above $1 billion as well as an $8 million tax recovery
related to the 1.5% increase in the statutory tax rate, which
included the impact related to current and deferred taxes for
fiscal 2022.
For additional information on non-GAAP financial
measures, non-GAAP ratios, supplementary financial measures, and
capital management measures, see the Financial Reporting Method
section and the Glossary section, on pages 4 to 10 and 49 to 52,
respectively, in the Report to shareholders for the third quarter
of 2024, which is available on the Bank's website at nbc.ca or the SEDAR+ website at sedarplus.ca.
Reconciliation of Non-GAAP Financial
Measures
Presentation
of Results - Adjusted
|
(millions of Canadian
dollars)
|
|
|
|
|
|
|
Quarter
ended July 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023(1)
|
|
|
|
|
Personal and
Commercial
|
|
Wealth
Management
|
|
Financial
Markets
|
|
USSF&I
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Total
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
913
|
|
219
|
|
(610)
|
|
326
|
|
(79)
|
|
769
|
|
870
|
|
|
Non-interest income
|
285
|
|
497
|
|
1,391
|
|
35
|
|
19
|
|
2,227
|
|
1,620
|
|
|
Total revenues
|
1,198
|
|
716
|
|
781
|
|
361
|
|
(60)
|
|
2,996
|
|
2,490
|
|
|
Non-interest expenses
|
615
|
|
416
|
|
320
|
|
115
|
|
75
|
|
1,541
|
|
1,404
|
|
|
Income before provisions for credit
losses and income taxes
|
583
|
|
300
|
|
461
|
|
246
|
|
(135)
|
|
1,455
|
|
1,086
|
|
|
Provisions for credit
losses
|
79
|
|
−
|
|
22
|
|
46
|
|
2
|
|
149
|
|
111
|
|
|
Income before income taxes
(recovery)
|
504
|
|
300
|
|
439
|
|
200
|
|
(137)
|
|
1,306
|
|
975
|
|
|
Income taxes (recovery)
|
138
|
|
83
|
|
121
|
|
42
|
|
(111)
|
|
273
|
|
145
|
|
|
Net
income
|
366
|
|
217
|
|
318
|
|
158
|
|
(26)
|
|
1,033
|
|
830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that have an impact on results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
(15)
|
|
(15)
|
|
(88)
|
|
|
|
Amortization of the subscription
receipt issuance costs(3)
|
−
|
|
−
|
|
−
|
|
−
|
|
(5)
|
|
(5)
|
|
−
|
|
|
Impact on net interest
income
|
−
|
|
−
|
|
−
|
|
−
|
|
(20)
|
|
(20)
|
|
(88)
|
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
(79)
|
|
(79)
|
|
(64)
|
|
|
|
Gain on the fair value remeasurement
of equity interests(4)(5)
|
−
|
|
−
|
|
−
|
|
−
|
|
120
|
|
120
|
|
91
|
|
|
|
Management of the fair value changes
related to the CWB acquisition(6)
|
−
|
|
−
|
|
−
|
|
−
|
|
(7)
|
|
(7)
|
|
−
|
|
|
Impact on non-interest
income
|
−
|
|
−
|
|
−
|
|
−
|
|
34
|
|
34
|
|
27
|
|
|
Non-interest expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CWB acquisition and integration
charges(7)
|
−
|
|
−
|
|
−
|
|
−
|
|
7
|
|
7
|
|
−
|
|
|
|
Expense related to changes to the
Excise Tax
Act(8)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
25
|
|
|
Impact on non-interest
expenses
|
−
|
|
−
|
|
−
|
|
−
|
|
7
|
|
7
|
|
25
|
|
|
Income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
(94)
|
|
(94)
|
|
(152)
|
|
|
|
Income taxes on the amortization of
the subscription receipt issuance
costs(3)
|
−
|
|
−
|
|
−
|
|
−
|
|
(2)
|
|
(2)
|
|
−
|
|
|
|
Income taxes on the gain on the fair
value remeasurement
of equity
interests(4)(5)
|
−
|
|
−
|
|
−
|
|
−
|
|
34
|
|
34
|
|
24
|
|
|
|
Income taxes on management of the
fair value changes related to the
CWB
acquisition(6)
|
−
|
|
−
|
|
−
|
|
−
|
|
(2)
|
|
(2)
|
|
−
|
|
|
|
Income taxes on the CWB acquisition
and integration charges(7)
|
−
|
|
−
|
|
−
|
|
−
|
|
(2)
|
|
(2)
|
|
−
|
|
|
|
Income taxes on the expense related
to changes to the Excise Tax
Act(8)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
(7)
|
|
|
Impact on income taxes
|
−
|
|
−
|
|
−
|
