International Banking: Pacific Alliance Financial Performance
International Banking
$MM
Q1/21
Y/Y1
Q/Q¹
Reported
Net Income²
$389
(21%)
54%
Pre-Tax, Pre Provision Profit
$1,159
(7%)
4%
Revenue
$2,561
(10%)
1%
Expenses
$1,402
(11%)
PCLS
$525
(5%)
(2%)
(29%)
Productivity Ratio
54.7%
(100 bps)
(120 bps)
Net Interest Margin
4.03%
(48 bps)
PCL Ratio³
149 bps
(8 bps)
6 bps
(58 bps)
PCL Ratio Impaired Loans³
150 bps
5 bps
(8 bps)
Adjusted 4
Net Income²
$398
(32%)
47%
Net Income - Ex Divested Ops.²
$398
(24%)
47%
Pre-Tax, Pre Provision Profit
$1,172
(12%)
3%
Expenses
$1,389
(7%)
(2%)
PCLS
$525
10%
(29%)
Productivity Ratio
54.2%
130 bps
(60 bps)
PCL Ratio4
149 bps
13 bps
PCL Ratio Impaired Loans4
150 bps
13 bps
(58 bps)
(8 bps)
1Y/Y and Q/Q growth rates (%) are on a constant dollar basis, while metrics and change in bps are on a reported basis
2 Attributable to equity holders of the Bank
3 Includes provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
4 Refer to Non-GAAP Measures on slide 37 for adjusted results
YEAR-OVER-YEAR HIGHLIGHTS1
Adjusted net income 2,4 excluding impact of divestitures -24%
(+47% Q/Q)
。 PCLs up 11%, mainly from non-performing loan PCLs
o Loan growth of 2% and deposit growth of 4%
Q1/21 PTPP ex. divestitures down 7%; Pacific Alliance down
2%, or up 3% excluding impact of alignment of reporting
period in Mexico in prior year (OML)
Revenues ex. divestitures down 5% (+1% Q/Q)
o Margin compression and lower non-interest income
PAC revenues down 2% ex. Mexico OML (+1% Q/Q)
NIM down 48 bps (+6 bps Q/Q)
o Mainly driven by business mix changes, impact of liquidity
and low interest rate environment
Adjusted expenses ex. divestitures down 4%; adjusted Q1/21
operative leverage4 ex. divestitures of -1.2%
o Up 0.4% ex. Mexico OML (+1% Q/Q)
ADJUSTED NET INCOME 24 ($MM) AND NIM (%)
4.51%
615
59
4.28%
3.99%
3.97%
4.03%
398
283
556
197
53
398
1
283
197
52
Q1/20
Q2/20
Q3/20
Q4/20
Q1/21
Ex. Divested Ops
Divested Ops
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