Global Wealth Management: 2012 Outlook
9
10
Strong Capital Ratios: High Quality
Capital Ratios (%)
12.3
11.8
12.0
12.2
11.4
9.9
9.6
9.6
9.3
9.11
8.5
.
Q1/11
Q2/11 Q3/11
Tangible Common Equity
Q4/11
Q1/12
Tier 1
• Internal capital generation of
•
•
$804MM (vs. $635MM in
Q1/11)
Stock issued under DRIP:
$146MM (vs. $127MM in
Q1/11)
Negatively impacted by Basel
2.5 and IFRS transition
Successfully completed
common equity offering early
in Q2
• Remain confident of
achieving 7% - 7.5% CET1
target by Q1 2013
(1) Pro forma common equity issue in February 2012 for gross proceeds of approximately $1.7 billion
Scotiabank
Matched Maturity Transfer Pricing
Adopted matched maturity transfer pricing effective Q1/12
-
Match the contractual and behavioural maturities of assets/liabilities
-
Restated 2011 business line results to ensure comparability
.
Largest impact is in Canadian Banking, where results are lower due
to a higher net funding charge
• International Banking minimally impacted
⚫ Global Wealth Management earnings increased due to stable pools
of client cash balances
⚫ Global Banking & Markets minimally impacted with slight increase
due to stable pools of corporate banking deposits
• The net impact of the change in methodology reflected in the Other
segment, which now shows a lower loss
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