Investor Presentaiton
Restructuring Initiatives
As part of management's strategic efforts to enhance the customer experience, drive
a digital transformation and improve productivity, the Bank announced a Q2/16
restructuring charge
These initiatives primarily relate to:
•
Optimizing the branch network in Canadian Banking
•
Simplifying and optimizing the Bank's organizational structure
•
Reducing costs to deliver our internal corporate services including technology services
These strategic efforts will help the Bank sustain its strength in the marketplace, and
better position for long term growth
Summary
Details
Amount of restructuring $278 million after-tax ($378 million before-tax), or $0.23 per share
Synergies / Timing
Expect annual run-rate savings of -$350 million by 2017, growing to
$550 million by 2018 and growing to over $750 million for 2019
•
•
Approximately 70% in Canadian Banking
Net savings of ~5% against the Bank's current expense base
Contribute ~200-250 basis points of improvement to the Bank's
productivity ratio for 2019
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