Q3 2014 Financial Performance slide image

Q3 2014 Financial Performance

Q3 2014 Financial Performance $ millions, except EPS Net Income 2 Q3/14 Q/Q Y/Y $1,796 0% +8% Diluted EPS 2 $1.40 +1% +9% Revenues 1,2 $5,932 +2% +9% Expenses 2 $3,140 +5% +7% Productivity Ratio 2 Basel III CET1 Ratio 52.9% 10.9% +130bps -90bps +110bps +200bps Dividends Per Common Share +$0.02 +$0.02 +$0.02 $0.64 $0.64 $0.62 $0.62 $0.60 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Announced dividend increase (1) Taxable equivalent basis (2) Adjusted for after-tax gain of $555 million in Q3/14 and after-tax net benefit of $90 million from non-recurring items in Q3/13 7 Highlights ■ EPS growth of 9% Y/Y2 Driven by good results across our businesses ■ Revenue growth of 9% Y/Y2 Strong asset growth A higher core banking margin, partly reflecting maturity of higher cost funding Higher underwriting, banking fees and securities gains Positive impact of FX ■ Expenses up 7% Y/Y² Higher volume related and stock-based expenses Higher across most operating expense categories to support planned growth initiatives Negative impact of FX translation Positive operating leverage of 2% YTD² ■ Basel III CET1 ratio of 10.9% Good results across our businesses Scotiabank - Capital very strong position Basel III Common Equity Tier 1 (CET 1) (%) 10.9 9.8 8.9 9.1 9.4 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 CET 1 Risk-Weighted Assets ($B) 308 302 300 282 288 Highlights ■ Cl transaction added 116 bps to CET 1 Q3/14 internal capital generation of $900 million ■ Repurchased 2 million shares under NCIB ■ Risk-weighted assets up $8 billion from previous quarter to $308 billion Growth in personal and business lending Impact from sale of Cl and carrying value of the remaining investment Partially offset by lower FX Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 8 Capital position very strong Scotiabank +
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