Bank Of Nova Scotia · TSX:BNS
Bank Of Nova Scotia — Scotiabank — Investor Presentation (December 2024)
109 slides from Bank Of Nova Scotia's investor presentation, December 2024
Slide 1: Investor Presentation December 2024
Investor Presentation December 2024
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements From time to time, our public communications include oral or written forward-looking global capital markets activity; the Bank’s ability to attract, develop and retain key executives; statements. Statements of this type are included in this document, and
Slide 3: Table of Contents
Table of Contents Scotiabank Overview 4 Business Line Overview: Canadian Banking 18 Business Line Overview: International Banking 26 Business Line Overview: Global Wealth Management 33 Business Line Overview: Global Banking and Markets 38 Risk Overview 42 Treasury and Funding 51 Appendix 1: Core Mar
Slide 4: About Scotiabank
About Scotiabank FY2024 HIGHLIGHTS FY2024 EARNINGS1 BY MARKET FY2024 FY2023 Other 17% Reported Adjusted2 Reported Adjusted2 English 12% Net Income1 ($Bn) 7.8 8.5 7.3 8.2 $7.8Bn 47% Canada Caribbean Diluted EPS ($) 5.87 6.47 5.72 6.48 13% Mexico 11% Revenue ($Bn) 33.7 33.8 32.2 31.8 U.S.A Return on E
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 Priorities
Global Must Win 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 Business Lines $10.3Bn Global Other -$2.5Bn Banking and 83% of Earnings are in Reported NIAEH $7.8Bn 47% Markets North America 16% Canadian Global FY2024 Bankin
Slide 8: Business Lines (FY24 Results)
Business Lines (FY24 Results) BUSINESS CANADIAN INTERNATIONAL GLOBAL WEALTH GLOBAL BANKING LINE BANKING BANKING MANAGEMENT AND MARKETS Products • Mortgages • Mortgages • Asset Management • Corporate Lending • Auto Loans • Auto Loans • Private Banking • Advisory • Business Loans • Personal Loans • Pr
Slide 9: Business Line Snapshot
Business Line Snapshot CANADIAN BANKING($BN) INTERNATIONAL BANKING ($BN) Loans (avg) LDR1 119% LDR1 129% 8% 3-yr Deposit 8% 3-yr Deposit CAGR Change CAGR Change Deposits (avg) (110 bps) 250 bps (Q/Q) (Q/Q) 446 447 454 175 171 426 166 378 379 152 367 141 340 126 131 126 294 308 104 107 2021 2022 2023
Slide 10: Fiscal 2024 Financial Performance
Fiscal 2024 Financial Performance $MM, except EPS 2024 Y/Y Reported WHOLE YEAR HIGHLIGHTS Net Income $7,892 6% • Diluted EPS up 3% Diluted EPS $5.87 3% o Strong PTPP1 growth, partly offset by higher PCLs Revenue $33,670 5% • Revenues up 5%; adjusted1 revenue up 6% Expenses $19,695 3% o Net interest
Slide 11: Q4 2024 Financial Performance
Q4 2024 Financial Performance $MM, except EPS Q4/24 Y/Y Q/Q Y/Y HIGHLIGHTS Reported Net Income $1,689 25% (12%) • Diluted EPS up 23%, adjusted1 up 28% Diluted EPS $1.22 23% (13%) o Strong PTPP1 growth and lower PCLs offset by higher taxes Revenue $8,526 3% 2% • Revenues up 3%; adjusted1 up 8% Expens
Slide 12: Strong Capital Position
Strong Capital Position Q/Q CHANGE IN CET1 RATIO (%)1 • CET1 ratio of 13.1%, benefited from earnings, share issuances through DRIP, offset by RWA growth (-27 basis points) • RWA growth from book quality changes across business banking and retail • No Basel III capital output floor impact 13 bps 13.3
Slide 13: Strong Balance Sheet Metrics
