2008 Financial Overview and Trading Results
Scotiabank
Solid Core Results (1)
Core Change
Q4/08
Items
Q4/08
Qtr/Qtr
Yr/Yr
Reported of Note
Core
Net income ($MM)
$315
$642
$957
(5)%
8%
EPS
$0.28
$0.65
$0.93
(5)%
6%
ROE
6.0%
19.2%
(180) bp
(30) bp
Productivity ratio
75.2%
54.9%
60 bp
(40) bp
Quarter over quarter (core)
+ Strong asset growth
+ Wider corporate spreads
+ Impact of acquisitions
-
· Decrease in securities gains
-
Lower wealth management revenues
- Increased loan losses
(1) Adjusted for items of note (Q4/08: $(642)MM after-tax, Q4/07: $65MM after-tax). See slides 35 and 36 for more details.
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Scotiabank
Good Underlying Revenue Growth
Revenues (TEB)
($ millions)
3,477
3,544 (1)
3,240 (1)
796 (1)
1,428
1,308 (1)
550
162 (1)
1,932
2,049
2,036
Q4/07
Q3/08
Q4/08
Other income
Writedowns
Net Interest Income (TEB)
Q4/08 vs. Q4/07 revenues: up 9% (1)
■ net interest income up 14% (1)
+ broad based asset growth
+ positive impact of acquisitions
lower margin
■ other income up 3% (1)
+ record forex & precious metals trading, higher
securitizations & acquisitions
- lower underlying securities gains, securities trading
Q4/08 vs. Q3/08 revenues: up 2% (1)
■ net interest income up 7% (1)
+ strong asset growth, including acquisitions
+ positive impact of forex
+ stable underlying margin
■ other income down 6% (1)
- lower capital markets related revenues: lower underlying
securities gains, underwriting & securities trading
+ higher securitization revenues
+ record forex & precious metals trading
(1) Adjusted for items of note (Q4/08: $(958)MM pre-tax, Q4/07: $54MM pre-tax). See slides 35 and 36 for more details.
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