Wholesale Funding and Energy Portfolio Strategy
Q4 2018 International Banking Financial Performance
Strong performance in the Pacific Alliance supported by acquisitions
1,2
YEAR-OVER-YEAR HIGHLIGHTS2
FINANCIAL PERFORMANCE AND METRICS ($MM)
Q4/18
Y/Y
Q/Q
Reported
•
Adjusted Net Income up 22%
6
Revenue
$3,134
Expenses
$1,721
+23%
PCLS
$412
Net Income
$712
+22% +11%
+15%
+32% (45%)
+18% +36%
Productivity Ratio
54.9%
+50bps +200bps
Net Interest Margin
4.52%
(15bps) (18bps)
PCL Ratio
1.05%
(9bps) (153bps)
。 Strong asset and deposit growth in Pacific Alliance
o Includes impact of acquisitions and alignment of
reporting period
Revenues up 22%
o Pacific Alliance up 28%
PCL Ratio on Impaired Loans³, 4
Adjusted
1.20%
+6bps (13bps)
•
Loans up 29%
Expenses
$1,661
+19% +14%
o Pacific Alliance loans up 42%
PCLs
$412
+32% +14%
•
NIM down 15 bps
Net Income
$746
Productivity Ratio
53.0%
PCL Ratio 3, 4, 6
1.05%
+22% +6%
(100bps) +130bps
(9bps) (18bps)
•
ADJUSTED NET INCOME ($MM) AND NIM5 (%)
4.67%
4.66%
1,6
4.74%
4.70%
4.52%
613
675
683
715
746
Q4/17
•
·
Q1/18
Q2/18
Q3/18
Q4/18
。 Mainly driven by the business mix impact of acquisitions
Expenses up 19%Ⓡ
o Business volume growth, inflation and higher technology
costs
。 Full year productivity ratio improvement of 150bps6
Full-year positive operating leverage of
3.1%
PCL ratio3, 4, 6 down 9 bps
Scotiabank®
1 Attributable to equity holders of the Bank
2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis
3 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39
5 Net Interest Margin is on a reported basis
6 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions,
amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing
loans in Q3/18
4 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
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