Strong Balance Sheet Metrics $Bn (unless indicated otherwise) Q4/23 Q3/24 Q4/24 Y/Y Capital Metrics CET1 Ratio1 13.0% 13.3% 13.1% 10 bps 1 Tier 1 Capital Ratio 14.8% 15.3% 15.0% 20 bps 1 Total Capital Ratio 17.2% 17.1% 16.7% (50 bps) TLAC Ratio2 30.6% 29.1% 29.7% (90 bps) 3 Leverage Ratio 4.2% 4.5%
Slide 14: Digital Progress: Canada
Digital Progress: Canada DIGITAL UNIT SALES (%) ACTIVE DIGITAL USERS (MM) +0 bps +6% 5.0 4.7 27.5 27.5 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 DIGITAL ADOPTION (%) ACTIVE MOBILE USERS (MM) +250 bps +8% 64.9 4.5 62.4 4.1 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24
Slide 15: Digital Progress: International
Digital Progress: International1 DIGITAL SALES (%) ACTIVE DIGITAL USERS (MM) +310 bps -2% 49.4 52.5 4.5 4.4 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 DIGITAL ADOPTION (%) ACTIVE MOBILE USERS (MM) -220 bps -2% 59.3 57.0 4.0 4.0 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q
Slide 16: ESG Highlights
ESG Highlights INDEX INCLUSION ESG RATINGS ENVIRONMENT SOCIAL GOVERNANCE AND RANKINGS $350 Billion Economic Inclusion ESG Expertise Provide $350 billion6 in Promote economic Deliver on key ESG climate-related finance7 by resilience through initiatives across the DJSI North 2024 S&P Corporate 2030. o
Slide 17: ESG Progress
ESG Progress ENVIRONMENT SOCIAL GOVERNANCE • Scotiabank issues CAD $1.25 billion five-year • Scotiabank expands partnership with Nova Credit to • Scotiabank releases its first Truth & Reconciliation Sustainability Notes to the Canadian market under enhance digital credit access for newcomers across
Slide 18: Business Line Overview: Canadian Banking
Business Line Canadian Banking Overview 18
Slide 19: 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 898 branches and 3,578 automa
Slide 20: Canadian Banking
Canadian Banking $MM Q4/24 Y/Y Q/Q BUSINESS MIX Q4/24 Reported Net Income1 $1,061 34% (4%) Retail Mortgages Revenue $3,487 5% 0% 75% 61% Expenses $1,576 4% 3% Revenue Average Mix Credit Cards Loans Pre-Tax, Pre-Provision Profit2 $1,911 6% (2%) $3.5Bn 2% $453.9Bn PCLs $450 (36%) 3% Personal Productiv
Slide 21: Business Banking
Business Banking AVERAGE NON-PERSONAL DEPOSITS ($BN) AVERAGE BUSINESS LOANS ($BN) 9% 3-yr CAGR 15% 3-yr CAGR 135 142 93 95 105 62 2021 2022 2023 2024 Q4/24 2021 2022 2023 2024 Q4/24 COMMERCIAL BANKING SMALL BUSINESS BANKING • Strategic focus on underpenetrated geographies (Quebec, Ontario, British •
Slide 22: 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 • 24% insured; remaining 76% uninsured has an LTV1 of 51% Spot Balance as of Q4/24 • Mortgage business model is “originate to hold” Real Estate • New uninsured originations2 in Q4/24 had averag
Slide 23: 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) 24% 30% in $Bn (Spot) Mortgage Portfolio Variable Mortgages Insured Variable Total Outstanding Balance $298 $89 Uninsured Outstanding Balance $
Slide 24: Canadian Residential Mortgages
Canadian Residential Mortgages MORTGAGE PORTFOLIO1 in $Bn (Spot) Freehold Condos 83% ($248Bn) Freehold 165.7 24.1 59.8 Total 141.6 17.7 31.6 19.6 11.6 9.5 Portfolio1 42.1 3.8 3.0 0.3 0.7 27.8 $298Bn Ontario BC & Territories Alberta 16.6 Quebec 11.3 Atlantic 8.8 Manitoba & Provinces Saskatchewan 17%
Slide 25: Automotive Finance
Automotive Finance HIGHLIGHTS • Canada’s leader in retail automotive finance across 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 1.5% year-over-year
Slide 26: Business Line Overview: International Banking
Business Line International Banking Overview 26
