Bank Of Nova Scotia · TSX:BNS
Bank Of Nova Scotia — Scotiabank — Investor Presentation (February 2025)
107 slides from Bank Of Nova Scotia's investor presentation, February 2025
Slide 1: Investor Presentation
Investor Presentation February 2025
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Forward-looking Statements From time to time, our public communications include oral or global capital markets activity; the Bank’s ability to attract, develop and retain key executives; written forward-looking statements. Statements of this type are incl
Slide 3: Table of Contents
Table of Contents Scotiabank Overview 4 Business Line Overview: Canadian Banking 16 Business Line Overview: International Banking 24 Business Line Overview: Global Wealth Management 31 Business Line Overview: Global Banking and Markets 36 Risk Overview 40 Treasury and Funding 49 Appendix 1: Core Mar
Slide 4: About Scotiabank
About Scotiabank Q1/25 HIGHLIGHTS FY2024 EARNINGS1 BY MARKET Q1/25 Q1/24 Other 2 2 18% Reported Adjusted Reported Adjusted English Net Income1 ($Bn) 1.1 2.3 2.2 2.2 Caribbean 12% $7.8Bn 49% Canada Diluted EPS ($) 0.66 1.76 1.68 1.69 11% Mexico 10% Revenue ($Bn) 9.4 9.4 8.4 8.4 U.S.A 3 Return on Equi
Slide 5: Our Strategy
Our Strategy Be our clients’ most trusted financial partner to drive sustainable, profitable growth and maximize total shareholder return. Earn Make it easy Grow and scale Win as primary client to do in priority businesses one team relationships business with us OUR PURPOSE & VALUES MEDIUM-TERM FINA
Slide 6: Global Must Win Medium-Term Priorities
Global Must Win Medium-Term Priorities Unlock Retail deposits, investments and client primacy Enhance payments and Heighten focus on cash management Mexico solutions Commercial Pursue thoughtful Expand Cloud productivity and capabilities efficiency initiatives 6
Slide 7: Well Diversified Business with Strong Returns
Well Diversified Business with Strong Returns E A R N I N G S B Y B U S I N E S S L I N E E X . O T H E R 1,2 FY2024 EARNINGS BY GEOGRAPHY1 Global Business Lines $9.3Bn Banking and Other -$1.5Bn Reported NIAEH $7.8Bn 82% of Earnings are in Markets 16% 49% North America Canadian Global FY2024 Banking
Slide 8: Business Lines (Q1/25 Results)
Business Lines (Q1/25 Results) BUSINESS CANADIAN INTERNATIONAL GLOBAL WEALTH GLOBAL BANKING LINE BANKING BANKING MANAGEMENT AND MARKETS Products • Mortgages • Mortgages • Asset Management • Corporate Lending • Auto Loans • Auto Loans • Private Banking • Advisory • Business Loans • Personal Loans • P
Slide 9: Business Line Snapshot
Business Line Snapshot CANADIAN BANKING($BN) INTERNATIONAL BANKING ($BN) Loans (avg) LDR1 119% LDR1 129% 8% 3-yr Deposit 7% 3-yr Deposit CAGR Change CAGR Change Deposits (avg) 15 bps (100 bps) (Q/Q) (Q/Q) 175 171 446 447 457 168 426 152 378 381 141 367 130 127 340 125 294 308 107 104 2021 2022 2023
Slide 10: Q1 2025 Financial Performance
Q1 2025 Financial Performance $MM, except EPS Q1/25 Y/Y Q/Q Y/Y HIGHLIGHTS Reported Net Income $993 (55%) (41%) • Diluted EPS down 61%, adjusted1 up 4% Diluted EPS $0.66 (61%) (46%) o Reported includes $1.2 Bn loss related to announced sale of Revenue $9,372 11% 10% operations in Colombia and Centra
Slide 11: Strong Capital Position
Strong Capital Position Q/Q CHANGE IN CET1 RATIO (%)1 • The CET1 ratio of 12.9%, benefited from strong internal capital generation and RWA optimization during the quarter, offset by the completion of the KeyCorp investment and the impact from the announced sale of the Colombia, Costa Rica and Panama
Slide 12: Strong Balance Sheet Metrics
Strong Balance Sheet Metrics $Bn (unless indicated otherwise) Q1/24 Q4/24 Q1/25 Y/Y Capital Metrics CET1 Ratio1 12.9% 13.1% 12.9% 0 bps 1 Tier 1 Capital Ratio 14.8% 15.0% 15.1% 30 bps 1 Total Capital Ratio 16.7% 16.7% 16.8% 10 bps TLAC Ratio2 28.9% 29.7% 28.8% (10 bps) 3 Leverage Ratio 4.3% 4.4% 4.4
Slide 13: Digital Progress
Digital Progress DIGITAL PROGRESS CANADIAN BANKING D I G I T A L U N I T A C T I V E D I G I T A L D I G I T A L A C T I V E M O B I L E Canadian Banking S A L E S ( % ) U S E R S ( M M ) A D O P T I O N ( % ) U S E R S ( M M ) • Digital Launches of VISA disputes and +150 bps +6% +220 bps +11% Debit
