Q1 2017 Financial Performance slide image

Q1 2017 Financial Performance

International Banking 1 Net Income ($MM) 576 547 527 505 500 • Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Year-over-Year Highlights • . Net Income up 14% or 18%² • Good retail loan and deposit growth Strong net interest margin and fee growth and good expense control Partly offset by impact of foreign currency translation Loans flat and deposits up 5% • Ex. foreign currency translation, loans up 5% (Retail up 9%) and deposits up 10% NIM up 16 bps, driven by business mix, acquisitions, and re-pricing following recent rate increases PCL ratio increased 7 bps Expenses up 1% or 6%² • Acquisitions, business volumes and inflationary increases Partly offset by the impact of foreign currency translation and benefits from cost reduction initiatives Operating leverage of +4.2% Margin expansion and positive operating leverage • Average Assets ($B) 143 145 140 142 143 Net Interest Margin (%) 4.79 4.77 4.73 . 4.69 4.57 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 (1) Attributable to equity holders of the Bank (2) Adjusting for foreign currency translation - see page 5 of MD&A for additional details 10 Scotiabank®
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