Bank Of Nova Scotia · TSX:BNS
Bank Of Nova Scotia — Scotiabank — Investor Presentation (May 2020)
81 slides from Bank Of Nova Scotia's investor presentation, May 2020
Slide 1: Investor Presentation
Investor Presentation May 2020
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Forward-looking statements From time to time, our public communications often capital markets activity; the Bank’s ability to attract, develop and retain key executives; include oral or written forward-looking statements. Statements of this type are the e
Slide 3: Table of Contents
TABLE OF CONTENTS Scotiabank Overview 4 • Leading Bank in the Americas 5 • Well-Diversified Business with Strong Returns 6 • Business Lines 7 • Economic Outlook in Core Markets 8 • Why Invest in Scotiabank? 9 • Focused on Higher Return Markets 10 • Increasing Banking Penetration 11 • Digital Progres
Slide 4: Scotiabank Overview
• Leading bank in the Americas with competitive scale in high return markets • Repositioning of business substantially complete Scotiabank Overview • Greater geographic focus, increased scale in core markets, and improved business mix • Strong credit quality. Stable credit metrics. • Positioned for
Slide 5: Leading Bank in the Americas
Leading Bank in the Americas1 Core markets: Canada, US, Mexico, Peru, Chile and Colombia 9th largest bank by assets1 in the Americas Q2 2020 Change Full-Service, Scotiabank2 YTD YTD/YTD Canada Universal Bank Revenue $15,945MM +5% (AAA) Canada Net Income $3,715MM (18%) #3 Bank Mexico Peru Return on E
Slide 6: Well-Diversified Business with Strong Returns
Well-Diversified Business with Strong Returns Earnings by Business Line1,2,3 Earnings by Market1,2 Wealth Europe, Asia, Management Brazil, Australia 17% Caribbean and Central America Global Other Wealth Colombia C&CA 8% 1% Management 5% Canadian 17% Banking Personal & Chile P&C Commercial 6% Wholesa
Slide 7: Business Lines
Business Lines Activity Personal & Commercial Banking Wealth Management Capital Markets Canadian International Global Wealth Global Banking Business Line Banking Banking Management and Markets Products • Mortgages • Mortgages • Asset Management • Corporate Banking • Auto Loans • Auto Loans • Private
Slide 8: Economic Outlook in Core Markets
Economic Outlook in Core Markets Real GDP Growth Forecast (2019 – 2021) Real GDP (Annual % Change) 2010–18 Country 2019 Forecast 2020F 2021F Average 2.2 1.6 Previous 1 1.5 2.0 Canada Current 2 -9.1 6.5 1 2.3 2.3 Previous 1.7 1.8 U.S. 2 Current -6.3 7.0 1 3.0 - Previous 1.0 1.8 Mexico 2 Current -8.4
Slide 9: Why Invest in Scotiabank?
