Live audio Web broadcast of the Bank’s analysts’ conference call. See page 91 for details. |
Quarterly Report to Shareholders Scotiabank reports second quarter results TORONTO, May 28, 2024 – Adjusted net income (1) for the second quarter was $2,105 million and adjusted diluted EPS(1) was $1.58, down from $1.69 last year. Adjusted return on equity(1) was 11.3% compared to 12.3% a year ago.“The Bank delivered solid results this quarter against a backdrop of ongoing macroeconomic uncertainty, reporting positive operating leverage driven by revenue growth and continued expense discipline. We are executing on our commitment to balanced growth as our deposit momentum continues, while maintaining strong capital and liquidity metrics,” said Scott Thomson, President and CEO of Scotiabank. “I am proud to see Scotiabankers across our global footprint rallying behind our new strategy and coming together to drive our key strategic initiatives forward.” Canadian Banking delivered adjusted earnings (1) of $1 billion this quarter. Solid revenue growth outpaced expense growth resulting in another quarter of positive operating leverage, while provision for credit losses increased compared to the prior year. In addition, deposit growth, a key component of the refreshed strategy, was up 7% year-over-year.International Banking generated adjusted earnings (1) of $701 million. Revenue growth driven by strong margin expansion, disciplined expense and capital management, were offset by higher provision for credit losses. Adjusted return on equity(1) was 14.5%, a 120 basis point improvement from last year.Global Wealth Management adjusted earnings (1) were $389 million, up 8% year over year. Assets under management(2) of $349 billion increased by 6% resulting in strong revenue growth, partly offset by investments to support long-term business growth.Global Banking and Markets reported earnings of $428 million, up 7% compared to the prior year. Results were supported by higher fee-based revenue and lower provision for credit losses. The Bank reported a Common Equity Tier 1 (CET1) capital ratio (3) of 13.2%, up from 12.3% last year.(1) Refer to Non-GAAP Measures section starting on page 5.(2) Refer to Glossary on page 55 for the description of the measure.(3) The Q2 2024 regulatory capital ratios are based on Revised Basel III requirements as determined in accordance with OSFI Guideline –Capital Adequacy Requirements (November 2023). The Q2 2023 regulatory capital ratios were based on Revised Basel III requirements as determined in accordance with OSFI Guideline – Capital Adequacy Requirements (February 2023). |
Reference Table for EDTF |
||||||||||||||||||||||||||
Q2 2024 | 2023 Annual Report | |||||||||||||||||||||||||
Type of risk | Number | Disclosure | Quarterly Report |
Supplementary Regulatory Capital Disclosures |
MD&A | Financial Statements |
||||||||||||||||||||
General |
1 | The index of risks to which the business is exposed. | 16 | |||||||||||||||||||||||
2 | The Bank’s risk to terminology, measures and key parameters. | 75-79 |
||||||||||||||||||||||||
3 | Top and emerging risks, and the changes during the reporting period. | 81-82, 86-93 |
||||||||||||||||||||||||
4 | Discussion on the regulatory development and plans to meet new regulatory ratios. | 50-53 | |
56-59, 101-104, 117-119 |
|
|||||||||||||||||||||
Risk governance, risk management and business model | 5 | The Bank’s Risk Governance structure. | 73-75 |
|||||||||||||||||||||||
6 | Description of risk culture and procedures applied to support the culture. | 75-79 |
||||||||||||||||||||||||
7 | Description of key risks from the Bank’s business model. | 80 | ||||||||||||||||||||||||
8 | Stress testing use within the Bank’s risk governance and capital management. | 76-77 |
||||||||||||||||||||||||
Capital Adequacy and risk-weighted assets | 9 | Pillar 1 capital requirements, and the impact for global systemically important banks. | 50-51 | 4-5 |
56-59 |
210 | ||||||||||||||||||||
10 | a) Regulatory capital components. | 50-51, 79 | 22-24 |
60 | ||||||||||||||||||||||
b) Reconciliation of the accounting balance sheet to the regulatory balance sheet. | 19-20 |
|||||||||||||||||||||||||
11 | Flow statement of the movements in regulatory capital since the previous reporting period, including changes in common equity tier 1, additional tier 1 and tier 2 capital. | 50-51 | 91 | 61-62 |
||||||||||||||||||||||
12 | Discussion of targeted level of capital, and the plans on how to establish this. | 56-59 |
||||||||||||||||||||||||
13 | Analysis of risk-weighted assets by risk type, business, and market risk RWAs. | |
7, 37-40, 44-61, 70-75, 79, 94, 100 |
|
64-68, 80, 127 |
179, 233 | ||||||||||||||||||||
14 | Analysis of the capital requirements for each Basel asset class. | |
17-18, 37-62, 68-75, 79, 84-87 |
|
64-68 |
|
179, 227-233 |
| ||||||||||||||||||
15 | Tabulate credit risk in the Banking Book. | 83-84 | 17-18, 37-62, 84-87 |
64-68 |
228 | |||||||||||||||||||||
16 | Flow statements reconciling the movements in risk-weighted assets for each risk-weighted asset type. | 63, 78, 93 | 64-68 |
|||||||||||||||||||||||
17 | Discussion of Basel III Back-testing requirement including credit risk model performance and validation. | 98 | 65-67 |
|||||||||||||||||||||||
Liquidity Funding | 18 | Analysis of the Bank’s liquid assets. | 41-44 | 98-104 |
||||||||||||||||||||||
19 | Encumbered and unencumbered assets analyzed by balance sheet category. | 41-44 | 101 | |||||||||||||||||||||||
20 | Consolidated total assets, liabilities and off-balance sheet commitments analyzed by remaining contractual maturity at the balance sheet date. |
48-49 | 105-107 |
|||||||||||||||||||||||
21 | Analysis of the Bank’s sources of funding and a description of the Bank’s funding strategy. | 46-47 | 104-105 |
|||||||||||||||||||||||
Market Risk | 22 | Linkage of market risk measures for trading and non-trading portfolios and the balance sheet. |
40-41 | 97-98 |
||||||||||||||||||||||
23 | Discussion of significant trading and non-trading market risk factors. |
85 | 93-98 |
232-233 |
||||||||||||||||||||||
24 | Discussion of changes in period on period VaR results as well as VaR assumptions, limitations, backtesting and validation. | 39-40, 85 | 93-98 |
232-233 |
||||||||||||||||||||||
25 | Other risk management techniques e.g. stress tests, stressed VaR, tail risk and market liquidity horizon. | 93-98 |
233 | |||||||||||||||||||||||
Credit Risk | 26 | Analysis of the aggregate credit risk exposures, including details of both personal and wholesale lending. | |
7, 37-40, 44-61, 70-75 |
|
86-93, 121-127 |
|
189-190, 229-231 |
| |||||||||||||||||
27 | Discussion of the policies for identifying impaired loans, defining impairments and renegotiated loans, and explaining loan forbearance policies. | |
158-160, 190 |
| ||||||||||||||||||||||
28 | Reconciliations of the opening and closing balances of impaired loans and impairment allowances during the year. | 68 | 34-35 |
|
89, 121-122, 124-125 |
|
190 | |||||||||||||||||||
29 | Analysis of counterparty credit risk that arises from derivative transactions. | |
51-52, 83-84 |
|
99 | 84-85 |
177-180 |
|||||||||||||||||||
30 | Discussion of credit risk mitigation, including collateral held for all sources of credit risk. | 83-84 | 84-85, 90 |
|||||||||||||||||||||||
Other risks |
31 | Quantified measures of the management of operational risk. | 68, 108 | |||||||||||||||||||||||
32 | Discussion of publicly known risk items. | 52 | 72 |
2 |
Scotiabank Second Quarter Report 2024 |
Contents |
Management’s Discussion and Analysis | ||
4 |
Financial Highlights | |
5 |
Non-GAAP Measures | |
16 |
Overview of Performance | |
18 |
Group Financial Performance | |
20 |
Business Segment Review |
Scotiabank Second Quarter Report 2024 | 3 |
As at and for the three months ended | As at and for the six months ended |
|||||||||||||||||||
(Unaudited) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Operating results ($ millions) |
||||||||||||||||||||
Net interest income |
4,694 |
4,773 | 4,460 | 9,467 |
9,023 | |||||||||||||||
Non-interest income |
3,653 |
3,660 | 3,453 | 7,313 |
6,852 | |||||||||||||||
Total revenue |
8,347 |
8,433 | 7,913 | 16,780 |
15,875 | |||||||||||||||
Provision for credit losses |
1,007 |
962 | 709 | 1,969 |
1,347 | |||||||||||||||
Non-interest expenses |
4,711 |
4,739 | 4,574 | 9,450 |
9,035 | |||||||||||||||
Income tax expense |
537 |
533 | 484 | 1,070 |
1,589 | |||||||||||||||
Net income |
2,092 |
2,199 | 2,146 | 4,291 |
3,904 | |||||||||||||||
Net income attributable to common shareholders |
1,943 |
2,066 | 2,018 | 4,009 |
3,638 | |||||||||||||||
Operating performance |
||||||||||||||||||||
Basic earnings per share ($) |
1.59 |
1.70 | 1.69 | 3.29 |
3.05 | |||||||||||||||
Diluted earnings per share ($) |
1.57 |
1.68 | 1.68 | 3.25 |
3.02 | |||||||||||||||
Return on equity (%) (2) |
11.2 |
11.8 | 12.2 | 11.6 |
11.0 | |||||||||||||||
Return on tangible common equity (%) (3) |
13.8 |
14.6 | 15.3 | 14.2 |
13.8 | |||||||||||||||
Productivity ratio (%) (2) |
56.4 |
56.2 | 57.8 | 56.3 |
56.9 | |||||||||||||||
Net interest margin (%) (3) |
2.17 |
2.19 | 2.12 | 2.18 |
2.12 | |||||||||||||||
Financial position information ($ millions) |
||||||||||||||||||||
Cash and deposits with financial institutions |
58,631 |
67,249 | 63,893 | |||||||||||||||||
Trading assets |
132,280 |
126,387 | 114,695 | |||||||||||||||||
Loans |
753,526 |
743,892 | 764,068 | |||||||||||||||||
Total assets |
1,399,430 |
1,392,886 | 1,373,466 | |||||||||||||||||
Deposits |
942,028 |
939,773 | 945,538 | |||||||||||||||||
Common equity |
70,577 |
69,977 | 69,051 | |||||||||||||||||
Preferred shares and other equity instruments |
8,779 |
8,779 | 8,075 | |||||||||||||||||
Assets under administration (2) |
738,927 |
715,941 | 684,170 | |||||||||||||||||
Assets under management (2) |
348,644 |
339,604 | 329,502 | |||||||||||||||||
Capital and liquidity measures |
||||||||||||||||||||
Common Equity Tier 1 (CET1) capital ratio (%) (4) |
13.2 |
12.9 | 12.3 | |||||||||||||||||
Tier 1 capital ratio (%) (4) |
15.2 |
14.8 | 14.1 | |||||||||||||||||
Total capital ratio (%) (4) |
17.1 |
16.7 | 16.2 | |||||||||||||||||
Total loss absorbing capacity (TLAC) ratio (%) (5) |
28.9 |
28.9 | 28.3 | |||||||||||||||||
Leverage ratio (%) (6) |
4.4 |
4.3 | 4.2 | |||||||||||||||||
TLAC Leverage ratio (%) (5) |
8.4 |
8.4 | 8.4 | |||||||||||||||||
Risk-weighted assets ($ millions) (4) |
450,191 |
451,018 | 451,063 | |||||||||||||||||
Liquidity coverage ratio (LCR) (%) (7) |
129 |
132 | 131 | |||||||||||||||||
Net stable funding ratio (NSFR) (%) (8) |
117 |
117 | 111 | |||||||||||||||||
Credit quality |
||||||||||||||||||||
Net impaired loans ($ millions) |
4,399 |
4,215 | 3,554 | |||||||||||||||||
Allowance for credit losses ($ millions) (9) |
6,768 |
6,597 | 5,931 | |||||||||||||||||
Gross impaired loans as a % of loans and acceptances (2) |
0.83 |
0.80 | 0.67 | |||||||||||||||||
Net impaired loans as a % of loans and acceptances (2) |
0.57 |
0.55 | 0.45 | |||||||||||||||||
Provision for credit losses as a % of average net loans and acceptances (annualized) (2)(10) |
0.54 |
0.50 | 0.37 | 0.52 |
0.35 | |||||||||||||||
Provision for credit losses on impaired loans as a % of average net loans and acceptances (annualized) (2)(10) |
0.52 |
0.49 | 0.33 | 0.51 |
0.31 | |||||||||||||||
Net write-offs as a % of average net loans and acceptances (annualized) (2) |
0.48 |
0.42 | 0.29 | 0.45 |
0.29 | |||||||||||||||
Adjusted results (3) |
||||||||||||||||||||
Adjusted net income ($ millions) |
2,105 |
2,212 | 2,161 | 4,317 |
4,513 | |||||||||||||||
Adjusted diluted earnings per share ($) |
1.58 |
1.69 | 1.69 | 3.27 |
3.53 | |||||||||||||||
Adjusted return on equity (%) |
11.3 |
11.9 | 12.3 | 11.6 |
12.8 | |||||||||||||||
Adjusted return on tangible common equity (%) |
13.8 |
14.6 | 15.3 | 14.2 |
16.0 | |||||||||||||||
Adjusted productivity ratio (%) |
56.2 |
56.0 | 57.5 | 56.1 |
56.6 | |||||||||||||||
Common share information |
||||||||||||||||||||
Closing share price ($) |
63.16 |
62.87 | 67.63 | |||||||||||||||||
Shares outstanding (millions) |
||||||||||||||||||||
Average – Basic |
1,223 |
1,214 | 1,192 | 1,218 |
1,192 | |||||||||||||||
Average – Diluted |
1,228 |
1,221 | 1,197 | 1,225 |
1,199 | |||||||||||||||
End of period |
1,230 |
1,222 | 1,198 | |||||||||||||||||
Dividends paid per share ($) |
1.06 |
1.06 | 1.03 | 2.12 |
2.06 | |||||||||||||||
Dividend yield (%) (2) |
6.4 |
7.0 | 6.0 | 6.7 |
6.0 | |||||||||||||||
Market capitalization ($ millions) |
77,660 |
76,835 | 81,033 | |||||||||||||||||
Book value per common share ($) (2) |
57.40 |
57.26 | 57.63 | |||||||||||||||||
Market value to book value multiple (2) |
1.1 |
1.1 | 1.2 | |||||||||||||||||
Price to earnings multiple (trailing 4 quarters) (2) |
10.5 |
10.3 | 10.0 | |||||||||||||||||
Other information |
||||||||||||||||||||
Employees (full-time equivalent) |
89,090 |
89,249 | 91,030 | |||||||||||||||||
Branches and offices |
2,316 |
2,351 | 2,398 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Refer to Glossary on page 55 for the description of the measure. |
(3) | Refer to Non-GAAP Measures section starting on page 5. |
(4) | Commencing Q1 2024, regulatory capital ratios are based on Revised Basel III requirements as determined in accordance with OSFI Guideline – Capital Adequacy Requirements (November 2023). The Q2 2023 regulatory capital ratios were based on Revised Basel III requirements as determined in accordance with OSFI Guideline – Capital Adequacy Requirements (February 2023). |
(5) | This measure has been disclosed in this document in accordance with OSFI Guideline – Total Loss Absorbing Capacity (September 2018). |
(6) | The leverage ratios are based on Revised Basel III requirements as determined in accordance with OSFI Guideline – Leverage Requirements (February 2023). |
(7) | This measure has been disclosed in this document in accordance with OSFI Guideline – Public Disclosure Requirements for Domestic Systemically Important Banks on Liquidity Coverage Ratio (April 2015). |
(8) | This measure has been disclosed in this document in accordance with OSFI Guideline – Net Stable Funding Ratio Disclosure Requirements (January 2021). |
(9) | Includes allowance for credit losses on all financial assets – loans, acceptances, off-balance sheet exposures, debt securities and deposits with financial institutions. |
(10) | Includes provision for credit losses on certain financial assets – loans, acceptances and off-balance sheet exposures. |
4 |
Scotiabank Second Quarter Report 2024 |
Scotiabank Second Quarter Report 2024 | 5 |
For the three months ended | For the six months ended | |||||||||||||||||||
($ millions) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Reported Results |
||||||||||||||||||||
Net interest income |
$ |
4,694 |
$ | 4,773 | $ | 4,460 | $ |
9,467 |
$ | 9,023 | ||||||||||
Non-interest income |
3,653 |
3,660 | 3,453 | 7,313 |
6,852 | |||||||||||||||
Total revenue |
8,347 |
8,433 | 7,913 | 16,780 |
15,875 | |||||||||||||||
Provision for credit losses |
1,007 |
962 | 709 | 1,969 |
1,347 | |||||||||||||||
Non-interest expenses |
4,711 |
4,739 | 4,574 | 9,450 |
9,035 | |||||||||||||||
Income before taxes |
2,629 |
2,732 | 2,630 | 5,361 |
5,493 | |||||||||||||||
Income tax expense |
537 |
533 | 484 | 1,070 |
1,589 | |||||||||||||||
Net income |
$ |
2,092 |
$ | 2,199 | $ | 2,146 | $ |
4,291 |
$ | 3,904 | ||||||||||
Net income attributable to non-controlling interests in subsidiaries (NCI) |
26 |
25 | 24 | 51 |
61 | |||||||||||||||
Net income attributable to equity holders |
2,066 |
2,174 | 2,122 | 4,240 |
3,843 | |||||||||||||||
Net income attributable to preferred shareholders and other equity instrument holders |
123 |
108 | 104 | 231 |
205 | |||||||||||||||
Net income attributable to common shareholders |
$ |
1,943 |
$ | 2,066 | $ | 2,018 | $ |
4,009 |
$ | 3,638 | ||||||||||
Diluted earnings per share (in dollars) |
$ |
1.57 |
$ | 1.68 | $ | 1.68 | $ |
3.25 |
$ | 3.02 | ||||||||||
Weighted average number of diluted common shares outstanding (millions) |
1,228 |
1,221 | 1,197 | 1,225 |
1,199 | |||||||||||||||
Adjustments |
||||||||||||||||||||
Adjusting items impacting non-interest expenses (Pre-tax) |
||||||||||||||||||||
Amortization of acquisition-related intangible assets |
$ |
18 |
$ | 18 | $ | 21 | $ |
36 |
$ | 42 | ||||||||||
Total non-interest expense adjusting items (Pre-tax) |
18 |
18 | 21 | 36 |
42 | |||||||||||||||
Total impact of adjusting items on net income before taxes |
18 |
18 | 21 | 36 |
42 | |||||||||||||||
Impact of adjusting items on income tax expense |
||||||||||||||||||||
Canada recovery dividend |
– |
– | – | – |
579 | |||||||||||||||
Amortization of acquisition-related intangible assets |
(5 |
) |
(5 | ) | (6 | ) | (10 |
) |
(12 | ) | ||||||||||
Total impact of adjusting items on income tax expense |
(5 |
) |
(5 | ) | (6 | ) | (10 |
) |
567 | |||||||||||
Total impact of adjusting items on net income |
$ |
13 |
$ | 13 | $ | 15 | $ |
26 |
$ | 609 | ||||||||||
Impact of adjusting items on NCI |
– |
– | – | – |
– | |||||||||||||||
Total impact of adjusting items on net income attributable to equity holders and common shareholders |
$ |
13 |
$ | 13 | $ | 15 | $ |
26 |
$ | 609 | ||||||||||
Adjusted Results |
||||||||||||||||||||
Net interest income |
$ |
4,694 |
$ | 4,773 | $ | 4,460 | $ |
9,467 |
$ | 9,023 | ||||||||||
Non-interest income |
