Scotiabank Track Record
Key Issues - Domestic Retail Exposures
Retail Loan Portfolio is ~$268 billion (~93% secured - 81% real
estate and 12% automotive)
Real estate is diversified with a high level of insured mortgages
(56%), while uninsured has significant equity (~51% LTV)
Credit card portfolio is approximately $6.8 billion, reflecting
~2.5% of Domestic retail loan book or 1.3% of the Bank's total
loan book
Organic growth strategy that is focused on payments and
deepening customer relationships
~80% of growth is from existing customers (penetration
rate low-30s versus peers in the low-40s)
Strong risk management culture with specialized credit
card teams, customer analytics and collections focus
Auto Loan book is approximately $33 billion
•
Market leader and portfolio is structurally different than
peers with 9 OEM relationships (7 are exclusive)
PCLS remained flat year over year
Higher mix of new versus used auto sales
Higher mix of subvented business
Domestic Retail Loan Book
2%
5%
13%
Real Estate
Secured Lending
Auto
80%
Cards
Unsecured
Canadian Banking - Risk Adjusted
2.20%
Margin
Lending terms have been declining with contractual
terms averaging 72 months but effective terms are 48
months
2.15%
2.09% 2.10%
2.11%
2.09%
2.09%
Alberta retail loan book is approximately $40 billion or 15% of
the Domestic retail loan book
2.10%
No signs of material credit stress or drawdown on lines
Credit trends have moved up to/through national levels
Majority of exposure is residential mortgages (56%
insured)
2.05%
2.00%
19
Q1/16 Q2/16 Q3/16 Q4/16 Q1/17
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