|
−
|
|
(66)
|
|
(66)
|
|
(135)
|
|
|
Impact on net income
|
−
|
|
−
|
|
−
|
|
−
|
|
73
|
|
73
|
|
49
|
|
|
Operating results - Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income -
Adjusted
|
913
|
|
219
|
|
(610)
|
|
326
|
|
(59)
|
|
789
|
|
958
|
|
|
Non-interest income -
Adjusted
|
285
|
|
497
|
|
1,391
|
|
35
|
|
(15)
|
|
2,193
|
|
1,593
|
|
|
Total revenues - Adjusted
|
1,198
|
|
716
|
|
781
|
|
361
|
|
(74)
|
|
2,982
|
|
2,551
|
|
|
Non-interest expenses -
Adjusted
|
615
|
|
416
|
|
320
|
|
115
|
|
68
|
|
1,534
|
|
1,379
|
|
|
Income before provisions for credit
losses and income taxes - Adjusted
|
583
|
|
300
|
|
461
|
|
246
|
|
(142)
|
|
1,448
|
|
1,172
|
|
|
Provisions for credit
losses
|
79
|
|
−
|
|
22
|
|
46
|
|
2
|
|
149
|
|
111
|
|
|
Income before income taxes
(recovery) - Adjusted
|
504
|
|
300
|
|
439
|
|
200
|
|
(144)
|
|
1,299
|
|
1,061
|
|
|
Income taxes (recovery) -
Adjusted
|
138
|
|
83
|
|
121
|
|
42
|
|
(45)
|
|
339
|
|
280
|
|
|
Net
income - Adjusted
|
366
|
|
217
|
|
318
|
|
158
|
|
(99)
|
|
960
|
|
781
|
|
(1) Certain amounts have been adjusted to reflect accounting
policy changes arising from the adoption of IFRS 17. For additional
information, see Note 2 to the unaudited interim condensed
consolidated financial statements in the
Report to
Shareholders - Third Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(2) In light of the enacted legislation with respect to Canadian
dividends, the Bank did not recognize an income tax deduction or
use the taxable equivalent basis method to adjust revenues related
to affected dividends received after January 1, 2024 (for
additional information see the Income Taxes section
in the Report to
Shareholders - Third Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca).
(3) During the quarter ended July 31, 2024, the Bank recorded an
amount of $5 million ($3 million net of income taxes) to reflect
the amortization of the issuance costs of the subscription receipts
issued as part of the agreement to acquire CWB (for additional
information, see Notes 9 and 11 to the unaudited interim condensed
consolidated financial statements in the Report to Shareholders - Third Quarter
2024, which is available on the Bank's website at nbc.ca or the SEDAR+ website at sedarplus.ca).
(4) During the quarter ended July 31, 2024, the Bank recorded a
gain of $120 million ($86 million net of income taxes) upon the
remeasurement at fair value of the interest already held in
CWB.
(5) During the quarter ended July 31, 2023, the Bank had concluded
that it had lost significant influence over TMX Group Limited (TMX)
and therefore ceased using the equity method to account for this
investment. The Bank had designated its investment in TMX as a
financial asset measured at fair value through other comprehensive
income in an amount of $191 million. Upon the measurement at fair
value, a gain of $91 million ($67 million net of income taxes) had
been recorded in the Other
heading of segment results.
(6) During the quarter ended July 31, 2024, the Bank recorded a
mark-to-market loss of $7 million ($5 million net of income taxes)
in the Other Heading of
segment results, on interest rate swaps used to manage the fair
value changes of CWB's assets and liabilities that result in
volatility of goodwill and capital on closing of the transaction.
For additional information, see the CWB Transaction section in the
MD&A in the Report to
Shareholders - Third Quarter 2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(7) During the quarter ended July 31, 2024, the Bank recorded
acquisition and integration charges of $7 million ($5 million net
of income taxes) related to the CWB transaction.
