Canadian Housing Market Financial Analysis
International Banking Financial Performance
Strong performance across the Pacific Alliance
FINANCIAL PERFORMANCE AND METRICS ($MM) 1, 2
Reported
YEAR-OVER-YEAR HIGHLIGHTS
Adjusted Net Income up 14% 5
○ Strong loan growth across the Pacific Alliance
Revenues up 22%
2
o Pacific Alliance up 28%, includes impact of acquisitions
Loans up 29%
Q2/19
Y/Y
Q/Q
•
Revenue $3,356
Expenses
+22%
(1%)
$1,710 +19%
(3%)
PCLS
$628
+87%
31%
Net Income
$700
+2% (13%)
Productivity Ratio
51.0%
(150bps) (130bps)
Net Interest Margin
4.58%
(16bps) +6bps
PCL Ratio³
1.71%
PCL Ratio on Impaired Loans³
Adjusted 5
1.29%
+49bps +43bps
(9bps) +6bps
•
Expenses
$1,677
+18%
(3%)
NIM down 16 bps
PCLS
$477
+42%
0%
Net Income
$787
+14% (5%)
Productivity Ratio
50.0%
PCL Ratio³
1.30%
(210bps) (110bps)
+8bps
o Pacific Alliance up 42% includes impact of Chile,
Colombia and Peru acquisitions
ADJUSTED NET INCOME 15 ($MM) AND NIM 4 (%)
4.74%
4.70%
4.52%
4.52%
+2bps
4.58%
•
805
787
•
715
746
683
Q2/18
Q3/18
1 Attributable to equity holders of the Bank
Q4/18
Q1/19
Q2/19
•
•
o Primarily driven by the business mix impact of
acquisitions (BBVA Chile)
ONIM up 6 bps Q/Q
Expenses up 18% 5
o Includes impact of acquisitions
。 Business volume growth and inflation
。 Productivity ratio improvement of 210 bps 5
Quarterly operating leverage of +5.0% 5
PCL ratio on impaired loans³ improved 9 bps
Strong growth in digital sales
2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis
3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures
4 Net Interest Margin is on a reported basis
5 Adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of
intangibles related to current and past acquisitions
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