3,653 |
3,660 | 3,453 | 7,313 |
6,852 | |||||||||||||||
Total revenue |
8,347 |
8,433 | 7,913 | 16,780 |
15,875 | |||||||||||||||
Provision for credit losses |
1,007 |
962 | 709 | 1,969 |
1,347 | |||||||||||||||
Non-interest expenses |
4,693 |
4,721 | 4,553 | 9,414 |
8,993 | |||||||||||||||
Income before taxes |
2,647 |
2,750 | 2,651 | 5,397 |
5,535 | |||||||||||||||
Income tax expense |
542 |
538 | 490 | 1,080 |
1,022 | |||||||||||||||
Net income |
$ |
2,105 |
$ | 2,212 | $ | 2,161 | $ |
4,317 |
$ | 4,513 | ||||||||||
Net income attributable to NCI |
26 |
25 | 24 | 51 |
61 | |||||||||||||||
Net income attributable to equity holders |
2,079 |
2,187 | 2,137 | 4,266 |
4,452 | |||||||||||||||
Net income attributable to preferred shareholders and other equity instrument holders |
123 |
108 | 104 | 231 |
205 | |||||||||||||||
Net income attributable to common shareholders |
$ |
1,956 |
$ | 2,079 | $ | 2,033 | $ |
4,035 |
$ | 4,247 | ||||||||||
Diluted earnings per share (in dollars) |
$ |
1.58 |
$ | 1.69 | $ | 1.69 | $ |
3.27 |
$ | 3.53 | ||||||||||
Impact of adjustments on diluted earnings per share (in dollars) |
$ |
0.01 |
$ | 0.01 | $ | 0.01 | $ |
0.02 |
$ | 0.51 | ||||||||||
Weighted average number of diluted common shares outstanding (millions) |
1,228 |
1,221 | 1,197 | 1,225 |
1,199 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
6 |
Scotiabank Second Quarter Report 2024 |
1. |
All reported periods were adjusted for: |
2. |
The Bank’s fiscal 2023 reported results were adjusted for the following items. These amounts were recorded in the Other operating segment. |
3. |
The Bank’s Q4 2022 reported results were adjusted for the following items. These amounts were recorded in the Other operating segment. |
a) | Restructuring charge – The Bank recorded a restructuring charge of $85 million ($66 million after-tax) related to the realignment of the Global Banking and Markets businesses in Asia Pacific and reductions in technology employees, driven by ongoing technology modernization and digital transformation. |
b) | Divestitures and wind-down of operations – The Bank sold investments in associates in Venezuela and Thailand. Additionally, the Bank wound down its operations in India and Malaysia in relation to its realignment of the business in the Asia Pacific region. Collectively, the sale and wind-down of these entities resulted in a net loss of $361 million ($340 million after-tax). |
c) | Support costs for the Scene+ loyalty program – The Bank recorded costs of $133 million ($98 million after-tax) to support the expansion of the Scene+ loyalty program to include Empire Company Limited as a partner. |
Scotiabank Second Quarter Report 2024 | 7 |
For the three months ended April 30, 2024 (1) |
||||||||||||||||||||||||
($ millions) |
Canadian Banking (2) |
International Banking (2) |
Global Wealth Management |
Global Banking and Markets |
Other |
Total (2) |
||||||||||||||||||
Reported net income (loss) |
$ |
1,008 |
$ |
695 |
$ |
382 |
$ |
428 |
$ |
(421 |
) |
$ |
2,092 |
|||||||||||
Net income attributable to non-controlling interests in subsidiaries (NCI) |
– |
24 |
2 |
– |
– |
26 |
||||||||||||||||||
Reported net income attributable to equity holders |
1,008 |
671 |
380 |
428 |
(421 |
) |
2,066 |
|||||||||||||||||
Reported net income attributable to preferred shareholders and other equity instrument holders |
– |
– |
– |
– |
123 |
123 |
||||||||||||||||||
Reported net income attributable to common shareholders |
$ |
1,008 |
$ |
671 |
$ |
380 |
$ |
428 |
$ |
(544 |
) |
$ |
1,943 |
|||||||||||
Adjustments: |
||||||||||||||||||||||||
Adjusting items impacting non-interest expenses (Pre-tax) |
||||||||||||||||||||||||
Amortization of acquisition-related intangible assets |
1 |
8 |
9 |
– |
– |
18 |
||||||||||||||||||
Total non-interest expenses adjustments (Pre-tax) |
1 |
8 |
9 |
– |
– |
18 |
||||||||||||||||||
Total impact of adjusting items on net income before taxes |
1 |
8 |
9 |
– |
– |
18 |
||||||||||||||||||
Impact of adjusting items on income tax expense |
(1 |
) |
(2 |
) |
(2 |
) |
– |
– |
(5 |
) | ||||||||||||||
Total impact of adjusting items on net income |
– |
6 |
7 |
– |
– |
13 |
||||||||||||||||||
Total impact of adjusting items on net income attributable to equity holders and common shareholders |
– |
6 |
7 |
– |
– |
13 |
||||||||||||||||||
Adjusted net income (loss) |
$ |
1,008 |
$ |
701 |
$ |
389 |
$ |
428 |
$ |
(421 |
) |
$ |
2,105 |
|||||||||||
Adjusted net income attributable to equity holders |
$ |
1,008 |
$ |
677 |
$ |
387 |
$ |
428 |
$ |
(421 |
) |
$ |
2,079 |
|||||||||||
Adjusted net income attributable to common shareholders |
$ |
1,008 |
$ |
677 |
$ |
387 |
$ |
428 |
$ |
(544 |
) |
$ |
1,956 |
(1) | Refer to Business Segment Review on page 20. |
(2) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
For the three months ended January 31, 2024 (1) |
||||||||||||||||||||||||
($ millions) |
Canadian Banking (2) |
International Banking (2) |
Global Wealth Management |
Global Banking and Markets |
Other | Total (2) |
||||||||||||||||||
Reported net income (loss) |
$ | 1,095 | $ | 768 | $ | 371 | $ | 439 | $ | (474 | ) | $ | 2,199 | |||||||||||
Net income attributable to non-controlling interests in subsidiaries (NCI) |
– | 22 | 3 | – | – | 25 | ||||||||||||||||||
Reported net income attributable to equity holders |
1,095 | 746 | 368 | 439 | (474 | ) | 2,174 | |||||||||||||||||
Reported net income attributable to preferred shareholders and other equity instrument holders |
1 | 1 | – | 1 | 105 | 108 | ||||||||||||||||||
Reported net income attributable to common shareholders |
$ | 1,094 | $ | 745 | $ | 368 | $ | 438 | $ | (579 | ) | $ | 2,066 | |||||||||||
Adjustments: |
||||||||||||||||||||||||
Adjusting items impacting non-interest expenses (Pre-tax) |
||||||||||||||||||||||||
Amortization of acquisition-related intangible assets |
1 | 8 | 9 | – | – | 18 | ||||||||||||||||||
Total non-interest expenses adjustments (Pre-tax) |
1 | 8 | 9 | – | – | 18 | ||||||||||||||||||
Total impact of adjusting items on net income before taxes |
1 | 8 | 9 | – | – | 18 | ||||||||||||||||||
Impact of adjusting items on income tax expense |
– | (2 | ) | (3 | ) | – | – | (5 | ) | |||||||||||||||
Total impact of adjusting items on net income |
1 | 6 | 6 | – | – | 13 | ||||||||||||||||||
Total impact of adjusting items on net income attributable to equity holders and common shareholders |
1 | 6 | 6 | – | – | 13 | ||||||||||||||||||
Adjusted net income (loss) |
$ | 1,096 | $ | 774 | $ | 377 | $ | 439 | $ | (474 | ) | $ | 2,212 | |||||||||||
Adjusted net income attributable to equity holders |
$ | 1,096 | $ | 752 | $ | 374 | $ | 439 | $ | (474 | ) | $ | 2,187 | |||||||||||
Adjusted net income attributable to common shareholders |
$ | 1,095 | $ | 751 | $ | 374 | $ | 438 | $ | (579 | ) | $ | 2,079 |
(1) | Refer to Business Segment Review on page 20. |
(2) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
8 |
Scotiabank Second Quarter Report 2024 |
For the three months ended April 30, 2023 (1) |
||||||||||||||||||||||||
($ millions) |
Canadian Banking (2) |
International Banking (2) |
Global Wealth Management |
Global Banking and Markets |
Other | Total (2) |
||||||||||||||||||
Reported net income (loss) |
$ | 1,055 | $ | 657 | $ | 356 | $ | 401 | $ | (323 | ) | $ | 2,146 | |||||||||||
Net income attributable to non-controlling interests in subsidiaries (NCI) |
– | 21 | 3 | – | – | 24 | ||||||||||||||||||
Reported net income attributable to equity holders |
1,055 | 636 | 353 | 401 | (323 | ) | 2,122 | |||||||||||||||||
Reported net income attributable to preferred shareholders and other equity instrument holders |
1 | 1 | 1 | 1 | 100 | 104 | ||||||||||||||||||
Reported net income attributable to common shareholders |
$ | 1,054 | $ | 635 | $ | 352 | $ | 400 | $ | (423 | ) | $ | 2,018 | |||||||||||
Adjustments: |
||||||||||||||||||||||||
Adjusting items impacting non-interest expenses (Pre-tax) |
||||||||||||||||||||||||
Amortization of acquisition-related intangible assets |
1 | 11 | 9 | – | – | 21 | ||||||||||||||||||
Total non-interest expenses adjustments (Pre-tax) |
1 | 11 | 9 | – | – | 21 | ||||||||||||||||||
Total impact of adjusting items on net income before taxes |
1 | 11 | 9 | – | – | 21 | ||||||||||||||||||
Impact of adjusting items on income tax expense |
– | (3 | ) | (3 | ) | – | – | (6 | ) | |||||||||||||||
Total impact of adjusting items on net income |
1 | 8 | 6 | – | – | 15 | ||||||||||||||||||
Total impact of adjusting items on net income attributable to equity holders and common shareholders |
1 | 8 | 6 | – | – | 15 | ||||||||||||||||||
Adjusted net income (loss) |
$ | 1,056 | $ | 665 | $ | 362 | $ | 401 | $ | (323 | ) | $ | 2,161 | |||||||||||
Adjusted net income attributable to equity holders |
$ | 1,056 | $ | 644 | $ | 359 | $ | 401 | $ | (323 | ) | $ | 2,137 | |||||||||||
Adjusted net income attributable to common shareholders |
$ | 1,055 | $ | 643 | $ | 358 | $ | 400 | $ | (423 | ) | $ | 2,033 |
(1) | Refer to Business Segment Review on page 20. |
(2) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
For the six months ended April 30, 2024 (1) |
||||||||||||||||||||||||
($ millions) |
Canadian Banking (2) |
International Banking (2) |
Global Wealth Management |
Global Banking and Markets |
Other |
Total (2) |
||||||||||||||||||
Reported net income (loss) |
$ |
2,103 |
$ |
1,463 |
$ |
753 |
$ |
867 |
$ |
(895 |
) |
$ |
4,291 |
|||||||||||
Net income attributable to non-controlling interests in subsidiaries (NCI) |
– |
46 |
5 |
– |
– |
51 |
||||||||||||||||||
Reported net income attributable to equity holders |
2,103 |
1,417 |
748 |
867 |
(895 |
) |
4,240 |
|||||||||||||||||
Reported net income attributable to preferred shareholders and other equity instrument holders |
1 |
1 |
– |
1 |
228 |
231 |
||||||||||||||||||
Reported net income attributable to common shareholders |
$ |
2,102 |
$ |
1,416 |
$ |
748 |
$ |
866 |
$ |
(1,123 |
) |
$ |
4,009 |
|||||||||||
Adjustments: |
||||||||||||||||||||||||
Adjusting items impacting non-interest expenses (Pre-tax) |
||||||||||||||||||||||||
Amortization of acquisition-related intangible assets |
2 |
16 |
18 |
– |
– |
36 |
||||||||||||||||||
Total non-interest expenses adjustments (Pre-tax) |
2 |
16 |
18 |
– |
– |
36 |
||||||||||||||||||
Total impact of adjusting items on net income before taxes |
2 |
16 |
18 |
– |
– |
36 |
||||||||||||||||||
Impact of adjusting items on income tax expense |
(1 |
) |
(4 |
) |
(5 |
) |
– |
– |
(10 |
) | ||||||||||||||
Total impact of adjusting items on net income |
1 |
12 |
13 |
– |
– |
26 |
||||||||||||||||||
Total impact of adjusting items on net income attributable to equity holders and common shareholders |
1 |
12 |
13 |
– |
– |
26 |
||||||||||||||||||
Adjusted net income (loss) |
$ |
2,104 |
$ |
1,475 |
$ |
766 |
$ |
867 |
$ |
(895 |
) |
$ |
4,317 |
|||||||||||
Adjusted net income attributable to equity holders |
$ |
2,104 |
$ |
1,429 |
$ |
761 |
$ |
867 |
$ |
(895 |
) |
$ |
4,266 |
|||||||||||
Adjusted net income attributable to common shareholders |
$ |
2,103 |
$ |
1,428 |
$ |
761 |
$ |
866 |
$ |
(1,123 |
) |
$ |
4,035 |
(1) | Refer to Business Segment Review on page 20. |
(2) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
Scotiabank Second Quarter Report 2024 | 9 |
For the six months ended April 30, 2023 (1) |
||||||||||||||||||||||||
($ millions) |
Canadian Banking (2) |
International Banking (2) |
Global Wealth Management |
Global Banking and Markets |
Other | Total (2) |
||||||||||||||||||
Reported net income (loss) |
$ | 2,141 | $ | 1,336 | $ | 743 | $ | 920 | $ | (1,236 | ) | $ | 3,904 | |||||||||||
Net income attributable to non-controlling interests in subsidiaries (NCI) |
– | 56 | 5 | – | – | 61 | ||||||||||||||||||
Reported net income attributable to equity holders |
2,141 | 1,280 | 738 | 920 | (1,236 | ) | 3,843 | |||||||||||||||||
Reported net income attributable to preferred shareholders and other equity instrument holders |
2 | 2 | 1 | 2 | 198 | 205 | ||||||||||||||||||
Reported net income attributable to common shareholders |
$ | 2,139 | $ | 1,278 | $ | 737 | $ | 918 | $ | (1,434 | ) | $ | 3,638 | |||||||||||
Adjustments: |
||||||||||||||||||||||||
Adjusting items impacting non-interest expenses (Pre-tax) Amortization of acquisition-related intangible assets |
3 | 21 | 18 | – | – | 42 | ||||||||||||||||||
Total non-interest expenses adjustments (Pre-tax) |
3 | 21 | 18 | – | – | 42 | ||||||||||||||||||
Total impact of adjusting items on net income before taxes |
3 | 21 | 18 | – | – | 42 | ||||||||||||||||||
Impact of adjusting items on income tax expense |
||||||||||||||||||||||||
Canada recovery dividend |
– | – | – | – | 579 | 579 | ||||||||||||||||||
Impact of other adjusting items on income tax expense |
(1 | ) | (6 | ) | (5 | ) | – | – | (12 | ) | ||||||||||||||
Total impact of adjusting items on income tax expense |
(1 | ) | (6 | ) | (5 | ) | – | 579 | 567 | |||||||||||||||
Total impact of adjusting items on net income |
2 | 15 | 13 | – | 579 | 609 | ||||||||||||||||||
Total impact of adjusting items on net income attributable to equity holders and common shareholders |
2 | 15 | 13 | – | 579 | 609 | ||||||||||||||||||
Adjusted net income (loss) |
$ | 2,143 | $ | 1,351 | $ | 756 | $ | 920 | $ | (657 | ) | $ | 4,513 | |||||||||||
Adjusted net income attributable to equity holders |
$ | 2,143 | $ | 1,295 | $ | 751 | $ | 920 | $ | (657 | ) | $ | 4,452 | |||||||||||
Adjusted net income attributable to common shareholders |
$ | 2,141 | $ | 1,293 | $ | 750 | $ | 918 | $ | (855 | ) | $ | 4,247 |
(1) | Refer to Business Segment Review on page 20. |
(2) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
Reported Results |
For the three months ended | For the six months ended | ||||||||||||||||||||||||||||||||||
($ millions) |
January 31, 2024 (1) |
April 30, 2023 (1) |
April 30, 2023 (1) |
|||||||||||||||||||||||||||||||||
(Taxable equivalent basis) |
Reported | Foreign exchange |
Constant dollar |
Reported | Foreign exchange |
Constant dollar |
Reported | Foreign exchange |
Constant dollar |
|||||||||||||||||||||||||||
Net interest income |
$ | 2,246 | $ | 19 | $ | 2,227 | $ | 1,999 | $ | 8 | $ | 1,991 | $ | 3,891 | $ | (82 | ) | $ | 3,973 | |||||||||||||||||
Non-interest income |
857 | 6 | 851 | 743 | (88 | ) | 831 | 1,535 | (163 | ) | 1,698 | |||||||||||||||||||||||||
Total revenue |
3,103 | 25 | 3,078 | 2,742 | (80 | ) | 2,822 | 5,426 | (245 | ) | 5,671 | |||||||||||||||||||||||||
Provision for credit losses |
574 | 6 | 568 | 436 | (3 | ) | 439 | 840 | (27 | ) | 867 | |||||||||||||||||||||||||
Non-interest expenses |
1,571 | 2 | 1,569 | 1,478 | (23 | ) | 1,501 | 2,911 | (98 | ) | 3,009 | |||||||||||||||||||||||||
Income tax expense |
190 | 4 | 186 | 171 | (10 | ) | 181 | 339 | (20 | ) | 359 | |||||||||||||||||||||||||
Net income |
$ | 768 | $ | 13 | $ | 755 | $ | 657 | $ | (44 | ) | $ | 701 | $ | 1,336 | $ | (100 | ) | $ | 1,436 | ||||||||||||||||
Net income attributable to non-controlling interests in subsidiaries (NCI) |
$ | 22 | $ | – | $ | 22 | $ | 21 | $ | 2 | $ | 19 | $ | 56 | $ | 4 | $ | 52 | ||||||||||||||||||
Net income attributable to equity holders of the Bank |
$ | 746 | $ | 13 | $ | 733 | $ | 636 | $ | (46 | ) | $ | 682 | $ | 1,280 | $ | (104 | ) | $ | 1,384 | ||||||||||||||||
Other measures |
||||||||||||||||||||||||||||||||||||
Average assets ($ billions) |
$ | 236 | $ | 1 | $ | 235 | $ | 239 | $ | 3 | $ | 236 | $ | 233 | $ | (2 | ) | $ | 235 | |||||||||||||||||
Average liabilities ($ billions) |
$ | 184 | $ | 2 | $ | 182 | $ | 181 | $ | 4 | $ | 177 | $ | 175 | $ | (1 | ) | $ | 176 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
10 |
Scotiabank Second Quarter Report 2024 |
Adjusted Results |
For the three months ended | For the six months ended | ||||||||||||||||||||||||||||||||||
($ millions) |
January 31, 2024 (1) |
April 30, 2023 (1) |
April 30, 2023 (1) |
|||||||||||||||||||||||||||||||||
(Taxable equivalent basis) |
Adjusted | Foreign exchange |
Constant dollar adjusted |
Adjusted | Foreign exchange |
Constant dollar adjusted |
Adjusted | Foreign exchange |
Constant dollar adjusted |
|||||||||||||||||||||||||||
Net interest income |
$ | 2,246 | $ | 19 | $ | 2,227 | $ | 1,999 | $ | 8 | $ | 1,991 | $ | 3,891 | $ | (82 | ) | $ | 3,973 | |||||||||||||||||
Non-interest income |
857 | 6 | 851 | 743 | (88 | ) | 831 | 1,535 | (163 | ) | 1,698 | |||||||||||||||||||||||||
Total revenue |
3,103 | 25 | 3,078 | 2,742 | (80 | ) | 2,822 | 5,426 | (245 | ) | 5,671 | |||||||||||||||||||||||||
Provision for credit losses |
574 | 6 | 568 | 436 | (3 | ) | 439 | 840 | (27 | ) | 867 | |||||||||||||||||||||||||
Non-interest expenses |
1,563 | 2 | 1,561 | 1,467 | (24 | ) | 1,491 | 2,890 | (99 | ) | 2,989 | |||||||||||||||||||||||||
Income tax expense |
192 | 4 | 188 | 174 | (10 | ) | 184 | 345 | (20 | ) | 365 | |||||||||||||||||||||||||
Net income |
$ | 774 | $ | 13 | $ | 761 | $ | 665 | $ | (43 | ) | $ | 708 | $ | 1,351 | $ | (99 | ) | $ | 1,450 | ||||||||||||||||
Net income attributable to non-controlling interests in subsidiaries (NCI) |
$ | 22 | $ | – | $ | 22 | $ | 21 | $ | 2 | $ | 19 | $ | 56 | $ | 4 | $ | 52 | ||||||||||||||||||
Net income attributable to equity holders of the Bank |
$ | 752 | $ | 13 | $ | 739 | $ | 644 | $ | (45 | ) | $ | 689 | $ | 1,295 | $ | (103 | ) | $ | 1,398 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
Scotiabank Second Quarter Report 2024 | 11 |
