Investor Presentation Second Quarter 2018
GLOBAL BANKING AND MARKETS
Good net interest income growth and improvement in credit quality
FINANCIAL PERFORMANCE AND METRICS 1 ($MM)
Q2/18
Y/Y
Q/Q
Revenue
$1,155
(4%)
(3%)
•
Expenses
$565
+13%
(1%)
PCLS
($11)
N/A
N/A
Net Income
$447
(14%)
(2%)
Productivity Ratio
48.9%
+720bps
+80bps
Net Interest Margin
1.80%
+5bps
(23bps)
•
PCL Ratio 2, 3 (0.05%)
(6bps)
(1bp)
PCL Ratio
0.02%
+1bp
on Impaired Loans 2, 3
+3bps
•
YEAR-OVER-YEAR HIGHLIGHTS
Net Income down 14%
o Lower income from global equities (higher client
driven equity trading last year), lower fixed income
and investment banking results and higher expenses
o Higher foreign exchange and corporate banking
results and lower PCLS
PCL ratio 2, 3 improved by 6 bps
o Improved credit quality
Expenses up 13%
o Higher regulatory costs and technology investments
NET INCOME 1 AND TRADING INCOME 4 ($MM)
455
Hu
517
441
372
201
216
454
411
447
Q2/17
Q3/17
1 Attributable to equity holders of the Bank
Q4/17
2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39
Q1/18
Q2/18
3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures
4 Trading income on an all-bank basis and TEB
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