Q3/11 Financial Performance and Outlook
13
Scotia Capital: Challenging Markets
Scotiabank
305
Net Income
($ millions)
357
289
Q3/10
Q2/11
Q3/11
•
•
•
•
Year-over-Year
Earnings down 5%; revenues up 5%
+ Higher investment banking revenues
- Lower trading revenue, primarily in fixed income
PCLs of $8MM vs. reversals of $25MM
Expenses up 17%
- Higher remuneration and benefits to support
growth initiatives in trading business
- Higher support costs
Quarter-over-Quarter
Earnings down 19%; revenues down 8%
- Lower fixed income trading revenue
+ Higher revenue in equities, foreign exchange
and precious metals
+ Modest growth in corporate loans
PCLs down $2MM
Expenses down 13%
+ Lower performance based compensation
Other Segment¹
($ millions)
Q3/10
Q2/11
Q3/11
Funding Net Interest Income
(118)
(75)
(54)
Net Securitization Revenues²
(110)
(78)
(78)
AFS Securities Writedowns
(5)
(6)
(12)
Financial Instruments
(6)
60
11
General Allowance for Credit Losses
30
Expenses & Net Other Items
(3)
TEB Offset
(70)
Taxes
Total
131
(181)
56 (69) 75
(56)
8
(73)
(149)
(71)
Scotiabank
14
(1) Includes Group Treasury and other corporate items, which are not allocated to a business line
(2) Represents the impact on the Other segment of CMB securitization revenues recognized in other income, and the
reduction in mortgage net interest income earned as a result of removing the mortgages from the balance sheet
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