International Banking and Canadian Economy Overview
Canadian Banking: Retail Loan Portfolio
High quality retail loan portfolio: ~92% secured
.
• High quality residential mortgage portfolio
○ 40% insured; remaining 60% uninsured has a LTV of 55% 1
• Market leader in auto loans
$37.5 billion auto loan portfolio with 7 OEM relationships (3 exclusive)
o Prime Auto and Leases (~91%)
○ Stable lending tenor with contractual terms for new originations averaging
77 months (6.4 years) with projected effective terms of 53 months (4.4
years)
• Growth opportunity in credit cards
o $7.7 billion credit card portfolio represents ~3% of domestic retail loan
book and 1.3% of the Bank's total loan book
o Organic growth strategy focused on payments and deepening customer
relationships
。 Upside potential from existing customers: ~80% of growth is from existing
customers (penetration rate mid-30s and trending up versus peers in the
low-40s)
Strong risk management culture with specialized credit card teams,
customer analytics and collections focus
5%
Unsecured
DOMESTIC
RETAIL LOAN
BOOK²
$295.3B
3%
Credit Cards
1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data.
2 Spot Balance as of July 31, 2019
79%
Real Estate
Secured Lending
-13%
Automotive
Scotiabank. 21View entire presentation