Embracing Fintech slide image

Embracing Fintech

Credit Performance TOTAL ACLs1 ($MM) AND ACL RATIO² 125 bps 109 bps 96 bps 82 bps 86 bps 80 bps 75 bps 72 bps 7,810 24 6,893 1,869 23 6,232 1,691 22 5,731 5,095 23 5,583 17 1,529 20 5,375 5,295 20 28 2,064 1,368 1,326 1,114 1,255 1,276 2,056 2,009 1,386 1,863 1,723 1,595 1,532 3,853 2,578 3,123 2,672 2,477 2,514 2,505 2,459 Q1/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 (Pre-pandemic) 3 International Retail Canadian Retail ■Business Banking GWM/Other TOTAL PCLs ($MM)³ AND PCL RATIO4 HIGHLIGHTS Strong balance sheet with total ACLs of $5.3 billion Total ACL ratio of 72 bps Secured retail portfolio (Canada - 95%; International - 72%) High investment grade corporate and commercial loan book Performing ACL ratio higher than pre-pandemic levels across secured and unsecured retail portfolios Ratio trends reflect positive shift in retail business mix and improving quality of commercial portfolios HIGHLIGHTS Total PCL ratio of 22 bps, up 9 bps Q/Q Higher performing PCLs for less favourable macroeconomic forecast Performing build in International Banking, and lower performing releases in Canadian Banking compared to prior quarter 49 bps 51 bps 33 bps 22 bps о 24 bps 10 bps 13 bps 13 bps 18 771 250 764 215 \20 496 412 145 503 525 396 380 339 69 9 168 314 222 219 1 (35) 274 276 93 325 \(43) (2) (27) (1) (96) (50) \(16) (1) (12) (15) (46) (Pre-pandemic) Q1/20 Q1/21 International Banking Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 О Impaired PCLs declined 4% Q/Q 5 ■Canadian Banking ■Global Banking and Markets ■GWM/Other 1 Includes ACLs on off-balance sheet exposures and ACLs on acceptances and other financial assets 2 ACL ratio defined as period end total ACLs (excluding debt securities and deposits with financial institutions) divided by gross loans and acceptances 3 Includes Allowance for credit losses in Other of $5 million 4 Refer to page 51 of the Management's Discussion & Analysis in the Bank's Third Quarter 2022 Report to Shareholders, available on http://www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto 5 Includes provisions for credit losses in Global Wealth Management of $5 million (Q1/21: $4 million, Q2/21: -$2 million, Q3/21: -1$ million, Q4/21: $1 million, Q1/22: -$1 million, Q2/22: $1 million) 44
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