Q1 2021 INVESTOR WEBINAR - JUNE 3, 2021 - Concentra Bank
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Q1 2021 INVESTOR WEBINAR JUNE 3, 2021
Don Coulter Paul Masterson Neal Oswald Jocelyn Tratch
MSc, CPA, CA, ICD.D CPA, CA, MBA, ICD.D CPA, CFA CPI, PMP, BSc Hons.
President and CEO SVP, Chief Financial Officer Chief Operating Officer Sr. Strategic Management Director
2
Disclaimer: 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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• Questions are encouraged
• Please type your questions
Questions in the chat box
• We’ll answer questions at
the end of the webinar
4
BUSINESS HIGHLIGHTS
Don Coulter, President & CEO
5
• Concentra Bank a Best Managed
Company for 18 years
• 2021 Empowering Your
Communities program: 17
CEO Update grants totalling $100,000
• Strong Q1 financial results
across all business lines
• Successful inaugural fixed-term
deposit note issuance
6PARTNERSHIPS
Neal Oswald, SVP, COO
7Neo Financial
• Enabling CDIC deposit taking and clearing through Interact
• Consumer card receivables funding launched
• Supporting HBC card transition from Capital One
Partnerships
Intellect Design
• Executing a digital banking platform this year
Cinchy
Concentra has three core
• Supporting the CEBA program for over 80 CUs and 500
competencies: million in loans
1) Partnerships
SAVVYY.AI
2) Innovation
• Mortgage origination & underwriting platform up and
3) Specialization running
Our partners help us to grow and
BVCI
do more than we could by ourselves
• Support of CADT stablecoin deposits through our trust
company
TickTrade
• New FX platform launched to support credit unions
8Q1 FISCAL 2021
FRANCHISE EARNINGS
Paul Masterson, SVP, CFO
9Record revenue and earnings as
growth continues
Record net revenue in Q1 2021, driven by strong net interest income
Revenue
(CAD millions) Q1 2020 Q4 2020 Q1 2021 40
CAD Millions
Summary Income Statement Net Income
35
Total Net Revenue 28.7 33.1 36.0 36
Operating Expenses (19.0) (23.1) (21.0) 34 33
30
31 31
Pre-Provision Profit 9.7 10.0 15.0 29 30 29
Provision for credit loses (4.2) 4.0 2.7 25
26
Income before tax 5.5 14.0 17.7 20
Income tax expense (1.5) (3.7) (4.8)
Net Income 4.0 10.3 12.9 15
10 12.9
9.7 9.4 10.3
9.0
YTD ROE 11.7% 5
6.2 5.1 4.0
Efficiency Ratio 58.5% - 1.7
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
YoY Growth in Q1 NI 220%
10Well diversified & growing asset base
14
CAD Billions
+22%
Year over year
2%
12
11.1 11.6
10.8
9.8 10.0 24%
10 9.3 9.5 Residential Mortgages
9.2 8.9
Consumer Loans
8
$11.6B Commercial Lending
Total Assets Cash & Securities
6 8%
62% Other Assets
4 4%
2
-
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Atlantic
4.6%
Low-risk loan portfolio
with a high percentage BC
13.1% AB
of insured, 19.6% MB
SK
geographically 6.7% 1.9% ON QC
diversified assets 51.9% 2.1%
Credit Portfolio Composition
March 31, 2021 11 11Loan assets on balance sheet
Loan portfolio remained stable, with higher 1.4
Commercial Lending
CAD Billions
asset levels attributable primarily to higher 1.2
levels of liquid assets 1.2
1.2
1.0 1.1 1.1 1.1
1.0 0.9
0.8 0.9 0.9
0.6
8 Residential Mortgages 0.4
CAD Billions
0.2
7 7.4 7.2
7.1 -
6 6.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
6.1 6.0 6.0 6.1 2019 2019 2019 2019 2020 2020 2020 2020 2021
5.9
5
600 Consumer Loans
CAD Millions
4
500
521 515 519
3 495 490
400 449 457 466
414
2
300
1
200
-
100
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2019 2019 2019 2020 2020 2020 2020 2021
12Strong funding and liquidity positions
Growth in credit union deposits continued in Q1 2021. The Bank maintained a stable funding base with
high levels of liquid assets.
Funding By Source Liquid Assets for Regulatory Purposes
12 3.5
CAD Billions
CAD Billions
11.0
10.2 10.5 3.0
10 3.0
9.2 9.4
8.7 8.9 2.5
8.6 8.4 2.5
8 2.3 2.3
2.0
6
1.5 1.4 1.4 1.5
1.3
4
1.2
1.0
2 0.5
- -
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Securitized Liabilities Commercial Deposits ABCP / CP / BA
Retail Deposits Capital Markets Cash and Others
Credit Union Deposits Notes & Loans Payable
13Capital ratios remain strong
15%
14% 13.2% 13.3% 13.2%
13.0% 12.8% 12.7%
13% 12.2% 12.4%
12.1%
12% CET1 Ratio
Capital Ratios - Q1 2021 Ratio OSFI Minimum
11%
CET1 12.7% 7.0%
10%
Tier 1 Capital 16.2% 8.5%
9%
Total Capital 16.8% 10.5%
Leverage Ratio 4.3% as prescribed 8%
7%
OSFI Minimum
6%
5%
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
14We’re happy to answer your
Q&A questions—please type them
in the chat window.
15Paul Masterson, CPA, CA, MBA
Investor Chief Financial Officer
Relations paul.masterson@concentra.ca
306.531.9497
Contact
concentra.ca/investor© Concentra Bank, 2021 concentra.ca
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