Scotiabank Strategy & Financial Objectives
Key Issues - Energy Exposures
.
Energy exposure is well diversified across sectors and
geographies
$16.1B drawn energy exposure, is 3.3% of the Bank's
total loan book
-
Down 1% Q/Q
~52% is investment grade
$11.9B of undrawn energy exposure, up 4.4% Q/Q
~69% is investment grade
PCLs of $37 million in Q3/16, decreased by $113 million
from last quarter
Cumulative energy loan losses for 2015 to 2017 at
low end of guidance
Actively managing exposures to select non-investment
grade E&P and Services accounts
Approximately two-thirds of focus accounts have
issued debt ranking below the Bank's senior
position
The Bank continues to evaluate exposures and conducts
stress tests at current and realistic oil prices with
consideration of secondary impacts
Drawn Energy Exposure by Sector
E&P
10%
13%
Midstream
52%
Downstream
25%
Services
Drawn Energy Exposure by Geography¹
Canada
36%
42%
U.S.
•
The stress tests indicate that any potential losses are
very manageable and within our risk expectation
Other²
22%
(1) By country of residence
(2) Other includes Latin America, Asia and Europe
16
Scotiabank®View entire presentation