Investor Day Summary
HOUSEHOLD DEBT: CANADA VS U.S.
• In comparable terms, Canadian debt-to-income ratio is 5% below where it peaked in the U.S.
o In the last 7 years, increases in Canadian debt-to-income ratio have slowed vs 2002-10
Calculated on the same terms, Canada's debt-to-income is currently 163% vs 141% in the U.S.
Canadian debt-to-assets ratio remains below U.S.
o U.S. households have incentive to pursue higher asset leverage in light of mortgage interest deductibility
o Debt is a stock concept, to be financed over one's lifetime. Income is a flow concept measuring
one single year's earnings. Debt should be compared to lifetime or permanent income, or assets
• Ratio of household debt to GDP remains lower in Canada than U.S.
。 Calculated on a comparable basis, the ratio of household credit market debt is 98.6% in Canada vs. 104.1% in the U.S.
Household Credit Market
Total Household Liabilities
Debt to Disposable Income
30
180
household credit liabilities
as % of disposable income,
170.4
160
163.4
25
140
141.4
120
20
20
100
80
00
Adjusted Canadian*
Official Canadian
Official US
15
60
60
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18
Adjusted for US concepts and definitions.
Sources: Scotiabank Economics, BEA, Federal
Reserve Board, Statistics Canada.
10
As % of Total Assets
household debt
as % of assets
US
Household Credit-Market
Debt to GDP
130
% of GDP
120
110
US with
unincorporated
business debt
100
Original
Canada
104.1
103.1
98.6
00
90
80
60
Canada*
19.0
Canada
16.7
10
70
60
50
77.2
Original
US
90 92 94 96 98 00 02 04 06 08 10 12 14 16
Sources: Scotiabank Economics, Statistics
Canada, Federal Reserve Board.
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18
* Adjusted for US concepts and definitions.
Sources: Scotiabank Economics, BEA, Federal
Reserve Board, Statistics Canada.
Scotiabank 43View entire presentation