(8) During the quarter ended July 31, 2023, the Bank had recorded
a $25 million expense ($18 million net of income taxes) in the
Other heading of segment
results, related to the retroactive impact of changes to the
Excise Tax Act whereby
payment card clearing services provided by payment card network
operators are subject to the goods and services tax (GST) and the
harmonized sales tax (HST).
|
(millions of Canadian
dollars)
|
|
|
|
|
|
|
Nine
months ended July 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023(1)
|
|
|
|
|
Personal and
Commercial
|
|
Wealth
Management
|
|
Financial
Markets
|
|
USSF&I
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Total
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
2,653
|
|
620
|
|
(1,787)
|
|
945
|
|
(276)
|
|
2,155
|
|
2,851
|
|
|
Non-interest income
|
830
|
|
1,439
|
|
4,089
|
|
92
|
|
(149)
|
|
6,301
|
|
4,647
|
|
|
Total revenues
|
3,483
|
|
2,059
|
|
2,302
|
|
1,037
|
|
(425)
|
|
8,456
|
|
7,498
|
|
|
Non-interest expenses
|
1,842
|
|
1,206
|
|
945
|
|
323
|
|
146
|
|
4,462
|
|
4,156
|
|
|
Income before provisions for credit
losses and income taxes
|
1,641
|
|
853
|
|
1,357
|
|
714
|
|
(571)
|
|
3,994
|
|
3,342
|
|
|
Provisions for credit
losses
|
239
|
|
−
|
|
50
|
|
119
|
|
(1)
|
|
407
|
|
282
|
|
|
Income before income taxes
(recovery)
|
1,402
|
|
853
|
|
1,307
|
|
595
|
|
(570)
|
|
3,587
|
|
3,060
|
|
|
Income taxes (recovery)
|
386
|
|
235
|
|
359
|
|
124
|
|
(378)
|
|
726
|
|
522
|
|
|
Net
income
|
1,016
|
|
618
|
|
948
|
|
471
|
|
(192)
|
|
2,861
|
|
2,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that have an impact on results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
(66)
|
|
(66)
|
|
(242)
|
|
|
|
Amortization of the subscription
receipt issuance costs(3)
|
−
|
|
−
|
|
−
|
|
−
|
|
(5)
|
|
(5)
|
|
−
|
|
|
Impact on net interest
income
|
−
|
|
−
|
|
−
|
|
−
|
|
(71)
|
|
(71)
|
|
(242)
|
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
(225)
|
|
(225)
|
|
(172)
|
|
|
|
Gain on the fair value remeasurement
of equity interests(4)(5)
|
−
|
|
−
|
|
−
|
|
−
|
|
120
|
|
120
|
|
91
|
|
|
|
Management of the fair value changes
related to the CWB acquisition(6)
|
−
|
|
−
|
|
−
|
|
−
|
|
(7)
|
|
(7)
|
|
−
|
|
|
Impact on non-interest
income
|
−
|
|
−
|
|
−
|
|
−
|
|
(112)
|
|
(112)
|
|
(81)
|
|
|
Non-interest expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CWB acquisition and integration
charges(7)
|
−
|
|
−
|
|
−
|
|
−
|
|
7
|
|
7
|
|
−
|
|
|
|
Expense related to changes to the
Excise Tax
Act(8)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
25
|
|
|
Impact on non-interest
expenses
|
−
|
|
−
|
|
−
|
|
−
|
|
7
|
|
7
|
|
25
|
|
|
Income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
equivalent(2)
|
−
|
|
−
|
|
−
|
|
−
|
|
(291)
|
|
(291)
|
|
(414)
|
|
|
|
Income taxes on the amortization of
the subscription receipt issuance
costs(3)
|
−
|
|
−
|
|
−
|
|
−
|
|
(2)
|
|
(2)
|
|
−
|
|
|
|
Income taxes on the gain on the fair
value remeasurement
of equity
interests(4)(5)
|
−
|
|
−
|
|
−
|
|
−
|
|
34
|
|
34
|
|
24
|
|
|
|
Income taxes on management of the
fair value changes related to the
CWB
acquisition(6)
|
−
|
|
−
|
|
−
|
|
−
|
|
(2)
|
|
(2)
|
|
−
|
|
|
|
Income taxes on the CWB acquisition
and integration charges(7)
|
−
|
|
−
|
|
−
|
|
−
|
|
(2)
|
|
(2)
|
|
−
|
|
|
|
Income taxes on the expense related
to changes to the Excise Tax
Act(8)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
(7)
|
|
|
|
Income taxes related to the Canadian
government's 2022 tax measures(9)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
24
|
|
|
Impact on income taxes
|
−
|
|
−
|
|
−
|
|
−
|
|
(263)
|
|
(263)
|
|
(373)
|
|
|
Impact on net income
|
−
|
|
−
|
|
−
|
|
−
|
|
73
|
|
73
|
|
25
|
|
|
Operating results - Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income -
Adjusted
|
2,653
|
|
620
|
|
(1,787)
|
|
945
|
|
(205)
|
|