Slide 14: Sustainability Highlights
Sustainability Highlights INDEX ESG RATINGS ENVIRONMENT SOCIAL GOVERNANCE INCLUSION AND RANKINGS $350 Billion Economic Inclusion Sustainability Expertise Provide $350 billion7 in Promote economic Deliver on key climate-related finance8 by resilience through initiatives across the DJSI North 2024 S&P
Slide 15: Sustainability Highlights
Sustainability Highlights ENVIRONMENT SOCIAL GOVERNANCE • Scotiabank acted as joint bookrunner of the first Blue Bond1 • Scotiabank committed $1.2 million to CNIB’s Come to Work • Scotiabank launched its new cultural ambition – issued in Mexico by FIRA for MXN$4,500 million to support program The pa
Slide 16: Business Line Overview: Canadian Banking
Business Line Canadian Banking Overview 16
Slide 17: Canadian Banking
Canadian Banking Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to over 11 million customers. Retail, Small Business and Commercial Banking customers receive service through its network of 892 branches and 3,562 automa
Slide 18: Canadian Banking
Canadian Banking $MM Q1/25 Y/Y Q/Q BUSINESS MIX Q1/25 Reported Net Income1 $913 (6%) (2%) Retail Mortgages Revenue $3,412 6% 3% 73% 61% Expenses $1,611 8% 2% Revenue Average Mix Credit Loans Pre-Tax, Pre-Provision Profit2 $1,801 4% 3% Cards 2% PCLs $538 42% 20% $3.4Bn $457.0Bn Personal Productivity
Slide 19: Business Banking
Business Banking AVERAGE NON-PERSONAL DEPOSITS ($BN) AVERAGE BUSINESS LOANS ($BN) 9% 3-yr CAGR 15% 3-yr CAGR 135 142 93 94 105 62 2021 2022 2023 2024 Q1/25 2021 2022 2023 2024 Q1/25 COMMERCIAL BANKING SMALL BUSINESS BANKING • Strategic focus on underpenetrated geographies (Quebec, Ontario, British •
Slide 20: Canadian Retail Loan Portfolio
Canadian Retail Loan Portfolio HIGH QUALITY RESIDENTIAL MORTGAGE PORTFOLIO R E T A I L L O A N B O O K 4,5 • 23% insured; remaining 77% uninsured has an LTV1 of 52% Spot Balance as of Q1/25 • Mortgage business model is “originate to hold” Real Estate • New uninsured originations2 in Q1/25 had averag
Slide 21: Canadian Residential Mortgages
Canadian Residential Mortgages Asset yields on variable rate mortgages reprice with each change to Scotiabank’s prime rate MORTGAGE PORTFOLIO1 in $Bn (Spot) 23% 31% in $Bn (Spot) Mortgage Portfolio Variable Mortgages Insured Variable Total Outstanding Balance $304 $93 Uninsured Outstanding Balance $
Slide 22: Canadian Residential Mortgages
Canadian Residential Mortgages MORTGAGE PORTFOLIO1 in $Bn (Spot) Freehold Condos 83% ($253Bn) Freehold 169.0 24.9 61.3 Total 144.1 18.6 32.1 20.0 11.7 9.6 Portfolio1 42.7 3.8 3.0 0.3 0.7 28.3 $304Bn Ontario BC & Territories Alberta 17.0 Quebec 11.4 Atlantic 8.9 Manitoba & Provinces Saskatchewan 17%
Slide 23: Automotive Finance
Automotive Finance HIGHLIGHTS • Canada’s leader in retail automotive finance across the Canadian banks • Provide personal and commercial dealer financing solutions, in partnership with ten leading global automotive manufacturers in Canada • Average net loans and acceptances increased 3% year-over-ye
Slide 24: Business Line Overview: International Banking
Business Line International Banking Overview 24
Slide 25: International Banking
International Banking International Banking is a strong and diverse franchise serving over 12 million Retail, Corporate, and Commercial clients with a presence in 15+ countries, including Mexico, Chile, Peru, Colombia, Brazil, Uruguay, and various markets in Central America and the Caribbean. This u
Slide 26: International Banking
International Banking Constant dollar basis2 BUSINESS MIX AS AT Q1/25 $MM Q1/25 Y/Y Q/Q Y/Y Q/Q Reported Latin America Credit Business Net Income1 651 (9%) 8% (7%) 5% 51% 78% Cards Revenue 3,030 (1%) 6% 1% 4% 5% Expenses 1,553 (2%) 4% 1% 3% Revenue Average Mix Auto Loans Pre-Tax, Pre-Provision Profi
Slide 27: International Retail & Commercial
International Retail & Commercial RETAIL BANKING COMMERCIAL BANKING • Retail banking serves the day-to-day banking needs of individual • Commercial banking provides financial solutions to a variety of and small business clients, providing personalized advice via institutions including cross border c
