Canadian Housing Market: Engineering a Soft Landing
Financial Performance
Strong revenue and balance sheet growth
$MM, except EPS
Q3/19
Y/Y
Q/Q
Reported
Net Income
$1,984
+2%
(12%)
•
Diluted EPS
$1.50
(3%)
(13%)
Revenue
$7,659
+7%
(2%)
Expenses
$4,209
+12%
+4%
Productivity Ratio
55.0%
+250bps +320bps
Core Banking Margin
2.45%
(1bp)
PCL Ratio1
48bps
(21bps)
PCL Ratio on Impaired Loans¹
52bps
+11bps
(13bps)
+3bps
Adjusted²
Net Income
$2,455
+9%
+8%
Diluted EPS
$1.88
+7%
+11%
Revenue
$7,965
+11%
+4%
Expenses
$4,122
Productivity Ratio
PCL Ratio1
51.7%
48bps
+11%
(10bps) (60bps)
+8bps
+3%
(3bps)
DIVIDENDS PER COMMON SHARE
0.03
0.02
0.03
0.85
0.85
0.87
0.87
0.82
Q3/18
Q4/18
■ Announced Dividend Increase
Q1/19
Q2/19
Q3/19
•
YEAR-OVER-YEAR HIGHLIGHTS
Adjusted Net Income up 9%²
Diluted EPS up 7%²
Revenue up 11%²
o Excluding acquisitions and IFRS15, revenue was
up 5%
。 Net interest income up 7%
。 Non-interest income up 16%
Expenses up 11%
2
。 Mostly driven by acquisitions
o Excluding acquisitions and the impact of IFRS15,
expenses were up 4%
Strong deposit growth of 10% Y/Y,
asset growth of 13% Y/Y
Total PCL ratio increased by 8 bps
o Impaired PCL ratio was up 11 bps
1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
2 Adjusted for Acquisition and divestiture-related amounts, including Day1 PCL impact on performing loans, integration and amortization costs related to current acquisitions,
amortization of intangibles related to current and past acquisitions and losses/(gains) on divestitures and related costs
Scotiabank.
18View entire presentation