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Investor Presentaiton

Risk Review PCLS ($MM) and PCL Ratio (bps) 49 47 45 45 45 571 550 553 587 573 · Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 • PCLS PCL Ratio GILS1 ($ billions) Formations ($MM) 788 807 5.3 5.4 5.2 5.4 723 4.9 645 644 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 (1) Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 13 • Year-over-Year Highlights PCLs are stable and PCL ratio reported improved performance Retail PCL ratio in Canada has stabilized and delinquency rates improved across all product categories Good retail trends in International excluding Colombia Improved commercial performance in Canada and International Cumulative energy loan loss ratio remains below expectations Gross impaired loans improved 9% Q/Q1 - Net impaired loan loss ratio improved 5 bps Q/Q to 0.44% Net formations down 20% Q/Q Improvement across all business lines Market risk-average 1-day all- bank VaR of $11 million, down Q/Q No trading loss days in Q3/17 Overall credit fundamentals are within expectations Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico. Scotiabank®
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