Scotiabank Financial Performance Review
Scotiabank
Scotia Capital
Record net income in 2007
1,200
1,114
1,047
900
600
300
0
2006
2007
Net income*
300
276
235
226
200
100
2007 vs. 2006 net income: +6%
+ revenues up 3%
+ higher loan loss recoveries
- expenses up 6%
.
•
higher performance-related compensation
technology, hiring specialist expertise
Q4/07 vs. Q3/07 net income: (18)%
- revenues down $124mm
net interest income: up $133mm
+ higher tax-exempt dividend income
other income: down $257mm
- lower derivatives trading
- losses on structured credit instruments
+ expenses down $42mm
•
lower performance-related compensation
+ net loan loss recoveries flat
0
Q4/06
Q3/07
Q4/07
*net income available to common shareholders, $ millions
Scotiabank
revenues (TEB), $ millions.
2,450
2,388
1,234
1,258
1,154
1,192
2006
2007
Global Capital Markets (GCM)
27
Scotia Capital
2007 revenues higher
2007 vs. 2006 revenues: +3%
Global Capital Markets: +2%
+ strong underlying trading revenues from:
•
derivatives, fixed income, precious metals & FX
offset by lower equity trading
Global Corporate & Investment Banking: +3%
+ higher interest recoveries, M&A, new issue revenue
+ loans & BAs up 22%, partly offset by lower spreads
Global Corporate & Investment Banking (GC&IB)
575
644
520
371
307
235
268
273
285
Q4/06
Q3/07
Q4/07
Q4/07 vs. Q3/07 revenues: (19)%
Global Capital Markets: down $136mm
+ $43mm gain on sale bond index business
- losses on structured credit instruments ($135)mm
- lower underlying trading revenues vs. record Q3/07
Global Corporate & Investment Banking: up 4%
+ higher securities gains in the U.S. & Europe
-
lower credit & investment banking fees
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