2,226
|
|
3,093
|
|
|
Non-interest income -
Adjusted
|
830
|
|
1,439
|
|
4,089
|
|
92
|
|
(37)
|
|
6,413
|
|
4,728
|
|
|
Total revenues - Adjusted
|
3,483
|
|
2,059
|
|
2,302
|
|
1,037
|
|
(242)
|
|
8,639
|
|
7,821
|
|
|
Non-interest expenses -
Adjusted
|
1,842
|
|
1,206
|
|
945
|
|
323
|
|
139
|
|
4,455
|
|
4,131
|
|
|
Income before provisions for credit
losses and income taxes - Adjusted
|
1,641
|
|
853
|
|
1,357
|
|
714
|
|
(381)
|
|
4,184
|
|
3,690
|
|
|
Provisions for credit
losses
|
239
|
|
−
|
|
50
|
|
119
|
|
(1)
|
|
407
|
|
282
|
|
|
Income before income taxes
(recovery) - Adjusted
|
1,402
|
|
853
|
|
1,307
|
|
595
|
|
(380)
|
|
3,777
|
|
3,408
|
|
|
Income taxes (recovery) -
Adjusted
|
386
|
|
235
|
|
359
|
|
124
|
|
(115)
|
|
989
|
|
895
|
|
|
Net
income - Adjusted
|
1,016
|
|
618
|
|
948
|
|
471
|
|
(265)
|
|
2,788
|
|
2,513
|
|
(1) Certain amounts have been adjusted to reflect accounting
policy changes arising from the adoption of IFRS 17. For additional
information, see Note 2 to the unaudited interim condensed
consolidated financial statements in the
Report to
Shareholders - Third
Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(2) In light of the enacted legislation with respect to Canadian
dividends, the Bank did not recognize an income tax deduction or
use the taxable equivalent basis method to adjust revenues related
to affected dividends received after January 1, 2024 (for
additional information, see the Income Taxes section
in the Report to
Shareholders - Third
Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca).
(3) During the nine-month period ended July 31, 2024, the Bank
recorded an amount of $5 million ($3 million net of income taxes)
to reflect the amortization of the issuance costs of the
subscription receipts issued as part of the agreement to acquire
CWB (for additional information, see Notes 9 and 11 to the
unaudited interim condensed consolidated financial
statements in the Report to Shareholders
-
Third Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca).
(4) During the nine-month period ended July 31, 2024, the Bank
recorded a gain of $120 million ($86 million net of income taxes)
upon the remeasurement at fair value of the interest already held
in CWB.
(5) During the nine-month period ended July 31, 2023, the Bank had
concluded that it had lost significant influence over TMX Group
Limited (TMX) and therefore ceased using the equity method to
account for this investment. The Bank had designated its investment
in TMX as a financial asset measured at fair value through other
comprehensive income in an amount of $191 million. Upon the
fair value measurement, a gain of $91 million ($67 million net of
income taxes) had been recorded in the Other heading of segment
results.
(6) During the nine-month period ended July 31, 2024, the Bank
recorded a mark-to-market loss of $7 million ($5 million net of
income taxes) on interest rate swaps used to manage the fair value
changes of CWB's assets and liabilities that result in volatility
of goodwill and capital on closing of the transaction. For
additional information, see the CWB Transaction section in the
MD&A in the Report to
Shareholders - Third Quarter 2024, which is available on the
Bank's website at nbc.ca
or the SEDAR+ website at sedarplus.ca.
(7) During the nine-month period ended July 31, 2024, the Bank
recorded acquisition and integration charges of $7 million ($5
million net of income taxes) related to the CWB
transaction.
(8) During the nine-month period ended July 31, 2023, the Bank had
recorded a $25 million expense ($18 million net of income taxes),
in the Other heading of
segment results, to reflect the retroactive impact of changes to
the Excise Tax Act whereby
payment card clearing services provided by payment card network
operators are subject to the goods and services tax (GST) and the
harmonized sales tax (HST).
