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Investor Presentaiton

17 18 • Risks Continue to be Well-Managed Risk in credit portfolios remains well-managed - - - Overall credit quality continues to be strong Credit risk in Canadian residential real estate portfolio remains stable. Loss estimate for real estate portfolio impacted by Alberta flooding is not significant Retail provisions in International Banking in line with growth and product mix All-Bank PCL ratio declined to 31 basis points Net impaired loan formations up $152 million to $478 million this quarter Primarily driven by Colombia acquisition Market risk remains low and well-controlled Average 1-day all-bank VaR: $17.4MM vs. $16.8MM in Q2/13 Scotiabank Credit Provisions ($ millions) Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Canadian Retail 103 99 108 106 103 Canadian Commercial 15 33 10 30 5 118 132 118 136 108 International Retail 151 159 171 180 177 International Commercial 17 17 15 14 17 168 1761 1861 1941 1941 Global Wealth Management 1 2 1 1 1 Global Banking & Markets 15 11 5 12 11 Collective allowance on performing loans 100 Total 402 321 310 343 314 PCL ratio (bps) ex. collective allowance 34 36 32 35 31 PCL ratio (bps) on performing loans 46 36 32 35 31 Scotiabank (1) Includes the impact of Colombian purchased portfolio. The Bank expects the PCL ratio to rise with 1the maturity of the acquired portfolio. See Pg. 11 of the Third Quarter Report to Shareholders.
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