Slide 27: 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 28: International Banking
International Banking Constant dollar basis2 BUSINESS MIX AS AT Q4/24 $MM Q4/24 Y/Y Q/Q Y/Y Q/Q Reported Latin America Business Net Income1 $628 15% (6%) 18% (4%) Auto 51% 77% Revenue $2,887 4% (4%) 7% (1%) 5% Expenses $1,486 (2%) (3%) 1% 0% Credit Average Revenue Cards Loans Pre-Tax, Pre-Provision
Slide 29: 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 30: International Banking: Mexico and Chile
International Banking: Mexico and Chile1 MEXICO CHILE $MM , Reported Constant Dollar2 $MM , Reported Constant Dollar2 Q4/24 Y/Y Q/Q Y/Y Q/Q Q4/24 Y/Y Q/Q Y/Y Q/Q Revenue 710 (1%) (7%) 9% 1% Revenue 584 1% (1%) 5% 0% Expenses 327 (8%) (12%) 2% (3%) Expenses 236 (3%) 0% 1% 0% Provision for credit loss
Slide 31: International Banking: Peru and Colombia
International Banking: Peru and Colombia1 PERU COLOMBIA $MM , Reported Constant Dollar2 $MM , Reported Constant Dollar2 Q4/24 Y/Y Q/Q Y/Y Q/Q Q4/24 Y/Y Q/Q Y/Y Q/Q Revenue 453 17% 0% 17% 0% Revenue 286 14% 0% 16% 5% Expenses 180 7% 7% 6% 7% Expenses 169 (3%) (3%) (2%) 2% Provision for credit losses
Slide 32: International Banking: Caribbean and Central America
International Banking: Caribbean and Central America1 FINANCIAL PERFORMANCE AND METRICS GEOGRAPHIC DISTRIBUTION $MM , Reported Constant Dollar2 REVENUE Q4/24 Y/Y Q/Q Y/Y Q/Q Revenue 632 5% (2%) 5% (2%) Expenses 337 (1%) (2%) (1%) (1%) 18% Provision for credit losses 44 22% 29% 26% 29% 68% NIAEH 171
Slide 33: Business Line Overview: Global Wealth Management
Business Global Wealth Line Overview Management 33
Slide 34: 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 35: Global Wealth Management
Global Wealth Management $MM Q4/24 Y/Y Q/Q REVENUE MIX AS AT Q4/24 Reported Net Income1 $420 29% 3% Revenue $1,510 13% 3% Expenses $938 6% 2% 13% Pre-Tax, Pre-Provision Profit2 $572 29% 3% PCLs $5 0% (59%) Revenue $1.5Bn Productivity Ratio3 62.1% (440 bps) 0 bps Spot AUM ($Bn)3 $373 18% 2% 87% Spot
Slide 36: Global Wealth Management
Global Wealth Management 3RD LARGEST WEALTH MANAGEMENT BUSINESS IN CANADA1 CANADA MEXICO CHILE COLOMBIA PERU CCA 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 Latin
Slide 37: 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 21 awards at the annual FundGrade A+ Awards. Euromoney’s Pri
Slide 38: Business Line Overview: Global Banking and Markets
Business Global Banking Line Overview and Markets 38
Slide 39: 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 40: Global Banking and Markets
Global Banking and Markets $MM Q4/24 Y/Y Q/Q BUSINESS MIX AS AT Q4/24 Reported Net Income1 $403 (3%) (4%) Asia Revenue $1,360 0% 1% 2% Global Expenses $822 6% 3% Europe Canada Equities Pre-Tax, Pre-Provision Profit2 $538 (7%) (4%) 6% 46% 17% PCLs $19 (51%) 7% Revenue Revenue Mix Mix Productivity Rat
Slide 41: GBM in US and Latam
GBM in US and Latam DELIVERING THE FULL BANK TO MEET OUR AMERICAS CLIENTS’ NEEDS GBM US GBM LATAM US Q4/24 Latam1 • Corporate & Investment Banking, • Advisory, Financing and Risk Capital Markets, Deposits, and Management Solutions, and access Trade Finance $630 million Revenue $511 million to Capita
Slide 42: Risk Overview
Risk Overview 42
Slide 43: Risk Snapshot (Q4/24)