For the three months ended | For the six months ended | |||||||||||||||||||
($ millions) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Average total assets – Reported (2) |
$ |
1,411,181 |
$ | 1,423,337 | $ | 1,390,729 | $ |
1,417,472 |
$ | 1,385,836 | ||||||||||
Less: Non-earning assets |
108,405 |
110,932 | 111,531 | 109,849 |
115,611 | |||||||||||||||
Average total earning assets (2) |
$ |
1,302,776 |
$ | 1,312,405 | $ | 1,279,198 | $ |
1,307,623 |
$ | 1,270,225 | ||||||||||
Less: |
||||||||||||||||||||
Trading assets |
144,737 |
142,014 | 115,611 | 143,360 |
117,829 | |||||||||||||||
Securities purchased under resale agreements and securities borrowed |
191,661 |
194,807 | 189,757 | 193,251 |
182,227 | |||||||||||||||
Other deductions |
62,497 |
72,504 | 73,073 | 67,556 |
71,908 | |||||||||||||||
Average core earning assets (2) |
$ |
903,881 |
$ | 903,080 | $ | 900,757 | $ |
903,456 |
$ | 898,261 | ||||||||||
Net interest income – Reported |
$ |
4,694 |
$ | 4,773 | $ | 4,460 | $ |
9,467 |
$ | 9,023 | ||||||||||
Less: Non-core net interest income |
(139 |
) |
(198 | ) | (204 | ) | (337 |
) |
(409 | ) | ||||||||||
Core net interest income |
$ |
4,833 |
$ | 4,971 | $ | 4,664 | $ |
9,804 |
$ | 9,432 | ||||||||||
Net interest margin |
2.17 |
% |
2.19 | % | 2.12 | % | 2.18 |
% |
2.12 | % |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Average balances represent the average of daily balances for the period. |
For the three months ended | For the six months ended | |||||||||||||||||||
($ millions) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Average total assets – Reported (2) |
$ |
444,923 |
$ | 444,856 | $ | 450,634 | $ |
444,889 |
$ | 450,332 | ||||||||||
Less: Non-earning assets |
4,191 |
4,312 | 3,957 | 4,252 |
3,997 | |||||||||||||||
Average total earning assets (2) |
$ |
440,732 |
$ | 440,544 | $ | 446,677 | $ |
440,637 |
$ | 446,335 | ||||||||||
Less: |
||||||||||||||||||||
Other deductions |
22,421 |
28,843 | 28,655 | 25,667 |
27,958 | |||||||||||||||
Average core earning assets (2) |
$ |
418,311 |
$ | 411,701 | $ | 418,022 | $ |
414,970 |
$ | 418,377 | ||||||||||
Net interest income – Reported |
$ |
2,634 |
$ | 2,653 | $ | 2,342 | $ |
5,287 |
$ | 4,729 | ||||||||||
Less: Non-core net interest income |
– |
– | – | – |
– | |||||||||||||||
Core net interest income |
$ |
2,634 |
$ | 2,653 | $ | 2,342 | $ |
5,287 |
$ | 4,729 | ||||||||||
Net interest margin |
2.56 |
% |
2.56 | % | 2.30 | % | 2.56 |
% |
2.28 | % |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Average balances represent the average of daily balances for the period. |
For the three months ended | For the six months ended | |||||||||||||||||||
($ millions) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Average total assets – Reported (2) |
$ |
235,303 |
$ | 236,467 | $ | 238,705 | $ |
235,873 |
$ | 233,454 | ||||||||||
Less: Non-earning assets |
16,554 |
16,956 | 20,050 | 16,757 |
19,569 | |||||||||||||||
Average total earning assets (2) |
$ |
218,749 |
$ | 219,511 | $ | 218,655 | $ |
219,116 |
$ | 213,885 | ||||||||||
Less: |
||||||||||||||||||||
Trading assets |
6,534 |
6,778 | 6,059 | 6,657 |
5,587 | |||||||||||||||
Securities purchased under resale agreements and securities borrowed |
4,314 |
3,431 | 2,868 | 3,868 |
2,952 | |||||||||||||||
Other deductions |
7,640 |
7,731 | 7,240 | 7,686 |
7,406 | |||||||||||||||
Average core earning assets (2) |
$ |
200,261 |
$ | 201,571 | $ | 202,488 | $ |
200,905 |
$ | 197,940 | ||||||||||
Net interest income – Reported |
$ |
2,261 |
$ | 2,246 | $ | 1,999 | $ |
4,507 |
$ | 3,891 | ||||||||||
Less: Non-core net interest income |
60 |
35 | (28 | ) | 95 |
(82 | ) | |||||||||||||
Core net interest income |
$ |
2,201 |
$ | 2,211 | $ | 2,027 | $ |
4,412 |
$ | 3,973 | ||||||||||
Net interest margin |
4.47 |
% |
4.36 | % | 4.10 | % | 4.42 |
% |
4.05 | % |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Average balances represent the average of daily balances for the period. |
12 |
Scotiabank Second Quarter Report 2024 |
For the three months ended April 30, 2024 |
||||||||||||||||||||||||
($ millions) |
Canadian Banking (1) |
International Banking (1) |
Global Wealth Management |
Global Banking and Markets |
Other |
Total (1) |
||||||||||||||||||
Reported |
||||||||||||||||||||||||
Net income attributable to common shareholders |
$ |
1,008 |
$ |
671 |
$ |
380 |
$ |
428 |
$ |
(544 |
) |
$ |
1,943 |
|||||||||||
Total average common equity (2)(3) |
20,507 |
18,927 |
10,222 |
14,865 |
5,756 |
70,277 |
||||||||||||||||||
Return on equity |
20.0 |
% |
14.4 |
% |
15.1 |
% |
11.7 |
% |
nm |
(4) |
11.2 |
% | ||||||||||||
Adjusted (5) |
||||||||||||||||||||||||
Net income attributable to common shareholders |
$ |
1,008 |
$ |
677 |
$ |
387 |
$ |
428 |
$ |
(544 |
) |
$ |
1,956 |
|||||||||||
Return on equity |
20.0 |
% |
14.5 |
% |
15.4 |
% |
11.7 |
% |
nm |
(4) |
11.3 |
% |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Average amounts calculated using methods intended to approximate the daily average balances for the period. |
(3) | Effective Q1 2024, the Bank increased the capital attributed to business lines to approximate 11.5% of Basel III common equity capital requirements. Previously, capital was attributed to approximate 10.5%. Prior period amounts have not been restated. |
(4) | Not meaningful. |
(5) | Refer to Tables on page 6. |
For the three months ended January 31, 2024 | For the three months ended April 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
($ millions) |
Canadian Banking (1) |
International Banking (1) |
Global Wealth Management |
Global Banking and Markets |
Other | Total (1) |
Canadian Banking (1) |
International Banking (1) |
Global Wealth Management |
Global Banking and Markets |
Other | Total (1) |
||||||||||||||||||||||||||||||||||||
Reported |
||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders |
$ |
1,094 |
$ |
745 |
$ |
368 |
$ |
438 |
$ |
(579 |
) |
$ |
2,066 |
$ |
1,054 |
$ |
635 |
$ |
352 |
$ |
400 |
$ |
(423 |
) |
$ |
2,018 |
||||||||||||||||||||||
Total average common equity (2)(3) |
20,015 |
19,398 |
10,193 |
15,734 |
4,032 |
69,372 |
19,077 |
19,866 |
9,732 |
15,587 |
3,312 |
67,574 |
||||||||||||||||||||||||||||||||||||
Return on equity |
21.7 |
% |
15.3 |
% |
14.3 |
% |
11.1 |
% |
nm |
(4) |
11.8 |
% |
22.7 |
% |
13.1 |
% |
14.8 |
% |
10.5 |
% |
nm |
(4) |
12.2 |
% | ||||||||||||||||||||||||
Adjusted (5) |
||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders |
$ |
1,095 |
$ |
751 |
$ |
374 |
$ |
438 |
$ |
(579 |
) |
$ |
2,079 |
$ |
1,055 |
$ |
643 |
$ |
358 |
$ |
400 |
$ |
(423 |
) |
$ |
2,033 |
||||||||||||||||||||||
Return on equity |
21.8 |
% |
15.4 |
% |
14.6 |
% |
11.1 |
% |
nm |
(4) |
11.9 |
% |
22.7 |
% |
13.3 |
% |
15.1 |
% |
10.5 |
% |
nm |
(4) |
12.3 |
% |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Average amounts calculated using methods intended to approximate the daily average balances for the period. |
(3) | Effective Q1 2024, the Bank increased the capital attributed to business lines to approximate 11.5% of Basel III common equity capital requirements. Previously, capital was attributed to approximate 10.5%. Prior period amounts have not been restated. |
(4) | Not meaningful. |
(5) | Refer to Tables on page 6. |
Scotiabank Second Quarter Report 2024 | 13 |
For the six months ended April 30, 2024 |
For the six months ended April 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
($ millions) |
Canadian Banking (1) |
International Banking (1) |
Global Wealth Management |
Global Banking and Markets |
Other |
Total (1) |
Canadian Banking (1) |
International Banking (1) |
Global Wealth Management |
Global Banking and Markets |
Other | Total (1) |
||||||||||||||||||||||||||||||||||||
Reported |
||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders |
$ |
2,102 |
$ |
1,416 |
$ |
748 |
$ |
866 |
$ |
(1,123 |
) |
$ |
4,009 |
$ | 2,139 | $ | 1,278 | $ | 737 | $ | 918 | $ | (1,434 | ) | $ | 3,638 | ||||||||||||||||||||||
Total average common equity (2)(3) |
20,258 |
19,165 |
10,207 |
15,304 |
4,840 |
69,774 |
18,913 | 19,580 | 9,784 | 15,561 | 2,928 | 66,766 | ||||||||||||||||||||||||||||||||||||
Return on equity |
20.9 |
% |
14.9 |
% |
14.7 |
% |
11.4 |
% |
nm |
(4) |
11.6 |
% |
22.8 | % | 13.2 | % | 15.2 | % | 11.9 | % | nm | (4) |
11.0 | % | ||||||||||||||||||||||||
Adjusted (5) |
||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders |
$ |
2,103 |
$ |
1,428 |
$ |
761 |
$ |
866 |
$ |
(1,123 |
) |
$ |
4,035 |
$ | 2,141 | $ | 1,293 | $ | 750 | $ | 918 | $ | (855 | ) | $ | 4,247 | ||||||||||||||||||||||
Return on equity |
20.9 |
% |
15.0 |
% |
15.0 |
% |
11.4 |
% |
nm |
(4) |
11.6 |
% |
22.8 | % | 13.3 | % | 15.5 | % | 11.9 | % | nm | (4) |
12.8 | % |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Average amounts calculated using methods intended to approximate the daily average balances for the period. |
(3) | Effective Q1 2024, the Bank increased the capital attributed to business lines to approximate 11.5% of Basel III common equity capital requirements. Previously, capital was attributed to approximate 10.5%. Prior period amounts have not been restated. |
(4) | Not meaningful. |
(5) | Refer to Tables on page 6. |
For the three months ended | For the six months ended | |||||||||||||||||||
($ millions) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Average common equity – Reported (2) |
$ |
70,277 |
$ | 69,372 | $ | 67,574 | $ |
69,774 |
$ | 66,766 | ||||||||||
Average goodwill (2)(3) |
(9,065 |
) |
(9,108 | ) | (9,514 | ) | (9,104 |
) |
(9,409 | ) | ||||||||||
Average acquisition-related intangibles (net of deferred tax) (2) |
(3,635 |
) |
(3,651 | ) | (3,747 | ) | (3,644 |
) |
(3,754 | ) | ||||||||||
Average tangible common equity (2) |
$ |
57,577 |
$ | 56,613 | $ | 54,313 | $ |
57,026 |
$ | 53,603 | ||||||||||
Net income attributable to common shareholders – reported |
$ |
1,943 |
$ | 2,066 | $ | 2,018 | $ |
4,009 |
$ | 3,638 | ||||||||||
Amortization of acquisition-related intangible assets (after-tax) (4) |
13 |
13 | 15 | 26 |
30 | |||||||||||||||
Net income attributable to common shareholders adjusted for amortization of acquisition-related intangible assets (after-tax) |
$ |
1,956 |
$ | 2,079 | $ | 2,033 | $ |
4,035 |
$ | 3,668 | ||||||||||
Return on tangible common equity (5) |
13.8 |
% |
14.6 | % | 15.3 | % | 14.2 |
% |
13.8 | % | ||||||||||
Adjusted (4) |
||||||||||||||||||||
Adjusted net income attributable to common shareholders |
$ |
1,956 |
$ | 2,079 | $ | 2,033 | $ |
4,035 |
$ | 4,247 | ||||||||||
Return on tangible common equity – adjusted (5) |
13.8 |
% |
14.6 | % | 15.3 | % | 14.2 |
% |
16.0 | % |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Average amounts calculated using methods intended to approximate the daily average balances for the period. |
(3) | Includes imputed goodwill from investments in associates. |
(4) | Refer to Table on page 6. |
(5) | Calculated on full dollar amounts. |
14 |
Scotiabank Second Quarter Report 2024 |
Scotiabank Second Quarter Report 2024 | 15 |
16 |
Scotiabank Second Quarter Report 2024 |
Average exchange rate | % Change | |||||||||||||||||||
For the three months ended | April 30 2024 |
January 31 2024 |
April 30 2023 |
April 30, 2024 vs. January 31, 2024 |
April 30, 2024 vs. April 30, 2023 |
|||||||||||||||
U.S. dollar/Canadian dollar |
0.737 |
0.740 | 0.738 | (0.4 | )% | (0.1 | )% | |||||||||||||
Mexican Peso/Canadian dollar |
12.443 |
12.734 | 13.549 | (2.3 | )% | (8.2 | )% | |||||||||||||
Peruvian Sol/Canadian dollar |
2.762 |
2.772 | 2.799 | (0.4 | )% | (1.3 | )% | |||||||||||||
Colombian Peso/Canadian dollar |
2,871.913 |
2,932.809 | 3,469.331 | (2.1 | )% | (17.2 | )% | |||||||||||||
Chilean Peso/Canadian dollar |
710.545 |
659.613 | 594.071 | 7.7 | % | 19.6 | % | |||||||||||||
Average exchange rate | % Change | |||||||||||||||||||
For the six months ended | April 30 2024 |
April 30 2023 |
April 30, 2024 vs. April 30, 2023 |
|||||||||||||||||
U.S. dollar/Canadian dollar |
0.739 |
0.740 | (0.1 | )% | ||||||||||||||||
Mexican Peso/Canadian dollar |
12.590 |
13.952 | (9.8 | )% | ||||||||||||||||
Peruvian Sol/Canadian dollar |
2.767 |
2.827 | (2.1 | )% | ||||||||||||||||
Colombian Peso/Canadian dollar |
2,902.673 |
3,519.268 | (17.5 | )% | ||||||||||||||||
Chilean Peso/Canadian dollar |
684.800 |
620.625 | 10.3 | % | ||||||||||||||||
For the three months ended | For the six months ended |
|||||||||||||||||||
Impact on net income (1) ($ millions except EPS) |
April 30, 2024 vs. April 30, 2023 |
April 30, 2024 vs. January 31, 2024 |
April 30, 2024 vs. April 30, 2023 |
|||||||||||||||||
Net interest income |
$ | (27 | ) | $ | (20 | ) | $ | 70 | ||||||||||||
Non-interest income(2) |
24 | (46 | ) | 249 | ||||||||||||||||
Total revenue |
(3 | ) | (66 | ) | 319 | |||||||||||||||
Non-interest expenses |
(28 | ) | (2 | ) | (114 | ) | ||||||||||||||
Other items (net of tax) (2) |
– | 19 | (81 | ) | ||||||||||||||||
Net income |
$ | (31 | ) | $ | (49 | ) | $ | 124 | ||||||||||||
Earnings per share (diluted) |
$ | (0.03 | ) | $ | (0.04 | ) | $ | 0.10 | ||||||||||||
Impact by business line ($ millions) |
||||||||||||||||||||
Canadian Banking |
$ | – | $ | – | $ | – | ||||||||||||||
International Banking (2) |
(3 | ) | (15 | ) | 108 | |||||||||||||||
Global Wealth Management |
2 | – | 2 | |||||||||||||||||
Global Banking and Markets |
(1 | ) | 2 | (2 | ) | |||||||||||||||
Other (2) |
(29 | ) | (36 | ) | 16 | |||||||||||||||
Net income |
$ | (31 | ) | $ | (49 | ) | $ | 124 |
(1) | Includes the impact of all currencies. |
(2) | Includes the impact of foreign currency hedges. |
Scotiabank Second Quarter Report 2024 | 17 |
18 |
Scotiabank Second Quarter Report 2024 |
Scotiabank Second Quarter Report 2024 | 19 |
• | The Bank analyzes revenues on a taxable equivalent basis (TEB) for business lines. This methodology grosses up tax-exempt income earned on certain securities reported in either net interest income or non-interest income to an equivalent before tax basis. A corresponding increase is made to the provision for income taxes; hence, there is no impact on net income. Management believes that this basis for measurement provides a uniform comparability of net interest income and non-interest income arising from both taxable and non-taxable sources and facilitates a consistent basis of measurement. While other banks may also use TEB, their methodology may not be comparable to the Bank’s methodology. A segment’s revenue and provision for income taxes are grossed up by the taxable equivalent amount. The elimination of the TEB gross-up is recorded in the Other segment. |
• | For business line performance assessment and reporting, net income from associated corporations, which is an after tax number, is adjusted to normalize for income taxes. The tax normalization adjustment grosses up the amount of net income from associated corporations and normalizes the effective tax rate in the business lines to better present the contribution of the associated corporations to the business line results. |
T8 TEB Gross-up |
||||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||
($ millions) |
April 30 2024 |
January 31 2024 |
April 30 2023 |
April 30 2024 |
April 30 2023 |
|||||||||||||||
Net interest income |
$ |
– |
$ | 2 | $ | 10 | $ |
2 |
$ | 20 | ||||||||||
Non-interest income |
4 |
41 | 109 | 45 |
219 | |||||||||||||||
Total revenue and provision for taxes |
$ |
4 |
$ | 43 | $ | 119 | $ |
47 |
$ | 239 |
Canadian Banking |
||||||||||||||||||||
T9 Canadian Banking financial performance |
||||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||
(Unaudited) ($ millions) (Taxable equivalent basis) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Reported Results |
||||||||||||||||||||
Net interest income |
$ |
2,634 |
$ | 2,653 | $ | 2,342 | $ |
5,287 |
$ | 4,729 | ||||||||||
Non-interest income(2) |
702 |
734 | 786 | 1,436 |
1,562 | |||||||||||||||
Total revenue |
3,336 |
3,387 | 3,128 | 6,723 |
6,291 | |||||||||||||||
Provision for credit losses |
428 |
378 | 218 | 806 |
436 | |||||||||||||||
Non-interest expenses |
1,518 |
1,498 | 1,456 | 3,016 |
2,905 | |||||||||||||||
Income tax expense |
382 |
416 | 399 | 798 |
809 | |||||||||||||||
Net income |
$ |
1,008 |
$ | 1,095 | $ | 1,055 | $ |
2,103 |
$ | 2,141 | ||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ |
– |
$ | – | $ | – | $ |
– |
$ | – | ||||||||||
Net income attributable to equity holders of the Bank |
$ |
1,008 |
$ | 1,095 | $ | 1,055 | $ |
2,103 |
$ | 2,141 | ||||||||||
Other financial data and measures |
||||||||||||||||||||
Return on equity (3) |
20.0 |
% |
21.7 | % | 22.7 | % | 20.9 |
% |
22.8 | % | ||||||||||
Net interest margin (3) |
2.56 |
% |
2.56 | % | 2.30 | % | 2.56 |
% |
2.28 | % | ||||||||||
Provision for credit losses – performing (Stage 1 and 2) |
$ |
29 |
$ | 12 | $ | (5 | ) | $ |
41 |
$ | 26 | |||||||||
Provision for credit losses – impaired (Stage 3) |
$ |
399 |
$ | 366 | $ | 223 | $ |
765 |
$ | 410 | ||||||||||
Provision for credit losses as a percentage of average net loans and acceptances (annualized) (4) |
0.40 |
% |
0.34 | % | 0.20 | % | 0.37 |
% |
0.20 | % | ||||||||||
Provision for credit losses on impaired loans as a percentage of average net loans and acceptances (annualized) (4) |
0.37 |
% |
0.33 | % | 0.21 | % | 0.35 |
% |
0.19 | % | ||||||||||
Net write-offs as a percentage of average net loans and acceptances (annualized) (4) |
0.33 |
% |
0.29 | % | 0.18 | % | 0.31 |
% |
0.17 | % | ||||||||||
Average assets ($ billions) |
