2006 Financial Overview and 2007 Priorities
Scotiabank
$ millions
Higher salaries & employee benefits due
to acquisitions and network expansion
% Change vs.
% Change vs.
2006
2005
Q4/06 Q4/05
Q3/06
Salaries
Stock-based Compensation
$2,100
7%
$558 8%
4%
164
17
50 19
100%+
Other Performance-based
936
6
217
21
(10)
Compensation
Pension & Employee Benefits
568
12
141
14
3
Total
$3,768
8%
$966
12%
3%
2006 vs. 2005: up 8%
Higher salaries and employee benefits due to acquisitions, as well
as increased performance-based compensation
Q4/06: up 12% yr/yr & 3% qtr/qtr
"
"
Yr/yr: higher salaries due to acquisitions and additional sales staff as well as
increased performance-based compensation
■ Qtr/qtr: increase in stock-based compensation due to increase in the Bank's
share price partially offset by lower performance-based compensation
Scotiabank
%
All Bank
37
Net interest margin
1.97
1.97
1.97
1.98
1.89
Domestic
2.89
2.78
2.74
2.67
2.62
International
4.06
3.93
4.15
4.19
4.20
Scotia Capital
0.76
0.72
0.73
0.70
0.71
All-Bank margin: (9) bps qtr/qtr
negative impact of AcG-13 and higher
funding costs
Domestic margin: (5) bps qtr/qtr
■ primarily from strong mortgage growth at
relatively narrower spreads
International margin: +1 bps qtr/qtr
■ wider spreads in Latin America & Mexico
partly offset by lower spreads in Caribbean
& Central America
Scotia Capital margin: (5) bps qtr/qtr
tighter loan spreads and lower interest
recoveries
Q4/05
Q1/06
Q2/06
Q3/06
Q4/06
38View entire presentation