Risk Snapshot (Q4/24) BUSINESS AND GOVERNMENT RWA BREAKDOWN1 CREDIT EXPOSURE BY COUNTRY EXPOSURE BY SECTOR2 As at October 31, 2024 • Total loans $293Bn • As a percentage of total loans and acceptances: Canada U.S. Real estate and contractors 8.6% Credit Risk 3% 68% Chile Financial services 4.0% $464
Slide 44: Allowance for Credit Losses
Allowance for Credit Losses TOTAL ACLS1 ($MM) AND ACL RATIO2 HIGHLIGHTS 85 bps 86 bps 88 bps 89 bps 88 bps • Total ACL ratio of 88 bps, down 1 bp Q/Q: 6,768 6,860 o Performing allowances were $4.7 billion, down 6,629 6,597 6,736 $102 million Q/Q (or down 46 million Q/Q excluding F/X) 1,910 1,938 2,0
Slide 45: Provision for Credit Losses
Provision for Credit Losses $MM Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q/Q HIGHLIGHTS $MM Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 All-Bank • Total PCL ratio of 54 bps, down 1 bp Q/Q: Impaired 802 942 975 970 1,043 Performing 454 20 32 82 (13) o PCLs are modestly lower by $22 million Q/Q, driven Total 1,256 962 1,007 1
Slide 46: Gross Impaired Loans and Net Write-offs
Gross Impaired Loans and Net Write-offs GILS ($MM) AND GIL RATIO1 HIGHLIGHTS 83 bps 84 bps 88 bps • GILs Increased $250 million Q/Q, driven mainly by new 80 bps 74 bps formations in Canadian Retail and from one account in both Canadian Commercial and GBM, despite improvements across most regions in
Slide 47: Canadian Retail: Loans and Provisions
Canadian Retail: Loans and Provisions 1 MORTGAGES AUTO LOANS 10 152 143 153 135 6 5 6 89 106 78 83 3 141 111 2 76 89 104 114 1 1 1 1 65 0 4 3 63 3 1 1 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 LINES OF CREDIT CREDIT CARDS 559 167 458 469 357 389
Slide 48: International Retail: Loans and Provisions
International Retail: Loans and Provisions CARIBBEAN AND MEXICO CHILE CENTRAL AMERICA 155 185 148 201 188 188 175 MARKETS 132 128 129 136 136 139 151 158 162 119 109 121 124 WITH 102 104 137 154 133 GREATER 128 160 124 168 166 146 WEIGHTING 107 109 124 148 105 101 114 91 128 95 94 TO SECURED 78 73 9
Slide 49: Retail 90+ Days Past Due Loans
Retail 90+ Days Past Due Loans1 Canada Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Mortgages 0.11% 0.12% 0.14% 0.16% 0.20% 0.19% 0.20% 0.23% Personal Loans 0.56% 0.58% 0.63% 0.69% 0.55% 0.50% 0.50% 0.51% Credit Cards 0.70% 0.71% 0.61% 0.70% 0.79% 0.79% 0.74% 0.86% Secured and 0.20% 0.25% 0.22% 0
Slide 50: 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 OUTSTANDING HIGHLIGHTS Q4/23 Q3/24 Q4/24 Total Portfolio: $66.0Bn • Exposure reduced marginally with continued heavier Y/Y: -2% w
Slide 51: Treasury and Funding
Treasury and Funding 51
Slide 52: Highlights
Highlights STRONG LIQUIDITY, STABLE FUNDING • Strong liquidity well in excess of regulatory requirements o LCR1 of 131%, down 500 bps Y/Y and down 200 bps Q/Q o HQLA2 of $262Bn1, down $10.8 Bn Y/Y and down $9.7 Bn Q/Q • Stability of funding reflected in NSFR3 of 119%, up 300 bps Y/Y and up 200 bps Q
Slide 53: Key Liquidity Metrics
Key Liquidity Metrics LIQUIDITY COVERAGE RATIO (LCR)1 HIGHLIGHTS 136% 131% 133% 132% 133% 131% • Liquidity well in excess of regulatory requirements 129% • Selected LCRs: Chile – 149%, Mexico – 155%, Peru – 161%, 122% Colombia – 142% 119% Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 HIGH QU
Slide 54: Strong Deposit Growth
Strong Deposit Growth AVERAGE DEPOSITS BY SEGMENT Q4/24 AVERAGE DEPOSIT MIX in $Bn CB IB GBM GWM Notice - Term - 706 699 711 712 Business 2 Business 3 682 624 8% 19% 591 Demand- 1 Personal 2% 340 367 353 371 379 308 294 Notice - Demand - $713Bn 2 1 Personal Business 107 126 131 132 133 126 20% 104 3
