FY 2021 BALANCED APPROACH BETWEEN INVESTMENT AND COST MANAGEMENT slide image

FY 2021 BALANCED APPROACH BETWEEN INVESTMENT AND COST MANAGEMENT

PROVISIONS FOR CREDIT LOSSES PCL Q4 2021 ($MM) 27 $110 19 19 1 -10 -9 $8 $20 $81 $100 $5 $2 52 $82 ($43) $65 $65 ($41) $34 $19 ($41) ($62) ($58) ($36) ($2) I POCI Performing Impaired Total (bps) Q4 Total PCL ■ PCL recovery of $41M (-9bps), reflecting continued strong portfolio performance Q4 PCL on Impaired Loans ■ $19M (4bps), new cyclical low ■ Recoveries in Commercial offset by provisions in FM related to one account. Continued low impaired PCLs in retail portfolios and USSF&I Q4 PCL on Performing Loans ■ Release of $58M (-13bps) driven by updates in portfolio quality and economic scenarios ■ Retail: $24M, reflects overall continued strong performance ■ Non-retail: -$37M, reflecting primarily updates in portfolio quality and economic scenarios ■ USSF&I: $3M, driven by portfolio growth in both Credigy and ABA FY 2021 Full Year PCL Impaired: 11 bps Performing: -9 bps FY 2022 Target range for impaired PCLs: 15 to 25 bps ($MM) Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Personal Commercial Wealth Management Financial Market 325 30 18 17 15 15 38 39 8 26 (2) 2 33 USSF&I 7 4 5 PCL on impaired 82 65 65 POCI (1) 8 10 2 ºེ་སྐུསཙྪ་ྒུ (3) (12) - 1 20 13 2 2 34 19 (36) (2) ☐ PCL on performing 20 6 (62) (41) (58) Total PCL 110 81 5 (43) (41) (1) Purchased or Originated Credit Impaired. 12
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