PCL Ratios and Provision for Credit Losses Review
RISK REVIEW
Credit fundamentals remain strong
IAS 39
IFRS 9
PCLS ($MM) AND PCL RATIO ON IMPAIRED LOANS
1, 2, 3
45 bps
43 bps
42 bps
46 bps
41 bps
595
573
564
559
536
Q3/17
Q4/17
Q1/18
Q2/18
PCLs on impaired loans
PCL ratio on impaired loans
GILS4, 5, 6 ($B)
Q3/18
YEAR-OVER-YEAR HIGHLIGHTS
PCLs1,2 on impaired loans of $559
million were down 5% Q/Q and 4% Y/Y
。 Lower retail provisions in Canadian Banking
o Recoveries in Global Banking and Markets
。 Partly offsetting were higher retail credit provisions
in International Banking in line with volume growth
PCL ratio 1,2 on impaired loans was
down 5 bps Q/Q and down 4 bps Y/Y
Excluding the Day 1 impact on acquired
performing loans, the PCL ratio 1, 2 was
40 bps, down 2 bps Q/Q
5.3
5.1
5.0
4.9
4.9
Q3/17
Q4/17
Q1/18
Q2/18
Q3/18
1 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39
2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
3 Excludes acquisition-related costs including Day 1 impact on acquired performing loans
4 Excludes loans acquired under the Federal Deposit Insurance Corporation (FDIC) guarantee related to the acquisition of R-G Premier Bank of Puerto Rico.
5 As of Q1/18, R-G Premier is included in International Commercial and International Retail
6 Excludes impact of acquisitions in Q3/18; including acquisitions, GILs were $5.5B in Q3/18
Scotiabank® | 14View entire presentation