Financial Health and Performance Overview slide image

Financial Health and Performance Overview

Scotiabank in Mexico¹ BUSINESS OVERVIEW 2 Operating since 2003 offering Retail, Small Business, Commercial, GBM, Wealth and Treasury solutions PERFORMANCE EVOLUTION ($MM) 2 1,248 1,315 PTPP 4,5 NIAEHA 1,069 845 Q2/23 Customers³ ~2.5MM 671 261 352 338 231 207 Employees³ ~8,800 2020 2021 2022 Q2/22 Q2/23 Branches³ 453 WY/WY Y/Y Loans $44Bn PTPP Growth 4,5 6% 17% 5% 19% (4%) NIAEH Growth4 (52%) 157% 26% 68% (11%) Deposits $42Bn Loan Growth 14% (2%) 12% 10% 12% ROE4 21.2% NIM4,6 4.35% 4.40% 4.14% 4.13% 4.06% Digital Adoption (%) 52% Productivity Ratio 55.0% 50.0% 49.0% 47.1% 49.8% Digital Sales (%) 66% Operating Leverage 1.3% 8.9% 2.2% 9.9% (6.9%) ECONOMIC OUTLOOK7 LOAN PORTFOLIO 8 MARKET SHARE AND POSITIONS 9, 10 Residential 2023E 2024E Mortgages Total Loans 5th 8% GDP Growth (%) 1.6% 1.3% 32% Population Growth (%) 0.85% 0.82% $43.5Bn CPI (y/y % eop) 5.5% 4.2% Mortgage 4th Non-mortgage 6th 3% 16% Unsecured 6% Corporate/ Commercial 58% Auto 3% Commercial 5th 7% Total Deposits 6th 7% 1 All figures excluding Wealth Management; 2 Current and prior period dollars, Y/Y and Q/Q growth rates (%) are on a constant dollar basis (with WYs at YTD23 FX rates and Q2/22 and Q2/23 at Q223 FX rates), while metrics are on a reported basis; 3 Including subsidiaries; customers down 600K vs Q1/23 due to consolidation of inactive accounts (largely social program accounts); 4 See non-GAAP reconciliations beginning on slide 83; 5 Pre-Tax, Pre-Provision Profit defined as revenues less expenses; 6 Net Interest Margin calculated as Core Net Interest Income / Average Core Earning Assets; 7 Source: Scotiabank Economics. GDP and CPI as at May 18, 2023 forecast; Population Growth: World Economic Outlook Database, April 2023; 8 May not add due to rounding; 9 Key Competitors: BBVA, Banamex Citigroup, Santander, Banorte, HSBC; Source: CNBV/Banxico; 10 As of March 2023 30
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