Canadian and International Banking Update
Scotiabank
Scotiabank
Lower Net Interest Margin
1.79
1.79
(%)
1.76
1.68
1.53
Q1/08 Q2/08 Q3/08 Q4/08
Q1/09
All-Bank: (15) bps qtr/qtr
· competitive pricing pressures on deposits
- decreased tax-exempt dividend income
significant decline in interest rates
+ wider spreads in corporate banking
+ ALM hedging loss in Q4/08
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Expenses Well Managed
Non-interest expenses
($ millions)
2,010
1,944
1,669
1,058
1,130
978
382
388
321
504
492
370
Q1/08
Q4/08
Q1/09
Salaries & employee benefits
■Premises & technology
Other
Q1/09 vs. Q4/08 expenses: up 3%
- higher performance based compensation due to
increased capital markets revenues
-
negative impact of forex
- increased business & capital taxes
+ lower advertising & travel expenses
Q1/09 vs. Q1/08 expenses: up 20%
■ expenses up 7% excluding FX, acquisitions &
higher performance-based compensation
-
higher salaries & premises, driven by growth
initiatives, including branch expansion
higher business taxes
+ lower stock-based compensation
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