$ |
445 |
$ | 445 | $ | 451 | $ |
445 |
$ | 450 | ||||||||||
Average liabilities ($ billions) |
$ |
389 |
$ | 393 | $ | 367 | $ |
391 |
$ | 362 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Includes income (on a taxable equivalent basis) from associated corporations for the three months ended April 30, 2024 – $(7) (January 31, 2024 – nil; April 30, 2023 – $25) and for six months ended April 30, 2024 – $(7) (April 30 2023 – $40). |
(3) | Refer to Non-GAAP Measures starting on page 5. |
(4) | Refer to Glossary on page 55 for the description of the measure. |
20 |
Scotiabank Second Quarter Report 2024 |
T9A Adjusted Canadian Banking financial performance |
||||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||
(Unaudited) ($ millions) (Taxable equivalent basis) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Adjusted Results (2) |
||||||||||||||||||||
Net interest income |
$ |
2,634 |
$ | 2,653 | $ | 2,342 | $ |
5,287 |
$ | 4,729 | ||||||||||
Non-interest income |
702 |
734 | 786 | 1,436 |
1,562 | |||||||||||||||
Total revenue |
3,336 |
3,387 | 3,128 | 6,723 |
6,291 | |||||||||||||||
Provision for credit losses |
428 |
378 | 218 | 806 |
436 | |||||||||||||||
Non-interest expenses(3) |
1,517 |
1,497 | 1,455 | 3,014 |
2,902 | |||||||||||||||
Income tax expense |
383 |
416 | 399 | 799 |
810 | |||||||||||||||
Net income |
$ |
1,008 |
$ | 1,096 | $ | 1,056 | $ |
2,104 |
$ | 2,143 | ||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ |
– |
$ | – | $ | – | $ |
– |
$ | – | ||||||||||
Net income attributable to equity holders of the Bank |
$ |
1,008 |
$ | 1,096 | $ | 1,056 | $ |
2,104 |
$ | 2,143 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Refer to Non-GAAP Measures starting on page 5 for adjusted results. |
(3) | Includes adjustment for amortization of acquisition-related intangible assets, excluding software for the three months ended April 30, 2024 – $1 (January 31, 2024 – $1; April 30, 2023 – $1) and for the six months ended April 30, 2024 – $2 (April 30, 2023 – $3). |
Scotiabank Second Quarter Report 2024 | 21 |
22 |
Scotiabank Second Quarter Report 2024 |
International Banking |
||||||||||||||||||||
T10 International Banking financial performance |
||||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||
(Unaudited) ($ millions) (Taxable equivalent basis) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Reported Results |
||||||||||||||||||||
Net interest income |
$ |
2,261 |
$ | 2,246 | $ | 1,999 | $ |
4,507 |
$ | 3,891 | ||||||||||
Non-interest income(2) |
731 |
857 | 743 | 1,588 |
1,535 | |||||||||||||||
Total revenue |
2,992 |
3,103 | 2,742 | 6,095 |
5,426 | |||||||||||||||
Provision for credit losses |
566 |
574 | 436 | 1,140 |
840 | |||||||||||||||
Non-interest expenses |
1,537 |
1,571 | 1,478 | 3,108 |
2,911 | |||||||||||||||
Income tax expense |
194 |
190 | 171 | 384 |
339 | |||||||||||||||
Net income |
$ |
695 |
$ | 768 | $ | 657 | $ |
1,463 |
$ | 1,336 | ||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ |
24 |
$ | 22 | $ | 21 | $ |
46 |
$ | 56 | ||||||||||
Net income attributable to equity holders of the Bank |
$ |
671 |
$ | 746 | $ | 636 | $ |
1,417 |
$ | 1,280 | ||||||||||
Other financial data and measures |
||||||||||||||||||||
Return on equity (3) |
14.4 |
% |
15.3 | % | 13.1 | % | 14.9 |
% |
13.2 | % | ||||||||||
Net interest margin (3) |
4.47 |
% |
4.36 | % | 4.10 | % | 4.42 |
% |
4.05 | % | ||||||||||
Provision for credit losses – performing (Stage 1 and 2) |
$ |
(1 |
) |
$ | (3 | ) | $ | 40 | $ |
(4 |
) |
$ | 69 | |||||||
Provision for credit losses – impaired (Stage 3) |
$ |
567 |
$ | 577 | $ | 396 | $ |
1,144 |
$ | 771 | ||||||||||
Provision for credit losses as a percentage of average net loans and acceptances (annualized) (4) |
1.38 |
% |
1.35 | % | 1.03 | % | 1.36 |
% |
0.99 | % | ||||||||||
Provision for credit losses on impaired loans as a percentage of average net loans and acceptances (annualized) (4) |
1.38 |
% |
1.35 | % | 0.94 | % | 1.37 |
% |
0.91 | % | ||||||||||
Net write-offs as a percentage of average net loans and acceptances (annualized) (4) |
1.30 |
% |
1.13 | % | 0.83 | % | 1.22 |
% |
0.86 | % | ||||||||||
Average assets ($ billions) |
$ |
235 |
$ | 236 | $ | 239 | $ |
236 |
$ | 233 | ||||||||||
Average liabilities ($ billions) |
$ |
183 |
$ | 184 | $ | 181 | $ |
183 |
$ | 175 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Includes income (on a taxable equivalent basis) from associated corporations for the three months ended April 30, 2024 – $57 (January 31, 2024 – $60; April 30, 2023 – $69) and for the six months ended April 30, 2024 – $117 (April 30, 2023 – $132). |
(3) | Refer to Non-GAAP Measures starting on page 5. |
(4) | Refer to Glossary on page 55 for the description of the measure. |
T10A Adjusted International Banking financial performance |
||||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||
(Unaudited) ($ millions) (Taxable equivalent basis) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Adjusted Results (2) |
||||||||||||||||||||
Net interest income |
$ |
2,261 |
$ | 2,246 | $ | 1,999 | $ |
4,507 |
$ | 3,891 | ||||||||||
Non-interest income |
731 |
857 | 743 | 1,588 |
1,535 | |||||||||||||||
Total revenue |
2,992 |
3,103 | 2,742 | 6,095 |
5,426 | |||||||||||||||
Provision for credit losses |
566 |
574 | 436 | 1,140 |
840 | |||||||||||||||
Non-interest expenses(3) |
1,529 |
1,563 | 1,467 | 3,092 |
2,890 | |||||||||||||||
Income tax expense |
196 |
192 | 174 | 388 |
345 | |||||||||||||||
Net income |
$ |
701 |
$ | 774 | $ | 665 | $ |
1,475 |
$ | 1,351 | ||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ |
24 |
$ | 22 | $ | 21 | $ |
46 |
$ | 56 | ||||||||||
Net income attributable to equity holders of the Bank |
$ |
677 |
$ | 752 | $ | 644 | $ |
1,429 |
$ | 1,295 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Refer to Non-GAAP Measures starting on page 5 for adjusted results. |
(3) | Includes adjustment for amortization of acquisition-related intangible assets, excluding software for the three months ended April 30, 2024 – $8 (January 31, 2024 – $8; April 30, 2023 – $11) and for the six months ended April 30, 2024 – $16 (April 30, 2023 – $21). |
Scotiabank Second Quarter Report 2024 | 23 |
T11 International Banking financial performance on reported and constant dollar basis |
||||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||
(Unaudited) ($ millions) (Taxable equivalent basis) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Constant dollars – Reported (2) |
||||||||||||||||||||
Net interest income |
$ |
2,261 |
$ | 2,227 | $ | 1,991 | $ |
4,507 |
$ | 3,973 | ||||||||||
Non-interest income(3) |
731 |
851 | 831 | 1,588 |
1,698 | |||||||||||||||
Total revenue |
2,992 |
3,078 | 2,822 | 6,095 |
5,671 | |||||||||||||||
Provision for credit losses |
566 |
568 | 439 | 1,140 |
867 | |||||||||||||||
Non-interest expenses |
1,537 |
1,569 | 1,501 | 3,108 |
3,009 | |||||||||||||||
Income tax expense |
194 |
186 | 181 | 384 |
359 | |||||||||||||||
Net income |
$ |
695 |
$ | 755 | $ | 701 | $ |
1,463 |
$ | 1,436 | ||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ |
24 |
$ | 22 | $ | 19 | $ |
46 |
$ | 52 | ||||||||||
Net income attributable to equity holders of the Bank |
$ |
671 |
$ | 733 | $ | 682 | $ |
1,417 |
$ | 1,384 | ||||||||||
Other financial data and measures |
||||||||||||||||||||
Average assets ($ billions) |
$ |
235 |
$ | 235 | $ | 236 | $ |
236 |
$ | 235 | ||||||||||
Average liabilities ($ billions) |
$ |
183 |
$ | 182 | $ | 177 | $ |
183 |
$ | 176 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Refer to Non-GAAP Measures starting on page 5. |
(3) | Includes income (on a taxable equivalent basis) from associated corporations for the three months ended April 30, 2024 – $57 (January 31, 2024 – $60; April 30, 2023 – $67) and for the six months ended April 30, 2024 – $117 (April 30, 2023 – $129). |
T11A International Banking financial performance on adjusted and constant dollar basis |
||||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||
(Unaudited) ($ millions) (Taxable equivalent basis) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Constant dollars – Adjusted (2) |
||||||||||||||||||||
Net interest income |
$ |
2,261 |
$ | 2,227 | $ | 1,991 | $ |
4,507 |
$ | 3,973 | ||||||||||
Non-interest income |
731 |
851 | 831 | 1,588 |
1,698 | |||||||||||||||
Total revenue |
2,992 |
3,078 | 2,822 | 6,095 |
5,671 | |||||||||||||||
Provision for credit losses |
566 |
568 | 439 | 1,140 |
867 | |||||||||||||||
Non-interest expenses |
1,529 |
1,561 | 1,491 | 3,092 |
2,989 | |||||||||||||||
Income tax expense |
196 |
188 | 184 | 388 |
365 | |||||||||||||||
Net income |
$ |
701 |
$ | 761 | $ | 708 | $ |
1,475 |
$ | 1,450 | ||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ |
24 |
$ | 22 | $ | 19 | $ |
46 |
$ | 52 | ||||||||||
Net income attributable to equity holders of the Bank |
$ |
677 |
$ | 739 | $ | 689 | $ |
1,429 |
$ | 1,398 | ||||||||||
Other financial data and measures |
||||||||||||||||||||
Average assets ($ billions) |
$ |
235 |
$ | 235 | $ | 236 | $ |
236 |
$ | 235 | ||||||||||
Average liabilities ($ billions) |
$ |
183 |
$ | 182 | $ | 177 | $ |
183 |
$ | 176 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Refer to Non-GAAP Measures starting on page 5. |
24 |
Scotiabank Second Quarter Report 2024 |
Scotiabank Second Quarter Report 2024 | 25 |
26 |
Scotiabank Second Quarter Report 2024 |
Global Wealth Management |
||||||||||||||||||||
T12 Global Wealth Management financial performance |
||||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||
(Unaudited) ($ millions) (Taxable equivalent basis) |
April 30 2024 |
January 31 2024 |
April 30 2023 |
April 30 2024 |
April 30 2023 |
|||||||||||||||
Reported Results |
||||||||||||||||||||
Net interest income |
$ |
225 |
$ | 221 | $ | 209 | $ |
446 |
$ | 422 | ||||||||||
Non-interest income |
1,189 |
1,144 | 1,091 | 2,333 |
2,201 | |||||||||||||||
Total revenue |
1,414 |
1,365 | 1,300 | 2,779 |
2,623 | |||||||||||||||
Provision for credit losses |
7 |
5 | 2 | 12 |
3 | |||||||||||||||
Non-interest expenses |
895 |
862 | 818 | 1,757 |
1,620 | |||||||||||||||
Income tax expense |
130 |
127 | 124 | 257 |
257 | |||||||||||||||
Net income |
$ |
382 |
$ | 371 | $ | 356 | $ |
753 |
$ | 743 | ||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ |
2 |
$ | 3 | $ | 3 | $ |
5 |
$ | 5 | ||||||||||
Net income attributable to equity holders of the Bank |
$ |
380 |
$ | 368 | $ | 353 | $ |
748 |
$ | 738 | ||||||||||
Other financial data and measures |
||||||||||||||||||||
Return on equity (1) |
15.1 |
% |
14.3 | % | 14.8 | % | 14.7 |
% |
15.2 | % | ||||||||||
Assets under administration ($ billions) (2) |
$ |
669 |
$ | 655 | $ | 624 | $ |
669 |
$ | 624 | ||||||||||
Assets under management ($ billions) (2) |
$ |
349 |
$ | 340 | $ | 330 | $ |
349 |
$ | 330 | ||||||||||
Average assets ($ billions) |
$ |
35 |
$ | 35 | $ | 34 | $ |
35 |
$ | 34 | ||||||||||
Average liabilities ($ billions) |
$ |
41 |
$ | 40 | $ | 41 | $ |
40 |
$ | 42 |
(1) | Refer to Non-GAAP Measures starting on page 5. |
(2) | Refer to Glossary on page 55 for the description of the measure. |
T12A Adjusted Global Wealth Management financial performance |
||||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||||
(Unaudited) ($ millions) (Taxable equivalent basis) |
April 30 2024 |
January 31 2024 |
April 30 2023 |
April 30 2024 |
April 30 2023 |
|||||||||||||||
Adjusted Results (1) |
||||||||||||||||||||
Net interest income |
$ |
225 |
$ | 221 | $ | 209 | $ |
446 |
$ | 422 | ||||||||||
Non-interest income |
1,189 |
1,144 | 1,091 | 2,333 |
2,201 | |||||||||||||||
Total revenue |
1,414 |
1,365 | 1,300 | 2,779 |
2,623 | |||||||||||||||
Provision for credit losses |
7 |
5 | 2 | 12 |
3 | |||||||||||||||
Non-interest expenses(2) |
886 |
853 | 809 | 1,739 |
1,602 | |||||||||||||||
Income tax expense |
132 |
130 | 127 | 262 |
262 | |||||||||||||||
Net income |
$ |
389 |
$ | 377 | $ | 362 | $ |
766 |
$ | 756 | ||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ |
2 |
$ | 3 | $ | 3 | $ |
5 |
$ | 5 | ||||||||||
Net income attributable to equity holders of the Bank |
$ |
387 |
$ | 374 | $ | 359 | $ |
761 |
$ | 751 |
(1) | Refer to Non-GAAP Measures starting on page 5 for adjusted results. |
(2) | Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended April 30, 2024 – $9 (January 31, 2024 – $9; April 30, 2023 – $9) and for the six months ended April 30, 2024 – $18 (April 30, 2023 – $18). |
Scotiabank Second Quarter Report 2024 | 27 |
28 |
Scotiabank Second Quarter Report 2024 |
For the three months ended | For the six months ended | |||||||||||||||||||
(Unaudited) ($ millions) (Taxable equivalent basis) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Reported Results |
||||||||||||||||||||
Net interest income |
$ |
331 |
$ | 354 | $ | 384 | $ |
685 |
$ | 838 | ||||||||||
Non-interest income |
990 |
1,025 | 968 | 2,015 |
2,017 | |||||||||||||||
Total revenue |
1,321 |
1,379 | 1,352 | 2,700 |
2,855 | |||||||||||||||
Provision for credit losses |
5 |
5 | 53 | 10 |
68 | |||||||||||||||
Non-interest expenses |
781 |
801 | 752 | 1,582 |
1,525 | |||||||||||||||
Income tax expense |
107 |
134 | 146 | 241 |
342 | |||||||||||||||
Net income |
$ |
428 |
$ | 439 | $ | 401 | $ |
867 |
$ | 920 | ||||||||||
Net income attributable to equity holders of the Bank |
$ |
428 |
$ | 439 | $ | 401 | $ |
867 |
$ | 920 | ||||||||||
Other financial data and measures |
||||||||||||||||||||
Return on equity (2) |
11.7 |
% |
11.1 | % | 10.5 | % | 11.4 |
% |
11.9 | % | ||||||||||
Provision for credit losses – performing (Stage 1 and 2) |
$ |
4 |
$ | 10 | $ | 54 | $ |
14 |
$ | 67 | ||||||||||
Provision for credit losses – impaired (Stage 3) |
$ |
1 |
$ | (5 | ) | $ | (1 | ) | $ |
(4 |
) |
$ | 1 | |||||||
Provision for credit losses as a percentage of average net loans and acceptances (annualized) (3) |
0.02 |
% |
0.02 | % | 0.15 | % | 0.02 |
% |
0.10 | % | ||||||||||
Provision for credit losses on impaired loans as a percentage of average net loans and acceptances (annualized) (3) |
– |
% |
(0.02 | )% | – | % | (0.01 |
)% |
– | % | ||||||||||
Net write-offs as a percentage of average net loans and acceptances (annualized) (3) |
– |
% |
(0.02 | )% | – | % | (0.01 |
)% |
0.01 | % | ||||||||||
Average assets ($ billions) |
$ |
494 |
$ | 505 | $ | 488 | $ |
500 |
$ | 484 | ||||||||||
Average liabilities ($ billions) |
$ |
470 |
$ | 476 | $ | 446 | $ |
473 |
$ | 450 |
(1) | Includes the gross-up of tax-exempt income earned on certain securities reported in either net interest income or non-interest income for the three months ended April 30, 2024 – $4 (January 31, 2024 – $41; April 30, 2023 – $109) and for the six months ended April 30, 2024 – $45 (April 30, 2023 – $219). |
(2) | Refer to Non-GAAP Measures starting on page 5. |
(3) | Refer to Glossary on page 55 for the description of the measure. |
Scotiabank Second Quarter Report 2024 | 29 |
30 |
Scotiabank Second Quarter Report 2024 |
For the three months ended | For the six months ended | |||||||||||||||||||
(Unaudited) ($ millions) (Taxable equivalent basis) |
April 30 2024 (2) |
January 31 2024 (2) |
April 30 2023 (2) |
April 30 2024 (2) |
April 30 2023 (2) |
|||||||||||||||
Reported Results |
||||||||||||||||||||
Net interest income (3) |
$ |
(757 |
) |
$ | (701 | ) | $ | (474 | ) | $ |
(1,458 |
) |
$ | (857 | ) | |||||
Non-interest income(3)(4) (5) |
41 |
(100 | ) | (135 | ) | (59 |
) |
(463 | ) | |||||||||||
Total revenue |
(716 |
) |
(801 | ) | (609 | ) | (1,517 |
) |
(1,320 | ) | ||||||||||
Provision for credit losses |
1 |
– | – | 1 |
– | |||||||||||||||
Non-interest expenses(5) |
(20 |
) |
7 | 70 | (13 |
) |
74 | |||||||||||||
Income tax expense/(benefit) (3) |
(276 |
) |
(334 | ) | (356 | ) | (610 |
) |
(158 | ) | ||||||||||
Net income (loss) |
$ |
(421 |
) |
$ | (474 | ) | $ | (323 | ) | $ |
(895 |
) |
$ | (1,236 | ) | |||||
Net income (loss) attributable to non-controlling interests in subsidiaries |
$ |
– |
$ | – | $ | – | $ |
– |
$ | – | ||||||||||
Net income (loss) attributable to equity holders |
$ |
(421 |
) |
$ | (474 | ) | $ | (323 | ) | $ |
(895 |
) |
$ | (1,236 | ) | |||||
Other measures |
||||||||||||||||||||
Average assets ($ billions ) |
$ |
202 |
$ | 202 | $ | 179 | $ |
201 |
$ | 185 | ||||||||||
Average liabilities ($ billions ) |
$ |
247 |
$ | 251 | $ | 278 | $ |
251 |
$ | 280 |
(1) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income, non-interest income and provision for income taxes and differences in the actual amount of costs incurred and charged to the operating segments. |
(2) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(3) | Includes the elimination of the tax-exempt income gross-up reported in net interest income, non-interest income and provision for income taxes for the three months ended April 30, 2024 – $4 (January 31, 2024 – $43; April 30, 2023 – $119) and for six months ended April 30, 2024 – $47 (April 30, 2023 – $239) to arrive at the amounts reported in the Consolidated Statement of Income. |
(4) | Income (on a taxable equivalent basis) from associated corporations and the provision for income taxes in each period include the tax normalization adjustments related to the gross-up of income from associated companies for the three months ended April 30, 2024 - $2 (January 31, 2024 - $(18); April 30, 2023 - $(35)) and for the six months ended April 30, 2024 - $(16) (April 30, 2023 - $(100)). |
