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
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