International Banking and Canadian Economy Overview
Global Banking and Markets Financial Performance
Volatile market conditions, margin compression. Strong loan growth.
FINANCIAL PERFORMANCE AND METRICS ($MM)
YEAR-OVER-YEAR HIGHLIGHTS
Q3/19
Y/Y
Q/Q
.
Net Income
$374
(15%)
(11%)
Revenue $1,084
(2%)
(6%)
•
Expenses
$593
+9%
PCLS
($4)
N/A
N/A
Productivity Ratio
Net Interest Margin
PCL Ratio²
54.7%
1.61%
+580bps +310bps
(21bps)
(9bps)
(0.01%) +4bps
+1bp
•
PCL Ratio on Impaired Loans²
(0.01%) +5bps
+1bp
1
NET INCOME AND ROE
15.6%
15.3%
15.2%
11.5%
12.8%
•
Net Income down 15% Y/Y and down 11%
Q/Q
Revenue down 2%
。 Net interest income down 8%
o Non-interest income flat
NIM down 21 bps
o Lower deposit margins
Loans up 12%
○ Strong corporate loan growth across Canada and the
U.S.
Expenses up 9%
• Expenses flat Q/Q
o Higher regulatory costs and unfavourable impact of
foreign currency
• PCL ratio 2 continues to be a recovery
441
416
420
374
335
Q3/18
Q4/18
Q1/19
Q2/19
Q3/19
1 Attributable to equity holders of the Bank
2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
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