International Banking and Canadian Economic Insights
International Banking Financial Performance
Double-digit earnings growth for 11 consecutive quarters
FINANCIAL PERFORMANCE AND METRICS ($MM) 1, 2
YEAR-OVER-YEAR HIGHLIGHTS²
•
Adjusted Net Income up 14% or 11% on a
constant currency basis
Strong loan growth across the Pacific Alliance, positive
impact of acquisitions, and higher non-interest income
Revenues up 20%
Q3/19
Y/Y
Q/Q
•
Reported
Net Income
$781
+40%
13%
Revenue
$3,427
+20%
3%
Expenses
$1,780
+19%
6%
PCLs
$476
(35%) (23%)
Productivity Ratio
51.9%
(100bps) +90bps
Net Interest Margin
4.45%
(25bps) (13bps)
PCL Ratio³
1.24%
(134bps) (47bps)
PCL Ratio on Impaired Loans³
Adjusted5
1.36%
+3bps +7bps
Net Income
$815
+11%
+5%
Expenses
$1,725
+18%
PCLS
$476
+33%
+4%
+2%
.
NIM down 25 bps
Productivity Ratio
50.3%
(140bps) +30bps
PCL Ratio³
1.24%
+1bp (6bps)
o Pacific Alliance up 26% (including acquisitions)
Loans up 28%
o Pacific Alliance up 41% (including acquisitions)
ADJUSTED NET INCOME 15 ($MM) AND NIM4 (%)
4.70%
4.52%
4.52%
4.58%
4.45%
805
746
787
815
.
715
Q3/18
Q4/18
1 Attributable to equity holders of the Bank
Q1/19
Q2/19
Q3/19
.
。 Primarily driven by larger contribution from Chile and
margin compression in Mexico
Expenses up 18%5
o Includes impact of acquisitions
。 Business volume growth and inflation
。 Productivity ratio improvement of 140 bps5
Quarterly operating leverage of +3.2%5
PCL ratio on impaired loans³ increased 3
bps
2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis
3 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
4 Net Interest Margin is on a reported basis
5 Adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions, and
amortization of intangibles related to current and past acquisitions
Scotiabank. 27View entire presentation