International Banking and Growth slide image

International Banking and Growth

1 Canadian Banking Reported Net Income Adjusted Net Income ($MM) ($MM) 829 815 786 815 768 759 814 705 Q1/14 Q4/14 Q1/15 Net after-tax notable items in Q4/14 1,2 • Q1/14 Q4/14 Q1/15 • Average Assets ($B) Net Interest Margin (%) • 289 290 292 295 297 14 16 19 18 17 2.17 2.12 2.14 2.15 2.16 270 272 275 279 283 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Tangerine run-off mortgage portfolio (1) Attributable to equity holders of the Bank (2) Adjusted for notable items (See Appendix - Notable Items), Cl contribution and change in effective tax rate 8 • Highlights Adjusted net income up 6% Y/Y Higher net interest margin and strong Wealth Management earnings Loan growth of 4% Y/Y • • Ex. Tangerine run-off portfolio, up 6% Double digit growth in personal and commercial lending Deposits up 3% Y/Y . Retail chequing and savings balances were up 8% and 4% respectively NIM up 4 bps Y/Y • Asset spreads were up 6bps, partly offset by deposit spread compression AUM up 15% Y/Y and AUA up 11% Y/Y Higher PCLs due to growth in higher spread retail products Expenses up 4% Y/Y • Higher investment spend and volume driven growth Adjusted positive operating leverage of 1.7% Margin expansion and strong volume growth Scotiabank®
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