Slide 55: Funding Strategy
Funding Strategy DIVERSIFIED FUNDING SOURCES • Increase contribution from core customer deposits • Manage to prudent level of wholesale funding utilization and TLAC1 • Maintain balance between efficiency, stability of funding and pricing relative to peers • Diversify funding by type, currency, progr
Slide 56: Wholesale Funding
Wholesale Funding FUNDING PROGRAMS1 TERM FUNDING MATURITY TABLE2 Global Registered Covered Bond Program CDE ($Bn) 47 42 (uninsured Canadian mortgages) 37 2 7 Limit – CAD 100 billion 3 4 3 US Debt & Equity Shelf 30 4 1 (senior / subordinated debt, preferred and common shares) 10 16 2 Limit – USD 50 b
Slide 57: Wholesale Funding Utilization
Wholesale Funding Utilization WHOLESALE FUNDING / TOTAL ASSETS HIGHLIGHTS • Wholesale funding utilization continues to be well managed 22.8% • Wholesale funding / total assets remains below pre- 21.8% 21.3% 21.2% pandemic levels 22.7% 20.3% 21.9% 19.3% 21.6% 20.6% 17.7% 19.9% 18.9% 19.1% Q4/21 Q4/22
Slide 58: Scotiabank Credit Ratings
Scotiabank Credit Ratings Moody’s Standard & Poor's Fitch Ratings Morningstar DBRS Legacy Senior Debt1 Aa2 A+ AA AA Senior Debt2 A2 A- AA- AA (low) Subordinated Debt (NVCC) Baa1 (hyb) BBB+ A A (low) Subordinated Additional Tier 1 Capital Notes Baa3 (hyb) BBB- BBB+ BBB (high) (NVCC) Limited Recourse
Slide 59: Appendix: Core Markets: Economic Profiles
Appendix 1 Core Markets: Economic Profiles
Slide 60: Economic Outlook in Core Markets
Economic Outlook in Core Markets REAL GDP (ANNUAL % CHANGE) Forecast1 2010-20 2024 2025 Country 2021 2022 2023 Average Full Full Q1 Q2 Q32 Q4F Q1F Q2F Q3F Q4F Year Year Canada 1.6 6.0 4.2 1.5 0.8 1.1 1.5 1.8 1.2 1.9 2.0 2.1 2.3 2.1 U.S. 2.0 6.1 2.5 2.9 2.9 3.0 2.7 2.0 2.6 2.1 1.8 1.6 1.8 1.8 Mexico
Slide 61: 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 Chile Colombia Mexico Peru ELECTIONS IN THE REGION Sep-Dec 2024 2025 2026 2027 General Elec
Slide 62: Interest Rate Sensitivity
Interest Rate Sensitivity NET INTEREST INCOME SENSITIVITY1 POLICY RATE CHANGE AND OUTLOOK POLICY RATE CHANGE AND OUTLOOK • Impact of an immediate and sustained 100 bps parallel Policy Rate Change by BNS Current Forecast Policy Rate3 rate on Fiscal Quarters (bps) shift on net interest income (NII) ov
Slide 63: Further Policy Rate Cuts As Inflation Eases
Further Policy Rate Cuts As Inflation Eases • With inflation continuing to ease in economies around the world, many major central banks have been lowering their monetary policy rates, such as continued easing from the Bank of Canada, the European Central Bank, the Bank of England, and the US Federal
Slide 64: Canadian Economy
Canadian Economy CANADIAN GDP BY INDUSTRY REAL GDP GROWTH1 GDP 2023: 1.5% GDP 2024F: 1.2% GDP 2025F: 2.1% 3 20.7% 13.6% Finance, Insurance, Health & Education & Real Estate ANNUAL % CHANGE 10.4% 2 14.7% Wholesale & Other 2.27T Retail Trade CAD2017, 1 4.5% SAAR 9.0% Transportation & Warehousing (Sep
Slide 65: 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 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 05 0
Slide 66: Mexican Economy
Mexican Economy HIGHLIGHTS1 MEXICAN Q3/24 GDP BY INDUSTRY2 GDP 2023: 3.3% GDP 2024F: 1.4% GDP 2025F: 1.0% 13.4% 5.9% Health & Education Finance, Insurance, • Uncertainty surrounding the U.S. elections and Mexico’s 2025 & Real Estate 19.5% Wholesale & fiscal budget affected confidence and investment,
