Canadian Economic and Housing Policy Overview
Scotiabank in the Pacific Alliance Countries
Well positioned for long-term growth in large, growing market
Population 1,2
Government
Presidential Elections
Financial Stability
Economy
GDP1
Exports5
Trade Partners5
Business Environment
HDI Score Rank6
Banking Penetration1
Foreign Direct Investment¹
Highlights of Pacific Alliance countries (PACS)
• 230 million. 6.2x Canada's population. Superior growth versus other EM³ and G7 countries; median age of 29
⚫ No elections scheduled until 2021
All sovereign credit ratings in IG category with central banks' policy targeting inflation since 1999
9th largest economy in the world
• 64% of exports related to manufacturing
• US, China and Canada are the PACs' largest trading partners, representing 72% of exports
Rank "High" or "Very High" (United Nations, 2017)
Under-banked with average banking penetration at ~50% compared to over 90% in Canada and the U.S.
FDI averaging 3.2% of GDP compared to 1.7% in Canada and the U.S.
Scotiabank Market Share7
Market Share Ranking?
Strengths
Mexico
7.1%
6th
Peru
17.7%
3rd
Chile
14.0%
3rd
Auto and mortgages
P&C and Mortgages
P&C and Mortgages
Colombia
6.2%
5th
Credit Cards, Personal
PACS
(Total/Average)
11.5%
4th
Broad P&C platform
Average Total Loans³ (C$B)
$28
$21
$46
$12
$106
Revenue (C$B)
$0.6
$0.6
$0.6
$0.4
$2.2
Net Income after NCI 9,10 (C$MM)
$182
$212
$135
$39
$567
ROE 9,10
25%
28%
9%
10%
16%
# of Employees 11,12
13,214
11,080
9,257
9,689
43,240
Scotiabank®
1 Source: World Bank 2017
2 Population growth: World Bank DataBank 2017-2022
3 EM countries include: Argentina, Brazil, China, Greece, India, Indonesia, Poland, South Africa, Turkey, and Russia
4 Source: The World Factbook, CIA 2017
5 Source: United Nation Conference on Trade and Development (UNCTAD) 2017; Organization for Economic Co-
operation and Development (OECD) 2016
6 Human Development Index. Source: United Nations Development Programme (UNDP) 2017. For more information,
please refer to: http://hdr.undp.org/sites/default/files/2018_human_development_statistical_update.pdf
7 Ranking based on publicly traded banks by total loans market share as of December 2018
8 Average loan balances over Q1/19
9 For the quarter ended January 31, 2019
10 Earnings adjusted for acquisition-related costs including integration and amortization costs related to current
acquisitions, and amortization of intangibles related to current and past acquisitions
11 Employees are reported on a full-time equivalent basis
12 As of January 31, 2019
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