Investor Presentaiton
PROVISIONS FOR CREDIT LOSSES
Provisions for credit losses Q2 20 ($MM)
$113
$504
Impaired
$120
$391
POCI
($7)
Non-
Retail
$317
Non-
Retail
$254
Retail
$111
USSF&I $26
Retail
$155
USSF&I $32
Performing
Impaired
Total PCL
& POCI
Q1 20
Personal
108
Commercial
107
FM
142
WM
Other
35
322-
43
151
49
43
150
21
20
162
9
1
45
Total PCL X-USSF&I
365
107
472
79
USSF&I (1)
26
6
32
Total PCL ($MM)
391
113
504
89
Total PCL (bps)
99
29
128
2222
10
23
(1) Impaired PCL includes ($7M) from POCI.
Total PCL:
The deterioration in economic conditions caused by
the COVID pandemic led to total PCLs of $504M in Q2,
a >5 times increase QoQ
PCL on performing loans:
☐
☐
☐
■
Increased to $391M (99bps) - key drivers were revisions
of macroeconomic scenarios (>75%), portfolio growth,
migration and an increase in management overlay
Performing PCLs for retail credit were $111M, reflecting
the significant deterioration in employment outlook
tempered by our relative underweight in unsecured
consumer lending
Performing PCLs in non-retail portfolios were $254M,
reflecting broad based deterioration in economic factors
Performing PCLs in the USSF&I segment increased
materially to $26M due to revision of macroeconomic
forecasts tempered by portfolio mix (primarily secured
lending)
PCL on impaired loans:
Impaired PCLs were stable QoQ across Personal
banking, WM and USSF&I
Impaired PCLs in Commercial and FM increased from last
quarter as provisions were taken in a number of files
across multiple sectors
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