Financial Performance and Digital Progress Update
International Banking
Constant dollar basis 1,5
$MM
Reported
Q4/23
Q4/22
Y/Y1
Q3/23
Q/Q¹
Net Income²
$562
$705
(20%)
$638
(12%)
.
Pre-Tax, Pre-Provision Profit³
$1,277
$1,246
3%
$1,364
(6%)
•
Revenue
$2,799 $2,718
3%
$2,851
(2%)
Expenses
$1,522
$1,472 3%
$1,487
2%
PCLS
$512
$386
33%
$510
Productivity Ratio5
54.4%
54.5%
(10 bps)
52.4%
200 bps
Net Interest Margin³
4.18%
4.08%
10 bps
4.10%
8 bps
PCL Ratio5
119 bps
89 bps
30 bps
118 bps
1 bp
PCL Ratio Impaired Loans 5
118 bps
81 bps
37 bps
111 bps
7 bps
Adjusted³
Net Income²
$570
$713
(20%)
$645
(12%)
Pre-Tax, Pre-Provision Profit
$1,287
$1,256
2%
$1,374
(6%)
Expenses
$1,512
$1,462
3%
$1,477
2%
Productivity Ratio
54.0%
54.1%
(10 bps) 52.0%
200 bps
•
Loans up 2%
REPORTED NET INCOME 1,2 ($MM) AND NIM 3
4.08%
4.00%
4.12%
4.10%
4.18%
705
718
687
638
562
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
•
•
Y/Y HIGHLIGHTS
Net income² down 20%
PTPP up 3%
Revenue up 3%
o Net interest income up 9%
o Non-interest income down 13%, driven by
lower trading revenues
Expenses up 3% (up 2% Q/Q)
o Inflationary pressures partly offset by savings
initiatives
FY23 adjusted operating leverage 4 of 0.3%
NIM up 10 bps (up 8 bps Q/Q)
o CCA up 15 bps
o PAC up 17 bps
o Retail up 5%
。 Business Banking down 1%
PCL ratio of 119 bps
Deposits up 9%
o Term deposits up 21% and non-term deposits
down 3%
o Personal deposits up 3% and non-personal
deposits up 12%
LDR6 of 129%, down 11%
1 Current and prior period dollars, Y/Y and Q/Q growth rates (%) are on a constant dollar basis, while metrics and change in bps are on a reported basis
2 Attributable to equity holders of the Bank
3 See non-GAAP reconciliations beginning on slide 43
4 Refer to non-GAAP measures on page 20 of the Management's Discussion & Analysis in the Bank's 2023 Annual Report, available on http://www.sedarplus.ca
5 Refer to page 136 of the Management's Discussion & Analysis in the Bank's 2023 Annual Report, available on http://www.sedarplus.ca, for an explanation of the composition of the measure. Such explanation is
incorporated by reference hereto
6 This metric is calculated as Total Average Net Loans and Acceptances to Customers/Total Average Deposits of the business line
11View entire presentation