Scotiabank Strategy & Financial Objectives slide image

Scotiabank Strategy & Financial Objectives

Solid Track Record of Earnings and Dividend Growth Earnings Per Share (C$)1, 2 Focused strategies to drive long-term growth Canadian Banking: Target 7-9% earnings growth and 400bps improvement in productivity ratio Focused on customer experience, business mix shift and distribution network/digitization to improve costs International Banking: Target 8-10% earnings growth and positive operating leverage - Attractive, higher growth and underpenetrated banking markets Global Banking and Markets Current earnings reflect trough levels and focused on strategic agenda Dividend per Share (C$) Strong track record of consistent dividends (and increases) with a current yield of approximately 4.5% The Bank has never cut its dividend Dividend increases are driven in line with earnings growth and subject to Board approval Dividend payout ratio target range of 40- 50% Current quarterly dividend of $0.74 per share implies a dividend payout ratio of ~48% The Bank has strong capital levels to support capital initiatives including dividend increases and share buybacks $3.05 5.67 4.43 $1.92 2.72 2.14 08 09 10 11 12 13 14 15 Q3/16 08 09 10 11 12 13 14 15 Q3/16 YTD YTD (1) (2) Reflects adoption of IFRS in Fiscal 2011 Excludes notable items 21 Scotiabank®
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