(5) | Includes elimination of fees paid to Canadian Banking by Canadian Wealth Management for administrative support and other services provided by Canadian Banking to the Global Wealth Management businesses. These are reported as revenues in Canadian Banking and operating expenses in Global Wealth Management. |
For the three months ended | For the six months ended | |||||||||||||||||||
(Unaudited) ($ millions) (Taxable equivalent basis) |
April 30 2024 |
January 31 2024 |
April 30 2023 |
April 30 2024 |
April 30 2023 |
|||||||||||||||
Adjusted Results (1) |
||||||||||||||||||||
Net interest income |
$ |
(757 |
) |
$ | (701 | ) | $ | (474 | ) | $ |
(1,458 |
) |
$ | (857 | ) | |||||
Non-interest income |
41 |
(100 | ) | (135 | ) | (59 |
) |
(463 | ) | |||||||||||
Total revenue |
(716 |
) |
(801 | ) | (609 | ) | (1,517 |
) |
(1,320 | ) | ||||||||||
Provision for credit losses |
1 |
– | – | 1 |
– | |||||||||||||||
Non-interest expenses |
(20 |
) |
7 | 70 | (13 |
) |
74 | |||||||||||||
Income tax expense/(benefit) (2) |
(276 |
) |
(334 | ) | (356 | ) | (610 |
) |
(737 | ) | ||||||||||
Net income (loss) |
$ |
(421 |
) |
$ | (474 | ) | $ | (323 | ) | $ |
(895 |
) |
$ | (657 | ) | |||||
Net income (loss) attributable to non-controlling interests in subsidiaries |
$ |
– |
$ | – | $ | – | $ |
– |
$ | – | ||||||||||
Net income (loss) attributable to equity holders |
$ |
(421 |
) |
$ | (474 | ) | $ | (323 | ) | $ |
(895 |
) |
$ | (657 | ) |
(1) | Refer to Non-GAAP Measures starting on page 5 for adjusted results. |
(2) | Includes adjustment for the Canada Recovery Dividend of $579 in Q1 2023. |
Scotiabank Second Quarter Report 2024 | 31 |
32 |
Scotiabank Second Quarter Report 2024 |
For the three months ended April 30, 2024 (1) |
||||||||||||||||||||||||||||||||||||
(Unaudited) ($ millions) |
Canada |
U.S. |
Mexico |
Peru |
Chile |
Colombia |
Caribbean and Central America |
Other |
Total |
|||||||||||||||||||||||||||
Reported results |
||||||||||||||||||||||||||||||||||||
Net interest income |
$ |
2,111 |
$ |
196 |
$ |
621 |
$ |
348 |
$ |
522 |
$ |
178 |
$ |
458 |
$ |
260 |
$ |
4,694 |
||||||||||||||||||
Non-interest income |
2,192 |
442 |
253 |
115 |
73 |
121 |
274 |
183 |
3,653 |
|||||||||||||||||||||||||||
Total revenue |
4,303 |
638 |
874 |
463 |
595 |
299 |
732 |
443 |
8,347 |
|||||||||||||||||||||||||||
Provision for credit losses |
436 |
2 |
81 |
128 |
154 |
153 |
35 |
18 |
1,007 |
|||||||||||||||||||||||||||
Non-interest expenses |
2,591 |
342 |
428 |
184 |
231 |
186 |
349 |
400 |
4,711 |
|||||||||||||||||||||||||||
Income tax expense |
255 |
51 |
94 |
36 |
37 |
(11 |
) |
70 |
5 |
537 |
||||||||||||||||||||||||||
Net income |
$ |
1,021 |
$ |
243 |
$ |
271 |
$ |
115 |
$ |
173 |
$ |
(29 |
) |
$ |
278 |
$ |
20 |
$ |
2,092 |
|||||||||||||||||
Net income attributable to non-controlling interests in subsidiaries |
– |
– |
5 |
– |
7 |
(15 |
) |
29 |
– |
26 |
||||||||||||||||||||||||||
Net income attributable to equity holders of the Bank |
$ |
1,021 |
$ |
243 |
$ |
266 |
$ |
115 |
$ |
166 |
$ |
(14 |
) |
$ |
249 |
$ |
20 |
$ |
2,066 |
|||||||||||||||||
Adjusted results (2) |
||||||||||||||||||||||||||||||||||||
Adjustments |
6 |
– |
– |
1 |
5 |
– |
1 |
– |
13 |
|||||||||||||||||||||||||||
Adjusted net income attributable to equity holders of the Bank |
$ |
1,027 |
$ |
243 |
$ |
266 |
$ |
116 |
$ |
171 |
$ |
(14 |
) |
$ |
250 |
$ |
20 |
$ |
2,079 |
|||||||||||||||||
Average Assets ($ billions) |
$ |
861 |
$ |
222 |
$ |
67 |
$ |
27 |
$ |
56 |
$ |
15 |
$ |
35 |
$ |
128 |
$ |
1,411 |
||||||||||||||||||
Average Liabilities ($ billions) |
$ |
838 |
$ |
190 |
$ |
61 |
$ |
20 |
$ |
53 |
$ |
14 |
$ |
32 |
$ |
122 |
$ |
1,330 |
For the three months ended January 31, 2024 (1) |
For the three months ended April 30, 2023 (1) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) ($ millions) |
Canada | U.S. | Mexico | Peru | Chile | Colombia | Caribbean and Central America |
Other | Total | Canada | U.S. | Mexico | Peru | Chile | Colombia | Caribbean and Central America |
Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported results |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income |
$ | 2,140 | $ | 226 | $ | 620 | $ | 344 | $ | 536 | $ | 165 | $ | 450 | $ | 292 | $ | 4,773 | $ | 2,066 | $ | 249 | $ | 512 | $ | 324 | $ | 471 | $ | 134 | $ | 443 | $ | 261 | $ | 4,460 | ||||||||||||||||||||||||||||||||||||
Non-interest income |
2,125 | 362 | 270 | 158 | 125 | 122 | 301 | 197 | 3,660 | 2,111 | 334 | 217 | 122 | 148 | 100 | 295 | 126 | 3,453 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue |
4,265 | 588 | 890 | 502 | 661 | 287 | 751 | 489 | 8,433 | 4,177 | 583 | 729 | 446 | 619 | 234 | 738 | 387 | 7,913 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses |
381 | 7 | 82 | 128 | 174 | 138 | 37 | 15 | 962 | 238 | 34 | 58 | 83 | 154 | 103 | 25 | 14 | 709 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest expenses |
2,589 | 335 | 416 | 175 | 252 | 185 | 374 | 413 | 4,739 | 2,557 | 306 | 366 | 177 | 265 | 163 | 356 | 384 | 4,574 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense |
247 | 38 | 98 | 45 | 47 | (10 | ) | 71 | (3 | ) | 533 | 189 | 68 | 76 | 45 | 27 | (15 | ) | 84 | 10 | 484 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income |
$ | 1,048 | $ | 208 | $ | 294 | $ | 154 | $ | 188 | $ | (26 | ) | $ | 269 | $ | 64 | $ | 2,199 | $ | 1,193 | $ | 175 | $ | 229 | $ | 141 | $ | 173 | $ | (17 | ) | $ | 273 | $ | (21 | ) | 2,146 | ||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests in subsidiaries |
– | – | 7 | 1 | 8 | (15 | ) | 24 | – | 25 | – | – | 5 | 1 | 4 | (11 | ) | 25 | – | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to equity holders of the Bank |
$ | 1,048 | $ | 208 | $ | 287 | $ | 153 | $ | 180 | $ | (11 | ) | $ | 245 | $ | 64 | $ | 2,174 | $ | 1,193 | $ | 175 | $ | 224 | $ | 140 | $ | 169 | $ | (6 | ) | $ | 248 | $ | (21 | ) | $ | 2,122 | |||||||||||||||||||||||||||||||||
Adjusted results (2) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments |
6 | – | – | – | 5 | – | 1 | 1 | 13 | 6 | – | – | 2 | 5 | – | 1 | 1 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net income (loss) attributable to equity holders of the Bank |
$ | 1,054 | $ | 208 | $ | 287 | $ | 153 | $ | 185 | $ | (11 | ) | $ | 246 | $ | 65 | $ | 2,187 | $ | 1,199 | $ | 175 | $ | 224 | $ | 142 | $ | 174 | $ | (6 | ) | $ | 249 | $ | (20 | ) | $ | 2,137 | |||||||||||||||||||||||||||||||||
Average Assets ($ billions) |
$ | 869 | $ | 220 | $ | 64 | $ | 27 | $ | 59 | $ | 14 | $ | 35 | $ | 135 | $ | 1,423 | $ | 837 | $ | 217 | $ | 57 | $ | 28 | $ | 64 | $ | 14 | $ | 34 | $ | 140 | $ | 1,391 | ||||||||||||||||||||||||||||||||||||
Average Liabilities ($ billions) |
$ | 847 | $ | 191 | $ | 60 | $ | 21 | $ | 56 | $ | 14 | $ | 31 | $ | 124 | $ | 1,344 | $ | 824 | $ | 180 | $ | 52 | $ | 21 | $ | 62 | $ | 12 | $ | 31 | $ | 131 | $ | 1,313 | ||||||||||||||||||||||||||||||||||||
For the six months ended April 30, 2024 (1) |
For the six months ended April 30, 2023 (1) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) ($ millions) |
Canada |
U.S. |
Mexico |
Peru |
Chile |
Colombia |
Caribbean and Central America |
Other |
Total |
Canada | U.S. | Mexico | Peru | Chile | Colombia | Caribbean and Central America |
Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported results |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income |
$ |
4,251 |
$ |
422 |
$ |
1,241 |
$ |
692 |
$ |
1,058 |
$ |
343 |
$ |
908 |
$ |
552 |
$ |
9,467 |
$ | 4,299 | $ | 545 | $ | 1,026 | $ | 655 | $ | 849 | $ | 268 | $ | 867 | $ | 514 | $ | 9,023 | ||||||||||||||||||||||||||||||||||||
Non-interest income |
4,317 |
804 |
523 |
273 |
198 |
243 |
575 |
380 |
7,313 |
4,115 | 644 | 421 | 254 | 355 | 196 | 575 | 292 | 6,852 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue |
8,568 |
1,226 |
1,764 |
965 |
1,256 |
586 |
1,483 |
932 |
16,780 |
8,414 | 1,189 | 1,447 | 909 | 1,204 | 464 | 1,442 | 806 | 15,875 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses |
817 |
9 |
163 |
256 |
328 |
291 |
72 |
33 |
1,969 |
466 | 37 | 114 | 181 | 275 | 178 | 61 | 35 | 1,347 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest expenses |
5,180 |
677 |
844 |
359 |
483 |
371 |
723 |
813 |
9,450 |
5,025 | 619 | 717 | 355 | 505 | 319 | 714 | 781 | 9,035 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense |
502 |
89 |
192 |
81 |
84 |
(21 |
) |
141 |
2 |
1,070 |
1,000 | 150 | 143 | 90 | 60 | (13 | ) | 158 | 1 | 1,589 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income |
$ |
2,069 |
$ |
451 |
$ |
565 |
$ |
269 |
$ |
361 |
$ |
(55 |
) |
$ |
547 |
$ |
84 |
$ |
4,291 |
$ | 1,923 | $ | 383 | $ | 473 | $ | 283 | $ | 364 | $ | (20 | ) | $ | 509 | $ | (11 | ) | $ | 3,904 | |||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests in subsidiaries |
– |
– |
12 |
1 |
15 |
(30 |
) |
53 |
– |
51 |
– | – | 11 | 1 | 15 | (15 | ) | 49 | – | 61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to equity holders of the Bank |
$ |
2,069 |
$ |
451 |
$ |
553 |
$ |
268 |
$ |
346 |
$ |
(25 |
) |
$ |
494 |
$ |
84 |
$ |
4,240 |
$ | 1,923 | $ | 383 | $ | 462 | $ | 282 | $ | 349 | $ | (5 | ) | $ | 460 | $ | (11 | ) | $ | 3,843 | |||||||||||||||||||||||||||||||||
Adjusted results (2) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments |
12 |
– |
– |
1 |
10 |
– |
2 |
1 |
26 |
592 | – | – | 3 | 10 | – | 2 | 2 | 609 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net income (loss) attributable to equity holders of the Bank |
$ |
2,081 |
$ |
451 |
$ |
553 |
$ |
269 |
$ |
356 |
$ |
(25 |
) |
$ |
496 |
$ |
85 |
$ |
4,266 |
$ | 2,515 | $ | 383 | $ | 462 | $ | 285 | $ | 359 | $ | (5 | ) | $ | 462 | $ | (9 | ) | $ | 4,452 | |||||||||||||||||||||||||||||||||
Average Assets ($ billions) |
$ |
865 |
$ |
221 |
$ |
65 |
$ |
27 |
$ |
57 |
$ |
15 |
$ |
35 |
$ |
132 |
$ |
1,417 |
$ | 836 | $ | 215 | $ | 55 | $ | 28 | $ | 61 | $ | 13 | $ | 34 | $ | 144 | $ | 1,386 | ||||||||||||||||||||||||||||||||||||
Average Liabilities ($ billions) |
$ |
843 |
$ |
191 |
$ |
61 |
$ |
20 |
$ |
54 |
$ |
14 |
$ |
32 |
$ |
123 |
$ |
1,338 |
$ | 822 | $ | 183 | $ | 49 | $ | 22 | $ | 59 | $ | 12 | $ | 30 | $ | 132 | $ | 1,309 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Refer to Non-GAAP Measures section starting on page 5. |
Scotiabank Second Quarter Report 2024 | 33 |
For the three months ended | ||||||||||||||||||||||||||||||||
(Unaudited) ($ millions) |
April 30 2024 (1) |
January 31 2024 (1) |
October 31 2023 (1) |
July 31 2023 (1) |
April 30 2023 (1) |
January 31 2023 (1) |
October 31 2022 (1) |
July 31 2022 (1) |
||||||||||||||||||||||||
Reported results |
||||||||||||||||||||||||||||||||
Net interest income |
$ |
4,694 |
$ | 4,773 | $ | 4,666 | $ | 4,573 | $ | 4,460 | $ | 4,563 | $ | 4,622 | $ | 4,676 | ||||||||||||||||
Non-interest income |
3,653 |
3,660 | 3,606 | 3,494 | 3,453 | 3,399 | 3,004 | 3,123 | ||||||||||||||||||||||||
Total revenue |
$ |
8,347 |
$ | 8,433 | $ | 8,272 | $ | 8,067 | $ | 7,913 | $ | 7,962 | $ | 7,626 | $ | 7,799 | ||||||||||||||||
Provision for credit losses |
1,007 |
962 | 1,256 | 819 | 709 | 638 | 529 | 412 | ||||||||||||||||||||||||
Non-interest expenses |
4,711 |
4,739 | 5,527 | 4,559 | 4,574 | 4,461 | 4,529 | 4,191 | ||||||||||||||||||||||||
Income tax expense |
537 |
533 | 135 | 497 | 484 | 1,105 | 475 | 602 | ||||||||||||||||||||||||
Net income |
$ |
2,092 |
$ | 2,199 | $ | 1,354 | $ | 2,192 | $ | 2,146 | $ | 1,758 | $ | 2,093 | $ | 2,594 | ||||||||||||||||
Basic earnings per share ($) |
1.59 |
1.70 | 1.01 | 1.72 | 1.69 | 1.36 | 1.64 | 2.10 | ||||||||||||||||||||||||
Diluted earnings per share ($) |
1.57 |
1.68 | 0.99 | 1.70 | 1.68 | 1.35 | 1.63 | 2.09 | ||||||||||||||||||||||||
Net interest margin (%) (2) |
2.17 |
2.19 | 2.15 | 2.10 | 2.12 | 2.11 | 2.18 | 2.22 | ||||||||||||||||||||||||
Effective tax rate (%) (3) |
20.4 |
19.5 | 9.1 | 18.5 | 18.4 | 38.6 | 18.5 | 18.8 | ||||||||||||||||||||||||
Adjusted results (2) |
||||||||||||||||||||||||||||||||
Adjusting items impacting non-interest income and total revenue (Pre-tax) |
||||||||||||||||||||||||||||||||
Divestitures and wind-down of operations |
$ |
– |
$ | – | $ | (367 | ) | $ | – | $ | – | $ | – | $ | 361 | $ | – | |||||||||||||||
Adjusting items impacting non-interest expenses (Pre-tax) |
||||||||||||||||||||||||||||||||
Restructuring charge and severance provisions |
– |
– | 354 | – | – | – | 85 | – | ||||||||||||||||||||||||
Consolidation of real estate and contract termination costs |
– |
– | 87 | – | – | – | – | – | ||||||||||||||||||||||||
Impairment of non-financial assets |
– |
– | 346 | – | – | – | – | – | ||||||||||||||||||||||||
Amortization of acquisition-related intangible assets |
18 |
18 | 19 | 20 | 21 | 21 | 24 | 24 | ||||||||||||||||||||||||
Support costs for the Scene+loyalty program |
– |
– | – | – | – | – | 133 | – | ||||||||||||||||||||||||
Total non-interest expenses adjustments (Pre-tax) |
18 |
18 | 806 | 20 | 21 | 21 | 242 | 24 | ||||||||||||||||||||||||
Total impact of adjusting items on net income before taxes |
18 |
18 | 439 | 20 | 21 | 21 | 603 | 24 | ||||||||||||||||||||||||
Impact of adjusting items on income tax expense: |
||||||||||||||||||||||||||||||||
Canada recovery dividend |
– |
– | – | – | – | 579 | – | – | ||||||||||||||||||||||||
Impact of other adjusting items on income tax expense |
(5 |
) |
(5 | ) | (150 | ) | (5 | ) | (6 | ) | (6 | ) | (81 | ) | (7 | ) | ||||||||||||||||
Total impact of adjusting items on net income |
13 |
13 | 289 | 15 | 15 | 594 | 522 | 17 | ||||||||||||||||||||||||
Adjusted net income |
$ |
2,105 |
$ | 2,212 | $ | 1,643 | $ | 2,207 | $ | 2,161 | $ | 2,352 | $ | 2,615 | $ | 2,611 | ||||||||||||||||
Adjusted diluted earnings per share ($) |
1.58 |
1.69 | 1.23 | 1.72 | 1.69 | 1.84 | 2.06 | 2.10 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. Amounts for fiscal 2022 have been prepared in accordance with IFRS 4 and have not been restated. |
(2) | Refer to Non-GAAP Measures section starting on page 5. |
(3) | Refer to Glossary on page 55 for the description of the measure. |
34 |
Scotiabank Second Quarter Report 2024 |
As at | ||||||||||||||||||||
(Unaudited) ($ billions) |
April 30 2024 (1) |
October 31 2023 (1) |
Change | Volume Change |
FX Change |
|||||||||||||||
Assets |
||||||||||||||||||||
Cash, deposits with financial institutions and precious metals |
$ |
59.9 |
$ | 91.2 | (34.4 | )% | (34.2 | )% | (0.2 | )% | ||||||||||
Trading assets |
132.3 |
117.9 | 12.2 | 12.1 | 0.1 | |||||||||||||||
Securities purchased under resale agreements and securities borrowed |
192.9 |
199.3 | (3.2 | ) | (2.9 | ) | (0.3 | ) | ||||||||||||
Investment securities |
144.8 |
118.2 | 22.5 | 22.8 | (0.3 | ) | ||||||||||||||
Loans |
753.5 |
750.9 | 0.3 | 0.6 | (0.3 | ) | ||||||||||||||
Other |
116.0 |
133.5 | (13.0 | ) | (12.6 | ) | (0.4 | ) | ||||||||||||
Total assets |
$ |
1,399.4 |
$ | 1,411.0 | (0.8 | )% | (0.6 | )% | (0.2 | )% | ||||||||||
Liabilities |
||||||||||||||||||||
Deposits |
$ |
942.0 |
$ | 952.3 | (1.1 | )% | (0.9 | )% | (0.2 | )% | ||||||||||
Obligations related to securities sold under repurchase agreements and securities lent |
173.6 |
160.0 | 8.5 | 8.5 | – | |||||||||||||||
Other liabilities |
194.6 |
210.5 | (7.5 | ) | (6.9 | ) | (0.6 | ) | ||||||||||||
Subordinated debentures |
8.1 |
9.7 | (16.1 | ) | (15.7 | ) | (0.4 | ) | ||||||||||||
Total liabilities |
$ |
1,318.3 |
$ | 1,332.5 | (1.1 | )% | (0.9 | )% | (0.2 | )% | ||||||||||
Equity |
||||||||||||||||||||
Common equity (2) |
$ |
70.6 |
$ | 68.7 | 2.6 | % | 3.8 | % | (1.2 | )% | ||||||||||
Preferred shares and other equity instruments |
8.8 |
8.1 | 8.7 | 8.7 | – | |||||||||||||||
Non-controlling interests in subsidiaries |
1.7 |
1.7 | (0.6 | ) | (1.1 | ) | 0.5 | |||||||||||||
Total equity |
$ |
81.1 |
$ | 78.5 | 3.2 | % | 4.2 | % | (1.0 | )% | ||||||||||
Total liabilities and equity |
$ |
1,399.4 |
$ | 1,411.0 | (0.8 | )% | (0.6 | )% | (0.2 | )% |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Includes net impact of foreign currency translation, primarily change in spot rates on the translation of assets and liabilities from functional currency to Canadian dollar equivalent. |
Scotiabank Second Quarter Report 2024 | 35 |
● |
Gross Domestic Product (GDP): |
● |
Unemployment Rate: |
36 |
Scotiabank Second Quarter Report 2024 |
As at April 30, 2024 |
||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgages |
Home equity lines of credit |
|||||||||||||||||||||||||||||||||||||||||||||||
Insured (2) |
Uninsured |
Total |
Insured (2) |
Uninsured |
Total |
|||||||||||||||||||||||||||||||||||||||||||
($ millions) |
Amount |
% |
Amount |
% |
Amount |
% |
Amount |
% |
Amount |
% |
Amount |
% |
||||||||||||||||||||||||||||||||||||
Canada: (3) |
||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic provinces |
$ |
4,683 |
1.6 |
% |
$ |
6,566 |
2.3 |
% |
$ |
11,249 |
3.9 |
% |
$ |
– |
– |
% |
$ |
1,049 |
4.5 |
% |
$ |
1,049 |
4.5 |
% | ||||||||||||||||||||||||
Quebec |
7,400 |
2.6 |
11,856 |
4.1 |
19,256 |
6.7 |
– |
– |
1,193 |
5.2 |
1,193 |
5.2 |
||||||||||||||||||||||||||||||||||||
Ontario |
29,766 |
10.3 |
131,891 |
45.6 |
161,657 |
55.9 |
– |
– |
13,748 |
59.4 |
13,748 |
59.4 |
||||||||||||||||||||||||||||||||||||
Manitoba & Saskatchewan |
5,074 |
1.8 |
4,373 |
1.5 |
9,447 |
3.3 |
– |
– |
601 |
2.6 |
601 |
2.6 |
||||||||||||||||||||||||||||||||||||
Alberta |
15,329 |
5.3 |
15,117 |
5.2 |
30,446 |
10.5 |
– |
– |
2,200 |
9.5 |
2,200 |
9.5 |
||||||||||||||||||||||||||||||||||||
British Columbia & Territories |