Slide 67: Peruvian Economy
Peruvian Economy HIGHLIGHTS1 PERUVIAN Q3/24 GDP BY INDUSTRY2 GDP 2023: -0.4% GDP 2024F: 3.0% GDP 2025F: 2.8% 11.6% 11.8% Manufacturing Mining, Oil, & Gas • GDP growth is stabilizing at a moderate 3.0% pace, with upside in 2025 due to government infrastructure projects, investment 6.0% around the Cha
Slide 68: Chilean Economy
Chilean Economy HIGHLIGHTS1 CHILEAN Q3/24 GDP BY INDUSTRY2 GDP 2023: 0.2% GDP 2024F: 2.7% GDP 2025F: 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 69: Colombian Economy
Colombian Economy HIGHLIGHTS1 COLOMBIAN Q3/24 GDP BY INDUSTRY2 GDP 2023: 0.6% GDP 2024F: 1.5% GDP 2025F: 2.9% 14.0% 4.5% 17.0% Arts & • Economic activity performance has been mixed. As households’ Finance, Insurance, Entertainment Wholesale, Retail Trade, financial burdens improve, domestic consumpt
Slide 70: Appendix: Canadian Economic Fundamentals
Appendix 2 Canadian Economic Fundamentals
Slide 71: Canada: Consumer and Business Activity
Canada: Consumer and Business Activity GDP GROWTH IS PICKING UP AFTER STALLING BUSINESS CONFIDENCE – CFIB BUSINESS IN 20231 BAROMETER2 80 115 index, > 50 = stronger Index, 2019Q4 = 100 October 18, 2024 forecast 110 70 6-month moving average Jan 13, 2020 forecast 105 60 100 Avg. 2011-present 95 50 3-
Slide 72: 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 73: Canada: Growth in Household Credit
Canada: Growth in Household Credit HIGHLIGHTS • Household credit maintained its growth of 3.7% y/y for the rolling quarter ending in August 2024, where it has remained unchanged since May, while the effects of easing monetary policy continue to work its way through the economy. • Consumer loans excl
Slide 74: 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 45 300 % of households (2020 est.) 5-year difference, basis points forecast* 40 250 with HELOC 35 11.5 200 30 150 100 25 1.9 50 20 0 15 32.8 29.1 -50 24.3 10 -100 5 -
Slide 75: 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$, SA, quarterly % of disposable income, SAAR 100 25 Personal Savings 80 20 Cumulative Excess Savings as of June 60 2024: 468 Bil. C$ 1
Slide 76: Appendix: Bail-in and TLAC
Appendix 3 sfelitilamelace| TLAC
Slide 77: 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 78: 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 79: 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 80: Appendix: Covered Bonds
Appendix 4 Covered Bonds
Slide 81: 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 $53.5 billion outstanding1 vs. $100 billion program size2 • Extensive regulatory oversight and pool audit requirements • Mandatory property value indexation
Slide 82: Global Registered Covered Bond Program
Global Registered Covered Bond Program1 LOAN-TO-VALUE RATIOS2 C R E D I T S C O R E S 3,4 74% 38% 28% 24% 15% 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)4 PROVINCIAL DISTRIBUTION Ontario 60.1% 5 Other 2.9% 37% 37% S
Slide 83: 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 84: Appendix: Non-GAAP Measures
Appendix 5 Non-GAAP Measures
Slide 85: 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 86: 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 Page 97- Net interest margin (NIM) funding. Net interest margin is calculated as core net interest income divided
