International Retail Loans and Provisions slide image

International Retail Loans and Provisions

International Banking 1,2 Net Income ($MM) 485 504 447 417 378 74 304 • • Highlights Adjusted Net Income up 33% Y/Y2 Strong asset, deposit and fee income. growth in Latin America • Lower PCLs, positive impact of FX translation and higher contribution from associated corporations Loans up 17% and deposits up 19% Y/Y • Ex. FX translation, total loans were up 10%, while Latin America was up 15% • Q2/15 Q3/15 Q4/15 NIM up 2 bps Y/Y • Q4/14 Q1/15 Net after-tax notable items in Q4/14 Average Assets ($B) 117 120 128 129 135 Lower PCLS Y/Y • Higher acquisition driven retail PCLS were offset by lower commercial PCLS Net Interest Margin (%). Adjusted expenses up 13% Y/Y2 4.77 4.68 4.71 4.67 4.70 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 (1) Attributable to equity holders of the Bank (2) Adjusted for notable items in Q4/14 - (See Appendix - Notable Items) 9 • . Half the increase was due to acquisitions and impact of foreign currency translation Balance due to higher technology investments, increased marketing and inflationary increases Operating leverage of -0.9% in 2015² Strong asset and deposit growth in the Latin America Scotiabank®
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