Slide 28: International Banking: Mexico and Chile
International Banking: Mexico and Chile1 MEXICO CHILE $MM , Reported Constant Dollar2 $MM , Reported Constant Dollar2 Q1/25 Y/Y Q/Q Y/Y Q/Q Q1/25 Y/Y Q/Q Y/Y Q/Q Revenue 751 (9%) 4% 0% 2% Revenue 608 (7%) 3% (2%) 5% Expenses 395 (10%) 3% (1%) 4% Expenses 281 (3%) 3% 0% 4% Provision for credit losses
Slide 29: International Banking: Peru and Colombia
International Banking: Peru and Colombia1 PERU COLOMBIA $MM , Reported Constant Dollar2 $MM , Reported Constant Dollar2 Q1/25 Y/Y Q/Q Y/Y Q/Q Q1/25 Y/Y Q/Q Y/Y Q/Q Revenue 500 7% 10% 2% 5% Revenue 278 (2%) (4%) 2% (4%) Expenses 204 8% 0% 4% (4%) Expenses 186 (6%) 0% (2%) 0% Provision for credit loss
Slide 30: International Banking: Caribbean and Central America
International Banking: Caribbean and Central America1 FINANCIAL PERFORMANCE AND METRICS GEOGRAPHIC DISTRIBUTION $MM , Reported Constant Dollar2 REVENUE Q1/25 Y/Y Q/Q Y/Y Q/Q Revenue 677 9% 7% 4% 3% Expenses 375 5% 12% 1% 8% 15% Provision for credit losses 48 26% 9% 26% 4% 67% NIAEH 158 (1%) (8%) (7%
Slide 31: Business Line Overview: Global Wealth Management
Business Global Wealth Line Overview Management 31
Slide 32: Global Wealth Management
Global Wealth Management Global Wealth Management is focused on delivering comprehensive wealth management advice and solutions to clients across Scotiabank’s footprint. Global Wealth Management serves over 2 million investment fund and advisory clients across 13 countries – administering over $700
Slide 33: Global Wealth Management
Global Wealth Management $MM Q1/25 Y/Y Q/Q REVENUE MIX AS AT Q1/25 Reported Net Income1 $407 23% 7% Revenue $1,579 19% 8% Expenses $1,022 17% 8% Pre-Tax, Pre-Provision Profit2 $557 24% 8% 13% PCLs $4 (20%) 0% Revenue Productivity Ratio3 64.7% (130 bps) 0 bps $1.6Bn Spot AUM ($Bn)3 $396 16% 6% 87% Sp
Slide 34: Global Wealth Management
Global Wealth Management 3RD LARGEST WEALTH MANAGEMENT BUSINESS IN CANADA1 CANADA MEXICO CHILE COLOMBIA PERU C&CA ASSET MANAGEMENT WEALTH MANAGEMENT A broad range of actively managed investment A powerful advisory and distribution network solutions from our innovative platform across Canada and Lati
Slide 35: Global Wealth Management: Market Leading Capabilities
Global Wealth Management MARKET LEADING CAPABILITIES AWARD-WINNING INVESTMENT MANAGEMENT TAILORED ADVICE & SOLUTIONS • Scotia Global Asset Management's investment teams were • Scotia Wealth Management was recognized with six recognized with 24 awards at the annual FundGrade A+ Awards Euromoney’s Pri
Slide 36: Business Line Overview: Global Banking and Markets
Business Global Banking Line Overview and Markets 36
Slide 37: Global Banking and Markets
Global Banking and Markets Global Banking and Markets (GBM) provides corporate clients with lending and transaction services, investment banking advice and access to capital markets. GBM is a full-service wholesale bank in the Americas, serving clients across Canada, the United States, Latin America
Slide 38: Global Banking and Markets
Global Banking and Markets $MM Q1/25 Y/Y Q/Q BUSINESS MIX AS AT Q1/25 Reported Net Income1 517 33% 49% Asia Revenue 1,594 23% 25% 2% Global Expenses 891 14% 10% Europe Canada Equities 8% 42% 22% Pre-Tax, Pre-Provision Profit2 703 37% 51% Revenue Revenue PCLs 18 260% (5%) Mix Mix Productivity Ratio3
Slide 39: GBM in the US and Latam
GBM in the US and Latam DELIVERING THE FULL BANK TO MEET OUR AMERICAS CLIENTS’ NEEDS GBM INTERNATIONAL GBM US GBM International US Q1/25 BANKING Banking1 • Corporate & Investment Banking, • Advisory, Financing and Risk Capital Markets, Deposits, and Management Solutions, and access Trade Finance $76
Slide 40: Risk Overview
Risk Overview 40
Slide 41: Risk Snapshot (Q1/25)
Risk Snapshot (Q1/25) BUSINESS AND GOVERNMENT RWA BREAKDOWN1 CREDIT EXPOSURE BY COUNTRY EXPOSURE BY SECTOR2 As at October 31, 2024 • Total loans $290Bn • As a percentage of total loans and acceptances: Canada U.S. Real estate and contractors 8.3% Credit Risk 3% 68% Chile Financial services 3.8% $468