Why Invest in Scotiabank? Leading bank in the • Six core markets: Canada, US, Mexico, Chile, Peru and Colombia Americas • ~87% of earnings from six core markets • Unique Americas footprint provides diversified exposure to higher growth, high ROE banking markets Diversified exposure to high • 225 mil
Slide 10: Focused on Higher Return Markets
Focused on Higher Return Markets Banking: Average ROE by Market (Latest Reporting Period) 20% 15.0% 15% 13.0% 10.5% 9.9% 10% 4.2% 5% 0% Canada Latam Asia US Europe 73% of all-bank earnings Return on equity in latest reporting period for the leading bank by market share for loans in each country. Can
Slide 11: Increasing Banking Penetration
Increasing Banking Penetration 150 Mature Markets Growth Markets U.S. Banking Penetration (%)1 U.K. Canada Spain Scotia P&C 100 Markets Czech Republic Scotia Americas Brazil Chile Wholesale Markets Colombia C&CA Other Markets 50 PAC PAC4 Bubble size Peru represents Mexico nominal GDP Cambodia 0 $0 $
Slide 12: Digital Progress
Digital Progress • Canada: >40% of payment deferral requests processed online • Pacific Alliance: >80% of payment deferral requests processed online In-Branch Digital Retail Sales1 Digital Adoption2 Financial Transactions3 +2,200 bps +1,900 bps -1,400 bps 33 45 26 28 39 23 33 20 22 29 16 26 15 12 11
Slide 13: COVID-19 Response
COVID-19 Response Our Customers Our Employees Our Communities Supporting our individual customers in-branch, by phone, and Protecting and supporting our Supporting our communities on-line. employees while they serve our to manage through COVID-19 • Lower interest rates and fee waivers provided on ma
Slide 14: COVID-19: Strong Response from Governments across Core Markets
COVID-19: Strong Response from Governments across Core Markets Policy Action Canada United States Mexico Peru Chile Colombia Movement Restrictions March 12-22 March 19-24 March 24 March 16 March 18 March 25 (Date of Introduction) Policy Rate Cuts 150 bps 150 bps 150 bps 200 bps 125 bps 100 bps (Sinc
Slide 15: Q2 2020 Financial Performance
Q2 2020 Financial Performance $MM, except EPS Q2/20 Y/Y Q/Q YEAR-OVER-YEAR HIGHLIGHTS Reported Net Income $1,324 (41%) (43%) • Adjusted EPS down 39%2 Pre-Tax, Pre Provision Profit $3,593 (4%) (3%) • Adjusted Net Income down 39%2 Diluted EPS $1.00 (42%) (46%) o Pre-tax, pre-provision profit (PTPP) up
Slide 16: Earnings and Dividend Growth
Earnings and Dividend Growth Strong track record of stable and predictable earnings and growing dividends Earnings per share (C$)1,2 Total shareholder return3 Scotiabank Big 5 Peers (ex. Scotiabank) +8% $7.14 10.4% 10.1% CAGR 6.9% $3.31 5.1% $2.87 3.5% 1.0% 5 Year 10 Year 20 Year 10 11 12 13 14 15 1
Slide 17: Strong Capital Position
Strong Capital Position CET1 Ratio +30 bps -27 bps 11.4% -47 bps -10 bps -4 bps +10 bps 10.9% Q1/20 Earnings 1 Dividends RWA Impact CCR/ Other ECL Q2/20 Reported (ex. FX) CVA 2 (Incl. Share transitional Reported Buybacks) 3, 4 add-back Strong Capital Levels 14.7% 14.8% 14.2% 14.6% 14.0% 2.2% 2.5% 2.
Slide 18: Technology Strategy
Technology Strategy $ ● Build a strong and ● Cloud-first strategy ● Rebalance core ● Maintain consistent scalable platform for automation and technology spending investment in foundation speed towards modernization technology Technology Investment Technology Investment Growth Rate (YoY Change) ~11%
Slide 19: Fintech
Fintech Partnerships Focus Areas Proof of Concepts1 • Credit adjudication • Accessibility • Natural language processing • Personal financial management • Customer experience and self-service • Machine-learning modelling • Data collaboration • Cybersecurity 1 Selected proof of concepts with fintech p
Slide 20: Environmental, Social & Governance (ESG)
Environmental, Social & Governance (ESG) Scotiabank’s Climate Commitments include: Mobilize $100 billion by 2025 to reduce the impacts of climate change. Memberships, Associations and Partnerships 20
Slide 21: Environmental, Social & Governance (ESG)