10,340 |
3.5 |
47,033 |
16.2 |
57,373 |
19.7 |
– |
– |
4,364 |
18.8 |
4,364 |
18.8 |
||||||||||||||||||||||||||||||||||||
Canada (4)(5) |
$ |
72,592 |
25.1 |
% |
$ |
216,836 |
74.9 |
% |
$ |
289,428 |
100 |
% |
$ |
– |
– |
% |
$ |
23,155 |
100 |
% |
$ |
23,155 |
100 |
% | ||||||||||||||||||||||||
International |
– |
– |
54,740 |
100 |
54,740 |
100 |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||||||
Total |
$ |
72,592 |
21.1 |
% |
$ |
271,576 |
78.9 |
% |
$ |
344,168 |
100 |
% |
$ |
– |
– |
% |
$ |
23,155 |
100 |
% |
$ |
23,155 |
100 |
% | ||||||||||||||||||||||||
As at January 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||
Canada (4)(5) |
$ | 73,537 | 25.6 | % | $ | 214,259 | 74.4 | % | $ | 287,796 | 100 | % | $ | – | – | % | $ | 22,769 | 100 | % | $ | 22,769 | 100 | % | ||||||||||||||||||||||||
International |
– | – | 53,246 | 100 | 53,246 | 100 | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Total |
$ | 73,537 | 21.6 | % | $ | 267,505 | 78.4 | % | $ | 341,042 | 100 | % | $ | – | – | % | $ | 22,769 | 100 | % | $ | 22,769 | 100 | % | ||||||||||||||||||||||||
As at October 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
Canada (4)(5) |
$ | 75,538 | 26.0 | % | $ | 214,715 | 74.0 | % | $ | 290,253 | 100 | % | $ | – | – | % | $ | 22,472 | 100 | % | $ | 22,472 | 100 | % | ||||||||||||||||||||||||
International |
– | – | 53,929 | 100 | 53,929 | 100 | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Total |
$ | 75,538 | 21.9 | % | $ | 268,644 | 78.1 | % | $ | 344,182 | 100 | % | $ | – | – | % | $ | 22,472 | 100 | % | $ | 22,472 | 100 | % |
(1) | The measures in this section have been disclosed in this document in accordance with OSFI Guideline – B20 – Residential Mortgage Underwriting Practices and Procedures (January 2018). |
(2) | Default insurance is contractual coverage for the life of eligible facilities whereby the Bank’s exposure to real estate secured lending is protected against potential shortfalls caused by borrower default. This insurance is provided by either government-backed entities or private mortgage insurers. |
(3) | The province represents the location of the property in Canada. |
(4) | Includes multi-residential dwellings (4+ units) of $3,375 (January 31, 2024 -$3,667; October 31, 2023 – $3,710) of which $2,439 are insured (January 31, 2024 -$2,452; October 31, 2023 – $2,458). |
(5) | Variable rate mortgages account for 32% (January 31, 2024 – 33%; October 31, 2023 – 33%) of the Bank’s total Canadian residential mortgage portfolio. |
Scotiabank Second Quarter Report 2024 | 37 |
As at April 30, 2024 |
||||||||||||||||||||||||
Residential mortgages by amortization period |
||||||||||||||||||||||||
Less than 20 years |
20-24 years |
25-29 years |
30-34 years |
35 years and greater |
Total residential mortgages |
|||||||||||||||||||
Canada |
36.1 |
% |
35.1 |
% |
27.8 |
% |
0.8 |
% |
0.2 |
% |
100 |
% | ||||||||||||
International |
66.2 |
% |
17.5 |
% |
15.9 |
% |
0.4 |
% |
0.0 |
% |
100 |
% | ||||||||||||
As at January 31, 2024 | ||||||||||||||||||||||||
Canada |
35.4 | % | 36.3 | % | 27.6 | % | 0.5 | % | 0.2 | % | 100 | % | ||||||||||||
International |
64.5 | % | 17.1 | % | 17.2 | % | 1.2 | % | 0.0 | % | 100 | % | ||||||||||||
As at October 31, 2023 | ||||||||||||||||||||||||
Canada |
34.2 | % | 37.4 | % | 27.7 | % | 0.5 | % | 0.2 | % | 100 | % | ||||||||||||
International |
64.5 | % | 17.2 | % | 17.2 | % | 1.1 | % | 0.0 | % | 100 | % |
(1) | The measures in this section have been disclosed in this document in accordance with OSFI Guideline – B20 – Residential Mortgage Underwriting Practices and Procedures (January 2018). |
Uninsured LTV ratios |
||||||||
For the three months ended April 30, 2024 |
||||||||
Residential mortgages |
Home equity lines of credit (2) |
|||||||
LTV% |
LTV% |
|||||||
Canada: (3) |
||||||||
Atlantic provinces |
60.8 | % | 62.8 | % | ||||
Quebec |
62.2 | 66.1 | ||||||
Ontario |
62.0 | 62.4 | ||||||
Manitoba & Saskatchewan |
62.9 | 61.9 | ||||||
Alberta |
65.2 | 66.1 | ||||||
British Columbia & Territories |
60.9 | 61.0 | ||||||
Canada (3) |
62.0 |
% |
62.6 |
% | ||||
International |
71.4 |
% |
n/a |
|||||
For the three months ended January 31, 2024 | ||||||||
Canada (3) |
60.6 | % | 60.9 | % | ||||
International |
72.1 | % | n/a | |||||
For the three months ended October 31, 2023 | ||||||||
Canada (3) |
59.4 | % | 61.4 | % | ||||
International |
71.7 | % | n/a |
(1) | The measures in this section have been disclosed in this document in accordance with OSFI Guideline – B20 – Residential Mortgage Underwriting Practices and Procedures (January 2018). |
(2) | Includes all home equity lines of credit (HELOC). For Scotia Total Equity Plan HELOCs, LTV is calculated based on the sum of residential mortgages and the authorized limit for related HELOCs, divided by the value of the related residential property, and presented on a weighted average basis for newly originated mortgages and HELOCs. |
(3) | The province represents the location of the property in Canada. |
38 |
Scotiabank Second Quarter Report 2024 |
As at | ||||||||||||||||||||||||||||||||||||
April 30, 2024 |
January 31 2024 |
October 31 2023 |
||||||||||||||||||||||||||||||||||
($ millions) |
Loans and loan equivalents (1) |
Deposits with financial institutions |
Securities (2) |
SFT and derivatives (3) |
Funded total |
Undrawn commitments (4) |
Total |
Total | Total | |||||||||||||||||||||||||||
Latin America (5) |
$ | 87,620 | $ | 9,703 | $ | 27,431 | $ | 1,845 | $ | 126,599 | $ | 8,312 | $ |
134,911 |
$ | 133,360 | $ | 137,715 | ||||||||||||||||||
Caribbean and Central America |
13,024 | 3,988 | 4,424 | 21 | 21,457 | 2,990 | 24,447 |
23,409 | 23,302 | |||||||||||||||||||||||||||
Europe, excluding U.K. |
7,748 | 3,386 | 2,587 | 4,323 | 18,044 | 11,138 | 29,182 |
27,092 | 26,415 | |||||||||||||||||||||||||||
U.K. |
7,322 | 965 | 1,275 | 6,642 | 16,204 | 7,750 | 23,954 |
25,428 | 25,545 | |||||||||||||||||||||||||||
Asia |
10,539 | 1,331 | 10,717 | 233 | 22,820 | 8,810 | 31,630 |
33,615 | 38,371 | |||||||||||||||||||||||||||
Other (6) |
175 | 10 | 53 | 8 | 246 | 360 | 606 |
529 | 598 | |||||||||||||||||||||||||||
Total |
$ | 126,428 | $ | 19,383 | $ | 46,487 | $ | 13,072 | $ | 205,370 | $ | 39,360 | $ |
244,730 |
$ | 243,433 | $ | 251,946 |
(1) | Allowances for credit losses are $563. Letters of credit and guarantees are included as funded exposure as they have been issued. Included in loans and loans equivalent are letters of credit and guarantees which total $14,831 as at April 30, 2024 (January 31, 2024 – $14,748; October 31, 2023 – $16,297). |
(2) | Exposures for securities are calculated taking into account derivative positions where the security is the underlying reference asset and short trading positions, with net short positions in brackets. |
(3) | SFT comprise of securities purchased under resale agreements, obligations related to securities sold under repurchase agreements and securities lending and borrowing transactions. Gross and net funded exposures represent all net positive positions after taking into account collateral. Collateral held against derivatives was $5,893 and collateral held against SFT was $128,710. |
(4) | Undrawn commitments represent an estimate of the contractual amount that may be drawn upon by the obligor and include commitments to issue letters of credit on behalf of other banks in a syndicated bank lending arrangement. |
(5) | Includes countries in the Pacific Alliance plus Brazil and Uruguay. |
(6) | Includes Middle East and Africa. |
Scotiabank Second Quarter Report 2024 | 39 |
Average for the three months ended | ||||||||||||
Risk factor ($ millions) |
April 30 2024 |
January 31 2024 |
April 30 2023 |
|||||||||
Credit spread plus interest rate |
$ |
15.8 |
$ | 14.9 | $ | 15.7 | ||||||
Credit spread |
9.6 |
8.5 | 9.5 | |||||||||
Interest rate |
15.4 |
10.2 | 14.0 | |||||||||
Equities |
5.4 |
5.8 | 4.6 | |||||||||
Foreign exchange |
3.9 |
4.1 | 3.7 | |||||||||
Commodities |
2.6 |
3.5 | 6.3 | |||||||||
Debt specific |
3.2 |
3.9 | 3.7 | |||||||||
Diversification effect |
(12.9 |
) |
(15.2 | ) | (16.6 | ) | ||||||
Total VaR |
$ |
18.0 |
$ | 17.0 | $ | 17.4 |
As at | ||||||||||||||||||||||||||||||||||||||||
April 30, 2024 |
January 31, 2024 | April 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Net interest income |
Economic value of equity |
|||||||||||||||||||||||||||||||||||||||
($ millions) |
Canadian dollar |
Other currencies |
Total |
Canadian dollar |
Other currencies |
Total |
Net interest income |
Economic value of equity |
Net interest income |
Economic value of equity |
||||||||||||||||||||||||||||||
+100 bps |
$ |
(7 |
) |
$ |
(18 |
) |
$ |
(25 |
) |
$ |
(593 |
) |
$ |
(994 |
) |
$ |
(1,587 |
) |
$ | (94 | ) | $ | (1,131 | ) | $ | (46 | ) | $ | (1,247 | ) | ||||||||||
-100 bps |
(17 |
) |
(3 |
) |
(20 |
) |
379 |
764 |
1,143 |
42 | 643 | (2 | ) | 796 |
40 |
Scotiabank Second Quarter Report 2024 |
As at April 30, 2024 (1) |
Market risk measure |
|||||||||||||||||||
($ millions) |
Consolidated Statement of Financial Position |
Trading risk |
Non-trading risk |
Not subject to market risk |
Primary risk sensitivity of non-trading risk |
|||||||||||||||
Precious metals |
$ |
1,253 |
$ |
1,253 |
$ |
– |
$ |
– |
n/a |
|||||||||||
Trading assets |
132,280 |
131,530 |
750 |
– |
Interest rate, FX |
|||||||||||||||
Derivative financial instruments |
44,856 |
32,826 |
12,030 |
– |
Interest rate, FX, equity |
|||||||||||||||
Investment securities |
144,784 |
– |
144,784 |
– |
Interest rate, FX, equity |
|||||||||||||||
Loans |
753,526 |
– |
753,526 |
– |
Interest rate, FX |
|||||||||||||||
Assets – other (2) |
322,731 |
522 |
– |
322,209 |
n/a |
|||||||||||||||
Total assets |
$ |
1,399,430 |
$ |
166,131 |
$ |
911,090 |
$ |
322,209 |
||||||||||||
Deposits |
$ |
942,028 |
$ |
– |
$ |
897,439 |
$ |
44,589 |
Interest rate, FX, equity |
|||||||||||
Financial instruments designated at fair value through profit or loss |
32,987 |
32,987 |
– |
– |
Interest rate, equity |
|||||||||||||||
Obligations related to securities sold short |
37,780 |
37,780 |
– |
– |
n/a |
|||||||||||||||
Derivative financial instruments |
52,861 |
34,241 |
18,620 |
– |
Interest rate, FX, equity |
|||||||||||||||
Trading liabilities (3) |
484 |
484 |
– |
– |
n/a |
|||||||||||||||
Pension and other benefit liabilities |
1,597 |
– |
1,597 |
– |
Interest rate, credit spread, equity |
|||||||||||||||
Liabilities – other (4) |
250,618 |
289 |
– |
250,329 |
n/a |
|||||||||||||||
Total liabilities |
$ |
1,318,355 |
$ |
105,781 |
$ |
917,656 |
$ |
294,918 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Includes goodwill, intangibles, other assets and securities purchased under resale agreements and securities borrowed. |
(3) | Gold and silver certificates and bullion included in other liabilities. |
(4) | Includes obligations related to securities sold under repurchase agreements and securities lent and other liabilities. |
As at October 31, 2023 (1) |
Market risk measure | |||||||||||||||||||
($ millions) |
Consolidated Statement of Financial Position |
Trading risk |
Non-trading risk |
Not subject to market risk |
Primary risk sensitivity of non-trading risk |
|||||||||||||||
Precious metals |
$ | 937 | $ | 937 | $ | – | $ | – | n/a | |||||||||||
Trading assets |
117,868 | 117,719 | 149 | – | Interest rate, FX | |||||||||||||||
Derivative financial instruments |
51,340 | 36,512 | 14,828 | – | Interest rate, FX, equity | |||||||||||||||
Investment securities |
118,237 | – | 118,237 | – | Interest rate, FX, equity | |||||||||||||||
Loans |
750,911 | – | 750,911 | – | Interest rate, FX | |||||||||||||||
Assets – other (2) |
371,750 | – | – | 371,750 | n/a | |||||||||||||||
Total assets |
$ | 1,411,043 | $ | 155,168 | $ | 884,125 | $ | 371,750 | ||||||||||||
Deposits |
$ | 952,333 | $ | – | $ | 908,649 | $ | 43,684 | Interest rate, FX, equity | |||||||||||
Financial instruments designated at fair value through profit or loss (3) |
26,779 | 26,779 | – | – | Interest rate, equity | |||||||||||||||
Obligations related to securities sold short |
36,403 | 36,403 | – | – | n/a | |||||||||||||||
Derivative financial instruments |
58,660 | 36,018 | 22,642 | – | Interest rate, FX, equity | |||||||||||||||
Trading liabilities (4) |
439 | 439 | – | – | n/a | |||||||||||||||
Pension and other benefit liabilities |
1,524 | – | 1,524 | – | Interest rate, credit spread, equity | |||||||||||||||
Liabilities – other (5) |
256,334 | – | – | 256,334 | n/a | |||||||||||||||
Total liabilities (3) |
$ | 1,332,472 | $ | 99,639 | $ | 932,815 | $ | 300,018 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Includes goodwill, intangibles, other assets and securities purchased under resale agreements and securities borrowed. |
(3) | Prior period amounts have been restated to conform with current period presentation. |
(4) | Gold and silver certificates and bullion included in other liabilities. |
(5) | Includes obligations related to securities sold under repurchase agreements and securities lent and other liabilities. |
Scotiabank Second Quarter Report 2024 | 41 |
As at April 30, 2024 |
||||||||||||||||||||||||||||
Bank-owned liquid assets |
Securities received as collateral from securities financing and derivative transactions |
Total liquid assets |
Encumbered liquid assets |
Unencumbered liquid assets |
||||||||||||||||||||||||
($ millions) |
Pledged as collateral |
Other (1) |
Available as collateral |
Other |
||||||||||||||||||||||||
Cash and deposits with central banks |
$ |
50,951 |
$ |
– |
$ |
50,951 |
$ |
– |
$ |
6,085 |
$ |
44,866 |
$ |
– |
||||||||||||||
Deposits with financial institutions |
7,680 |
– |
7,680 |
– |
41 |
7,639 |
– |
|||||||||||||||||||||
Precious metals |
1,253 |
– |
1,253 |
– |
– |
1,253 |
– |
|||||||||||||||||||||
Securities: |
||||||||||||||||||||||||||||
Canadian government obligations |
71,224 |
31,055 |
102,279 |
32,804 |
– |
69,475 |
– |
|||||||||||||||||||||
Foreign government obligations |
119,192 |
121,874 |
241,066 |
114,466 |
– |
126,600 |
– |
|||||||||||||||||||||
Other securities |
73,778 |
103,402 |
177,180 |
143,691 |
– |
33,489 |
– |
|||||||||||||||||||||
NHA mortgage-backed securities |
35,038 |
– |
35,038 |
7,173 |
– |
27,865 |
– |
|||||||||||||||||||||
Total |
$ |
359,116 |
$ |
256,331 |
$ |
615,447 |
$ |
298,134 |
$ |
6,126 |
$ |
311,187 |
$ |
– |
||||||||||||||
As at October 31, 2023 | ||||||||||||||||||||||||||||
Bank-owned liquid assets |
Securities received as collateral from securities financing and derivative transactions |
Total liquid assets |
Encumbered liquid assets |
Unencumbered liquid assets |
||||||||||||||||||||||||
($ millions) |
Pledged as collateral |
Other (1) |
Available as collateral |
Other | ||||||||||||||||||||||||
Cash and deposits with central banks |
$ | 82,050 | $ | – | $ | 82,050 | $ | – | $ | 6,115 | $ | 75,935 | $ | – | ||||||||||||||
Deposits with financial institutions |
8,262 | – | 8,262 | – | 47 | 8,215 | – | |||||||||||||||||||||
Precious metals |
937 | – | 937 | – | – | 937 | – | |||||||||||||||||||||
Securities: |
||||||||||||||||||||||||||||
Canadian government obligations |
57,007 | 42,922 | 99,929 | 34,342 | – | 65,587 | – | |||||||||||||||||||||
Foreign government obligations |
104,123 | 129,814 | 233,937 | 110,941 | – | 122,996 | – | |||||||||||||||||||||
Other securities |
60,961 | 103,437 | 164,398 | 144,627 | – | 19,771 | – | |||||||||||||||||||||
NHA mortgage-backed securities |
33,503 | – | 33,503 | 7,548 | – | 25,955 | – | |||||||||||||||||||||
Total |
$ | 346,843 | $ | 276,173 | $ | 623,016 | $ | 297,458 | $ | 6,162 | $ | 319,396 | $ | – |
(1) | Assets which are restricted from being used to secure funding for legal or other reasons. |
As at | ||||||||
($ millions) |
April 30 2024 |
October 31 2023 |
||||||
The Bank of Nova Scotia (Parent) |
$ |
232,126 |
$ | 237,501 | ||||
Bank domestic subsidiaries |
38,571 |
39,988 | ||||||
Bank foreign subsidiaries |
40,490 |
41,907 | ||||||
Total |
$ |
311,187 |
$ | 319,396 |
42 |
Scotiabank Second Quarter Report 2024 |
As at April 30, 2024 (1) |
||||||||||||||||||||||||||||
Bank-owned assets |
Securities received as collateral from securities financing and derivative transactions |
Total assets |
Encumbered assets |
Unencumbered assets |
||||||||||||||||||||||||
($ millions) |
Pledged as collateral |
Other (2) |
Available as collateral (3) |
Other (4) |
||||||||||||||||||||||||
Cash and deposits with central banks |
$ |
50,951 |
$ |
– |
$ |
50,951 |
$ |
– |
$ |
6,085 |
$ |
44,866 |
$ |
– |
||||||||||||||
Deposits with financial institutions |
7,680 |
– |
7,680 |
– |
41 |
7,639 |
– |
|||||||||||||||||||||
Precious metals |
1,253 |
– |
1,253 |
– |
– |
1,253 |
– |
|||||||||||||||||||||
Liquid securities: |
||||||||||||||||||||||||||||
Canadian government obligations |
71,224 |
31,055 |
102,279 |
32,804 |
– |
69,475 |
– |
|||||||||||||||||||||
Foreign government obligations |
119,192 |
121,874 |
241,066 |
114,466 |
– |
126,600 |
– |
|||||||||||||||||||||
Other liquid securities |
73,778 |
103,402 |
177,180 |
143,691 |
– |
33,489 |
– |
|||||||||||||||||||||
Other securities |
3,681 |
7,263 |
10,944 |
5,132 |
– |
– |
5,812 |
|||||||||||||||||||||
Loans classified as liquid assets: |
||||||||||||||||||||||||||||
NHA mortgage-backed securities |
35,038 |
– |
35,038 |
7,173 |
– |
27,865 |
– |
|||||||||||||||||||||
Other loans |
725,629 |
– |
725,629 |
5,464 |
84,988 |
17,835 |
617,342 |
|||||||||||||||||||||
