Economic Forecasts and Performance Review
International Banking
Positive operating leverage and strong balance sheet growth
YEAR-OVER-YEAR HIGHLIGHTS1
$MM, except EPS1
Q4/19
Y/Y
Q/Q
Reported
•
Net Income²
$733
+1%
(6%)
Pre-Tax, Pre Provision Profit
$1,579
+12%
(3%)
Revenue
$3,374
+10%
0%
Expenses
$1,795
+7%
3%
PCLS
$502
+27%
+8%
Productivity Ratio
53.2%
(170 bps)
+130 bps
Net Interest Margin³
4.43%
(9 bps)
(2 bps)
PCL Ratio4
1.34%
+29 bps
+10 bps
PCL Ratio Impaired Loans4
1.26%
+6 bps
(10 bps)
•
Adjusted 5
Net Income²
$781
+4%
(4%)
Pre-Tax, Pre Provision Profit
$1,662
+14%
(1%)
Expenses
$1,712
+6%
+1%
•
PCLS
$502
+27%
+8%
Productivity Ratio
50.7%
(230 bps)
+40 bps
•
ADJUSTED NET INCOME 25 ($MM) AND NIM³ (%)
4.52%
4.52%
4.58%
4.45%
4.43%
805
787
815
781
746
Q4/18
Q1/19
Q2/19
Q3/19
Q4/19
•
Adjusted Net Income up 4% 2,5 and Adjusted PTPP
up 14%5 on a constant currency basis
Alignment of reporting period and the impact
of closed divestitures reduced net income
growth by 5%
o Strong growth across the Pacific Alliance, and
strong positive operating leverage
Lower tax benefits and last year's credit
recoveries in Puerto Rico and Latin America
Revenues up 10%
O Good growth in Non interest income driven by
higher investment gains and banking fees
Loans up 8%
О Pacific Alliance up 10%
NIM down 9 bps
o Primarily driven by margin compression in
Mexico and Chile
О NIM down 2 bps Q/Q
Expenses up 6%5
O Business volume growth and technology costs
o Productivity ratio improvement of 230 bps 5
Quarterly operating leverage of +4.8%5, full-year
operating leverage +4.3%5
1 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis
2 Attributable to equity holders of the Bank
3 Net Interest Margin is on a reported basis
4 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures
.
PCL ratio on impaired loans increased 6 bps
37
5 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitionsView entire presentation