Canadian Housing Market and Financial Overview
Canadian Banking Financial Performance
Strong deposit growth and higher NIM
FINANCIAL PERFORMANCE AND METRICS ($MM)¹
Q1/19
Y/Y
Q/Q
.
Reported
Revenue
$3,415
+3%
(1%)
Expenses
$1,730
+8%
(1%)
PCLs
$233
+11%
+18%
Net Income
$1,073
Productivity Ratio
50.6%
(3%)
+200bps (10bps)
(4%)
Net Interest Margin
2.44%
+3bps (1bp)
PCL Ratio²
0.27%
+2bps
+4bps
PCL Ratio on Impaired Loans²
Adjusted³
0.27%
+5bps
Expenses
$1,709
+7%
Net Income $1,089
Productivity Ratio 50.0%
(2%)
+160bps
(5%)
+50bps
ADJUSTED NET INCOME 13 ($MM) AND NIM (%)
2.41%
2.43%
2.46%
2.45%
2.44%
1,107
1,022
1,141
1,146
1,089
Q1/18
Q2/18
1 Attributable to equity holders of the Bank
Q3/18
Q4/18
Q1/19
YEAR-OVER-YEAR HIGHLIGHTS
Adjusted Net Income down 2%3
o Lower real estate gains and prior year Interac gain
reduced net income by 4%
Higher PCLs related to one commercial account
o Includes the impact of acquisitions
○ Asset and deposit growth, margin expansion
Revenue up 3%
o Includes impact of acquisitions
○ Net interest income up 5%
• Loan growth of 4%
o Business loans up 10%
o Residential mortgages up 3%; credit cards up 7%
Deposit growth of 9%
o Personal up 7%; Non-Personal up 12%
NIM up 3 bps
o Primarily driven by the impact of prior rate increases
Expenses up 7%³
o Includes impact of acquisitions
○ Investments in technology and regulatory initiatives
PCL ratio2 up 2 bps to 27 bps
2 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures
3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions
Scotiabank®
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