Investor Presentation Second Quarter 2018
Q2 2018 FINANCIAL PERFORMANCE
Strong results with solid top line growth and expense management
$MM, except EPS
Q2/18
Y/Y
Q/Q
Net Income
$2,177
+6%
(7%)
•
Diluted EPS
$1.70
+5%
(9%)
•
Revenue
$7,058
+7%
Expenses
$3,726
+3%
+7%
Productivity Ratio
52.8%
(190bps)
+350bps
Core Banking Margin
2.47%
(7bps)
+1bp
PCL Ratio 1, 2
42bps
(7bps)
PCL Ratio
on Impaired Loans 1, 2
46bps
(3bps)
+3bps
•
DIVIDENDS PER COMMON SHARE
0.03
0.03
.
0.76
0.76
0.79
0.79
0.82
Q2/17
Q3/17
■Announced Dividend Increase
Q4/17
12018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39
Q1/18
Q2/18
2 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures
•
YEAR-OVER-YEAR HIGHLIGHTS
Diluted EPS grew 5%
Revenue up 7%
○ Net interest income up 6% from strong volume growth
partially offset by lower margins
○ Non interest income up 9% due to higher equities
trading and income from investments in associated
corporations
o Lower real estate gains offset by Alignment of
reporting period³
Expenses up 3%
o Higher salaries and employee related costs,
continued investments in technology and marketing
o Cost reduction initiatives and Hollis Wealth sale
○ Strong positive operating leverage
PCL ratio 1, 2 on impaired loans improved
by 3 bps to 46 bps
Effective tax rate increased to 22.2%
from 13.9%
o Higher amounts of tax-exempt dividends related to
client driven equity trading activity last year
3 Alignment of reporting period relates to the benefit of recognizing an additional month of income from the alignment of reporting periods of Chile and Canadian insurance business
with the bank
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