Scotiabank Strategy & Financial Objectives
Financial Highlights - Q3/16
Net Income of $2.0 billion increased by 6% Y/Y
Net Income ($m)
·
Strong results across all three business lines
2,000
1,959
Canadian Banking net income of $930 million,
1,950
(1)
increased by 8% Y/Y
1,900
1,862
1,847 1,843
1,850
1,814
International Banking net income of $527 million,
1,800
increased by 9% Y/Y
1,750
1,700
Global Banking and Markets net income of $421
million, increased by 12% Y/Y
Q3/15
•
Revenue growth of 8% Y/Y, driven by volume growth and
higher non-interest income
Q4/15 Q1/16 Q2/16 Q3/16
Productivity Ratio (2)
58%
56.1%
Expenses growth up 5% Y/Y, driven by continued
56%
54.4%
53.6%
54%
investment in strategic initiatives reflecting higher
technology and professional costs
(1) 52.8%
52.2%
52%
50%
·
Productivity (2) decreased by 160 basis points to 52.8%
48%
- Positive operating leverage YTD
Q3/15
Q4/15 Q1/16 Q2/16 Q3/16
•
Credit trends improved from peak levels last quarter
PCL Ratio
-
PCL ratio (3) decreased by 12 basis points to 47 bps
0.75%
(3)
0.59%
GIL ratio increased by 4 basis points to 1.10%
0.60%
0.47%
0.45%
0.42% 0.42%¹
Capital remains strong with a Tier 1 Capital Ratio of 10.5%
0.45%
~$1.0 billion in internal capital generation
0.30%
0.15%
Leverage ratio of 4.2%
0.00%
(1) Adjusts for restructuring charge of $278 million after-tax ($378 million before-tax)
Q3/15 Q4/15 Q1/16
Q2/16 Q3/16
(2)
Effective Q3/16, the taxable equivalent adjustment is no longer included in the calculation. Prior period amounts
have been restated for all the banks.
7
Scotiabank®
(3) Adjusts for collective allowance increase; including collective allowance increase, All Bank PCL ratio was 0.64%View entire presentation