PCL Ratios and Provision for Credit Losses Review slide image

PCL Ratios and Provision for Credit Losses Review

GLOBAL BANKING AND MARKETS Good net interest income growth and improvement in credit quality FINANCIAL PERFORMANCE AND METRICS ($MM) Q3/18 Y/Y Q/Q • Revenue $1,110 (1%) (4%) Expenses $543 +2% (4%) PCLS ($10) N/A N/A Net Income $441 (1%) Productivity Ratio 48.9% +150bps . Net Interest Margin 1.82% PCL Ratio², 3 PCL Ratio on Impaired Loans 2, 3 (0.05%) (0.06%) (17bps) +6bps (16bps) +2bps (8bps) NET INCOME AND TRADING INCOME ($MM) 441 391 454 447 372 HH 216 411 382 441 331 . YEAR-OVER-YEAR HIGHLIGHTS Reported Net Income in line with prior year o Higher NII, corporate banking and investment banking results and lower PCLS 。 Lower income from global equities and lower fixed income, as well as higher expenses Loans up 1% Expenses up 2% 。 Higher regulatory costs and technology investments 。 Productivity ratio was 48.9% compared to 47.4% last year PCL ratio², 3 improved by 16 bps o Reversal of provisions on impaired loans in the US o Higher provision on one account last year Q3/17 Q4/17 1 Attributable to equity holders of the Bank Q1/18 Q2/18 Q3/18 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 4 Trading income on an all-bank basis and TEB Scotiabank® | 11
View entire presentation