(9) During the nine-month period ended July 31, 2023, the
Bank recorded, in the Other heading of segment results, a
$32 million tax expense with respect to the Canada Recovery
Dividend, i.e., a one-time, 15% tax on the fiscal 2021 and 2020
average taxable income above $1 billion as well as an $8 million
tax recovery related to the 1.5% increase in the statutory tax
rate, which included the impact related to current and deferred
taxes for fiscal 2022. For additional information on these tax
measures, see the Income Taxes section in
the Report to
Shareholders - Third
Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Presentation of Basic and Diluted Earnings Per Share -
Adjusted
|
(Canadian dollars)
|
|
Quarter
ended July 31
|
|
Nine
months ended July 31
|
|
|
|
|
2024
|
|
|
|
2023(1)
|
|
|
2024
|
|
|
2023(1)
|
|
|
Basic earnings per share
|
|
$
|
2.92
|
|
|
$
|
2.35
|
|
$
|
8.09
|
|
$
|
7.21
|
|
|
Amortization of the subscription
receipt issuance costs(2)
|
|
|
0.01
|
|
|
|
−
|
|
|
0.01
|
|
|
−
|
|
|
Gain on the fair value remeasurement
of equity interests(3)(4)
|
|
|
(0.25)
|
|
|
|
(0.20)
|
|
|
(0.25)
|
|
|
(0.20)
|
|
|
Management of the fair value changes
related to the CWB acquisition(5)
|
|
|
0.01
|
|
|
|
−
|
|
|
0.01
|
|
|
−
|
|
|
CWB acquisition and integration
charges(6)
|
|
|
0.02
|
|
|
|
−
|
|
|
0.02
|
|
|
−
|
|
|
Expense related to changes to the
Excise Tax
Act(7)
|
|
|
−
|
|
|
|
0.05
|
|
|
−
|
|
|
0.05
|
|
|
Income taxes related to the Canadian
government's 2022 tax measures(8)
|
|
|
−
|
|
|
|
−
|
|
|
−
|
|
|
0.07
|
|
|
Basic earnings per share - Adjusted
|
|
$
|
2.71
|
|
|
$
|
2.20
|
|
$
|
7.88
|
|
$
|
7.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
2.89
|
|
|
$
|
2.33
|
|
$
|
8.03
|
|
$
|
7.14
|
|
|
Amortization of the subscription
receipt issuance costs(2)
|
|
|
0.01
|
|
|
|
−
|
|
|
0.01
|
|
|
−
|
|
|
Gain on the fair value remeasurement
of equity interests(3)(4)
|
|
|
(0.25)
|
|
|
|
(0.20)
|
|
|
(0.25)
|
|
|
(0.20)
|
|
|
Management of the fair value changes
related to the CWB acquisition(5)
|
|
|
0.01
|
|
|
|
−
|
|
|
0.01
|
|
|
−
|
|
|
CWB acquisition and integration
charges(6)
|
|
|
0.02
|
|
|
|
−
|
|
|
0.02
|
|
|
−
|
|
|
Expense related to changes to the
Excise Tax
Act(7)
|
|
|
−
|
|
|
|
0.05
|
|
|
−
|
|
|
0.05
|
|
|
Income taxes related to the Canadian
government's 2022 tax measures(8)
|
|
|
−
|
|
|
|
−
|
|
|
−
|
|
|
0.07
|
|
|
Diluted earnings per share - Adjusted
|
|
$
|
2.68
|
|
|
$
|
2.18
|
|
$
|
7.82
|
|
$
|
7.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Certain amounts have been adjusted to reflect accounting
policy changes arising from the adoption of IFRS 17. For additional
information, see Note 2 to the unaudited interim condensed
consolidated financial statements in the Report to Shareholders
-
Third Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(2) During the quarter and nine-month period ended July 31, 2024,
the Bank recorded an amount of $5 million ($3 million net of income
taxes) to reflect the amortization of the issuance costs of the
subscription receipts issued as part of the agreement to acquire
CWB (for additional information, see Notes 9 and 11 to the
unaudited interim condensed consolidated financial statements in
the Report to
Shareholders - Third Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca).
(3) During the quarter and nine-month period ended
July 31, 2024, the Bank recorded a gain of $120 million
($86 million net of income taxes) upon the remeasurement at fair
value of the interest already held in CWB.
(4) During the quarter and nine-month period ended July 31, 2023,
the Bank had concluded that it had lost significant influence over
TMX Group Limited (TMX) and therefore ceased using the equity
method to account for this investment. The Bank had designated its
investment in TMX as a financial asset measured at fair value
through other comprehensive income in an amount of $191 million.
Upon the fair value measurement, a gain of $91 million ($67 million
net of income taxes) had been recorded in the Other heading of segment
results.
(5) During the quarter and the nine-month period ended July 31,
2024, the Bank recorded a mark-to-market loss of $7 million ($5
million net of income taxes) on interest rate swaps used to manage
the fair value changes of CWB's assets and liabilities that result
in volatility of goodwill and capital on closing of the
transaction. For additional information, see the CWB Transaction
section the MD&A in the Report to Shareholders - Third Quarter
2024, which is available on the Bank's website at
nbc.ca or the SEDAR+ website at
sedarplus.ca.
(6) During the quarter and nine-month period ended July 31, 2024,
the Bank recorded acquisition and integration charges of $7 million
($5 million net of income taxes) related to the CWB
transaction.
