Scotiabank Financial Review Q2 2019 slide image

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 Scotiabank® 14
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