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Investor Presentaiton

Credit Highlights - Well Managed Loans & Acceptances by Category ($491B) • High proportion of assets are residential mortgages Very low exposure to unsecured credit Business & Corporate loan book is diversified with a focus on Gov't - 36% Investment Grade clients 15% Underlying credit fundamentals remain solid Market risk remains well-controlled 93% of Canadian Retail assets are secured (82% by real estate and 11% by automotive) 68% of International Retail assets are secured Manageable energy exposure is diversified across sectors and geographies Provision for Credit Losses Ratio 3.6% 4% 5% 4% 5% 2% 17% Retail - 64% ■Mortgages ($219B) Personal Loans ($83B) ■Credit Cards ($12B) Financial Services ($22B) 45% ■Real Estate ($21B) Wholesale/Retail ($23B) Automotive/Transport ($21B) Oil & Gas ($17.9) Other ($72B) Gross Impaired Loans Ratio 0.45% 0.42% 0.42% 0.42%1 1.01% 0.41% 1.00% 0.97% 0.97% 1.03% Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 (1) Excludes the increase in Collective Allowance for Performing Loans (PCL ratio including the increase in Collective Allowance for Performing Loans is 47 bps in Q4/15) 80 Scotiabank®
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