2016 Year-End Financial Results slide image

2016 Year-End Financial Results

Risk Review • Overall credit fundamentals remain within expectations • • (1) Energy related PCLs have continued to decline Q/Q and are flat compared to the same quarter last year PCL ratio - Improved to 45 basis points, down from 47 basis points last quarter and prior year Gross impaired loans of $5.4 billion were up 1% Q/Q¹ ● • Net impaired loan ratio improved 2 bps Q/Q Net formations of $645 million was down from $788 million in Q3/16, driven by improvement in Global Banking and Markets Market risk remains well-controlled Average 1-day all-bank VaR of $10.4 million, down from $11.0 million in Q3/16 Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. 13 Scotiabank®
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