Slide 42: Allowance for Credit Losses
Allowance for Credit Losses TOTAL ACLS1 ($MM) AND ACL RATIO2 HIGHLIGHTS 88 bps 89 bps 88 bps 91 bps 86 bps • Total ACL ratio of 91 bps, up 3 bps Q/Q 6,860 7,080 6,597 6,768 6,736 o Performing allowances were $4.89 Bn, up $208 2,190 MM Q/Q (+104 MM ex. F/X), mainly due to 1,938 2,034 2,076 2,054 cred
Slide 43: Provision for Credit Losses
Provision for Credit Losses $MM Q/Q HIGHLIGHTS $MM Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 All-Bank Impaired 942 975 970 1,043 1,064 • Total PCL ratio of 60 bps, up 6 bp Q/Q: Performing 20 32 82 (13) 98 o Performing provisions (5 bps) were driven by credit Total 962 1,007 1,052 1,030 1,162 migration and the c
Slide 44: Gross Impaired Loans and Net Write-offs
Gross Impaired Loans and Net Write-offs GILS ($MM) AND GIL RATIO1 HIGHLIGHTS 88 bps 91 bps • GILs increased by $325 million Q/Q, driven mainly by the 80 bps 83 bps 84 bps impact of foreign currency translation and higher formations in International Banking 7,064 71 o Canadian Banking: Q/Q increase i
Slide 45: Canadian Retail: Loans and Provisions
Canadian Retail: Loans and Provisions 1 MORTGAGES AUTO LOANS 10 152 153 158 6 143 135 6 89 106 5 83 4 3 141 144 2 111 114 1 89 104 4 4 65 76 3 1 3 1 1 1 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 LINES OF CREDIT CREDIT CARDS 559 167 458 469 446 13
Slide 46: International Retail: Loans and Provisions
International Retail: Loans and Provisions CARIBBEAN AND MEXICO CHILE CENTRAL AMERICA 201 224 151 175 188 188 136 136 139 MARKETS 185 201 175 162 121 124 148 155 158 137 109 WITH 132 128 129 104 182 GREATER 168 168 166 160 154 148 146 114 117 WEIGHTING 128 105 101 94 124 128 96 3 83 TO SECURED 107 1
Slide 47: Retail 90+ Days Past Due Loans
Retail 90+ Days Past Due Loans1 Canada Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Mortgages 0.12% 0.14% 0.16% 0.20% 0.19% 0.20% 0.23% 0.24% Personal Loans 0.58% 0.63% 0.69% 0.55% 0.50% 0.50% 0.51% 0.57% Credit Cards 0.71% 0.61% 0.70% 0.79% 0.79% 0.74% 0.86% 1.10% Secured and 0.25% 0.22% 0.29% 0
Slide 48: Commercial Real Estate
Commercial Real Estate Portfolio comprised of Commercial Real Estate, and Contractor loans which include Engineering & Project Management and Trade Contractors SPOT LOANS OUTSTANDING1 HIGHLIGHTS Q1/24 Q4/24 Q1/25 Total Portfolio: $64.3Bn • Exposure reduced marginally with continued heavier Y/Y: -3%
Slide 49: Treasury and Funding
Treasury and Funding 49
Slide 50: Highlights
Highlights STRONG LIQUIDITY, STABLE FUNDING • Strong liquidity well in excess of regulatory requirements o LCR1 of 128%, down 400 bps Y/Y and down 300 bps Q/Q o HQLA2 of $263Bn, down $15.2 Bn Y/Y and up $1.4 Bn Q/Q • Stability of funding reflected in NSFR3 of 117%, flat Y/Y and down 200 bps Q/Q • De
Slide 51: Key Liquidity Metrics
Key Liquidity Metrics LIQUIDITY COVERAGE RATIO (LCR)1 HIGHLIGHTS 136% • Liquidity well in excess of regulatory requirements 133% 132% 133% 131% 131% 129% 128% • Selected LCRs: Chile – 156%, Mexico – 158%, Peru – 165%, 122% Colombia – 145% Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 HIGH QU
Slide 52: Strong Deposit Growth
Strong Deposit Growth AVERAGE DEPOSITS BY SEGMENT6 Q1/25 AVERAGE DEPOSIT MIX in $Bn CB IB GBM GWM Notice - Term - Business 2 Business 3 706 712 727 8% 18% 682 697 Demand- 1 624 Personal 591 2% 367 358 379 381 340 308 294 Notice - Demand - $727Bn 2 Personal Business 1 20% 107 125 130 130 125 127 33%
Slide 53: Funding Strategy
Funding Strategy DIVERSIFIED FUNDING SOURCES • Increase contribution from core customer deposits • Manage to prudent level of wholesale funding utilization and TLAC1 • Maintain balance between efficiency, stability of funding and pricing relative to peers • Diversify funding by type, currency, progr
Slide 54: Wholesale Funding
Wholesale Funding FUNDING PROGRAMS1 TERM FUNDING MATURITY TABLE2 Global Registered Covered Bond Program CDE ($Bn) 48 (uninsured Canadian mortgages) 41 39 8 Limit – CAD 100 billion 2 2 3 4 33 US Debt & Equity Shelf 4 (senior / subordinated debt, preferred and common shares) 2 1 12 14 Limit – USD 50 b
Slide 55: Wholesale Funding Utilization
