Earnings and Dividend Growth Report
International Banking
$MM1
Q3/20 Y/Y
Q/Q
Reported
Net Income²
$26
(96%)
(85%)
Pre-Tax, Pre Provision Profit
$1,180
(21%)
(4%)
Revenue
$2,570
(16%)
(4%)
Expenses
$1,390
(11%)
(4%)
PCLS
$1,278
189%
27%
Productivity Ratio
54.1%
+260 bps
Net Interest Margin³
3.99%
(52 bps)
(29 bps)
•
PCL Ratio4
3.33%
+208 bps
+55 bps
PCL Ratio Impaired Loans4
1.49%
+12 bps
+4 bps
Adjusted 5
Net Income²
$53
(93%)
(73%)
Net Income - Ex Divested Ops.²
Pre-Tax, Pre Provision Profit
$52
(91%)
(73%)
•
$1,226
(21%)
(4%)
Expenses
$1,344
(11%)
(4%)
PCLs
$1,278
189%
27%
YEAR-OVER-YEAR HIGHLIGHTS1
Adjusted Net Income ex. divestitures down 91%2,5.
Excluding divested operations:
o PCLs up 187%; mainly from performing loan PCLs
。 Strong loan growth of 13% and deposits growth 11%
Revenues ex. divestitures down 8%
o Margin compression and lower non-interest income
o PAC revenues down 5%
NIM down 52 bps³
o Mainly driven by excess balance sheet liquidity,
business mix changes and central bank rate cuts
Adjusted Expenses ex. divestitures down 6%5
o Acquisition synergies and good cost control
Adjusted YTD operating leverage of -0.8%5 ex.
divestitures
ADJUSTED NET INCOME 2,5 ($MM) AND NIM³ (%)
Productivity Ratio
52.3%
+250 bps
(20 bps)
4.51%
4.51%
4.51%
4.28%
PCL Ratio4
3.33%
+208 bps
+55 bps
3.99%
761
725
PCL Ratio Impaired Loans4
1.49%
+12 bps
+4 bps
147
615
158
59
614
197
567
556
53
1Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on
a reported basis
197
1
52
2 Attributable to equity holders of the Bank
3 Net Interest Margin is on a reported basis
4 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
5 Refer to Non-GAAP Measures on slide 45 for adjusted results
Q3/19
Q4/19
Q1/20
Q2/20
Q3/20
Ex. Divested Ops
Divested Ops
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