Environmental, Social & Governance (ESG) Highlights from 2019 / 2020 • Committed to mobilize $100 billion by 2025 to • COVID-19 response includes various relief • Top 1% of global financial institutions for reduce the impacts of climate change measures for customers, added personal days Corporate Go
Slide 22: Business Line Overview: Canadian Banking
Business Line Canadian Banking Overview 22
Slide 23: Canadian Banking
Canadian Banking Top 3 bank in personal & commercial banking in Canada • Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to Retail, Small Business, Commercial Banking customers. Canadian Banking also provides an alterna
Slide 24: Canadian Banking
Canadian Banking $MM Q2/20 Y/Y Q/Q YEAR-OVER-YEAR HIGHLIGHTS Reported • Adjusted Net Income down 42%3 Net Income1 $477 (42%) (44%) o Higher performing loan PCLs Pre-Tax, Pre Provision Profit $1,306 (4%) (11%) o Strong volume growth and higher net interest Revenue $2,526 - (7%) income offset by lower
Slide 25: Canadian Banking: Financial Performance
Canadian Banking: Financial Performance High quality retail loan portfolio: ~93% secured • High quality residential mortgage portfolio 80% o 38% insured; remaining 62% uninsured has a LTV of 53%1 Real Estate Secured Lending • Market leader in auto loans o $38.7 billion retail auto loan portfolio wit
Slide 26: Canadian Banking: Residential Mortgages
Canadian Banking: Residential Mortgages High quality, diversified portfolio • Residential mortgage portfolio of $234 billion: 38% insured; LTV 53% on the uninsured book1 o Mortgage business model is “originate to hold” o New originations2 in Q2/20 had average LTV of 64% o Majority is freehold proper
Slide 27: Canadian Residential Mortgages – LTVs
Canadian Residential Mortgages – LTVs* Credit fundamentals remain strong NEW ORIGINATIONS UNINSURED LTV* DISTRIBUTION Q2/19 Q1/20 Q2/20 Canada Total Originations ($B) 7.1 11.2 10.5 GVA Uninsured LTV 64% 64% 64% 62% GTA GTA 62% Total Originations ($B) 2.3 3.7 3.3 BC & Territories Uninsured LTV 64% 63
Slide 28: Tangerine
Tangerine Canada’s Leading Digital Bank Medium 15%+ 6%+ 10%+ Term Earnings CAGR Deposits CAGR Assets CAGR Objectives No.1 A+® Award No.1 Credit Card Recent Client Satisfaction By Fundgrade Accolades Ranked No. 1 in Client Awarded for performance of Ranked highest in Credit Card Satisfaction among Mi
Slide 29: Automotive Finance
Automotive Finance Canada’s leader in automotive finance • Provide personal and commercial dealer financing solutions, in partnership with seven leading global automotive manufacturers in Canada • Portfolio grew 6%1 year-over-year o Personal up 5.5%, Commercial up 9% Exclusive Relationships Commerci
Slide 30: Business Line Overview: International Banking
Business Line International Banking Overview 30
Slide 31: International Banking
International Banking Leading P&C bank focused on high quality growth markets in Latin America and the Caribbean • International Banking operates primarily in Latin America and the Caribbean with a full range of personal and commercial financial services. Core markets are the Pacific Alliance countr
Slide 32: International Banking
International Banking $MM1 Q2/20 Y/Y Q/Q YEAR-OVER-YEAR HIGHLIGHTS1 Reported • Adjusted Net Income ex. divestitures down 63%2,5 Net Income2 $173 (72%) (66%) o Higher performing loan PCLs Pre-Tax, Pre Provision Profit $1,242 (15%) (5%) o Ex divested operations, PTPP up 1% Revenue $2,707 (9%) (8%) Exp
Slide 33: The Bank of the Pacific Alliance (PAC)
The Bank of the Pacific Alliance (PAC) Only universal bank with full presence in all Pacific Alliance countries Well-established bank with 30+ years of experience in the region Competitive scale in each market 8 million1 Retail and ~30,000 Corporate & Commercial customers >100 multi-national corpora
Slide 34: PAC Fundamentals Driving Growth
PAC Fundamentals Driving Growth Strong Sound Macro Favourable Governance Environment Demographics ● Democratic countries ● Diversified economies ● 225 million people with with open economies with strong GDP median age of 30 years growth ● Independent central ● Strong domestic banks with inflation ●