Wholesale Funding Utilization WHOLESALE FUNDING / TOTAL ASSETS HIGHLIGHTS • Wholesale funding utilization continues to be well managed 22.7% 21.9% 21.6% • Wholesale funding / total assets remains below pre- 22.8% 20.6% pandemic levels 21.3% 21.8% 19.9% 18.9% 21.2% 19.1% 20.3% 19.3% 19.4% Q4/21 Q4/22
Slide 56: Scotiabank Credit Ratings
Scotiabank Credit Ratings Fitch Ratings Moody’s Morningstar DBRS Standard & Poor's Legacy Senior Debt1 AA Aa2 AA A+ Senior Debt2 AA- A2 AA (low) A- Subordinated Debt (NVCC) A Baa1 (hyb) A (low) BBB+ Subordinated Additional Tier 1 Capital Notes BBB+ Baa3 (hyb) BBB (high) BBB- (NVCC) Limited Recourse
Slide 57: Appendix 1: Core Markets: Economic Profiles
Appendix 1 Core Markets: Economic Profiles
Slide 58: Economic Outlook in Core Markets
Economic Outlook in Core Markets REAL GDP (ANNUAL % CHANGE) Forecast1 2010-20 2025 2026 Country 2022 2023 2024E2 Average Full Full Q1F Q2F Q3F Q4F Q1F Q2F Q3F Q4F Year Year Canada 1.6 4.2 1.5 1.3 1.8 1.8 1.9 1.9 1.8 1.8 1.6 1.6 1.5 1.6 U.S. 2.0 2.5 2.9 2.8 2.5 2.1 1.7 1.5 1.9 1.5 1.7 1.8 1.8 1.7 Mex
Slide 59: Economic Outlook and Election Calendar
Economic Outlook and Election Calendar MOST SOUTH AMERICAN ECONOMIES EXPECTING SLOW NEAR-TERM GROWTH1 120 Real GDP, index Q4-2019=100, 4-qtr. rolling sum 115 110 105 100 95 90 85 2020 2021 2022 2023 2024 2025 2026 Chile Colombia Mexico Peru ELECTIONS IN THE REGION 2025 2026 2027 Mid term Legislative
Slide 60: Interest Rate Sensitivity and Outlook
Interest Rate Sensitivity and Outlook NET INTEREST INCOME SENSITIVITY1 POLICY RATE CHANGE AND OUTLOOK POLICY RATE CHANGE AND OUTLOOK Policy • Impact of an immediate and sustained 100 bps parallel shift Rate Change by BNS Fiscal rate Current Forecast Policy Rate3 on net interest income (NII) over a 1
Slide 61: Further Policy Rate Cuts As Inflation Eases
Further Policy Rate Cuts As Inflation Eases • Many major central banks continued cutting policy rates heading into the final quarter of 2024 as inflation continued to ease, with the Bank of Canada, the European Central Bank and the Bank of England all expected to ease further in 2025. However, there
Slide 62: Canadian Economy
Canadian Economy CANADIAN GDP BY INDUSTRY REAL GDP GROWTH1 GDP 2024E: 1.3% GDP 2025F: 1.8% GDP 2026F: 1.6% 3 20.7% 13.5% Finance, Insurance, Health & Education & Real Estate ANNUAL % CHANGE 10.5% 2 14.5% Wholesale & Other 2.27T Retail Trade CAD2017, 1 4.5% SAAR 9.1% Transportation & Warehousing (Nov
Slide 63: Public Debt Ratios in G7 Markets
Public Debt Ratios in G7 Markets G7 GOVERNMENT GROSS DEBT1 300 % of GDP 250 200 150 100 50 0 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Canada (AAA) France (AA) Germany (AAA) Italy (BBB) Japan (A+) UK (AA) U.S. (AA+) G7 GOVERNMENT NET DEBT1 200 % of GDP 150 100 50 0 0
Slide 64: Mexican Economy
Mexican Economy HIGHLIGHTS1 MEXICAN Q4/24 GDP BY INDUSTRY2 GDP 2024: 1.5% GDP 2025F: 0.6% GDP 2026F: 0.8% 13.5% 5.9% Health & Education • Uncertainty amid the implementation of US tariffs, US migration policies, the Finance, Insurance, designation of Mexican drug cartels as FTOs, as well as Mexico’s
Slide 65: Peruvian Economy
Peruvian Economy HIGHLIGHTS1 PERUVIAN Q4/24 GDP BY INDUSTRY2 GDP 2024: 3.3% GDP 2025F: 2.8% GDP 2026F: 2.5% 12.7% 11.8% • GDP growth is entering 2025 in strength, with Q4 2024 growth Manufacturing Mining, Oil, & Gas hovering near 4.0%. This should repeat in Q1 2025. The labour market is outperformin
Slide 66: Chilean Economy
Chilean Economy HIGHLIGHTS1 CHILEAN Q3/24 GDP BY INDUSTRY2 GDP 2024E: 2.5% GDP 2025F: 2.5% GDP 2026F: 2.5% 3.6% 14.5% Natural Resources 9.5% Finance, Insurance, • Chile’s mix of economic activities reflects its status as an & Real Estate Wholesale & Retail Trade advanced OECD economy. 8.9% • Chile’s
Slide 67: Colombian Economy
Colombian Economy HIGHLIGHTS1 COLOMBIAN Q4/24 GDP BY INDUSTRY2 GDP 2024: 1.7% GDP 2025F: 2.6% GDP 2026F: 2.9% 14.0% 4.4% 17.5% Arts & • Economic activity performance has been heterogeneous, as formal Finance, Insurance, Entertainment Wholesale, Retail Trade, sector growth is underperforming informal
Slide 68: Appendix 2: Canadian Economic Fundamentals
Appendix 2 Canadian Economic Fundamentals
