PCL Ratios and Provision for Credit Losses Review
Q3 2018 FINANCIAL PERFORMANCE
Strong adjusted results with strong operating leverage and productivity gains
$MM, except EPS
Reported
Q3/18
Y/Y
Q/Q
Net Income
$1,939
(8%)
(11%)
Diluted EPS
$1.55
(7%)
(9%)
Revenue
$7,181
+4%
+2%
•
Expenses
$3,770
+3%
+1%
Productivity Ratio
52.5%
(80bps)
(30bps)
Core Banking Margin
2.46%
PCL Ratio 1, 2
69bps
+24bps
(1bp)
+27bps
PCL Ratio on Impaired Loans 1, 2
41bps
(4bps) (5bps)
Adjusted³
•
Net Income
$2,259
+7%
+3%
Diluted EPS
$1.76
+5%
+3%
Expenses
$3,721
+2%
Productivity Ratio
51.8%
PCL Ratio 1, 2
40bps
(120bps) (70bps)
(5bps) (2bps)
DIVIDENDS PER COMMON SHARE
+0.03
+0.03
•
+0.03
0.76
0.79
0.79
0.82
0.82
•
YEAR-OVER-YEAR HIGHLIGHTS
Reported Net Income down 8%, or up
7%³ adjusted
Revenue up 4%
。 Net interest income up 7% from strong volume
growth in both Canadian and International Banking
。 Non interest income up 1%
。 Lower real estate, securities gains, and sale of
Hollis Wealth
Expenses up 2%
3
o Higher investments in technology, regulatory
initiatives, impact of acquisitions and taxes
。 Partly offset by the sale of Hollis Wealth, lower
share-based payment expenses, advertising and
business development costs
。 YTD productivity ratio improved 240bps³
Positive YTD operating leverage of
4.7%³
Improved PCL ratio 1.2 on impaired
loans
Q3/17
Q4/17
■ Announced Dividend Increase
Q1/18
Q2/18
Q3/18
12018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39
2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
3 Adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization
of intangibles related to current and past acquisitions
Scotiabank® |
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