FY 2021 BALANCED APPROACH BETWEEN INVESTMENT AND COST MANAGEMENT slide image

FY 2021 BALANCED APPROACH BETWEEN INVESTMENT AND COST MANAGEMENT

PRUDENT PROVISIONING IN UNCERTAIN ECONOMIC ENVIRONMENT Strong Performing ACL Coverage Performing ACL/LTM PCL on Impaired Loans 1.8x 3.8x 3.3x 2.8x 2.8x 2.8x 3.0x 4.8x Total Allowances Cover 7.9X NCOs Total ACL/LTM Net Charge-Offs 7.9x 6.4x 6.6x 5.9x 5.4x 4.7x 4.1x 2.6x Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Total Bank Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Total Bank Prudent Reserve Build Total PCL Less Net Charge-Offs ($MM) F2021 F2020 F2019 F2018 Strong Total ACL Coverage Total ACL/Total Loans (excl. POCI and FVTPL) Q4 21 Q3 21 Q4 20 Q1 20 Total Bank Reserve Build (Release) ($146) $596 $48 $5 Mortgages 0.20% 0.20% 0.21% 0.15% Credit Cards 7.35% 8.55% 10.06% 7.14% Total Retail 0.49% 0.52% 0.66% 0.53% Total Non-Retail 1.04% 1.13% 1.22% 0.58% Total Bank 0.72% 0.77% 0.90% 0.56% Note: Performing ACL includes allowances on drawn ($708M), undrawn ($143M) and other assets ($28M). 14
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