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Q2 Fiscal 2018
Investor Presentation
September 12, 2018
22
Caution Regarding Forward-Looking Statements
From time to time Concentra Bank (“Concentra”) makes written and verbal forward-looking statements. These
are included in the MD&A, periodic reports to shareholders, regulatory filings, press releases, Concentra
presentations and other Concentra communications. Forward-looking statements are made in connection with
business objectives and targets, Concentra strategies, operations, anticipated financial results and the outlook
for Concentra, its industry, and the Canadian economy. Forward-looking statements are subject to known and
unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of
transactions, performance or achievements of Concentra to be materially different from those expressed or
implied by such forward-looking statements, including but not limited to risks related to capital markets and
additional funding requirements, fluctuating interest rates and general economic conditions, legislative and
regulatory developments, changes in accounting standards, the nature of our customers and rates of default,
competition, and other.
All material assumptions used in making forward-looking statements are based on management’s knowledge of
current business conditions and expectations of future business conditions and trends, including their
knowledge of the current credit, interest rate and liquidity conditions affecting Concentra and the Canadian
economy. Although Concentra believes the assumptions used to make such statements are reasonable at this
time there may be other factors that cause results not to be as anticipated, estimated or intended. Certain
material assumptions are applied by Concentra in making forward-looking statements, including without
limitation, assumptions regarding its continued ability to fund its lending business, a continuation of the current
level of economic uncertainty that affects market conditions, continued acceptance of its products in the
marketplace, and the current tax regime. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements. Concentra does not
undertake to update any forward-looking statements that are contained herein.
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Speakers
Don Coulter, Bsc, Msc, CPA, CAPresident and CEO
Paul Masterson, CPA, CA, MBAEVP, CFO
Update from the President & CEO
Don Coulter
President & CEO
55
CEO Update:Continued Franchise Strength
1. Executive Changes
2. Corporate Performance
3. Strategy Update
Q2 Fiscal 2018
Franchise Earnings
Paul Masterson
EVP, CFO
7
Improved results in Q2
• Very strong ROE% in Q2
• Revenues up slightly from Q1
• PCL remain low; Q2 is reflective of the change for IFRS 9
• Expenses up from Q1
• Net Income slightly down from Q1
Business Highlights in Q2
• Total Assets modest growth from Q1
• Strong results in our Commercial Lending business
• Residential Mortgage & Securitization business continues to be impacted by slower market conditions, market opportunities emerging in Alt A
• Steady results in our Consumer Lending business
• Consistent results for our Trust and Leasing businesses
88
Residential Loans
Lower Insured Mortgages available due to market headwindsShift to conventional and Alt A growth
Loans Originated ($M)Assets on Balance Sheet ($B)
6.1 6.1 6.1 6.1 6.4
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
537
319
231189
482
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
99
Commercial Lending
Loans Originated ($M)Assets on Balance Sheet ($B)
1.2 1.2 1.21.2
1.3
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
45
92103
54
230
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
Very strong growth of originations in Q2
1010
Consumer Loans
Loans Originated ($M)Assets on Balance Sheet ($M)
370 369 365 364 379
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
36
52
42 44
69
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
Continued growth from consumer lending sources
1111
Funding and Liquidity
29% 28% 30% 31% 35%
15% 14% 12% 13% 13%
50% 52% 50% 49% 47%
Q22017
Q32017
Q42017
Q12018
Q22018
Securitized
Capital Markets
Commerical
Credit Union
Retail
1.5 1.51.4
1.3 1.3
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Stable diversification of funding
Total Deposit by Source (%) Total Liquid Assets ($B)
1212
Strong Capital Ratios
(1) As per OSFI’s capital adequacy requirements
Capital Ratios remain stable
11.8%
13.0% 13.1% 13.1%12.1%
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
CET1 RATIO
Questions?
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Get in touch!
Investor Relations Contact:
Paul Masterson, CPA, CA, MBAEVP, Chief Financial Officer
Bruce Klassen, CFACorporate Treasurer
[email protected] 306.566.1956
concentra.ca/investor
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© Concentra Bank, 2018
concentra.ca