Q2 2014 Financial Review
Credit Quality
Credit fundamentals remain strong
-
Modest increase in PCL ratio - up 2 bps Q/Q to 36 bps
Loss rates in Canadian Banking up slightly
International Banking loss rates up due to higher provisions
in the Caribbean, partially offset by decreases in Latin
America
GBM credit performance continues to be strong
Increase in net formations of impaired loans to $598 million
Higher formations in International Retail and Commercial
-
Market risk remains well-controlled
-
-
Average 1-day all-bank VaR: $18.1MM vs. $19.8MM in
Q1/14
Two trading loss days in Q2/14
15
Provisions for Credit Losses
Scotiabank
($ millions)
Q2/13
Q3/13
Q4/13 Q1/14 Q2/14
Canadian Retail
106
103
106
118
127
Canadian Commercial
30
5
10
16
13
136
108
116
134
140
International Retail
180
177
170
187
196
International Commercial
14
17
37
32
34
194
194
207
219
230
Global Wealth & Insurance
1
1
Global Banking & Markets
12
11
(2)
3
5
Total
343
314
321
356
375
PCL ratio (bps) on impaired loans
35
31
31
34
36
Note: International Banking's total includes the impact of Colombian purchased portfolio. The Bank expects the PCL ratio to rise with the
maturity of the acquired portfolio. See page 28 of the 2013 Annual Report.
16
Scotiabank
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