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The Personal and Commercial Banking (P&C) operating group represents the sum of our two retail and business banking operating segments, Personal and Commercial Banking Canada (P&C Canada) and Personal and Commercial Banking U.S. (P&C U.S.). These operating segments are reviewed separately in the sections that follow.
----------------------------------------------------------------------------Personal and Commercial Banking Canada (P&C Canada) Table 23----------------------------------------------------------------------------(Canadian $ in % Increase % Increase millions, except as (Decrease) (Decrease) noted) Q1-2013 Q1-2012 vs Q1-2012 Q4-2012 vs Q4-2012----------------------------------------------------------------------------Net interest income (teb) 1,102 1,116 (1) 1,088 1Non-interest revenue 461 447 3 470 (2)----------------------------------------------------------------------------Total revenue (teb) 1,563 1,563 - 1,558 -Provision for credit losses 128 155 (18) 146 (13)Non-interest expense 813 808 1 810 -----------------------------------------------------------------------------Income before income taxes 622 600 4 602 3Provision for income taxes (teb) 164 159 3 160 3----------------------------------------------------------------------------Reported net income 458 441 4 442 3--------------------------------------------------------------------------------------------------------------------------------------------------------Adjusted net income 461 443 4 444 3----------------------------------------------------------------------------Personal revenue 980 974 1 980 -Commercial revenue 583 589 (1) 578 1Operating leverage (%) (0.7) (5.4) nm (1.2) nmEfficiency ratio (%) (teb) 52.0 51.7 0.3 51.9 0.1Net interest margin on earning assets (%) (teb) 2.65 2.92 (0.27) 2.68 (0.03)Average earning assets ($ billions) 165 152 8 161 2--------------------------------------------------------------------------------------------------------------------------------------------------------Adjusted results in this table are non-GAAP amounts or non-GAAP measures.Please see the Non-GAAP Measures section.nm - not meaningful
Q1 2013 VS Q1 2012
P&C Canada net income of $458 million was up $17 million or 4%. Revenue was unchanged from a year ago, reflecting the combination of higher volumes across most products and lower net interest margin. Net interest margin declined 27 basis points to 2.65% primarily due to lower deposit spreads in the low rate environment and changes in mix, including loan growth exceeding deposit growth.
Provisions for credit losses fell $27 million to $128 million due to a combination of higher recoveries and lower provisions.
Non-interest expense increased by $5 million, reflecting prudent expense management while investing selectively in the business.