(7) During the quarter and nine-month period ended July 31, 2023,
the Bank had recorded a $25 million expense ($18 million net of
income taxes) in the Other
heading of segment results to reflect the retroactive impact of
changes to the Excise Tax
Act whereby payment card clearing services provided by
payment card network operators are subject to the goods and
services tax (GST) and the harmonized sales tax (HST).
(8) During the nine-month period ended July 31, 2023, the Bank
recorded, in the Other
heading segment results, a $32 million tax expense with respect to
the Canada Recovery Dividend, i.e., a one-time, 15% tax on the
fiscal 2021 and 2020 average taxable income above $1 billion as
well as an $8 million tax recovery related to the 1.5% increase in
the statutory tax rate, which included the impact related to
current and deferred taxes for fiscal 2022. For additional
information on these tax measures, see the Income Taxes section in
the Report to
Shareholders - Third Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Highlights
|
(millions of Canadian dollars,
except per share amounts)
|
|
Quarter
ended July 31
|
|
|
Nine
months ended July 31
|
|
|
|
|
|
2024
|
|
|
|
2023(1)
|
|
|
%
Change
|
|
|
2024
|
|
|
|
2023(1)
|
|
%
Change
|
|
|
Operating results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
2,996
|
|
|
|
2,490
|
|
|
20
|
|
|
8,456
|
|
|
|
7,498
|
|
13
|
|
|
Income before provisions for credit losses and
income taxes
|
|
|
1,455
|
|
|
|
1,086
|
|
|
34
|
|
|
3,994
|
|
|
|
3,342
|
|
20
|
|
|
Net income
|
|
|
1,033
|
|
|
|
830
|
|
|
24
|
|
|
2,861
|
|
|
|
2,538
|
|
13
|
|
|
Return on common shareholders'
equity(2)
|
|
|
18.4
|
%
|
|
|
16.1
|
%
|
|
|
|
|
17.5
|
%
|
|
|
17.0
|
%
|
|
|
|
Operating
leverage(2)
|
|
|
10.5
|
%
|
|
|
(4.4)
|
%
|
|
|
|
|
5.4
|
%
|
|
|
(4.5)
|
%
|
|
|
|
Efficiency
ratio(2)
|
|
|
51.4
|
%
|
|
|
56.4
|
%
|
|
|
|
|
52.8
|
%
|
|
|
55.4
|
%
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.92
|
|
|
$
|
2.35
|
|
|
24
|
|
$
|
8.09
|
|
|
$
|
7.21
|
|
12
|
|
|
|
Diluted
|
|
$
|
2.89
|
|
|
$
|
2.33
|
|
|
24
|
|
$
|
8.03
|
|
|
$
|
7.14
|
|
12
|
|
|
Operating results - Adjusted(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues -
Adjusted(3)
|
|
|
2,982
|
|
|
|
2,551
|
|
|
17
|
|
|
8,639
|
|
|
|
7,821
|
|
10
|
|
|
Income before provisions for credit
losses
and income taxes -
Adjusted(3)
|
|
|
1,448
|
|
|
|
1,172
|
|
|
24
|
|
|
4,184
|
|
|
|
3,690
|
|
13
|
|
|
Net income -
Adjusted(3)
|
|
|
960
|
|
|
|
781
|
|
|
23
|
|
|
2,788
|
|
|
|
2,513
|
|
11
|
|
|
Return on common shareholders'
equity - Adjusted(4)
|
|
|
17.0
|
%
|
|
|
15.1
|
%
|
|
|
|
|
17.0
|
%
|
|
|
16.9
|
%
|
|
|
|
Operating leverage -
Adjusted(4)
|
|
|
5.7
|
%
|
|
|
(3.0)
|
%
|
|
|
|
|
2.7
|
%
|
|
|
(2.2)
|
%
|
|
|
|
Efficiency ratio -
Adjusted(4)
|
|
|
51.4
|
%
|
|
|
54.1
|
%
|
|
|
|
|
51.6
|
%
|
|
|
52.8
|
%
|
|
|
|
Diluted earnings per share -
Adjusted(3)
|
|
$
|
2.68
|
|
|
$
|
2.18
|
|
|
23
|
|
$
|
7.82
|
|
|
$
|
7.06
|
|
11
|
|
|
Common share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
|
|
$
|
1.10
|
|
|
$
|
1.02
|
|
|
8
|
|
$
|
3.22
|
|
|
$
|
2.96
|
|
9
|
|
|
Book value(2)
|
|
$
|
64.64
|
|
|
$
|
58.53
|
|
|
|
|
$
|
64.64
|
|
|
$
|
58.53
|
|
|
|
|
Share price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
$
|
118.17
|
|
|
$
|
103.28
|
|
|
|
|
$
|
118.17
|
|
|
$
|
103.45
|
|
|
|
|
|
Low
|
|
$
|
106.21
|
|
|
$
|
94.62
|
|
|
|
|
$
|
86.50
|
|
|
$
|
91.02
|
|
|
|
|
|
Close
|
|
$
|
115.48
|
|
|
$
|
103.28
|
|
|
|
|
$
|
115.48
|
|
|
$
|
103.28
|
|
|
|
|
Number of common shares (thousands)
|
|
|
340,523
|
|
|
|
338,228
|
|
|
|
|
|
340,523
|
|
|
|
338,228
|
|
|
|
|
Market capitalization
|
|
|
39,324
|
|
|
|
34,932
|
|
|
|
|
|
39,324
|
|
|
|