Slide 69: Canada: Consumer and Business Activity
Canada: Consumer and Business Activity UNCERTAINTY SLOWS GDP GROWTH MOMENTUM BUSINESS CONFIDENCE HEADING INTO 2025 CFIB BUSINESS BAROMETER2 80 115 index, > 50 = stronger Index, 2019Q4 = 100 February 10, 2025 forecast 110 70 6-month moving average Jan 13, 2020 forecast 105 60 100 Avg. 2011-present 95
Slide 70: Canada: Demographics and Housing Market
Canada: Demographics and Housing Market POPULATION GROWTH STRONGEST OF G71 IMMIGRATION IS DRIVING UP POPULATION2 4.0 600 000s Proposed Immigration annual % change Canada United States Euro Area United Kingdom Japan Italy 500 3.0 France 400 Annual Average Immigration 2.0 300 1.0 200 0.0 100 0 -1.0 70
Slide 71: Canada: Growth in Household Credit
Canada: Growth in Household Credit HIGHLIGHTS • Household credit growth increased to 3.9% y/y for the rolling quarter ending in November 2024, an increase over the previous three months, while the effects of easing monetary policy continue to work its way through the economy. • Consumer loans exclud
Slide 72: Canada: Housing Finances
Canada: Housing Finances MORE THAN HALF OF CANADIAN HOUSEHOLDS 5-YEAR MORTGAGE RATES RESETTING HIGHER DON’T HAVE A MORTGAGE OR HELOC1 45 250 % of households (2020 est.) 5-year difference, basis points forecast* 40 200 with HELOC 35 11.5 150 30 100 25 1.9 50 20 0 15 32.8 -50 29.1 24.3 10 -100 5 -150
Slide 73: Canada: Household Finances
Canada: Household Finances HOUSEHOLD SAVINGS RATIO REMAINS ABOVE CANADIAN HOUSEHOLDS’ EXCESS SAVINGS PRE-PANDEMIC AVERAGE1 RELATIVE TO PRE-PANDEMIC2 30 120 in Bil. C$, SA, quarterly % of disposable income, SAAR 100 25 Personal Savings 80 20 Cumulative Excess Savings as of Sept 60 2024: 417 Bil. C$ 1
Slide 74: Appendix 3: Bail-in and TLAC
Appendix 3 sfelitilamelace| TLAC
Slide 75: Canadian Bail-in Regulations: Key Features
Canadian Bail-in Regulations: Key Features BEST IN CLASS APPROACH • Post September 23, 2018, senior unsecured debt issued by Canadian DSIBs that is subject to bail-in is the only format of issuance available1 and is a single class of debt2 that is not subordinated to another class of wholesale senio
Slide 76: Canadian Bail-in Regulations: Jurisdictional Comparison
Canadian Bail-in Regulations: Jurisdictional Comparison Best in class approach Opco non- Instrument type Opco senior Holdco senior Holdco senior1 Holdco senior preferred senior Structural Structural Structural Contractual Ranking in Liquidation Pari passu with deposits and other senior liabilities s
Slide 77: Summary of Bail-in / TLAC Regime
Summary of Bail-in / TLAC Regime Scope OSFI designated DSIBs Scope of bail-in Senior unsecured debt that is tradeable and transferable, original term >400 days, unsecured and issued, instruments originated or renegotiated after September 23, 2018 Liabilities excluded Insured deposits, uninsured depo
Slide 78: Appendix 4: Covered Bonds
Appendix 4 Covered Bonds
Slide 79: Global Registered Covered Bond Program
Global Registered Covered Bond Program HIGHLIGHTS • Able to issue across multiple currencies such as CAD, USD, EUR, GBP, AUD, CHF and NOK • CAD $52.0 billion outstanding1 vs. $100 billion program size2 • Extensive regulatory oversight and pool audit requirements • Mandatory property value indexation
Slide 80: Global Registered Covered Bond Program
Global Registered Covered Bond Program1 LOAN-TO-VALUE RATIOS2 CREDIT SCORES3 75% 38% 29% 24% 14% 3% 7% 6% 0% 1% 2% 0-20% 20-40% 40-60% 60-80% 80+% <599 600-650 651-700 701-750 751-800 800+ REMAINING TERM DISTRIBUTION (MONTHS) PROVINCIAL DISTRIBUTION Ontario 60.1% 4 Other 41% 2.9% Saskatchewan $83 Bn
Slide 81: Canadian Legislative Covered Bonds
Canadian Legislative Covered Bonds CMHC REGISTERED • Canadian Registered Covered Bond Programs’ Legal Framework (Canadian National Housing Act) Issuance Framework • Canadian Registered Covered Bond Programs Guide issued by Canada Mortgage and Housing Corporation (CMHC) Eligible Assets • Uninsured lo
Slide 82: Appendix 5: Non-GAAP Measures
Appendix 5 Non-GAAP Measures
Slide 83: Non-GAAP Measures
