Strong Track Record of Earnings and Dividend Growth
Canadian Banking Financial Performance
Strong deposit growth, higher NIM and good expense management
FINANCIAL PERFORMANCE AND METRICS ($MM) 1
Y/Y
YEAR-OVER-YEAR HIGHLIGHTS
Q2/19
Q/Q
•
Reported
Revenue
$3,380
+5%
(1%)
Expenses
$1,711
+4%
(1%)
PCLS
$252
+23%
+8%
Net Income
$1,048
+3%
(2%)
Productivity Ratio
50.6% (20bps)
Net Interest Margin
2.46%
+3bps +2bps
PCL Ratio 2
0.30%
+5bps +3bps
PCL Ratio on Impaired Loans²
0.28%
+3bps +1bp
Adjusted³
Expenses
$1,691
+3%
(1%)
Net Income
$1,062
+4%
(2%)
Productivity Ratio 50.0% (60bps)
ADJUSTED NET INCOME 13 ($MM) AND NIM (%)
2.43%
2.46%
2.45%
2.44%
2.46%
1,022
1,141
1,146
1,089
1,062
Q2/18
Q3/18
1 Attributable to equity holders of the Bank
Q4/18
Q1/19
2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures
Adjusted Net Income up 4% 3
○ Margin expansion
。 Lower real estate gains and last year's benefit from
alignment of insurance reporting reduced net income
growth by 4%
o Higher PCLs primarily from unsecured lending and
auto loans and impact of less favourable forward
looking macro-economic inputs
Revenue up 5%
○ Net interest income up 4%
• Loan growth of 3%
•
.
Q2/19
o Residential mortgages up 2%; credit cards up 6%
o Business loans up 9%
Deposit growth of 11%
o Personal up 8%; Non-Personal up 15%
NIM up 3 bps
o Primarily driven by deposit growth
Expenses up 3%³
o Investments in technology and regulatory initiatives
o Excluding M&A and IFRS15, expenses were flat
Quarterly operating leverage of +1.1% 3
PCL ratio² up 5 bps to 30 bps
3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions
Scotiabank® 18View entire presentation