Investor Presentaiton
Scotiabank
Areas of Current Focus
Montreal
Accord ABCP
CDOs and
CLOS
Monolines
Secured Retail
Auto Loans
(GMAC)
Hedge Fund
Exposure
Auction Rate
Securities
fair value of holdings: $144 million, unchanged from Q1/08
drawn liquidity lines to conduits: $44 million
fair value of holdings: $1.2 billion (Q1/08: $1.4 billion)
virtually all investment grade equivalent - nominal U.S. sub-prime exposure
replaced credit default protection previously provided by a monoline
other direct exposures not significant (<$50 million)
indirect exposure: US$3.2 billion (Q1/08: US$4.4 billion)
high quality of underlying assets, minimal exposure (<$50 million) to sub-prime
mortgages
exposure: $5.9 billion - internally modelled to investment grade (97% investment grade)
now have ability to diversify some of the U.S. exposure to the Canadian market
portfolio performing as expected
majority of activity collateralized
no credit issues with counterparties
no exposure
Scotiabank
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Outlook
credit quality to remain fairly stable for second
half of 2008
.
do not foresee significant change in loan losses from current levels
expect loan loss provisions to increase
gradually over medium term
impact of acquisitions, organic growth and change in mix of loan
portfolios
.
lower reversals and recoveries
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