Slide 35: Resilience of the Pacific Alliance
Resilience of the Pacific Alliance Average Annual +2.9% +3.0% +3.1% +2.7% GDP Growth +1.8% +1.6% Notable Events (by country) Low Oil Election & Election Social Election No events Prices Odebrecht & Trade Dispute Unrest Approximate GDP -2.2%1 -2.6%2 -1.5%3 -1.5%4 -1.8%5 Impact on country +13% CAGR $2
Slide 36: Scotiabank in Mexico
Scotiabank in Mexico Including all Business Segments Footprint Customers Employees Branches1 Market Position by Loans4 23.2% ~3.5 ~12,900 ~592 million Balance and 13.5% 13.5% Loan Market Average 12.5% Market Position Average Loans Share4 Deposits 7.7% 7.5% 7.7% $33 $26 4.6% billion billion 3.3% 2.0%
Slide 37: Scotiabank in Peru
Scotiabank in Peru Including all Business Segments Footprint Customers1 Employees1 Branches1 Market Position by Loans4 4.0 12,000 314 32.2% million 19.6% 17.9% Balance and Loan Market Average Market Position Average Loans 11.7% Share4 Deposits 17.9% $22 $19 billion billion Financial Total NIAT2,5 RO
Slide 38: Scotiabank in Chile
Scotiabank in Chile Including all Business Segments Footprint Customers1 Employees Branches1 Market Position by Loans4 >3 ~9,000 162 18.4% million 16.5% 14.2% 14.0% 13.8% Balance and Loan Market Average Market Position Share4 Average Loans Deposits 9.8% 14.2% $44 $23 billion billion Financial Total
Slide 39: Scotiabank in Colombia
Scotiabank in Colombia Including all Business Segments Footprint Customers1 Employees1 Branches1 Market Position by Loans4 26.0% 3.1 ~9,000 188 million Balance and 16.1% Loan Market Average Market Position Average Loans 12.4% Share4 Deposits 10.3% 6.0% 5.9% 5.9% $12 $10 4.2% billion billion Financia
Slide 40: Other Regions
Other Regions Leading Caribbean & Central American franchise Caribbean & Central America Asia • Leading bank serving retail, commercial, and Thailand: 6% interest in TMB Bank corporate customers • Reduced investment in Thailand in • Major markets include the Dominican Republic, Q1/20 resulting ~6% m
Slide 41: Business Line Overview: Global Wealth Management
Business Global Wealth Line Overview Management 41
Slide 42: Global Wealth Management
Global Wealth Management Profitable, High Growth, Strong Momentum • Global Wealth Management is focused on delivering comprehensive wealth management advice and solutions to clients across Scotiabank’s footprint Employees1 Countries1 MEDIUM-TERM FINANCIAL OBJECTIVES ~7,200 14 Target3 Assets Under Ad
Slide 43: Global Wealth Management
Global Wealth Management $MM, except AUM/AUA Q2/20 Y/Y Q/Q YEAR-OVER-YEAR HIGHLIGHTS Reported • Adjusted Net Income up 3%2 Net Income1 $302 +3% (1%) o Up 7% excluding impact of divestitures Pre-Tax, Pre Provision Profit $412 +3% (2%) • Revenue up 1%, up 4% excluding divestitures Revenue $1,127 +1% (
Slide 44: Asset Management International
Global Wealth Management Profitable, High Growth, Strong Momentum 1st 2nd 3rd 4th 5th 6th 6+ Private Investment Counsel Private Banking Advisory Trust Canada Full Service Brokerage Discount Brokerage Retail Mutual Funds Asset Management Institutional Funds International Mexico AUM Blackrock Larrain
Slide 45: Business Line Overview: Global Banking and Markets
Business Line Global Banking Overview and Markets 45
Slide 46: Global Banking and Markets
Global Banking and Markets Second-largest Canadian wholesale banking and capital markets business • Full-service wholesale bank the Americas, with operations in 21 countries, serving clients across Canada, the United States, Latin America, Europe and Asia-Pacific MEDIUM-TERM FINANCIAL OBJECTIVES Asi
Slide 47: Global Banking and Markets
Global Banking and Markets $MM Q2/20 Y/Y Q/Q YEAR-OVER-YEAR HIGHLIGHTS Reported • Net Income up 25% Y/Y Net Income1 $523 +25% +41% o Strong growth in FICC trading revenue Pre-Tax, Pre Provision Profit $844 +52% +65% • Revenue up 27% Revenue $1,460 +27% +25% o Non-interest income up 34% Expenses $616
Slide 48: Scotiabank in the U.S.
