International Banking: Second Half 2010 Outlook
International Banking:
Earning Through Challenges
Net Income
($ millions)
332
294
288
Q2/10 vs. Q2/09
■ Revenues down 3% (up 10% ex. FX)
+ Wider loan spreads in Latin America
+ $36MM gain on sale of shares in Siam City Bank
Negative impact of FI
■ PCLs up $58MM
Expenses down 7% (up 4% ex. FX)
-
Higher compensation costs
- Increased professional fees & business taxes
Q2/10 vs. Q1/10
Revenues down 8% (down 6% ex. FX)
Margin compression in the Caribbean
- Lower treasury results in Mexico & Chile
- Negative impact of financial instruments (FI)
+ Higher insurance revenues in Caribbean
+ $36MM gain on sale of shares in Siam City Bank
■ PCLs down $4MM
"
Q2/09
Q1/10
Q2/10
"
Significantly lower tax rate
Expenses down 4%
+ Positive impact of FX
+ Lower professional fees & seasonality
Scotiabank
11
Scotia Capital:
Strong Quarter, Excellent Credit Performance
Net Income
($ millions)
328
381
Q2/09
Q1/10
391
Q2/10
Q2/10 vs. Q2/09
■ Revenues up 1%
+ Higher trading revenues
· Significantly lower loan volumes
PCLs down $183MM (1)
Expenses up 29%
- Higher performance-based compensation
- Increased salaries & technology expenses
Q2/10 vs. Q1/10
Revenues down 5%
- Lower loan volumes & slightly reduced spreads
- Continued strong trading revenues, but slightly
lower than Q1/10
■ PCLs down $38MM (1)
Expenses down 3%
+ Lower performance-based compensation
(1) Q2/10 included an auto sectoral reversal of $19MM. Q2/09 included an auto sectoral provision of $50MM.
Scotiabank
12View entire presentation