Financial Health and Performance Overview
International Banking
International Banking is a strong and diverse franchise with over 11 million Retail, Corporate, and Commercial customers. The geographical
footprint encompasses the Pacific Alliance countries of Mexico, Chile, Peru, and Colombia, as well as Central America, the Caribbean, and
Uruguay.
BUSINESS MIX
Business
Loans
•
55%
Asia
1%
Q2/23
Q2/23
Revenue 76% Latin
Mix
Auto 1%
America
23% $2.8Bn
Credit 5%
Cards
Loan
Mix
$177.2Bn
STRATEGIC FOCUS
Deepening relationships with the Affluent Retail segment
Continue driving efficiencies and customer experience by
leveraging Digital
FINANCIAL RESULTS ($MM)
10%
C&CA
Personal
Loans
29%
Constant dollar basis 1,4
Residential
Mortgages
$MM
Reported
Q2/23 Q2/22 Y/Y1 Q1/23 Q/Q¹
REPORTED NET INCOME 1,2 ($MM) AND NIM 4,6 (%)
3.96%
3.95%
4.08%
4.12%
Net Income² $642 $642
Pre-Tax, Pre-Provision
Profit³
Revenue
$1,273
$2,752
4.00%
Expenses $1,479
$1,200 6%
$2,552
$1,352
8%
9%
$689
$1,322 (4%)
$2,809 (2%)
(7%)
$1,487
(1%)
PCLS
$436
$292
49%
$422
3%
642
679
680
689
642
Productivity Ratio4
Net Interest Margin5
53.7%
52.7%
100 bps
53.2%
50 bps
4.12%
3.96%
16 bps
4.00%
12 bps
Q2/22
Q3/22
Q4/22
Q1/23
Q2/23
PCL Ratio
PCL Ratio Impaired
Loans4
103 bps
77 bps
26 bps
96 bps
7 bps
94 bps
77 bps
17 bps
89 bps
5 bps
MEDIUM-TERM FINANCIAL OBJECTIVES 8
Adjusted4
Net Income Growth 2,5
Productivity Ratio5
Operating Leverage5
9%+
<50%
Positive
Net Income²
Pre-Tax, Pre-Provision
$650 $650
$697
(7%)
$1,284
$1,211
6%
$1,332
(4%)
Profit³
Expenses
Productivity Ratio
$1,468
$1,341
9%
$1,477
(1%)
53.3%
52.2%
110 bps
52.8%
54 bps
1 Current and prior period dollars, Y/Y and Q/Q growth rates (%) are on a constant dollar basis, while metrics and change in bps are on a reported basis; 2 Net income attributed to equity shareholders, on a constant dollar basis;
3 Pre-Tax, Pre-Provision Profit defined as revenues less expenses. See non-GAAP reconciliations beginning on slide 83; 4 Refer to non-GAAP measures on page 4 of the Management's Discussion & Analysis in the Bank's Second
Quarter 2023 Report to Shareholders, available on http://www.sedar.com; 5 Refer to page 54 of the Management's Discussion & Analysis in the Bank's Second Quarter 2023 Report to Shareholders, available on
http://www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto; 6 Prior period has been restated to include as a deduction non-interest bearing deposits with
banks, to align with the Bank's definition; 7 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures; 8 3-5 year target from 2020 Investor Day
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