Scotiabank in the U.S. • Wholesale bank in the US: Corporate & Investment Banking, Capital Markets, Cash Management and Trade Finance • Top 15 foreign bank organization (FBO) in the US Clients1 Employees1 Offices1 >4,000 ~700 5 Revenue1 Average Loans1 Average Deposits1 $1,896 $43 $57 million billion
Slide 49: Risk Overview
Risk Overview 49
Slide 50: Risk Snapshot
Risk Snapshot RWA Breakdown1 Credit Exposure by Country2,3 Credit Exposure by Sector1,2 Canada Chile Real Estate and Construction 5.8% Credit Risk 64% U.S. Financial Services 5.0% 2% 2% Wholesale and Retail 4.8% 4% C&CA 11% $446B 87% Operational Risk 5% $611B1 Other International Energy 3.3% 5% Tech
Slide 51: Risk Density
Risk Density • Risk density has declined over the past 5 years • Major acquisitions have been successfully integrated with no adverse impact on risk density Credit RWA Density (Credit Risk-Weighted Assets/Credit Exposure at Default) 40% 38% 35.3% 36% 34% 32% 32.2% 30% Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q
Slide 52: Historical PCL Ratios on Impaired Loans
Historical PCL Ratios on Impaired Loans 1,2 1.75% ALL BANK 1.50% 1.27% 1.25% 0.92% 1.00% 0.75% 0.57% 0.59% 0.50% 0.45% 0.43% 0.49% 0.54% 0.47% 0.50% 0.25% 0.34% 0.36% 0.32% 0.40% 0.42% 0.24% 0.25% 0.14% 0.11% 0.12% 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 53: Canadian Retail: Loans and Provisions
Canadian Retail: Loans and Provisions 1 MORTGAGES AUTO LOANS 216 97 85 85 94 99 21 1 1 0 0 4 11 1 89 78 84 96 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 LINES OF CREDIT2 CREDIT CARDS 896 164 87 458 402 381 385 445 86 96 72 80 70 73 415 339 379 377 70 73 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20
Slide 54: International Retail: Loans and Provisions
International Retail: Loans and Provisions MEXICO PERU CHILE 279 550 970 191 160 190 545 159 155 231 246 251 250 402 473 471 208 395 175 148 150 154 218 228 491 424 470 203 163 372 2 2 2 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q2/191 Q3/19 Q4/19 Q1/20 Q2/20 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 COLOMBIA CARIBBEAN & 9
Slide 55: Sectors Most Impacted by COVID-19
Sectors Most Impacted by COVID-191 Real Estate: C&CA Canada Office and Retail Total Loans ($B) 10% $B %IG 48% Mexico 3% Office REIT $1.3 75% $10.0B Office Real Estate $3.0 38% U.S. 16% (1.5%) Retail REIT $2.4 100% Retail Real Estate $3.2 59% 10% 12% Latin 1% America Other Total2 $10.0 65% Europe Ene
Slide 56: Energy - E&P and OFS Exposure
Energy - E&P and OFS Exposure1 % of Total Loans and Loans and Acceptances % of Total E&P % Investment Acceptances Outstanding ($B) and OFS Grade Outstanding Total Exploration & Production (E&P) 9.3 85% 1.4% 47% Canadian E&P 3.7 34% 0.6% 73% U.S. E&P* 1.4 13% 0.2% 17% Oilfield Services (OFS) 1.7 15%
Slide 57: Treasury and Funding
Treasury and Funding 57
Slide 58: Pandemic Response
Pandemic Response Increased liquidity and maintained access to funding markets • Liquidity remains well positioned and in excess of regulatory requirements as loan draws / outflows and HQLA were prudently managed o Instituted enhanced liquidity monitoring and reporting in response to COVID-19 o LCR
Slide 59: Funding Strategy
Funding Strategy Flexible, well-balanced and diversified funding sources Funding Programs1 US Debt & Equity Shelf (senior / subordinated debt, preferred and common shares) • Increase contribution from customer deposits Limit – USD 40 billion Global Registered Covered Bond Program • Continue to reduc