Other financial assets (5) |
250,946 |
(184,515 |
) |
66,431 |
14,505 |
– |
– |
51,926 |
||||||||||||||||||||
Non-financial assets |
60,058 |
– |
60,058 |
– |
– |
– |
60,058 |
|||||||||||||||||||||
Total |
$ |
1,399,430 |
$ |
79,079 |
$ |
1,478,509 |
$ |
323,235 |
$ |
91,114 |
$ |
329,022 |
$ |
735,138 |
||||||||||||||
As at October 31, 2023 (1) |
||||||||||||||||||||||||||||
Bank-owned assets |
Securities received as collateral from securities financing and derivative transactions |
Total assets | Encumbered assets | Unencumbered assets | ||||||||||||||||||||||||
($ millions) |
Pledged as collateral |
Other (2) |
Available as collateral (3) |
Other (4) |
||||||||||||||||||||||||
Cash and deposits with central banks |
$ | 82,050 | $ | – | $ | 82,050 | $ | – | $ | 6,115 | $ | 75,935 | $ | – | ||||||||||||||
Deposits with financial institutions |
8,262 | – | 8,262 | – | 47 | 8,215 | – | |||||||||||||||||||||
Precious metals |
937 | – | 937 | – | – | 937 | – | |||||||||||||||||||||
Liquid securities: |
||||||||||||||||||||||||||||
Canadian government obligations |
57,007 | 42,922 | 99,929 | 34,342 | – | 65,587 | – | |||||||||||||||||||||
Foreign government obligations |
104,123 | 129,814 | 233,937 | 110,941 | – | 122,996 | – | |||||||||||||||||||||
Other liquid securities |
60,961 | 103,437 | 164,398 | 144,627 | – | 19,771 | – | |||||||||||||||||||||
Other securities |
3,758 | 7,714 | 11,472 | 4,941 | – | – | 6,531 | |||||||||||||||||||||
Loans classified as liquid assets: |
||||||||||||||||||||||||||||
NHA mortgage-backed securities |
33,503 | – | 33,503 | 7,548 | – | 25,955 | – | |||||||||||||||||||||
Other loans |
724,952 | – | 724,952 | 4,693 | 88,682 | 13,064 | 618,513 | |||||||||||||||||||||
Other financial assets (5) |
273,930 | (185,713 | ) | 88,217 | 15,287 | – | – | 72,930 | ||||||||||||||||||||
Non-financial assets |
61,560 | – | 61,560 | – | – | – | 61,560 | |||||||||||||||||||||
Total |
$ | 1,411,043 | $ | 98,174 | $ | 1,509,217 | $ | 322,379 | $ | 94,844 | $ | 332,460 | $ | 759,534 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Assets which are restricted from being used to secure funding for legal or other reasons. |
(3) | Assets that are readily available in the normal course of business to secure funding or meet collateral needs including central bank borrowing immediately available. |
(4) | Other unencumbered assets are not subject to any restrictions on their use to secure funding or as collateral but the Bank would not consider them to be readily available. These include loans, a portion of which may be used to access central bank facilities outside of the normal course or to raise secured funding through the Bank’s secured funding programs. |
(5) | Securities received as collateral against other financial assets are included within liquid securities and other securities. |
Scotiabank Second Quarter Report 2024 | 43 |
For the quarter ended April 30, 2024 ($ millions) (2) |
Total unweighted Value (Average) (3) |
Total weighted Value (Average) (4) |
||||||
High-quality liquid assets |
||||||||
Total high-quality liquid assets (HQLA) |
* |
$ |
277,412 |
|||||
Cash outflows |
||||||||
Retail deposits and deposits from small business customers, of which: |
$ | 239,759 | $ | 23,483 | ||||
Stable deposits |
101,590 | 3,252 | ||||||
Less stable deposits |
138,169 | 20,230 | ||||||
Unsecured wholesale funding, of which: |
305,019 | 139,005 | ||||||
Operational deposits (all counterparties) and deposits in networks of cooperative banks |
109,467 | 26,436 | ||||||
Non-operational deposits (all counterparties) |
172,508 | 89,525 | ||||||
Unsecured debt |
23,044 | 23,044 | ||||||
Secured wholesale funding |
* |
66,647 | ||||||
Additional requirements, of which: |
265,201 | 63,255 | ||||||
Outflows related to derivative exposures and other collateral requirements |
45,745 | 25,718 | ||||||
Outflows related to loss of funding on debt products |
6,110 | 6,110 | ||||||
Credit and liquidity facilities |
213,346 | 31,427 | ||||||
Other contractual funding obligations |
1,389 | 1,388 | ||||||
Other contingent funding obligations (5) |
571,932 | 7,684 | ||||||
Total cash outflows |
* |
$ |
301,462 |
|||||
Cash inflows |
||||||||
Secured lending (e.g. reverse repos) |
$ | 273,612 | $ | 40,796 | ||||
Inflows from fully performing exposures |
32,990 | 20,068 | ||||||
Other cash inflows |
26,265 | 26,265 | ||||||
Total cash inflows |
$ |
332,867 |
$ |
87,129 |
||||
Total adjusted value (6) |
||||||||
Total HQLA |
* |
$ |
277,412 |
|||||
Total net cash outflows |
* |
$ |
214,333 |
|||||
Liquidity coverage ratio (%) |
* |
129 |
% | |||||
For the quarter ended January 31, 2024 ($ millions) |
Total adjusted value (6) |
|||||||
Total HQLA |
* | $ | 278,440 | |||||
Total net cash outflows |
* | $ | 211,290 | |||||
Liquidity coverage ratio (%) |
* | 132 | % |
* | Disclosure is not required under regulatory guideline. |
(1) | This measure has been disclosed in this document in accordance with OSFI Guideline – Public Disclosure Requirements for Domestic Systemically Important Banks on Liquidity Coverage Ratio (April 2015). |
(2) | Based on the average of daily positions of the 62 business days in the quarter. |
(3) | Unweighted values represent outstanding balances maturing or callable within the next 30 days. |
(4) | Weighted values represent balances calculated after the application of HQLA haircuts or inflow and outflow rates, as prescribed by the OSFI LAR Guideline. |
(5) | Total unweighted value includes uncommitted credit and liquidity facilities, guarantees and letters of credit, outstanding debt securities with remaining maturity greater than 30 days, and other contractual cash outflows. |
(6) | Total adjusted value represents balances calculated after the application of both haircuts and inflow and outflow rates and any applicable caps. |
44 |
Scotiabank Second Quarter Report 2024 |
Unweighted Value by Residual Maturity | Weighted Value (3) |
|||||||||||||||||||
As at April 30, 2024 ($ millions) |
No maturity (2) |
< 6 months | 6-12 months |
≥ 1 year |
||||||||||||||||
Available Stable Funding (ASF) Item |
||||||||||||||||||||
Capital: | $ | 90,527 | $ | – | $ | – | $ | – | $ | 90,527 | ||||||||||
Regulatory capital |
90,527 | – | – | – | 90,527 | |||||||||||||||
Other capital instruments |
– | – | – | – | – | |||||||||||||||
Retail deposits and deposits from small business customers: | 190,730 | 87,189 | 41,711 | 49,882 | 337,499 | |||||||||||||||
Stable deposits |
88,196 | 29,264 | 17,182 | 17,644 | 145,554 | |||||||||||||||
Less stable deposits |
102,534 | 57,924 | 24,529 | 32,238 | 191,944 | |||||||||||||||
Wholesale funding: | 208,013 | 274,794 | 58,785 | 130,492 | 323,962 | |||||||||||||||
Operational deposits |
116,326 | – | – | – | 58,163 | |||||||||||||||
Other wholesale funding |
91,687 | 274,794 | 58,785 | 130,492 | 265,799 | |||||||||||||||
Liabilities with matching interdependent assets (4) |
– | 2,559 | 2,939 | 13,868 | – | |||||||||||||||
Other liabilities: | 64,976 | 141,065 | 21,078 | |||||||||||||||||
NSFR derivative liabilities |
9,035 | |||||||||||||||||||
All other liabilities and equity not included in the above categories |
64,976 | 109,815 | 2,274 | 19,941 | 21,078 | |||||||||||||||
Total ASF |
$ |
773,065 |
||||||||||||||||||
Required Stable Funding (RSF) Item |
||||||||||||||||||||
Total NSFR high-quality liquid assets (HQLA) | $ | 20,454 | ||||||||||||||||||
Deposits held at other financial institutions for operational purposes | $ | 1,837 | $ | – | $ | – | $ | – | $ | 919 | ||||||||||
Performing loans and securities: | 110,739 | 184,625 | 74,904 | 482,225 | 561,771 | |||||||||||||||
Performing loans to financial institutions secured by Level 1 HQLA |
135 | 3,437 | 7,158 | – | 5,433 | |||||||||||||||
Performing loans to financial institutions secured by non-Level 1 HQLA and unsecured performing loans to financial institutions |
2,811 | 89,539 | 9,698 | 12,727 | 30,454 | |||||||||||||||
Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and PSEs, of which: |
64,452 | 73,336 | 34,994 | 213,328 | 287,399 | |||||||||||||||
With a risk weight of less than or equal to 35% under the Basel II standardized approach for credit risk |
– | 298 | 891 | 1,455 | 1,540 | |||||||||||||||
Performing residential mortgages, of which: |
22,405 | 17,684 | 22,481 | 250,167 | 214,987 | |||||||||||||||
With a risk weight of less than or equal to 35% under the Basel II standardised approach for credit risk |
22,405 | 17,565 | 22,296 | 235,478 | 202,350 | |||||||||||||||
Securities that are not in default and do not qualify as HQLA, including exchange-traded equities |
20,935 | 629 | 572 | 6,002 | 23,497 | |||||||||||||||
Assets with matching interdependent liabilities (4) |
– | 2,559 | 2,939 | 13,868 | – | |||||||||||||||
Other assets: | 3,301 | 201,441 | 59,718 | |||||||||||||||||
Physical traded commodities, including gold |
3,301 | 2,806 | ||||||||||||||||||
Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs |
9,025 | 7,671 | ||||||||||||||||||
NSFR derivative assets |
5,667 | – | ||||||||||||||||||
NSFR derivative liabilities before deduction of variation margin posted |
27,623 | 1,381 | ||||||||||||||||||
All other assets not included in the above categories |
– | 111,271 | – | 47,856 | 47,860 | |||||||||||||||
Off-balance sheet items |
499,819 | 19,008 | ||||||||||||||||||
Total RSF |
$ |
661,869 |
||||||||||||||||||
Net Stable Funding Ratio (%) |
117 |
% |
As at January 31, 2024 ($ millions) |
Weighted Value (3) |
|||
Total ASF |
$ | 766,352 | ||
Total RSF |
656,450 | |||
Net stable funding ratio (%) |
117 | % |
(1) | This measure has been disclosed in this document in accordance with OSFI Guideline – Net Stable Funding Ratio Disclosure Requirements (January 2021). |
(2) | Items in the “no maturity” time bucket do not have a stated maturity. These may include, but are not limited to, items such as capital with perpetual maturity, non-maturity deposits, short positions, open maturity positions, non-HQLA equities, and physical traded commodities. |
(3) | Weighted values represent balances calculated after the application of ASF and RSF rates, as prescribed by the OSFI LAR Guideline. |
(4) | Interdependent assets and liabilities are primarily comprised of transactions related to the Canada Mortgage Bond program. |
Scotiabank Second Quarter Report 2024 | 45 |
46 |
Scotiabank Second Quarter Report 2024 |
As at April 30, 2024 |
||||||||||||||||||||||||||||||||||||||||
($ millions) |
Less than 1 month |
1-3 months |
3-6 months |
6-9 months |
9-12 months |
Sub-total ≤ 1 year |
1-2 years |
2-5 years |
>5 years |
Total |
||||||||||||||||||||||||||||||
Deposit by banks (2) |
$ |
3,024 |
$ |
1,700 |
$ |
500 |
$ |
265 |
$ |
229 |
$ |
5,718 |
$ |
190 |
– |
– |
$ |
5,908 |
||||||||||||||||||||||
Bearer notes, commercial paper and certificate of deposits |
7,401 |
16,661 |
18,890 |
12,697 |
10,300 |
65,949 |
818 |
270 |
146 |
67,183 |
||||||||||||||||||||||||||||||
Asset-backed commercial paper (3) |
4,222 |
5,729 |
2,418 |
69 |
– |
12,438 |
– |
– |
– |
12,438 |
||||||||||||||||||||||||||||||
Senior notes (4)(5) |
622 |
7,602 |
1,388 |
2,104 |
2,188 |
13,904 |
2,812 |
8,303 |
11,836 |
36,855 |
||||||||||||||||||||||||||||||
Bail-inable notes (5) |
– |
2,272 |
1,915 |
5,825 |
6,368 |
16,380 |
16,244 |
26,935 |
15,156 |
74,715 |
||||||||||||||||||||||||||||||
Asset-backed securities |
– |
– |
– |
3 |
– |
3 |
1,506 |
1,362 |
837 |
3,708 |
||||||||||||||||||||||||||||||
Covered bonds |
– |
– |
2,939 |
1,469 |
4,791 |
9,199 |
10,013 |
23,031 |
6,224 |
48,467 |
||||||||||||||||||||||||||||||
Mortgage securitization (6) |
– |
1,748 |
811 |
650 |
1,821 |
5,030 |
2,890 |
7,285 |
3,650 |
18,855 |
||||||||||||||||||||||||||||||
Subordinated debt (7) |
– |
– |
– |
53 |
– |
53 |
1,986 |
194 |
7,919 |
10,152 |
||||||||||||||||||||||||||||||
Total wholesale funding sources |
$ |
15,269 |
$ |
35,712 |
$ |
28,861 |
$ |
23,135 |
$ |
25,697 |
$ |
128,674 |
$ |
36,459 |
$ |
67,380 |
$ |
45,768 |
$ |
278,281 |
||||||||||||||||||||
Of Which: |
||||||||||||||||||||||||||||||||||||||||
Unsecured funding |
$ |
11,047 |
$ |
28,235 |
$ |
22,692 |
$ |
20,944 |
$ |
19,084 |
$ |
102,002 |
$ |
22,050 |
$ |
35,702 |
$ |
35,058 |
$ |
194,812 |
||||||||||||||||||||
Secured funding |
4,222 |
7,477 |
6,169 |
2,191 |
6,613 |
26,672 |
14,409 |
31,678 |
10,710 |
83,469 |
||||||||||||||||||||||||||||||
As at October 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
($ millions) |
Less than 1 month |
1-3 months |
3-6 months |
6-9 months |
9-12 months |
Sub-total ≤ 1 year |
1-2 years |
2-5 years |
>5 years |
Total | ||||||||||||||||||||||||||||||
Deposit by banks (2) |
$ | 2,363 | $ | 1,197 | $ | 129 | $ | 693 | $ | 450 | $ | 4,832 | $ | 415 | – | – | $ | 5,247 | ||||||||||||||||||||||
Bearer notes, commercial paper and certificate of deposits |
12,026 | 15,304 | 20,407 | 17,064 | 7,060 | 71,861 | 1,739 | 268 | 79 | 73,947 | ||||||||||||||||||||||||||||||
Asset-backed commercial paper (3) |
4,532 | 3,998 | 2,655 | 1,397 | – | 12,582 | – | – | – | 12,582 | ||||||||||||||||||||||||||||||
Senior notes (4)(5) |
176 | 3,034 | 4,047 | 7,740 | 1,392 | 16,389 | 2,250 | 8,651 | 11,593 | 38,883 | ||||||||||||||||||||||||||||||
Bail-inable notes (5) |
– | 613 | 9,450 | 2,288 | 1,889 | 14,240 | 20,462 | 26,063 | 15,204 | 75,969 | ||||||||||||||||||||||||||||||
Asset-backed securities |
– | 1 | – | – | – | 1 | 910 | 1,387 | 851 | 3,149 | ||||||||||||||||||||||||||||||
Covered bonds |
– | 1,834 | – | – | 2,935 | 4,769 | 9,163 | 29,892 | 5,976 | 49,800 | ||||||||||||||||||||||||||||||
Mortgage securitization (6) |
– | 953 | 548 | 1,751 | 811 | 4,063 | 3,627 | 7,851 | 4,268 | 19,809 | ||||||||||||||||||||||||||||||
Subordinated debt (7) |
– | – | 2 | – | – | 2 | 336 | 1,976 | 9,322 | 11,636 | ||||||||||||||||||||||||||||||
Total wholesale funding sources |
$ | 19,097 | $ | 26,934 | $ | 37,238 | $ | 30,933 | $ | 14,537 | $ | 128,739 | $ | 38,902 | $ | 76,088 | $ | 47,293 | $ | 291,022 | ||||||||||||||||||||
Of Which: |
||||||||||||||||||||||||||||||||||||||||
Unsecured funding |
$ | 14,566 | $ | 20,148 | $ | 34,034 | $ | 27,784 | $ | 10,792 | $ | 107,324 | $ | 25,201 | $ | 36,959 | $ | 36,198 | $ | 205,682 | ||||||||||||||||||||
Secured funding |
4,531 | 6,786 | 3,204 | 3,149 | 3,745 | 21,415 | 13,701 | 39,129 | 11,095 | 85,340 |
(1) | Wholesale funding sources exclude obligations related to securities sold under repurchase agreements and bankers’ acceptances, which are disclosed in the contractual maturities table below. Amounts are principal at maturity based on remaining term. |
(2) | Only includes commercial bank deposits. |
(3) | Wholesale funding sources also exclude asset-backed commercial paper (ABCP) issued by certain ABCP conduits that are not consolidated for financial reporting purposes. |
(4) | Not subject to bail-in. |
(5) | Includes structured notes issued to institutional investors. |
(6) | Represents residential mortgages funded through Canadian Federal Government agency sponsored programs. Funding accessed through such programs does not impact the funding capacity of the Bank in its own name. |
(7) | Although subordinated debentures are a component of regulatory capital, they are included in this table in accordance with EDTF recommended disclosures. |
Scotiabank Second Quarter Report 2024 | 47 |
As at April 30, 2024 (1) |
||||||||||||||||||||||||||||||||||||||||
($ millions) |
Less than one month |
One to three months |
Three to six months |
Six to nine months |
Nine to twelve months |
One to two years |
Two to five years |
Over five years |
No specific maturity |
Total |
||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||
Cash and deposits with financial institutions and precious metals |
$ |
52,930 |
$ |
435 |
$ |
268 |
$ |
238 |
$ |
117 |
$ |
295 |
$ |
420 |
$ |
239 |
$ |
4,942 |
$ |
59,884 |
||||||||||||||||||||
Trading assets |
2,192 |
5,539 |
6,047 |
2,399 |
5,062 |
9,975 |
19,473 |
19,969 |
61,624 |
132,280 |
||||||||||||||||||||||||||||||
Securities purchased under resale agreements and securities borrowed |
162,323 |
16,553 |
10,007 |
1,706 |
2,269 |
– |
– |
– |
– |
192,858 |
||||||||||||||||||||||||||||||
Derivative financial instruments |
2,679 |
3,620 |
3,046 |
4,264 |
2,330 |
6,937 |
9,992 |
11,988 |
– |
44,856 |
||||||||||||||||||||||||||||||
Investment securities – FVOCI |
3,387 |
5,662 |
6,070 |
6,389 |
5,298 |
10,444 |
47,162 |
24,588 |
1,699 |
110,699 |
||||||||||||||||||||||||||||||
Investment securities – amortized cost |
310 |
965 |
890 |
828 |
756 |
2,553 |
5,363 |
20,380 |
– |
32,045 |
||||||||||||||||||||||||||||||
Investment securities – FVTPL |
– |
– |
– |
– |
– |
– |
– |
– |
2,040 |
2,040 |
||||||||||||||||||||||||||||||
Loans |
58,287 |
41,888 |
43,190 |
42,390 |
41,807 |
147,109 |
261,944 |
53,572 |
63,339 |
753,526 |
||||||||||||||||||||||||||||||
Residential mortgages |
4,333 |
8,672 |
14,865 |
14,628 |
16,405 |
84,601 |
157,509 |
40,072 |
3,083 |
(2) |
344,168 |
|||||||||||||||||||||||||||||
Personal loans |
4,392 |
2,697 |
4,019 |
4,226 |
2,852 |
12,777 |
25,457 |
6,392 |
42,716 |
105,528 |
||||||||||||||||||||||||||||||
Credit cards |
– |
– |
– |
– |
– |
– |
– |
– |
17,579 |
17,579 |
||||||||||||||||||||||||||||||
Business and government |
49,562 |
30,519 |
24,306 |
23,536 |
22,550 |
49,731 |
78,978 |
7,108 |
6,468 |
(3) |
292,758 |
|||||||||||||||||||||||||||||
Allowance for credit losses |
– |
– |
– |
– |
– |
– |
– |
– |
(6,507 |
) |
