International Banking and Canadian Economy Overview
International Banking Financial Performance
Double-digit earnings growth for 11 consecutive quarters
FINANCIAL PERFORMANCE AND METRICS ($MM) 1, 2
YEAR-OVER-YEAR HIGHLIGHTS
2
Adjusted Net Income up 14% or 11% 5 on a
constant currency basis
Strong loan growth across the Pacific Alliance, positive
impact of acquisitions, and higher non-interest income
Revenues up 20%
Q3/19
Y/Y
Q/Q
•
Reported
Net Income
Revenue
Expenses
$781
$3,427 +20%
+40%
13%
3%
$1,780 +19%
6%
PCLS
$476
Productivity Ratio
51.9%
(35%) (23%)
(100bps) +90bps
·
Net Interest Margin
4.45%
(25bps) (13bps)
PCL Ratio³
1.24%
(134bps) (47bps)
PCL Ratio on Impaired Loans³
Adjusted 5
1.36%
+3bps +7bps
Net Income
Expenses
$815
+11%
+5%
Productivity Ratio
PCL Ratio³
$1,725
PCLs $476
50.3%
1.24%
+18%
+4%
.
NIM down 25 bps
+33%
+2%
(140bps) +30bps
+1bp
(6bps)
1,5
ADJUSTED NET INCOME 10 ($MM) AND NIM 4 (%)
4.70%
4.52%
4.52%
4.58%
4.45%
•
805
815
746
787
·
715
Q3/18
Q4/18
1 Attributable to equity holders of the Bank
Q1/19
Q2/19
Q3/19
.
o Pacific Alliance up 26% (including acquisitions)
Loans up 28%
o Pacific Alliance up 41% (including acquisitions)
o Primarily driven by larger contribution from Chile and
margin compression in Mexico
Expenses up 18%5
o Includes impact of acquisitions
。 Business volume growth and inflation
。 Productivity ratio improvement of 140 bps 5
Quarterly operating leverage of +3.2%5
PCL ratio on impaired loans³ increased 3
bps
2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis
3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures
4 Net Interest Margin is on a reported basis
5 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. 27View entire presentation