International Banking Revenue and Loan Growth slide image

International Banking Revenue and Loan Growth

SCOTIABANK IN THE PACIFIC ALLIANCE COUNTRIES Well positioned to grow now and in the future • Key Highlights of Pacific Alliance countries (PACS) 6x Canada's population; projected growth outpaces Canada, other EM³ and G7 countries; median age of 29 vs. 42 in Canada Population 1,2 Government Presidential Elections Financial Stability Economy GDP1 Exports5 Trade Partners5 Business Environment HDI Score Rank6 Banking Penetration¹ • No elections expected until 2021 • All sovereign credit ratings in IG category with central banks targeting inflation since 1999 • Ranks as 9th largest economy in the world • Foreign Direct Investment¹ • • Manufacturing is the largest source of exports for the PACS at 64% US, China and Canada are the PACs' largest trading partners, representing 72% of exports • Ranks "High" or "Very High," comparable to Canada and the U.S. Under-banked with average banking penetration at 50% compared to over 90% in Canada and the U.S. FDI averaging 3.2% of GDP compared to 1.7% in Canada and the U.S. Scotiabank Market Share7 Market Share Ranking? Mexico 7.1% 6th Peru 18.2% 3rd Chile 13.8% 3rd Colombia 6.2% 5th PACs (Total/Average) 11.3% 4th Strengths Mortgages and Auto Commercial, Personal and Credit cards Commercial, Credit cards and Mortgages Retail and Credit Cards Well positioned Average Assets³ (C$B) $32.3 $24.0 $32.9 $12.3 $101.5 Revenue³(C$B) $2.2 $2.0 $1.7 $1.3 $7.2 Net Income after NC18,9 (C$B) $0.6 $0.7 $0.4 $0.1 $1.9 ROE 8,9 # of Employees 8,10 26% 13,204 24% 11% 6% 17% 11,032 9,386 9,658 43,280 1 Source: World Bank 2017 2 Population growth: World Bank DataBank 2017-2022 4 Source: The World Factbook, CIA 2017 3 EM countries include: Argentina, Brazil, China, Greece, India, Indonesia, Poland, South Africa, Turkey, and Russia 5 Source: United Nation Conference on Trade and Development (UNCTAD) 2017; Organization for Economic Co-operation and Development (OECD) 2016 6 Source: United Nations Development Programme (UNDP) 2017. For more information, please refer to: http://hdr.undp.org/sites/default/files/2018_human_development_statistical_update.pdf 7 Total loans market share as of September 2018 8 As of October 31, 2018 or for the fiscal year 2018 9 Earnings adjusted for acquisition-related costs including the Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 10 Employees are reported on a full-time equivalent basis Scotiabank® 31
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