Slide 60: Wholesale Funding
Wholesale Funding Wholesale funding diversity by instrument and maturity1,6,7 10% TERM FUNDING MATURITY TABLE (EXCLUDING SUB DEBT AND MORTGAGE SECURITIZATION) 24% Bail-inable Notes (CANADIAN DOLLAR EQUIVALENT, $B) $30 Senior Notes 2% Asset-Backed 5 Securities Asset-Backed 3 $23 Commercial Paper3 $22
Slide 61: Deposit Overview
Deposit Overview Stable trend in personal & business and government deposits PERSONAL DEPOSITS PERSONAL DEPOSITS (SPOT, CANADIAN DOLLAR EQUIVALENT, $B) $235 $225 $225 • $10B of growth from Canada $215 • Important for both relationship purposes $202 $204 $222 $223 $224 and regulatory value $200 $211
Slide 62: Wholesale Funding Utilization
Wholesale Funding Utilization Managing reliance on wholesale funding and growing deposits WHOLESALE FUNDING / TOTAL ASSETS REDUCTION IN WHOLESALE FUNDING DRIVEN BY FUNDING THROUGH CENTRAL BANK 25.1% PROGRAMS 23.8% 22.9% • Accessed central bank liquidity programs to 20.9% support lending to the real
Slide 63: Liquidity Metrics
Liquidity Metrics Well funded Bank with strong liquidity • Liquidity Coverage Ratio (LCR) o Liquidity remains well positioned and in excess of regulatory requirements o Prudently managed loan draws and other outflows o Bolstered by central bank actions to support the Canadian economy and financial s
Slide 64: Appendix: Core Markets: Economic Profiles
Appendix 1 Core Markets: Economic Profiles
Slide 65: Canadian Economy
Canadian Economy Diverse sources of growth with a strong balance sheet 19.7% 12.3% REAL GDP GROWTH Finance, Insurance, Health & Education & Real Estate 3 10.4% ANNUAL % CHANGE 15.7% Wholesale & 2 Other Retail Trade CANADIAN GDP BY INDUSTRY 1 4.4% (Feb 2020) 10.0% Transportation Manufacturing 0 & War
Slide 66: Mexican Economy
Mexican Economy Diverse economy with a strong balance sheet 5.8% • The Mexican economy reflects a solid mix of 15.9% Health & Education commodities, goods production, and services Finance, Insurance, & Real Estate 17.5% Wholesale & • Trade remains dominated by the U.S., but 16.8% Retail Trade Other
Slide 67: Peruvian Economy
Peruvian Economy Resilient economic fundamentals • Peru’s important resource sectors are 12.3% 13.0% Manufacturing Mining, Oil, & Gas increasingly balanced by stronger service-sector activity and solid economic fundamentals 10.7% 6.7% • Peru has 16 free-trade agreements with 49 Wholesale and PERUVIA
Slide 68: Chilean Economy
Chilean Economy Advanced economy with wide-ranging trade links 3.4% • Chile’s mix of economic activities reflects its 16.4% Natural Resources 8.6% status as an advanced market economy Finance, Insurance, & Real Estate Wholesale & Retail Trade • Chile’s diversified trading relationships are 8.2% 10.4
Slide 69: Colombian Economy
Colombian Economy Gaining momentum 13.9% 2.4% 17.2% • Services account for a rising share of Colombian Arts & Wholesale, Retail Trade, Finance, Insurance, GDP compared with traditional strengths in & Real Estate Entertainment Accommodation & Food Services extractive industries • Colombia continues t
Slide 70: Appendix: Canadian Housing Market
Appendix 2 Canadian Housing Market
Slide 71: Canada: COVID-19 Major Drag on Growth