Slide 87: Non-GAAP – Adjusted Results and Diluted EPS
Non-GAAP – Adjusted Results and Diluted EPS $MM (unless indicated otherwise) Q4/24 Q3/24 Q4/23 FY2024 FY2023 Reported Results Total revenue 8,526 8,364 8,272 33,670 32,214 Provision for credit losses 1,030 1,052 1,256 4,051 3,422 Non-interest expenses 5,296 4,949 5,527 19,695 19,121 Income tax expen
Slide 88: Non-GAAP – Business Line Earnings
Non-GAAP – Business Line Earnings Three months ending October 31, 2024 Three months ending July 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 Ba
Slide 89: Non-GAAP – Business Line Earnings
Non-GAAP – Business Line Earnings Three months ending October 31, 2023 Global Global Canadian International $MM (unless indicated otherwise) Wealth Banking and Other Total Banking Banking Management Markets Reported Results Total revenue 3,312 2,780 1,332 1,354 (506) 8,272 Provision for credit losse
Slide 90: 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 91: Non-GAAP – Other Segment Adjusted Earnings
Non-GAAP – Other Segment Adjusted Earnings $MM Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Reported NIAEH (759) (474) (421) (729) (870) Divestitures and wind-down of operations1 (319) - - 89 - 2 Restructuring charge and severance provisions 258 - - - 38 Consolidation of real estate and contract termination costs3
Slide 92: 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 October 31, 2024 Net income attributable to common shareholders 1,061 62
Slide 93: Non-GAAP Reconciliations – Return on Equity
Non-GAAP Reconciliations – Return on Equity $MM (unless indicated otherwise) IFRS 4 IFRS 17 $MM (unless indicated otherwise) IFRS 4 IFRS 17 F22 F23 F24 Return on equity F22 F23 F24 Reported Results Canadian Banking Net income attributable to common shareholders 4,757 3,980 4,273 Total revenue 31,416
Slide 94: Non-GAAP – Return on Tangible Common Equity
Non-GAAP – Return on Tangible Common Equity For the three months ended For the year ending ($ millions) Q4/241 Q3/241 Q4/231 October 31, 2024 October 31, 2023 Reported Average common equity - Reported2 73,158 71,651 68,352 71,127 67,400 Average goodwill2,3 - 8,984 - 9,052 - 9,327 - 9,056 - 9,376 Ave
Slide 95: 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⁽¹⁾ October 31, 2023⁽¹⁾ Foreign Constant Foreign Constant (Taxable equivalent basis) Reported exchange dollar Reported exchange dollar Net interest income $ 2,231 $ 68 $ 2,163 $ 2,13
Slide 96: Non-GAAP – International Banking Constant Dollar Basis
Non-GAAP – International Banking Constant Dollar Basis Reported Results For the three months ended ($MM) April 30, 2024⁽¹⁾ January 31, 2024⁽¹⁾ Foreign Constant Foreign Constant (Taxable equivalent basis) Reported exchange dollar Reported exchange dollar Net interest income $ 2,261 $ 58 $ 2,203 $ 2,2
Slide 97: Non-GAAP - Net Interest Margin and Risk Adjusted Margin
Non-GAAP - Net Interest Margin and Risk Adjusted Margin $MM (unless specified otherwise) All-Bank Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 F24 F23 1 Average total assets 1,410,124 1,423,337 1,411,181 1,422,740 1,418,795 1,419,284 1,396,092 Less: Non-earning assets 116,453 110,932 108,405 105,539 106,621 108,11
Slide 98: Non-GAAP - Net Interest Margin and Risk Adjusted Margin
