International Banking and Risk Review
Scotiabank
Disciplined Expense Management
Non-interest expenses
($ millions)
1,794
2,010
1,886
1,024
Q2/09 vs. Q1/09 expenses: down 6%
+ lower stock & performance-based compensation
+ shorter quarter - lower remuneration costs
+ reduction in discretionary spending: advertising,
business development costs
1,130
1,005
388
379
353
436
492
483
Q2/08
Q1/09
Q2/09
Salaries & employee benefits
Premises & technology
Other
Scotiabank
Q2/09 vs. Q2/08 expenses: up 5%
■ expenses down 1% excluding forex, acquisitions
salaries & premises costs, driven by growth
initiatives branch expansion in Mexico & Canada
+ lower stock & performance-based compensation
+ reduction in discretionary spending: advertising,
professional expenses
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Maintaining Solid Capital
Tier 1 capital ratios (%)
Risk-weighted assets (RWAs)
($ billions)
251
240
242
226
219
9.6
9.8
9.5
9.6
9.3
7.8
7.5
7.6
7.7
7.3
Q2/08 Q3/08 Q4/08 Q1/09 Q2/09
■Internal capital generation
■ Since Q2: $650 million Tier 1 Trust securities
■ Further capacity to raise innovative capital
and preferred shares
Q2/08 Q3/08 Q4/08 Q1/09 Q2/09
■ Disciplined management of RWAS
14View entire presentation