Global Banking and Markets Financial Performance
CANADIAN BANKING
Strong loan growth, margin expansion and positive operating leverage
FINANCIAL PERFORMANCE AND METRICS ($MM)1
YEAR-OVER-YEAR HIGHLIGHTS
Net income up 12%
。 Higher asset growth and margin expansion
。 Lower provision for credit losses and expenses
Revenues up 4%
Q1/18
Y/Y
Q/Q
·
Revenue
$3,303
+4%
+1%
Expenses
$1,605
(2%)
(1%)
PCLS
$210
(11%)
(4%)
.
Net Income
Productivity Ratio
$1,102
+12%
+3%
48.6%
(250bps) (130bps)
•
Net Interest Margin
2.41%
+2bps
Loan growth of 7%
PCL Ratio 2, 3
0.25%
(5bps)
(2bps)
PCL Ratio
0.27%
on Impaired Loans 2, 3
(3bps)
。 Net interest income up 7%
NET INCOME¹ ($MM) AND NIM (%)
2.39%
2.38%
2.41%
2.41%
2.41%
•
o Residential mortgages up 6%
o Business loans up 14%
NIM up 2 bps
。 Rising rate environment and changes in business mix
PCL ratio²,3 on impaired loans improved
by 3 bps
Expenses down 2%
。 Higher investments in technology, digital and
regulatory initiatives offset by cost reduction initiatives
and Hollis Wealth impact
•
981
1,045
1,067
1,102
971
Q1/17
Q2/17
1 Attributable to equity holders of the Bank
Q3/17
Q4/17
Q1/18
.
Positive operating leverage
Scotiabank® 11
2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39
2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposuresView entire presentation