Non-GAAP - Net Interest Margin and Risk Adjusted Margin $MM (unless specified otherwise) International Banking Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Average total assets1 238,343 236,467 235,303 233,644 224,536 Less: Non-earning assets 18,915 16,956 16,554 15,326 14,973 Average total earning assets1 219,428
Slide 99: Non-GAAP – All Bank Loan to Deposit Ratio
Non-GAAP – All Bank Loan to Deposit Ratio $Bn (unless indicated otherwise) Q4/23 Q3/24 Q4/24 FY24 FY23 Avg Loans & Acceptances Loans 749 753 755 750 756 Acceptances 21 7 1 10 21 Total 770 761 756 760 777 Avg Deposits Deposits from customers 903 907 899 903 901 Deposits from banks 53 49 46 49 55 Tota
Slide 100: Non-GAAP - International Banking
Non-GAAP - International Banking $Bn Reported Basis Reported Basis (Constant FX) International Business Banking Loans Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Investment Grade 38 37 35 33 32 37 37 35 32 32 Non-Investment Grade 57 55 55 56 54 55 55 55 55 54 $Bn Reported Basis Const
Slide 101: Non-GAAP - Mexico
Non-GAAP - Mexico $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre-tax, pre-provision profit Q4/23 Q3/24 Q4/24 Q4/23 Q3/24 Q4/24 Revenue 716 767 710 654 703 710 Expenses 357 372 327 322 336 327 Provision for Credit Losses 90 107 109 80 98 109 NIAEH 201 222 210 188 207
Slide 102: Non-GAAP - Chile
Non-GAAP - Chile $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre-tax, pre-provision profit Q4/23 Q3/24 Q4/24 Q4/23 Q3/24 Q4/24 Revenue 579 591 584 557 586 584 Expenses 244 237 236 234 236 236 Provision for Credit Losses 136 144 151 131 143 151 NIAEH 148 160 149 141 1
Slide 103: Non-GAAP - Peru
Non-GAAP - Peru $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre-tax, pre-provision profit Q4/23 Q3/24 Q4/24 Q4/23 Q3/24 Q4/24 Revenue 386 454 453 388 453 453 Expenses 169 169 180 170 169 180 Provision for Credit Losses 127 127 118 127 127 118 NIAEH 68 117 120 68 117
Slide 104: Non-GAAP - Colombia
Non-GAAP - Colombia $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre-tax, pre-provision profit Q4/23 Q3/24 Q4/24 Q4/23 Q3/24 Q4/24 Revenue 250 285 286 247 272 286 Expenses 175 174 169 173 166 169 Provision for Credit Losses 102 156 114 101 148 114 NIAEH (10) (13) 4 (1
Slide 105: Non-GAAP - Caribbean and Central America
Non-GAAP - Caribbean and Central America $MM (unless otherwise specified) Reported Basis Reported Basis (Constant FX) Pre-tax, pre-provision profit Q4/23 Q3/24 Q4/24 Q4/23 Q3/24 Q4/24 Revenue 603 647 632 601 643 632 Expenses 342 343 337 341 341 337 Provision for Credit Losses 36 34 44 35 34 44 NIAEH
Slide 106: Non-GAAP – International Banking Return on Equity
Non-GAAP – International Banking Return on Equity English Dominican Central Total International Reported ($MM unless otherwise specified) Mexico Peru Chile Colombia Caribbean Republic America Other Banking For the three months ending October 31, 2024 Net Income Attributable to Common Shareholders 21
Slide 107: Appendix: Other Financial Measures
Appendix 6 Other Financial Measures
Slide 108: Glossary – Other Financial Measures
Glossary – Other Financial Measures An allowance set aside which, in management’s opinion, is adequate to absorb credit-related losses on all financial assets and off-balance Allowance for Credit Losses (ACL) Ratio sheet exposures subject to impairment assessment. It includes allowances for performi
Slide 109: 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 Rene Lo Director 416-866-6124 rene.lo@scotiabank.com Funding Martin Weeks Darren Potter EVP and Group Treasure