Investor Presentaiton
Household Debt: Canada vs U.S.
Canadian households' balance sheets compare favourably to U.S.
• Canadian headline debt-to-income ratio is now ~ -
-3% vs the U.S. peak in 2008
.
o Calculated on the same terms, Canada's debt-to-income is currently 166% vs 132% in the U.S.
Canadian debt-to-asset ratio remains below U.S.
o U.S. households have incentive to pursue higher asset leverage in light of mortgage-interest deductibility
• Ratio of total household debt-to-GDP remains lower in Canada than U.S.
。 Calculated on a comparable basis, the ratio of household credit market debt is 98.8% in Canada vs 101.0% in the U.S.
Household Credit-Market Debt
to Disposable Income
Total Household Liabilities
as % of Total Assets
30
180
household credit liabilities
174.0
as % of disposable income
170
160
150
140
130
120
110
100
༅ ཎྜ ༔ ༔ ༔ ྋ ཀྵུ ༄ ༅ 8
165.8
25
25
20
131.5
......Adjusted Canadian*
Official Canadian
Official U.S.
90
00 02 04 06 08 10 12 14 16 18
* Adjusted for U.S. concepts and definitions.
Sources: Scotiabank Economics, BEA, Federal
Reserve Board, Statistics Canada.
15
household debt
as % of assets
U.S.
Household Credit-Market
Debt to GDP
130
% of GDP
120
110
U.S. with
unincorporated
Original
Canada
103.6
100
business debt
.....101.0
98.8
90
Canada*
17.9
80
73.9
Original
U.S.
Canada
70
17.0
60
50
10
00 02 04 06 08 10 12 14 16 18
Sources: Scotiabank Economics, Federal
Reserve Board, Statistics Canada.
00 02 04 06 08 10 12 14 16 18
* Adjusted for U.S. concepts and definitions.
Sources: Scotiabank Economics, BEA, Federal
Reserve Board, Statistics Canada.
66
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