Canadian Housing Market: Engineering a Soft Landing
Canadian Banking Financial Performance
Margin expansion, strong deposit growth, and expense management. Strong Wealth results.
FINANCIAL PERFORMANCE AND METRICS ($MM)¹
Y/Y
Q/Q
YEAR-OVER-YEAR HIGHLIGHTS
Q3/19
Reported
Net Income
Revenue $3,532
Expenses $1,723
$1,160
+3%
+11%
+5%
+5%
+4%
+1%
PCLs
Productivity Ratio
$240
48.8%
Net Interest Margin
2.49%
+33% (5%)
(40bps) (180bps)
+3bps +3bps
PCL Ratio²
0.27%
+6bps
(3bps)
PCL Ratio on Impaired Loans²
0.29%
+8bps
+1bp
Adjusted³
•
Net Income
$1,174
+3%
+11%
Expenses
$1,705
+4%
+1%
Productivity Ratio 48.3% (50bps) (170bps)
ADJUSTED NET INCOME 13 ($MM) AND NIM (%)
2.46%
2.45%
2.44%
2.46%
2.49%
•
1,141
1,146
1,089
1,062
1,174
.
•
Adjusted Net Income up 3%³
。 Lower real estate gains reduced net income by 2%
。 Margin expansion
。 Wealth Management results up 20%
Revenue up 5%
。 Net interest income up 5%
。 Excluding M&A and IFRS 15, revenue was up 3%
Loan growth of 4%
o Residential mortgages up 3%; credit cards up 7%
o Business loans up 10%
Deposit growth of 10%
o Personal up 7%; Non-Personal up 17%
NIM up 3 bps
。 Primarily driven by the impact of prior rate increases
Expenses up 4%³
3
。 Investments in technology and regulatory initiatives
。 Excluding M&A and IFRS15, expenses were up 1%
Quarterly operating leverage of +1.1%³
PCL ratio² up 6 bps to 27 bps
Q1/19
Q2/19
Q3/19
2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and
past acquisitions
Scotiabank®
Q3/18
Q4/18
1 Attributable to equity holders of the Bank
20
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