Scotiabank ESG and Financial Performance Update slide image

Scotiabank ESG and Financial Performance Update

Scotiabank in Peru¹ PERFORMANCE EVOLUTION ($ MM) 2 BUSINESS OVERVIEW 2 In Peru since 1997, but officially started operations in 2006. Offers Retail, Small Business, Commercial, GBM, Wealth and Treasury solutions PTPP 4,5 NIAEH 1,276 1,037 927 Q2/23 332 405 Customers³ ~3.7MM 289 238 248 100 126 Employees³ ~8,900 2020 2021 2022 Q2/22 Q2/23 Branches³ 256 WY/WY Y/Y Loans $23Bn PTPP Growth 4,5 (0%) (19%) (11%) (2%) 4% NIAEH Growth4 (54%) 15% 22% 32% 26% Deposits $16Bn Loan Growth 9% 1% 6% 8% 0% ROE4 18.9% NIM4,6,7 5.91% 4.79% 4.41% 4.52% 4.97% Digital Adoption (%) 49% Productivity Ratio 35.3% 38.3% 39.4% 38.4% 39.4% Digital Sales (%) 59% Operating Leverage 0.5% (6.4%) (2.5%) 2.0% (2.9%) ECONOMIC OUTLOOK 8 LOAN PORTFOLIO 9 MARKET SHARE AND POSITIONS 10, 11, 12 Residential GDP Growth (%) 2023E 1.9% 2024E 2.2% Mortgages 17% Total Loans 3rd 16% Population Growth (%) 1.00% Mortgage 3rd 18% $22.8Bn CPI (y/y % eop) 5.0% 3.5% Non-mortgage 3rd 16% Unsecured 28% Commercial 3rd 16% Corporate/ Commercial 55% Total Deposits 4th 13% 1 All figures excluding Wealth Management, 2 Current and prior period dollars, Y/Y and Q/Q growth rates (%) are on a constant dollar basis (with WYs at YTD23 FX rates and Q2/22 and Q2/23 at Q223 FX rates), while metrics are on a reported basis; 3 Including subsidiaries; 4 See non-GAAP reconciliations beginning on slide 83; 5 Pre-Tax, Pre-Provision Profit defined as revenues less expenses; 6 Net Interest Margin calculated as Core Net Interest Income / Average Core Earning Assets; 7 NIM WY2020 has been restated; 8 Source: Scotiabank Economics. GDP and CPI as at May 18, 2023 forecast; Population Growth: World Economic Outlook Database, April 2023; 9 May not add due to rounding; 10 Key Competitors: BCP, BBVA, Interbank; Source: ASBANC; 11 As of March 2023; 12 Peru system values and market shares experienced a change in reporting methodology, where in previous periods the system included all types of subsidiaries and credit unions, which were excluded from the volume calculations for Q2/23 31
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