34,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
|
As at
July 31,
2024
|
|
|
As
at
October 31,
2023(1)
|
|
%
Change
|
|
|
Balance sheet and off-balance-sheet
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
453,933
|
|
|
423,477
|
|
7
|
|
|
Loans and acceptances, net of
allowances
|
|
239,549
|
|
|
225,443
|
|
6
|
|
|
Deposits
|
|
320,587
|
|
|
288,173
|
|
11
|
|
|
Equity attributable to common
shareholders
|
|
22,011
|
|
|
20,432
|
|
8
|
|
|
Assets under
administration(2)
|
|
746,295
|
|
|
652,631
|
|
14
|
|
|
Assets under
management(2)
|
|
150,239
|
|
|
120,858
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory ratios under Basel
III(5)
|
|
|
|
|
|
|
|
|
|
Capital ratios
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
(CET1)
|
|
13.5
|
%
|
|
13.5
|
%
|
|
|
|
|
Tier 1
|
|
15.7
|
%
|
|
16.0
|
%
|
|
|
|
|
Total
|
|
16.9
|
%
|
|
16.8
|
%
|
|
|
|
Leverage ratio
|
|
4.4
|
%
|
|
4.4
|
%
|
|
|
|
TLAC ratio(5)
|
|
29.7
|
%
|
|
29.2
|
%
|
|
|
|
TLAC leverage
ratio(5)
|
|
8.3
|
%
|
|
8.0
|
%
|
|
|
|
Liquidity coverage ratio
(LCR)(5)
|
|
152
|
%
|
|
155
|
%
|
|
|
|
Net stable funding ratio
(NSFR)(5)
|
|
120
|
%
|
|
118
|
%
|
|
|
|
Other information
|
|
|
|
|
|
|
|
|
|
Number of employees - Worldwide
(full-time equivalent)
|
|
29,250
|
|
|
28,916
|
|
1
|
|
|
Number of branches in
Canada
|
|
369
|
|
|
368
|
|
−
|
|
|
Number of banking machines in
Canada
|
|
946
|
|
|
944
|
|
−
|
|
(1) Certain amounts have been adjusted to reflect accounting
policy changes arising from the adoption of IFRS 17. For additional
information, see Note 2 to the unaudited interim condensed
consolidated financial statements in the Report to Shareholders - Third Quarter
2024, which is available on the Bank's website at
nbc.ca or the SEDAR+ website at
sedarplus.ca.
(2) For details on the composition of these measures, see the
Glossary section on pages 49 to 52 in the Report to Shareholders
-
Third Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(3) See the Financial Reporting Method section on pages 3 to 6 for
additional information on non-GAAP financial measures.
(4) For additional information on non-GAAP ratios, see the
Financial Reporting Method section on pages 4 to 10 in the
Report to
Shareholders - Third Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
(5) For additional information on capital management measures, see
the Financial Reporting Method section on pages 4 to 10 in the
Report to
Shareholders - Third Quarter
2024, which is available on the
Bank's website at nbc.ca or the SEDAR+
website at sedarplus.ca.
Caution Regarding Forward-Looking Statements
Certain statements in this document are
forward-looking statements. All such statements are made in
accordance with applicable securities legislation in Canada and the
United States. The forward-looking statements in this document may
include, but are not limited to, statements made about the economy,
market changes, the Bank's objectives, outlook, and priorities for
fiscal year 2024 and beyond, the strategies or actions that will be
taken to achieve them, expectations for the Bank's financial
condition, its activities, the anticipated acquisition of Canadian
Western Bank and the impacts and benefits of the transaction, the
regulatory environment in which it operates, its environmental,
social, and governance targets and commitments, and certain risks
to which the Bank is exposed. These forward-looking statements are
typically identified by verbs or words such as "outlook",
"believe", "foresee", "forecast", "anticipate", "estimate",
"project", "expect", "intend" and "plan", in their future or
conditional forms, notably verbs such as "will", "may", "should",
"could" or "would" as well as similar terms and
expressions.
