Scotiabank Investor Presentation slide image

Scotiabank Investor Presentation

Global Banking and Markets Global Banking and Markets (GBM) provides corporate clients with lending and transaction services, investment banking advice and access to capital markets. GBM is a full-service wholesale bank in the Americas, with operations in 21 countries, serving clients across Canada, the United States, Latin America, Europe and Asia-Pacific. Business Overview Asia Europe 7% 3 3 Q4/22 Geographic Revenue¹ $1.4Bn US 47% Canada 43% Global Equities 14% Business Banking Q4/22 Revenue By Business Line¹ $1.4Bn 63% 23% FICC Net Income² ($MM) and ROE4 (%) Strategic Focus Executing a consistent strategy to be a top wholesale Bank in the Americas, that is focused on Geography, Client and Product Leverage strong balance sheet to support corporate lending and asset growth across the America's footprint to win increased financing business • Well positioned to leverage the Bank's unique geographic footprint across the Americas to serve it's cross-border clients in Canada, US and LatAm Financial Results 17.4% 15.5% 15.6% 13.4% 11.1% Q4/22 Y/Y Q/Q Reported Net Income² $484 (4%) 28% 561 502 488 484 378 Pre-Tax, Pre Provision Profit³ $658 12% 32% Revenue $1,354 15% 18% Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Expenses $696 18% 6% Medium-Term Financial Objectives Net Income Growth²,7 PCLS $11 nmf nmf Target6 ~5% Productivity Ratio4 51.4% 110 bps (540 bps) PCL Ratio 4,5 Productivity Ratio? Operating Leverage ~50% Positive PCL Ratio Impaired Loans 4,5 3 bps 6 bps 21 bps 5 bps 8 bps 12 bps 1TEB Revenue. Note GBM Latam revenue contribution is reported in International Banking results; 2Attributable to equity holders of the Bank; 3 Pre-Tax, Pre-Provision Profit defined as revenues less expenses; 4Refer to page 133 of the Management's Discussion & Analysis in the Bank's 2022 Annual Report, available on http://www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto; 5 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures; 63-5 year target from 2020 Investor Day; 7 Refer to non- GAAP measures on page 17 of the Management's Discussion & Analysis in the Bank's 2022 Annual Report, available on http://www.sedar.com; 42
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