Trading Results & Economic Outlook slide image

Trading Results & Economic Outlook

International Banking $MM Q4/20 Y/Y1 Q/Q¹ • Reported Net Income² $263 (60%) 1,130% Pre-Tax, Pre Provision Profit $1,124 (21%) (2%) Revenue $2,548 (15%) 2% Expenses $1,424 (10%) 5% PCLS $736 58% (41%) Productivity Ratio 55.9% 290 bps 180 bps Net Interest Margin 3.97% (54 bps) (2 bps) PCL Ratio³ 2.07% 72 bps (126 bps) PCL Ratio Impaired Loans³ 1.58% 31 bps 9 bps Adjusted 5 Net Income² $283 (60%) 497% Net Income - Ex Divested Ops.² $283 (48%) 503% Pre-Tax, Pre Provision Profit $1,151 (23%) (3%) Expenses $1,397 (7%) 6% Productivity Ratio 54.8% 440 bps 250 bps • YEAR-OVER-YEAR HIGHLIGHTS1 Adjusted net income 2,4 excluding impact of divestitures down 48%; up significantly Q/Q o PCLs up 62%, mainly from performing loan PCLS o Loan growth of 7% and deposit growth 7% FY20 pre-tax, pre-provision profit ex. divestitures down 4%; Pacific Alliance down 1% Revenues ex. divestitures down 6%; up 2% Q/Q o Margin compression and lower non-interest income o PAC revenues down 2%; up 3% Q/Q NIM down 54 bps; down modestly Q/Q o Mainly driven by business mix changes, impact of liquidity/government programs, and interest rate cuts Adjusted expenses4 ex. divestitures down 2%; adjusted FY20 operative leverage4 ex. divestitures of -1.4% o Benefiting from efficiency initiatives and realized synergies ADJUSTED NET INCOME 24 ($MM) AND NIM (%) 4.51% 4.51% 4.28% 3.99% 3.97% 725 615 158 59 283 567 556 197 53 197 1 283 52 1Y/Y and Q/Q growth rates (%) are on a constant dollar basis, while metrics and change in bps are on a reported basis Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 2 Attributable to equity holders of the Bank 3 Includes provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 4 Refer to Non-GAAP Measures on slide 40 for adjusted results Ex. Divested Ops Divested Ops 10
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