2008 Financial Overview and Trading Results
Scotiabank
%
All Bank
Stable All-Bank Margin
1.87
1.79
1.79
1.82(1)
1.76
1.68
Canadian Banking
2.52
-
2.49
2.49
2.35
2.33
International Banking
4.32
4.18
4.14
4.10
4.27
Scotia Capital
0.96
0.78
0.69
0.66
0.60
Q4/07
Q1/08
Q2/08
Q3/08
Q4/08
All-Bank: +3 bps qtr/qtr (1)
+ higher margins in Latin America, including
acquisitions in Peru
+ wider spreads in U.S. & European Corporate
relatively higher funding costs
- increase in non-earning assets
Canadian Banking: (3) bps qtr/qtr
- change in product mix
International Banking: +13 bps qtr/qtr
Scotia Capital: +12 bps qtr/qtr
(1) Adjusted for $(162)MM pre-tax impact of ALM Hedging. See slide 35 for more detail.
11
Scotiabank
Higher Expenses
Acquisitions, Forex & Growth Initiatives
Non-interest expenses
($ millions)
1,944
1,889
1,792
1,058
963
1,068
397
362
368
467
453
489
Q4/07
Q3/08
Q4/08
Q4/08 vs. Q4/07 expenses: up 8%
-
negative impact of forex
acquisitions & branch expansion led to higher
salaries & premises & technology
increased pension & benefit costs vs. low level
in Q4/07
+ lower performance-based & stock-based
compensation
+ decrease in professional fees & capital taxes
Q4/08 vs. Q3/08 expenses: up 3%
increase due to acquisitions & forex
+ decrease in performance-based & stock-
based compensation
+ lower capital taxes
Salaries & employee benefits
â– Premises & technology
Other
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