Non-GAAP Measures The Bank uses a number of financial measures and ratios to assess its performance, as well as the performance of its operating segments. Some of these financial measures and ratios are presented on a non-GAAP basis and are not calculated in accordance with Generally Accepted Accoun
Slide 84: Non-GAAP Measures
Non-GAAP Measures NON-GAAP DEFINITIONS (CONT’D) Net interest margin is a non-GAAP ratio that is used to measure the return generated by the Bank’s core earning assets, net of the cost of funding. Pages 95- Net interest margin (NIM) Net interest margin is calculated as core net interest income divide
Slide 85: Non-GAAP – Adjusted Results and Diluted EPS
Non-GAAP – Adjusted Results and Diluted EPS $MM (unless indicated otherwise) Q1/25 Q4/24 Q1/24 Reported Results Total revenue 9,372 8,526 8,433 Provision for credit losses 1,162 1,030 962 Non-interest expenses 6,491 5,296 4,739 Income tax expense 726 511 533 Net income 993 1,689 2,199 Net income att
Slide 86: Non-GAAP – Business Line Earnings
Non-GAAP – Business Line Earnings Three months ending January 31, 2025 Three months ending October 31, 2024 Global Global Global Global Canadian International Canadian International $MM (unless indicated otherwise) Wealth Banking and Other Total Wealth Banking and Other Total Banking Banking Banking
Slide 87: Non-GAAP – Business Line Earnings
Non-GAAP – Business Line Earnings Three months ending January 31, 2024 Global Global Canadian International $MM (unless indicated otherwise) Wealth Banking and Other Total Banking Banking Management Markets Reported Results Total revenue 3,225 3,074 1,324 1,293 (483) 8,433 Provision for credit losse
Slide 88: Non-GAAP – Adjusted Results and Diluted EPS
Non-GAAP – Adjusted Results and Diluted EPS Footnotes 1. These costs relate to the amortization of intangible assets recognized upon the acquisition of businesses, excluding software, and are recorded in the Canadian Banking, International Banking and Global Wealth Management operating segments. 2.
Slide 89: Non-GAAP – Other Segment Adjusted Earnings
Non-GAAP – Other Segment Adjusted Earnings $MM Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Reported NIAEH (230) (182) (465) (619) (1,341) Divestitures and wind-down of operations1 - - 90 - 1,355 2 Restructuring charge and severance provisions - - - 38 - Impairment of non-financial assets3 - - - 379 - Impact of ad
Slide 90: Non-GAAP – Business Line Return on Equity
Non-GAAP – Business Line Return on Equity International Global Wealth Global Banking Total Reported $MM (unless otherwise stated) Canadian Banking Other Total Banking Management and Markets (Adjusted) For the three months ended January 31, 2025 Net income attributable to common shareholders 913 651
Slide 91: Non-GAAP Reconciliations – Return on Equity
Non-GAAP Reconciliations – Return on Equity $MM (unless indicated otherwise) $MM (unless indicated otherwise) F23 F24 Return on equity F23 F24 Reported Results Canadian Banking Net income attributable to common shareholders 3,677 3,776 Total revenue 32,214 33,670 Total average common equity 18,846 2
Slide 92: Non-GAAP – Return on Tangible Common Equity
Non-GAAP – Return on Tangible Common Equity For the three months ended ($ millions) Q1/25 Q4/24 Q1/24 Reported Average common equity – Reported1 74,077 73,158 69,372 Average goodwill1,2 (9,539) (8,984) (9,108) Average acquisition-related intangibles (net of deferred tax)1 (3,597) (3,609) (3,651) Ave
Slide 93: Non-GAAP – International Banking Constant Dollar Basis
Non-GAAP – International Banking Constant Dollar Basis Reported Results For the three months ended ($MM) October 31, 2024 January 31, 2024 Foreign Constant Foreign Constant (Taxable equivalent basis) Reported exchange dollar Reported exchange dollar Net interest income $ 2,147 $ (30)$ 2,177 $ 2,240
Slide 94: Non-GAAP – International Banking Constant Dollar Basis
Non-GAAP – International Banking Constant Dollar Basis Reported Results For the three months ended ($MM) July 31, 2024 April 30, 2024 Foreign Constant Foreign Constant (Taxable equivalent basis) Reported exchange dollar Reported exchange dollar Net interest income $ 2,226 $ 40 $ 2,186 $ 2,254 $ 30 $
