Investor Presentaiton
Financial Highlights - Q2/17
Net Income ($m)
A strong earnings and operating quarter for Scotiabank, with net income of $2.1 billion,
up 11% Y/Y(1).
2,100
2,061
Strong earnings growth across all three business lines:
2,011
2,009
2,000
1,959
Canadian Banking net income of $971 million, up 11% (of which 6% was
attributed to higher real estate gains), adjusting for the gain on disposition
of a non-core lease finance business in Q2/16.
1,900
1,862(1)
1,800
1,700
Q2/16
Q3/16 Q4/16 Q1/17
Q2/17
International Banking net income of $595 million, up 19% Y/Y or 23%,
adjusting for foreign currency translation. This reflects higher net interest
margin, lower provision for credit losses, and positive operating leverage.
Global Banking and Markets net income of $517 million, up 60% Y/Y,
driven mainly by higher contributions from equities, fixed income, U.S
lending business, and lower provision for credit losses. The higher income
from equities related primarily to certain equity trading transactions,
which contributed approximately 40% of the Y/Y growth.
Revenue was in line with prior year, or up 4% on a TEB basis, driven by higher asset
growth in Canadian and International Banking and increased contributions from
asset/liability management activities. This was offset by lower trading revenues,
reduced net gain on investment securities and impact of foreign currency
translation
Expenses grew 5% Y/Y(1) as a result of continued investment in business initiatives,
which drove higher digital and technology related expenses
Productivity Ratio (2) is 54.7%, or 52.1% on a TEB basis
Positive operating leverage on a TEB basis
PCL ratio improved 15 bps Y/Y to 49 bps
Productivity Ratio (2)
54.7%
55.0%
54.1%
53.7%
54.0%
52.8%
53.0%
52.2%
52.0%
51.0%
50.0%
Q2/16
Q3/16 Q4/16 Q1/17
Q2/17
PCL Ratio
Strong CET1 ratio of 11.3%, unchanged Q/Q and Leverage ratio of 4.4%
0.70%
0.60%
0.59%
0.47%
0.45% 0.49%
Realized $155 million in savings from the structural cost transformation in Q2/17.
Year-to-date realized savings of $250 million, or ~70% of the Bank's $350 million
guidance for 2017
0.50%
0.45%
0.40%
0.30%
0.20%
(1) Adjusts for restructuring charge of $278 million after-tax ($378 million before-tax) in Q2/16
0.10%
(2)
Effective Q3/16, the taxable equivalent adjustment is no longer included in the calculation. Prior period amounts
have been restated for all the banks.
0.00%
(3)
Q2/16 Q3/16 Q4/16
Q1/17 Q2/17
(3) Adjusts for collective allowance increase; including collective allowance increase, All Bank PCL ratio was 0.64%
7
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