Scotiabank Risk Overview

Canada: Growth in Household Credit • Household credit growth picked up rapidly throughout 2021 and into 2022, peaking at 9.2% y/y in spring 2022 (but lower than its previous 2007 peak of 13.4%). It has since declined with recent figures at 7.7% y/y for the rolling quarter ending in Nov. 2022. • Consumer loans excluding mortgages (i.e., cards, HELOCs, unsecured lines, auto loans, etc.) grew by 5.1% y/y for the rolling quarter ending Nov. 2022. Consumer loan growth, unlike household credit and • residential mortgage growth, has not shown any sign of slowing yet. Mortgage credit grew at 8.3% y/y in the rolling quarter ending Nov. 2022 (vs the 2007 peak of 14.0% y/y). Mortgage growth is slowing amidst higher rates. Household Credit Growth Consumer Loan Growth Residential Mortgage Growth 20 %, 3-month moving average y/y% 15 change %, 3-month moving average 25 20 y/y % change 15 20 %, 3-month moving average y/y % change 15 10 5 10 0 10 -5 -10 5 m/m% change, SA -15 m/m% change, SA 5 m/m% change, SA -20 -25 0 0 01 03 05 07 09 11 13 15 17 19 21 Sources: Scotiabank Economics, Statistics 01 03 05 07 09 11 13 15 17 19 21 Sources: Scotiabank Economics, Statistics Canada. 01 03 05 07 09 11 13 15 17 19 21 Sources: Scotiabank Economics, Statistics Canada. Canada. 70 0

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