Strategic Economic and Financial Overview
17
18
Q3 2012 Risk Overview
•
Risk in credit portfolios continues to be well-managed
Specific provisions remain in line with expectations
Increase in collective allowance on performing loans
In light of weaker global economic conditions
Improvement in net impaired loan formations
•
Exposures to "GIIPS" countries in Europe not material
•
Market risk remains low and well controlled
Average 1-day all-bank VaR: $20.0MM vs. $18.3MM in Q2/12
Stress tests confirm appropriateness of risk appetite
Scotiabank
Credit Provisions In Line with Expectations
($ millions)
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
Canadian Retail
103
106
112
105
103
Canadian Commercial
43
146
135
International Retail
116
129
International Commercial
10
126
158
Global Wealth Management
Global Banking & Markets
8
Collective Allowance
(30)
Total
250
281
88 88 ལྷ ང སྒྱུ 8རྒྱུ
24
15
15
136
120
118
125
133
151
(1)
12
17
124
145
168
-
1
5
(1)
15
(30)
100
265
264
402
PCL ratio (bps) ex. collective allowance
35
38
32
on performing loans
22
30
33
33
PCL ratio (bps)
32
32
34
32
30
44
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