Scotiabank Financial Review Q2 2019
PCL RATIOS
Credit fundamentals remain strong; PCLs on impaired loans in line with long-term average
PCLs ($MM) AND PCL RATIO ON IMPAIRED LOANS¹
46 bps
42 bps
41 bps
YEAR-OVER-YEAR HIGHLIGHTS
49 bps
•
47 bps
679
700
637
595
559
Q3/18
Q4/18
Q1/19
Q2/19
•
Q2/18
PCLs on impaired loans
PCL ratio on impaired loans
HISTORICAL PCL RATIO ON IMPAIRED LOANS¹
PCL ratio 1,2 was 51 bps, up 4 bps Q/Q
and up 9 bps Y/Y
。 PCL on impaired loans¹ of $700 million were up
3% Q/Q, and 18% Y/Y primarily due to volume
growth and acquisitions in International Banking
。 PCL on performing loans 1, 2 of $22 million were up
$13 million from last quarter and up $83 million Y/Y
due to the release of hurricane-related provisions,
unfavourable impact of macro economic inputs for
Canada and Mexico
PCL ratio on impaired loans¹ is in-line
with historical average of 46 bps
2.00%
1.50%
1.00%
0.50%
0.00%
1990
1991
1992
1993
1994
1995
1996
1997
PCL Ratio on Impaired Loans
1 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
2 Excludes acquisition-related costs including Day 1 impact on acquired performing loans
2002: Included $454
million related to the
Bank's exposure to
Argentina
2009: Higher PCLs driven
by economic conditions,
event distributed across
business lines. Higher
general allowance and
sectoral allowance
(automotive related)
Historical Average: 46 bps
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Historical Average PCL Ratio on Impaired Loans
2018
2019 YTD
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