Scotiabank Strategy & Financial Objectives
Key Issues - Domestic Retail Exposures
•
Portfolio is ~$263 billion (~93% secured - 81% real estate and
12% auto)
Real estate is diversified with a high level of insured mortgages
(59%), while uninsured has significant equity (~50% LTV)
Credit card portfolio is approximately $6.8 billion, reflecting
~2.6% of Domestic retail loan book or 1.4% of the Bank's total
loan book
•
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 $32 billion
.
Market leader and portfolio is structurally different
than peers with 10 OEM relationships (8 are exclusive)
Lower credit loss experience because:
Higher mix of new versus used auto sales
Higher mix of subvented business
Domestic Retail Loan Book
4%
3%
12%
Real Estate
Secured Lending
Auto
I Cards
81%
Other
Canadian Banking - Risk Adjusted
Margin
2.20%
Lending terms have been declining with contractual
terms averaging 72 months but effective terms are 48
months
2.15%
2.10%
Alberta retail loan book is approximately $39.6 billion or 15%
of the Domestic retail loan book
2.05%
•
•
No signs of material credit stress or drawdown on lines
Credit trends have moved up to/through national levels
Majority of exposure is residential (65% insured)
2.00%
Q3/15 Q4/15 Q1/16 Q2/16 Q3/16
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