Scotiabank Track Record
Financial Highlights - Q1/17
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A strong earnings and operating quarter for Scotiabank, with net income
of $2.0 billion, up by 11% Y/Y.
Double digital earnings growth across all three business lines:
Canadian Banking net income of $981 million, up 12% Y/Y (or 7%
excluding real estate gains) reflecting an increase in NIM, solid
asset and deposit growth, as well as higher gains on the sale of
real estate.
International Banking net income of $576 million, up 14% Y/Y or
18% on a constant currency basis. This reflects good retail loan
and deposit growth, strong NIM, and good expense control.
Global Banking and Markets net income of $469 million, up 28%
Y/Y. This was driven mainly by higher contributions from Fixed
Income, Canadian lending businesses, and lower provisions for
credit losses.
Net Income ($m)
2,100
2,011
2,009
2,000
1,959
1,900
1,862
1,814
1,800
1,700
(1)
Q1/16
Q2/16 Q3/16
Q4/16 Q1/17
Productivity Ratio (2)
60%
56.1%
52.2%
52.8%
54.1%
53.7%
Revenue growth of 8% Y/Y (or 11% when adjusting for foreign currency
translation), driven by higher asset growth and wider margins across all
business lines.
40%
20%
Expenses growth up 3% Y/Y (or 6% when adjusting for foreign currency
translation) as a result of continued investment in business initiatives
0%
(1)
Q1/16
Q2/16 Q3/16 Q4/16 Q1/17
which led to higher technology and professional services.
Productivity (2) improved by 240 basis points Y/Y to 53.7%
PCL Ratio
Positive operating leverage in Q1 2017 of 4.5%
0.80%
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PCL ratio remains unchanged Y/Y at 45 bps
0.59%
Capital remains strong with a CET1 Capital Ratio of 11.3%, up 30 bps Q/Q.
Leverage ratio of 4.5%, unchanged Q/Q
0.60%
0.45%
0.47% 0.45% 0.45%
0.40%
0.20%
འསེ
(1) Adjusts for restructuring charge of $278 million after-tax ($378 million before-tax) in Q2/16
0.00%
(2)
Effective Q3/16, the taxable equivalent adjustment is no longer included in the calculation. Prior period amounts
have been restated for all the banks.
(3)
Q1/16
Q2/16 Q3/16 Q4/16 Q1/17
(3) Adjusts for collective allowance increase; including collective allowance increase, All Bank PCL ratio was 0.64%
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