Canadian Housing Market and Financial Overview
Q1 2019 Global Banking and Markets Financial Performance
Market volatility negatively impacted results
FINANCIAL PERFORMANCE AND METRICS¹ ($MM)
Q1/19
Y/Y
Q/Q
•
Revenue
$1,075
(10%)
•
Expenses
$645
+13%
+17%
PCLS
($16)
N/A
N/A
Net Income
$335
(26%) (20%)
Productivity Ratio
Net Interest Margin
PCL Ratio²
60.0%
+1200bps +850bps
1.80%
(23bps) +8bps
(0.07%)
(3bps)
+2bps
PCL Ratio on Impaired Loans²
(0.01%)
+6bps
NET INCOME AND ROE
16.2%
16.9%
15.6%
15.3%
11.5%
447
441
454
416
335
Q1/18
Q2/18
Q3/18
Q4/18
Q1/19
1 Attributable to equity holders of the Bank
2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
YEAR-OVER-YEAR HIGHLIGHTS
Reported Net Income down 26%
Revenue down 10%
。 Non-interest revenue down by 12% due to lower fixed
income trading, partly offset by higher equity trading
and fee income
NIM down 23 bps
。 Mainly driven by lower lending margins and loan
origination fees
• Loans up 15%
•
o Strong corporate growth across Canada and the U.S.
Expenses up 13%
。 Higher regulatory and technology investments
PCL ratio² improved by 3 bps to (7 bps)
o Improving credit quality in oil and gas portfolio
Scotiabank®
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