Scotiabank Canadian Legislative Covered Bonds Presentation
Domestic Retail Exposures
Retail Loan Portfolio is ~$271 billion (~93% secured: 81% real
estate and 12% automotive)
Real estate is diversified with a high level of insured mortgages
(54%), while uninsured has significant equity (~51% LTV)
Credit card portfolio is approximately $6.8 billion, reflecting ~2.5%
of Domestic retail loan book or 1.3% of the Bank's total loan book
Organic growth strategy that is focused on payments and
deepening customer relationships
~80% of growth is from existing customers (penetration
rate low-30s versus peers in the low-40s)
Strong risk management culture with specialized credit
card teams, customer analytics and collections focus
Auto Loan book is approximately $33 billion
Market leader and portfolio is structurally different than
peers with 9 OEM relationships (5 are exclusive)
PCLs increased 1% year-over-year
Domestic Retail Loan Book¹
3%
5%
Real Estate Secured
Lending
13%
Automotive
Credit Cards
79%
Unsecured
Canadian Banking - Risk Adjusted
Margin
•
Prime Auto and Leases, driven by growth in assets
SDA, driven by improved risk performance and
sufficient ACL coverage
2.20%
Lending terms have been declining with contractual terms
averaging 72 months but effective terms are 48 months
Alberta retail loan book is approximately $40 billion or 15% of the
Domestic retail loan book
2.15%
2.10%
2.11%
2.07%
2.09%
2.09%
2.10%
•
No signs of material credit stress or drawdown on lines
Credit trends have moved up to/through national levels
Majority of exposure is residential mortgages (54%
insured)
2.05%
2.00%
Q2/16
Q3/16 Q4/16 Q1/17 Q2/17
1 Excludes multi-unit residential properties
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