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Investor Presentaiton

Energy Exposures • • • Energy exposure reflects a well diversified book across sectors and geographies $17.9B of drawn energy exposure, reflecting 3.6% of the Bank's total loan book ~60% is investment grade $14.1B of undrawn energy exposure, slightly down from $14.3B in Q4/15 ~75% is investment grade Large portion of upstream non-investment grade drawn portfolio is controlled by borrowing based advances The Bank continues to evaluate exposures through various stress tests, and we have conducted them at current and realistic oil prices with consideration of secondary impacts The stress tests indicate that any potential losses are very manageable and within our risk expectation Drawn Energy Exposure by Sector 11% 12% E&P Midstream 58% 19% Downstream Services Drawn Energy Exposure by Geography¹ 47% Canada 31% U.S. Other² 22% (1) By country of residence (2) Other includes Latin America, Asia and Europe 34 Scotiabank®
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