Financial Health and Performance Overview
Prudent Allowance Build
TOTAL ACLS1 ($MM) AND ACL RATIO2
96 bps
86 bps
80 bps
75 bps
72 bps
71 bps
72 bps
75 bps
6,232
22
5,731
5,931
5,583
23
20 5,375
5,295
5,499
5,668
33
31
1,529
20
28
28
1,368
1,326
1,255
1,276
1,368
1,409
1,530
2,009
1,863
1,723
1,595
1,532
1,528
1,547
1,551
2,672
2,477
2,514
2,505
2,459
2,575
2,681
2,817
Q3/21
Q4/21
Q1/22
Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
International Retail
Canadian Retail
■Business Banking
GWM/Other³
TOTAL PCLS ($MM) AND PCL RATIO 4
24 bps
10 bps
13 bps
13 bps
22 bps
28 bps
33 bps
37 bps
709
2
638
53
-15
529 11
218
218
412
9
380
69
163
168 1
93
222
219
339
314
325
355
404
436
274
276
(27)
(35)
(1)
(96)
(16)
(12)
(15)
(1)
(46)
(51)
Q3/21
Q4/21
Q1/22
Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
International Banking ■Canadian Banking
■Global Banking and Markets
■GWM/Other 5
•
HIGHLIGHTS
Allowances increased to $5.9 billion
о
Prudent performing allowance of
$4.2 billion to account for
uncertainty in economic outlook
Total ACL ratio up 3 bps Q/Q to 75 bps
Highly secured retail portfolio
(95% in Canada and 73% in
International)
Quality of the business banking
portfolio remained strong with
continued focus on investment grade
clients
HIGHLIGHTS
Total PCL ratio of 37 bps, up 4 bps Q/Q
Higher performing PCLs driven by
less favourable macroeconomic
forecast
Impaired PCLs driven by higher
formations in Canadian and
International Retail
1 Includes ACLs on off-balance sheet exposures and ACLS on acceptances and other financial assets; 2 ACL ratio defined as period end total ACLs (excluding debt securities and deposits with financial
institutions) divided by gross loans and acceptances; 3 Includes Allowance for credit losses in Other of $6 million (Q1/23: $6 million); 4 Refer to page 54 of the Management's Discussion & Analysis in the Bank's
Second Quarter 2023 Report to Shareholders, available on http://www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto; 5 Includes
provisions for credit losses in Global Wealth Management of $2 million (Q3/21: -$1 million, Q4/21: $1 million, Q1/22: -$1 million, Q2/22: $1 million, Q3/22: $5 million, Q4/22: $1 million, Q1/23: $1 million)
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