Scotiabank Investor Presentation slide image

Scotiabank Investor Presentation

Canadian Banking Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to over 10 million Retail, Small Business and Commercial Banking customers. It serves these customers through its network of 941 branches and 3,725 automated banking machines (ABMs), as well as online, mobile and telephone banking, and specialized sales teams. Canadian Banking also provides an alternative self-directed banking solution to over 2 million Tangerine Bank customers. Business Mix Retail 73% Q4/22 Revenue Mix $3.1Bn Residential Mortgages 64% Q4/22 Average Loan Mix Strategic Focus • Growing Commercial Banking in select industries (agriculture, health care & professionals, real estate and technology) • Growing in under-represented provinces (BC and Quebec) Financial Results $442Bn $MM Q4/22 Y/Y Q/Q 10% 16% Auto 27% Business and Government Loans 8% Reported Business Banking 2% Other Personal Credit Cards Loans Net Income¹ $1,170 (5%) (4%) Pre-Tax, Pre Provision Profit² $1,737 10% Reported Net Income¹ ($MM) and NIM4 (%) Revenue $3,134 11% 2.20% 2.19% 2.22% 2.29% 2.26% Expenses $1,397 12% 1% PCLS $163 nmf 74% Productivity Ratio³ 44.6% 40 bps 20 bps 1,238 1,201 1,179 1,213 1,170 Net Interest Margin4 2.26% 6 bps (3 bps) PCL Ratio 3,5 15 bps 25 bps 6 bps Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 PCL Ratio on Impaired Loans 3,5 14 bps 4 bps 1 bp Medium-Term Financial Objectives Net Income Growth 1,4 Adjusted4 Productivity Ratio4 Target6 5%+ <44% Positive Net Income¹ $1,174 (5%) (4%) Pre-Tax, Pre Provision Profit $1,743 10% Expenses Productivity Ratio $1,391 12% 1% 40 bps 20 bps Operating Leverage4 44.4% 1 Net income attributed to equity shareholders; 2 Pre-Tax, Pre-Provision Profit defined as revenues less expenses; 3 Refer to page 133 of the Management's Discussion & Analysis in the Bank's 2022 Annual Report, available on http://www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto; 4 Refer to non-GAAP measures on page 17 of the Management's Discussion & Analysis in the Bank's 2022 Annual Report, available on http://www.sedar.com; 5 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures; 63-5 year target from 2020 Investor Day 23
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