Investor Presentation Second Quarter 2018 slide image

Investor Presentation Second Quarter 2018

CANADIAN BANKING: RETAIL EXPOSURES Retail loan portfolio -93% secured: 80% real estate and 13% automotive • Residential mortgage portfolio is well-managed 。 47% insured, and the remaining 53% uninsured has a LTV of 54% 1 ⚫ Credit card portfolio is approximately $7.0 billion, reflecting ~2% of domestic retail loan book or 1.3% of the Bank's total loan book o 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 $36 billion ○ Market leader and portfolio is structurally different than peers with 7 OEM relationships (3 exclusive) o Prime Auto and Leases (~92%) DOMESTIC RETAIL LOAN BOOK $282B o Lending terms have been declining with contractual terms averaging 72 months but effective terms are 48 months 5% 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. Unsecured 2% Credit Cards 80% Real Estate Secured Lending -13% Automotive Scotiabank | 19
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