Bank Of Nova Scotia · TSX:BNS
Bank Of Nova Scotia — Scotiabank — Merger or Acquisition (April 2010)
10 slides from Bank Of Nova Scotia's merger presentation, Apr 30, 2010
Slide 1: Scotiabank Acquires R-G Premier Bank, Puerto Rico in an FDIC-assisted Transaction
Scotiabank Acquires R-G Premier Bank, Puerto Rico in an FDIC-assisted Transaction April 30, 2010 1
Slide 2: Highlights
Highlights • FDIC-assisted acquisition of select assets and assumption of certain liabilities of R-G Premier Bank • Unique opportunity to enhance presence in Puerto Rico Scale in deposits (~9% market share) Significant increase in branch presence (+29) • FDIC loss sharing agreement limits downsi
Slide 3: Transaction Overview
Transaction Overview • US$5.3 billion in loss covered loans (~60% retail) • Approximately US$0.3 billion in other assets • US$2.2 billion in local branch deposits • FDIC to provide necessary funding Approximately US$3.0 billion • FDIC covers 80% of loan losses 10 years for residential real estat
Slide 4: Puerto Rican Economy
Puerto Rican Economy • Improving economic fundamentals Economy appears to be at a turning point – 2009 GDP: US$60 billion – 2.5% real GDP growth forecasted in 2011 Economy expected to benefit from: – US$6 billion of U.S. stimulus funds – Strong economic ties with the DR and CAFTA countries • Rat
Slide 5: Unique Opportunity to Enhance Presence in Puerto Rico
Unique Opportunity to Enhance Presence in Puerto Rico • R-G Premier: Focused on residential mortgages and real estate loans • Achieve scale in Puerto Rico ~9% market share in deposits Significantly adds to branch presence R-G Premier Scotia Distribution 29 branches 17 branches Network 61 ATMs 60
Slide 6: Combined Footprint: BNS with R-G Premier
Combined Footprint: BNS with R-G Premier BRANCHES Scotiabank GREATER R-G Premier Hatillo AGUADILLA SAN JUAN Manati Fajardo Caguas MAYAGUEZ Humacao San German Cayey Cabo Rojo Yauco Guayama PONCE Scotiabank Investor Presentation ❘ April 30, 2010 Network Delivery 6
Slide 7: Financial Impact
Financial Impact • Modest accretion to EPS beginning in Year 1 • No material impact on capital Low risk weighting of assets covered by loss sharing agreement • Significant increase in non-performing loans and provisions FDIC loss coverage at 80% ($ millions) Estimated NPL: 2,000 Provision: (1,20
Slide 8: Summary
Summary • Unique, on-strategy opportunity • Consistent with commitment to grow in existing markets • Limited downside risk Scotiabank Investor Presentation ❘ April 30, 2010 8
Slide 9: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Our public communications often include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commiss
Slide 10: Investor Relations Contact Information
Investor Relations Contact Information Peter Slan, Senior Vice-President (416) 933-1273 peter.slan@scotiabank.com Mahendra Shah, Director (416) 866-7579 mahendra.shah@scotiabank.com Karen Groom, Senior Manager (416) 866-4294 karen.groom@scotiabank.com For further information: www.scotiabank.com/inve