Canada: COVID-19 Major Drag on Growth Substantial policy support should enable a rebound post-virus Fiscal Response Across 40 Major Economies • COVID-19 leading to sharp drop in 35 Loan, equity and guarantee measures* economic activity in 1H20 Rev. & exp. measures 30 • Massive government support is
Slide 72: Population Growth: A Canadian Differentiator
Population Growth: A Canadian Differentiator Population Growth: A Canadian Differentiator G7 Population Growth 1.8 Canada Japan United Kingdom 2020Q1 1.6 United States Euro Area 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 -0.2 annual % change -0.4 08 09 10 11 12 13 14 15 16 17 18 19 20 Sources: IMF, Scotiabank
Slide 73: Canadian Housing Market on Pause
Canadian Housing Market on Pause Significant undersupply should lead to a recovery as economy re-opens Housing Market is Historically Undersupplied Sales and Listings Falling Concurrently 0.9 90 sa sales-to-new listings ratio, % Ratio of total home completions on 18-month rolling basis relative to p
Slide 74: Canadian Consumer Indebtedness
Canadian Consumer Indebtedness • Total household credit grew at 4.6% in annual nominal terms in March 2020 vs the 2008 peak of 12.2% annually • Consumer loans excluding mortgages (i.e., cards, HELOCs, unsecured lines, auto loans, etc.) grew at 2.7% annually in Q1/20 vs > 5% in late 2017 • Mortgage c
Slide 75: Housing Market Differences vs U.S.
Housing Market Differences vs U.S. Canada’s housing market features distinct practices and policies Canada U.S. • Mortgage interest not tax-deductible • Tax-deductible mortgage • Full recourse against borrowers in most provinces interest creates incentive to • Foreclosure on non-performing mortgages
Slide 76: Housing Policy Developments in Canada
Housing Policy Developments in Canada Consistent policy initiatives to maintain a balanced and sustainable market 2016 2017 2018 2019 • Canada: Qualifying stress rate • Ontario: 16 measures aimed to • Canada: OSFI imposes more • British Columbia: Increase in for all new mortgage insurance slow rate
Slide 77: Appendix: Additional Information
Appendix 3 Additional Information
Slide 78: Acquisition & Divestiture Activity (2018-2020)
Acquisition & Divestiture Activity (2018-2020) Increasing Scale in Core P&C Markets and Wealth Management Citi Colombia Cencosud Peru Caribbean (Leeward Islands) Banco Dominicano Pension & Benefits del Progreso Administration 1% 2% Wealth 5% Management 6% 48% 10% El Salvador 9% MD Financial ACQUISIT
Slide 79: Medium-Term Financial Objectives
Medium-Term Financial Objectives All-Bank Objectives1 EPS Growth 7%+ ROE 14%+ Operating Leverage Positive Capital Strong Levels 1 3-5 year targets from 2020 Investor Day 79
Slide 80: Additional Information
Additional Information Scotiabank Listings: Scotiabank Common Share Issue Information: • CUSIP: 064149107 • Toronto Stock Exchange (TSX: BNS) • ISIN: CA0641491075 • New York Stock Exchange (NYSE: BNS) • FIGI: BBG000BXSXH3 • NAICS: 522110 Scotiabank Credit Ratings Dominion Bond Moody's Investors Stan
Slide 81: Contact Information
Investor Relations Philip Smith Steven Hung Contact Senior Vice President 416-863-2866 Vice President 416-933-8774 Information philip.smith@scotiabank.com Lemar Persaud steven.hung@scotiabank.com Judy Lai Director Director 416-866-6124 416-775-0485 lemar.persaud@scotiabank.com judy.lai@scotiabank.co