Scotiabank Investor Presentation
Interest Rate Sensitivity
NET INTEREST INCOME SENSITIVITY
Impact of an immediate and sustained 100 bps
parallel shift on net interest income over a
12-month period
100 bps increase: $340 million decrease in
net interest income
Canada
POLICY RATE CHANGE AND OUTLOOK
Change During
Fiscal Quarters (bps)
Current
Policy
Forecast
Policy Rate
Country Q1/22 Q2/22
Q3/22 Q4/22 Q1/232 Rate
for
Dec 31/223
Forecast
Policy Rate
for
Dec 31/233
+75
+150
+125
-
3.75%
4.25%
4.00%
○
100 bps decrease: $326 million increase in
net interest income
US
Mexico
Colombia +150 +200
-
+25
+200
+75
+75
4.00%
4.50%
4.75%
+75
+100
+125
+150
+75 10.00%
10.50%
10.50%
+300
+200
11.00%
11.50%
9.00%
•
Above estimates assume a static balance sheet
and no management actions¹
Peru
+150 +150
+150
+100
Chile
+275
+150
+275
+150
+25 7.25%
11.25%
7.25%
7.00%
11.25%
3.5%
Balance sheet positioned to benefit from declining
rates
5.0
INTEREST RATE ENVIRONMENT²
Canada and U.S. Interest Rate Environment
(%)
15.0
Mexico and Chile Interest Rate Environment
(%)
4.0
10.0
3.0
2.0
5.0
1.0
0.0
0.0
Oct-19
Apr-20
Oct-20
Apr-21
Oct-21
Apr-22
Oct-22
Oct-19
BoC Overnight Rate
Fed Funds Rate
CAD 5-Yr Swap Rate
USD 5-Yr Swap Rate
Apr-20
Oct-20
Apr-21
Oct-21
Apr-22
Oct-22
Bank of Mexico Overnight Rate
MXN 5-Yr Swap Rate
Bank of Chile Monetary Policy Rate
CLP 5-Yr Swap Rate
1 Additional detail regarding non-trading interest rate sensitivity can be found on page 228 of the Management's Discussion & Analysis in the Bank's 2022 Annual Report, available on http://www.sedar.com
2 As of November 22, 2022
3 Source: Scotia Economics. US and Canada as at Oct 17, 2022 forecast, Pacific Alliance countries as at Nov 4, 2022 forecast
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