Slide 95: Non-GAAP - Net Interest Margin and Risk Adjusted Margin
Non-GAAP - Net Interest Margin and Risk Adjusted Margin $MM (unless specified otherwise) All-Bank Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 1 Average total assets 1,423,337 1,411,181 1,422,740 1,418,795 1,460,615 Less: Non-earning assets 110,932 108,405 105,539 106,621 115,155 1 Average total earning assets 1,3
Slide 96: Non-GAAP - Net Interest Margin and Risk Adjusted Margin
Non-GAAP - Net Interest Margin and Risk Adjusted Margin $MM (unless specified otherwise) International Banking Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Average total assets1 235,485 234,305 232,609 223,525 228,877 Less: Non-earning assets 16,956 16,554 15,326 14,973 14,883 Average total earning assets1 218,529
Slide 97: Non-GAAP – All Bank Loan to Deposit Ratio
Non-GAAP – All Bank Loan to Deposit Ratio $Bn (unless indicated otherwise) Q1/24 Q4/24 Q1/25 Avg Loans & Acceptances Loans 746 755 765 Acceptances 18 1 0 Total 764 756 766 Avg Deposits Deposits from customers 902 899 920 Deposits from banks 52 46 47 Total Deposits 954 945 967 Less: Group Treasury Wh
Slide 98: Non-GAAP - International Banking
Non-GAAP - International Banking $Bn Reported Basis Reported Basis (Constant FX) International Business Banking Loans Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Investment Grade 37 35 33 32 31 37 36 33 33 31 Non-Investment Grade 55 55 56 54 55 56 56 57 55 55 $Bn Reported Basis Const
Slide 99: Non-GAAP - Mexico
Non-GAAP - Mexico $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre-tax, - pre--provision profit Q1/24 Q4/24 Q1/25 Q1/24 Q4/24 Q1/25 Revenue 826 725 751 752 733 751 Expenses 441 382 395 398 380 395 Provision for Credit Losses 82 109 128 73 108 128 NIAEH 222 178 162 205
Slide 100: Non-GAAP - Chile
Non-GAAP - Chile $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre-tax, - pre--provision profit Q1/24 Q4/24 Q1/25 Q1/24 Q4/24 Q1/25 Revenue 655 588 608 621 578 608 Expenses 291 274 281 280 271 281 Provision for Credit Losses 174 151 192 166 149 192 NIAEH 146 123 109 13
Slide 101: Non-GAAP - Peru
Non-GAAP - Peru $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre-tax, - pre-provision - profit Q1/24 Q4/24 Q1/25 Q1/24 Q4/24 Q1/25 Revenue 466 456 500 490 475 500 Expenses 188 205 204 196 212 204 Provision for Credit Losses 128 118 112 135 123 112 NIAEH 117 104 148 12
Slide 102: Non-GAAP - Colombia
Non-GAAP - Colombia $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre-tax, - pre--provision profit Q1/24 Q4/24 Q1/25 Q1/24 Q4/24 Q1/25 Revenue 282 288 278 271 288 278 Expenses 198 185 186 190 185 186 Provision for Credit Losses 138 114 107 132 113 107 NIAEH (24) (7) (6
Slide 103: Non-GAAP - Caribbean and Central America
Non-GAAP - Caribbean and Central America $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre--tax, pre--provision profit Q1/24 Q4/24 Q1/25 Q1/24 Q4/24 Q1/25 Revenue 622 634 677 648 660 677 Expenses 358 336 375 370 348 375 Provision for Credit Losses 38 44 48 38 46 48 NIA
Slide 104: Non-GAAP – International Banking Return on Equity
Non-GAAP – International Banking Return on Equity English Dominican Central Total International Reported ($MM unless otherwise specified) Mexico Peru Chile Colombia Caribbean Republic America Other Banking For the three months ending January 31, 2025 Net Income Attributable to Common Shareholders 16
Slide 105: Appendix 6: Other Financial Measures
Appendix 6 Other Financial Measures
Slide 106: Glossary – Other Financial Measures
Glossary – Other Financial Measures The ratio of period end total allowance for credit losses (excluding debt securities and deposits with financial institutions) divided by gross Allowance for Credit Losses (ACL) Ratio loans and acceptances. Assets administered by the Bank which are beneficially ow
Slide 107: Contact Information
Investor Relations John McCartney Rebecca Hoang Contact Senior Vice President 416-863-7579 Vice President 416-933-0129 Information john.mccartney@scotiabank.com rebecca.hoang@scotiabank.com Funding Martin Weeks Darren Potter EVP and Group Treasurer Managing Director 416-933-3728 416-860-1784 martin.