Such forward-looking statements are made for
the purpose of assisting the holders of the Bank's securities in
understanding the Bank's financial position and results of
operations as at and for the periods ended on the dates presented,
as well as the Bank's vision, strategic objectives, and performance
targets, and may not be appropriate for other purposes. These
forward-looking statements are based on current expectations,
estimates, assumptions and intentions and are subject to
uncertainty and inherent risks, many of which are beyond the Bank's
control. There is a strong possibility that the Bank's express or
implied predictions, forecasts, projections, expectations, or
conclusions will not prove to be accurate, that its assumptions may
not be confirmed, and that its vision, strategic objectives, and
performance targets will not be achieved. The Bank cautions
investors that these forward-looking statements are not guarantees
of future performance and that actual events or results may differ
significantly from these statements due to a number of factors.
Thus, the Bank recommends that readers not place undue reliance on
these forward-looking statements, as a number of factors could
cause actual results to differ significantly from the expectations,
estimates, or intentions expressed in these forward-looking
statements. Investors and others who rely on the Bank's
forward-looking statements should carefully consider the factors
listed below as well as the uncertainties they represent and the
risk they entail. 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.
Assumptions about the performance of the
Canadian and U.S. economies in 2024 and how that performance will
affect the Bank's business are among the factors considered in
setting the Bank's strategic priorities and objectives, including
allowances for credit losses. These assumptions appear in the
Economic Review and Outlook section and, for each business segment,
in the Economic and Market Review sections of the 2023 Annual Report and in the Economic
Review and Outlook section of the Report to Shareholders for the
third quarter of 2024, and may be updated in the quarterly reports
to shareholders filed thereafter.
The forward-looking statements made in this
document are based on a number of assumptions and are subject to
risk factors, many of which are beyond the Bank's control and the
impacts of which are difficult to predict. These risk factors
include, among others, the general economic environment and
financial market conditions in Canada, the United States, and the
other countries where the Bank operates; the possible delay or
failure to close the acquisition of Canadian Western Bank,
the potential failure to obtain the required approvals to the
transaction in a timely manner or at all; the Bank's ability to
complete the integration within anticipated time periods and at
expected cost levels, the realization of the expected strategic,
financial and other benefits of the transaction, such as achieving
synergies, in the timeframe anticipated; the impact of
upheavals in the U.S. banking industry; exchange rate and interest
rate fluctuations; inflation; global supply chain disruptions;
higher funding costs and greater market volatility; changes made to
fiscal, monetary, and other public policies; changes made to
regulations that affect the Bank's business; geopolitical and
sociopolitical uncertainty; climate change, including physical
risks and those related to the transition to a low-carbon economy,
and the Bank's ability to satisfy stakeholder expectations on
environmental and social issues; significant changes in consumer
behaviour; the housing situation, real estate market, and household
indebtedness in Canada; the Bank's ability to achieve its key
short-term priorities and long-term strategies; the timely
development and launch of new products and services; the Bank's
ability to recruit and retain key personnel; technological
innovation, including advances in artificial intelligence and the
open banking system, and heightened competition from established
companies and from competitors offering non-traditional services;
changes in the performance and creditworthiness of the Bank's
clients and counterparties; the Bank's exposure to significant
regulatory matters or litigation; changes made to the accounting
policies used by the Bank to report financial information,
including the uncertainty inherent to assumptions and critical
accounting estimates; changes to tax legislation in the countries
where the Bank operates; changes made to capital and liquidity
guidelines as well as to the presentation and interpretation
thereof; changes to the credit ratings assigned to the Bank by
financial and extra-financial rating agencies; potential
disruptions to key suppliers of goods and services to the Bank; the
potential impacts of disruptions to the Bank's information
technology systems, including cyberattacks as well as identity
theft and theft of personal information; the risk of fraudulent
activity; and possible impacts of major events affecting the
economy, market conditions, or the Bank's outlook, including
international conflicts, natural disasters, public health crises,
and the measures taken in response to these events.
The foregoing list of risk factors is not
exhaustive, and the forward-looking statements made in this
document are also subject to credit risk, market risk, liquidity
and funding risk, operational risk, regulatory compliance risk,
reputation risk, strategic risk, and social and environmental risk
as well as certain emerging risks or risks deemed significant.
Additional information about these factors is provided in the Risk
Management section of the 2023
Annual Report and in the Risk Management section of the
Report to Shareholders for the third quarter of 2024, and may be
updated in the quarterly reports to shareholders filed
thereafter.