(6,507 |
) | ||||||||||||||||||||||||||||
Customers’ liabilities under acceptances |
7,724 |
1,391 |
2 |
– |
– |
– |
– |
– |
– |
9,117 |
||||||||||||||||||||||||||||||
Other assets |
– |
– |
– |
– |
– |
– |
– |
– |
62,125 |
62,125 |
||||||||||||||||||||||||||||||
Total assets |
$ |
289,832 |
$ |
76,053 |
$ |
69,520 |
$ |
58,214 |
$ |
57,639 |
$ |
177,313 |
$ |
344,354 |
$ |
130,736 |
$ |
195,769 |
$ |
1,399,430 |
||||||||||||||||||||
Liabilities and equity |
||||||||||||||||||||||||||||||||||||||||
Deposits |
$ |
95,876 |
$ |
77,286 |
$ |
65,461 |
$ |
54,045 |
$ |
53,493 |
$ |
65,416 |
$ |
77,850 |
$ |
24,432 |
$ |
428,169 |
$ |
942,028 |
||||||||||||||||||||
Personal |
17,007 |
16,959 |
21,016 |
20,545 |
19,882 |
27,139 |
12,019 |
222 |
157,328 |
292,117 |
||||||||||||||||||||||||||||||
Non-personal |
78,869 |
60,327 |
44,445 |
33,500 |
33,611 |
38,277 |
65,831 |
24,210 |
270,841 |
649,911 |
||||||||||||||||||||||||||||||
Financial instruments designated at fair value through profit or loss |
238 |
1,272 |
1,234 |
1,403 |
2,283 |
4,922 |
7,869 |
13,766 |
– |
32,987 |
||||||||||||||||||||||||||||||
Acceptances |
7,812 |
1,391 |
2 |
– |
– |
– |
– |
– |
– |
9,205 |
||||||||||||||||||||||||||||||
Obligations related to securities sold short |
730 |
1,156 |
5,369 |
1,760 |
1,248 |
4,293 |
5,828 |
7,934 |
9,462 |
37,780 |
||||||||||||||||||||||||||||||
Derivative financial instruments |
2,307 |
2,571 |
2,476 |
3,931 |
1,985 |
7,076 |
12,545 |
19,970 |
– |
52,861 |
||||||||||||||||||||||||||||||
Obligations related to securities sold under repurchase agreements and securities lent |
171,240 |
2,129 |
101 |
4 |
– |
– |
128 |
– |
– |
173,602 |
||||||||||||||||||||||||||||||
Subordinated debentures |
– |
– |
– |
– |
– |
1,950 |
– |
6,179 |
– |
8,129 |
||||||||||||||||||||||||||||||
Other liabilities |
451 |
2,444 |
1,757 |
1,109 |
834 |
3,195 |
6,089 |
8,301 |
37,583 |
61,763 |
||||||||||||||||||||||||||||||
Total equity |
– |
– |
– |
– |
– |
– |
– |
– |
81,075 |
81,075 |
||||||||||||||||||||||||||||||
Total liabilities and equity |
$ |
278,654 |
$ |
88,249 |
$ |
76,400 |
$ |
62,252 |
$ |
59,843 |
$ |
86,852 |
$ |
110,309 |
$ |
80,582 |
$ |
556,289 |
$ |
1,399,430 |
||||||||||||||||||||
Off-balance sheet commitments |
||||||||||||||||||||||||||||||||||||||||
Credit commitments (4) |
$ |
3,540 |
$ |
12,119 |
$ |
16,305 |
$ |
17,923 |
$ |
19,601 |
$ |
46,082 |
$ |
146,665 |
$ |
14,135 |
– |
$ |
276,370 |
|||||||||||||||||||||
Guarantees and letters of credit (5) |
– |
– |
– |
– |
– |
– |
– |
– |
46,332 |
46,332 |
||||||||||||||||||||||||||||||
Outsourcing obligations (6) |
18 |
35 |
52 |
31 |
3 |
11 |
33 |
18 |
– |
201 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Includes primarily impaired mortgages. |
(3) | Includes primarily overdrafts and impaired loans. |
(4) | Includes the undrawn component of committed credit and liquidity facilities. |
(5) | Includes outstanding balances of guarantees, standby letters of credit and commercial letters of credit which may expire undrawn. |
(6) | The Bank relies on outsourcing arrangements for certain support and/or business functions, including, but not limited to, computer operations and cheque and bill payment processing. |
48 |
Scotiabank Second Quarter Report 2024 |
As at October 31, 2023 (1) |
||||||||||||||||||||||||||||||||||||||||
($ millions) |
Less than one month |
One to three months |
Three to six months |
Six to nine months |
Nine to twelve months |
One to two years |
Two to five years |
Over five years |
No specific maturity |
Total | ||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||
Cash and deposits with financial institutions and precious metals |
$ | 85,337 | $ | 383 | $ | 50 | $ | 45 | $ | 47 | $ | 132 | $ | 246 | $ | 199 | $ | 4,810 | $ | 91,249 | ||||||||||||||||||||
Trading assets |
2,822 | 6,336 | 7,434 | 2,798 | 3,687 | 8,878 | 18,512 | 16,942 | 50,459 | 117,868 | ||||||||||||||||||||||||||||||
Securities purchased under resale agreements and securities borrowed |
174,243 | 11,632 | 8,185 | 3,247 | 2,018 | – | – | – | – | 199,325 | ||||||||||||||||||||||||||||||
Derivative financial instruments |
3,403 | 5,590 | 3,641 | 2,772 | 2,238 | 7,917 | 12,495 | 13,284 | – | 51,340 | ||||||||||||||||||||||||||||||
Investment securities – FVOCI |
2,679 | 6,299 | 8,095 | 4,006 | 4,718 | 9,754 | 30,602 | 15,997 | 2,164 | 84,314 | ||||||||||||||||||||||||||||||
Investment securities – amortized cost |
291 | 560 | 754 | 1,063 | 826 | 2,937 | 5,217 | 20,336 | – | 31,984 | ||||||||||||||||||||||||||||||
Investment securities – FVTPL |
– | – | – | – | – | – | 51 | – | 1,888 | 1,939 | ||||||||||||||||||||||||||||||
Loans |
61,791 | 38,905 | 39,256 | 39,951 | 35,611 | 132,128 | 291,332 | 52,390 | 59,547 | 750,911 | ||||||||||||||||||||||||||||||
Residential mortgages |
3,722 | 6,362 | 10,961 | 12,478 | 14,087 | 70,902 | 183,644 | 39,776 | 2,250 | (2) |
344,182 | |||||||||||||||||||||||||||||
Personal loans |
3,594 | 2,538 | 4,168 | 4,398 | 3,581 | 13,419 | 24,456 | 6,782 | 41,234 | 104,170 | ||||||||||||||||||||||||||||||
Credit cards |
– | – | – | – | – | – | – | – | 17,109 | 17,109 | ||||||||||||||||||||||||||||||
Business and government |
54,475 | 30,005 | 24,127 | 23,075 | 17,943 | 47,807 | 83,232 | 5,832 | 5,326 | (3) |
291,822 | |||||||||||||||||||||||||||||
Allowance for credit losses |
– | – | – | – | – | – | – | – | (6,372 | ) | (6,372 | ) | ||||||||||||||||||||||||||||
Customers’ liabilities under acceptances |
15,243 | 3,307 | 73 | 5 | – | – | – | – | – | 18,628 | ||||||||||||||||||||||||||||||
Other assets |
– | – | – | – | – | – | – | – | 63,485 | 63,485 | ||||||||||||||||||||||||||||||
Total assets |
$ | 345,809 | $ | 73,012 | $ | 67,488 | $ | 53,887 | $ | 49,145 | $ | 161,746 | $ | 358,455 | $ | 119,148 | $ | 182,353 | $ | 1,411,043 | ||||||||||||||||||||
Liabilities and equity |
||||||||||||||||||||||||||||||||||||||||
Deposits |
$ | 109,973 | $ | 65,320 | $ | 70,697 | $ | 58,361 | $ | 46,318 | $ | 68,912 | $ | 86,716 | $ | 27,160 | $ | 418,876 | $ | 952,333 | ||||||||||||||||||||
Personal |
18,320 | 16,379 | 18,241 | 13,690 | 16,668 | 25,987 | 15,199 | 828 | 163,305 | 288,617 | ||||||||||||||||||||||||||||||
Non-personal |
91,653 | 48,941 | 52,456 | 44,671 | 29,650 | 42,925 | 71,517 | 26,332 | 255,571 | 663,716 | ||||||||||||||||||||||||||||||
Financial instruments designated at fair value through profit or loss |
385 | 696 | 1,333 | 1,084 | 1,361 | 6,979 | 4,045 | 10,896 | – | 26,779 | ||||||||||||||||||||||||||||||
Acceptances |
15,333 | 3,307 | 73 | 5 | – | – | – | – | – | 18,718 | ||||||||||||||||||||||||||||||
Obligations related to securities sold short |
312 | 2,039 | 2,216 | 1,016 | 2,032 | 2,915 | 6,827 | 7,503 | 11,543 | 36,403 | ||||||||||||||||||||||||||||||
Derivative financial instruments |
2,542 | 4,561 | 2,866 | 2,328 | 1,983 | 8,440 | 14,489 | 21,451 | – | 58,660 | ||||||||||||||||||||||||||||||
Obligations related to securities sold under repurchase agreements and securities lent |
157,525 | 821 | 1,661 | – | – | – | – | – | – | 160,007 | ||||||||||||||||||||||||||||||
Subordinated debentures |
– | – | – | – | – | 252 | 1,714 | 7,727 | – | 9,693 | ||||||||||||||||||||||||||||||
Other liabilities (3) |
530 | 1,809 | 1,309 | 1,248 | 1,556 | 7,642 | 6,021 | 8,021 | 41,743 | 69,879 | ||||||||||||||||||||||||||||||
Total equity |
– | – | – | – | – | – | – | – | 78,571 | 78,571 | ||||||||||||||||||||||||||||||
Total liabilities and equity |
$ | 286,600 | $ | 78,553 | $ | 80,155 | $ | 64,042 | $ | 53,250 | $ | 95,140 | $ | 119,812 | $ | 82,758 | $ | 550,733 | $ | 1,411,043 | ||||||||||||||||||||
Off-balance sheet commitments |
||||||||||||||||||||||||||||||||||||||||
Credit commitments (4) |
$ | 7,709 | $ | 8,558 | $ | 22,634 | $ | 17,905 | $ | 19,784 | $ | 47,035 | $ | 150,573 | $ | 11,571 | – | $ | 285,769 | |||||||||||||||||||||
Guarantees and letters of credit (5) |
– | – | – | – | – | – | – | – | 49,112 | 49,112 | ||||||||||||||||||||||||||||||
Outsourcing obligations (6) |
18 | 35 | 52 | 52 | 52 | 39 | 33 | 24 | – | 305 |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4 of the condensed interim consolidated financial statements. |
(2) | Includes primarily impaired mortgages. |
(3) | Includes primarily overdrafts and impaired loans. |
(4) | Includes the undrawn component of committed credit and liquidity facilities. |
(5) | Includes outstanding balances of guarantees, standby letters of credit and commercial letters of credit which may expire undrawn. |
(6) | The Bank relies on outsourcing arrangements for certain support and/or business functions, including, but not limited to, computer operations and cheque and bill payment processing. |
Scotiabank Second Quarter Report 2024 | 49 |
As at | ||||||||||||
($ millions) |
April 30 2024 |
January 31 2024 |
October 31 2023 |
|||||||||
Revised Basel III |
Revised Basel III |
Revised Basel III |
||||||||||
Common Equity Tier 1 capital (1) |
$ |
59,403 |
$ | 58,060 | $ | 57,041 | ||||||
Tier 1 capital (1) |
68,282 |
66,952 | 65,223 | |||||||||
Total regulatory capital (1) |
76,789 |
75,401 | 75,651 | |||||||||
Total loss absorbing capacity (TLAC) (2) |
129,939 |
130,445 | 134,504 | |||||||||
Risk-weighted assets (1)(3) |
$ |
450,191 |
$ | 451,018 | $ | 440,017 | ||||||
Capital ratios (%) (1) : |
||||||||||||
Common Equity Tier 1 capital ratio |
13.2 |
12.9 | 13.0 | |||||||||
Tier 1 capital ratio |
15.2 |
14.8 | 14.8 | |||||||||
Total capital ratio |
17.1 |
16.7 | 17.2 | |||||||||
Total loss absorbing capacity ratio (2) |
28.9 |
28.9 | 30.6 | |||||||||
Leverage (4) : |
||||||||||||
Leverage exposures |
$ |
1,555,486 |
$ | 1,547,503 | $ | 1,562,963 | ||||||
Leverage ratio (%) |
4.4 |
4.3 | 4.2 | |||||||||
Total loss absorbing capacity leverage ratio (%) (2) |
8.4 |
8.4 | 8.6 |
(1) | Commencing Q1 2024, regulatory capital ratios are based on Revised Basel III requirements as determined in accordance with OSFI Guideline – Capital Adequacy Requirements (November 2023). The prior year regulatory capital ratios were based on Revised Basel III requirements as determined in accordance with OSFI Guideline – Capital Adequacy Requirements (February 2023). |
(2) | This measure has been disclosed in this document in accordance with OSFI Guideline – Total Loss Absorbing Capacity (September 2018). |
(3) | As at April 30, 2024, the Bank did not have a regulatory capital floor add-on to risk-weighted assets (RWA) for CET1, Tier 1, Total Capital and TLAC RWA ($ 7.8 billion as at January 31, 2024; as at October 31, 2023, the Bank did not have a regulatory capital floor add-on to risk-weighted assets for CET1, Tier 1, Total Capital and TLAC RWA). |
(4) | The leverage ratios are based on Revised Basel III requirements as determined in accordance with OSFI Guideline – Leverage Requirements (February 2023). |
50 |
Scotiabank Second Quarter Report 2024 |
(1) | This measure has been disclosed in this document in accordance with OSFI Guideline – Capital Adequacy Requirements (November 2023). |
Scotiabank Second Quarter Report 2024 | 51 |
52 |
Scotiabank Second Quarter Report 2024 |
Scotiabank Second Quarter Report 2024 | 53 |
April 30, 2024 | Amount ($ millions) |
Dividends declared per share (1) |
Number outstanding (000s) |
Conversion feature |
||||||||||||
Common Shares (2) |
$ | 21,066 | $ | 1.06 | 1,229,570 | n/a | ||||||||||
NVCC Additional Tier 1 Securities (3)(5) |
Amount ($ millions) |
Distribution (4) |
Yield (%) |
Number outstanding (000s) |
||||||||||||
Subordinated Additional Tier 1 Capital Notes |
U.S.$ | 1,250 | U.S.$ | 20.7493 | 8.20853 | 1,250 | ||||||||||
Subordinated Additional Tier 1 Capital Notes |
U.S.$ | 1,250 | U.S.$ | 12.25 | 4.900 | 1,250 | ||||||||||
Limited Recourse Capital Notes Series 1 |
$ | 1,250 | $ | 9.25 | 3.700 | 1,250 | ||||||||||
Limited Recourse Capital Notes Series 2 |
U.S.$ | 600 | U.S.$ | 9.0625 | 3.625 | 600 | ||||||||||
Limited Recourse Capital Notes Series 3 |
$ | 1,500 | $ | 17.5575 | 7.023 | 1,500 | ||||||||||
Limited Recourse Capital Notes Series 4 |
U.S.$ | 750 | U.S.$ | 21.5625 | 8.625 | 750 | ||||||||||
Limited Recourse Capital Notes Series 5 |
U.S.$ | 750 | U.S.$ | 20.0000 | 8.000 | 750 | ||||||||||
NVCC Subordinated Debentures (3) |
Amount ($ millions) |
Interest rate (%) |
||||||||||||||
Subordinated debentures due December 2025 |
U.S.$ | 1,250 | 4.500 | |||||||||||||
Subordinated debentures due July 2029 |
$ | 1,500 | 2.836 | |||||||||||||
Subordinated debentures due May 2032 |
$ | 1,750 | 3.934 | |||||||||||||
Subordinated debentures due December 2032 |
JPY | 33,000 | 1.800 | |||||||||||||
Subordinated debentures due August 2033 |
$ | 1,000 | 5.679 | |||||||||||||
Subordinated debentures due December 2033 |
JPY | 12,000 | 1.830 | |||||||||||||
Subordinated debentures due May 2037 |
U.S.$ | 1,250 | 4.588 | |||||||||||||
Other |
Amount ($ millions) |
Distribution (4) |
Yield (%) |
Number outstanding (000s) |
||||||||||||
Scotiabank Trust Securities – Series 2006-1 issued by Scotiabank Capital Trust(6) |
$ | 750 | $ | 28.25 | 5.650 | 750 | ||||||||||
Options |
Number outstanding (000s) |
|||||||||||||||
Outstanding options granted under the Stock Option Plans to purchase common shares (2) |
12,057 |
(1) | Dividends are paid quarterly, if and when declared. Represents dividends announced on May 28, 2024. The Board of Directors, at its meeting on May 27, 2024, approved a dividend payable on July 29, 2024 to shareholders of record as of July 3, 2024. |
(2) | As at May 17, 2024, the number of outstanding common shares and options were 1,229,570 thousand and 12,014 thousand, respectively. |
(3) | These securities contain Non-Viability Contingent Capital (NVCC) provisions necessary to qualify as regulatory capital under Basel III. Refer to Notes 21 and 24 of the Consolidated Financial Statements in the Bank’s 2023 Annual Report for further details. The maximum number of common shares issuable on conversion of NVCC subordinated debentures, NVCC Subordinated additional Tier 1 capital notes, including those issued to Scotiabank LRCN Trust as recourse assets in respect of NVCC Limited Recourse Capital Notes as at April 30, 2024 would be 4,696 million common shares based on the floor price and excluding the impact of any accrued and unpaid interest and any declared but unpaid dividends. |
(4) | Distributions per face amount of $1,000 or U.S.$1,000 semi-annually or quarterly, as applicable. |
(5) | Quarterly distributions are recorded in each fiscal quarter, if and when paid. |
(6) | These securities have exchange features. Refer to Table 31 in the Bank’s 2023 Annual Report for further details. |
54 |
Scotiabank Second Quarter Report 2024 |
Scotiabank Second Quarter Report 2024 | 55 |
56 |
Scotiabank Second Quarter Report 2024 |
Scotiabank Second Quarter Report 2024 | 57 |
58 |
Scotiabank Second Quarter Report 2024 |
Condensed Interim Consolidated Financial Statements (unaudited) TABLE OF CONTENTS |
60 |
||||
65 |
||||
65 |
||||
65 |
||||
65 |
||||
66 |
||||
66 |
||||
66 |
||||
66 |
||||
67 |
76 |
||||
77 |
||||
78 |
||||
78 |
||||
79 |
||||
79 |
||||
79 |
||||
80 |
||||
83 |
||||
83 |
||||
83 |
||||
90 |
||||
Scotiabank Second Quarter Report 2024 | 59 |
As at |
||||||||||||||
(Unaudited) ($ millions) |
Note |
April 30 2024 (1) |
January 31 2024 (1) |
October 31 2023 (1) |
||||||||||
Assets |
||||||||||||||
Cash and deposits with financial institutions |
6 | $ |
$ | $ | ||||||||||
Precious metals |
||||||||||||||
Trading assets |
||||||||||||||
Securities |
||||||||||||||
Loans |
||||||||||||||
Other |
||||||||||||||
Securities purchased under resale agreements and securities borrowed |
||||||||||||||
Derivative financial instruments |
||||||||||||||
Investment securities |
7 | |||||||||||||
Loans |
||||||||||||||
Residential mortgages |
8 | |||||||||||||
Personal loans |
8 | |||||||||||||
Credit cards |
8 | |||||||||||||
Business and government |
8 | |||||||||||||
Allowance for credit losses |
8(c) | |||||||||||||
Other |
||||||||||||||
Customers’ liability under acceptances, net of allowance |
||||||||||||||
Property and equipment |
||||||||||||||
Investments in associates |
10 | |||||||||||||
Goodwill and other intangible assets |
||||||||||||||
Deferred tax assets |
||||||||||||||
Other assets |
||||||||||||||
Total assets |
$ |
$ | |
$ | |
|||||||||
Liabilities |
||||||||||||||
Deposits |
||||||||||||||
Personal |
11 | $ |
$ | $ | ||||||||||
Business and government |
11 | |||||||||||||
Financial institutions |
11 | |||||||||||||
Financial instruments designated at fair value through profit or loss |
19(b) | |||||||||||||
Other |
||||||||||||||
Acceptances |
||||||||||||||
Obligations related to securities sold short |
||||||||||||||
Derivative financial instruments |
||||||||||||||
Obligations related to securities sold under repurchase agreements and securities lent |
||||||||||||||
Subordinated debentures |
||||||||||||||
Other liabilities |
||||||||||||||
Total liabilities |
||||||||||||||
Equity |
||||||||||||||
Common equity |
||||||||||||||
Common shares |
12 | |||||||||||||
Retained earnings |
||||||||||||||
Accumulated other comprehensive income (loss) |
( |
) |
( |
) | ( |
) | ||||||||
Other reserves |
( |
) |
( |
) | ( |
) | ||||||||
Total common equity |
||||||||||||||
Preferred shares and other equity instruments |
||||||||||||||
Total equity attributable to equity holders of the Bank |
||||||||||||||
Non-controlling interests in subsidiaries |
||||||||||||||
Total equity |
||||||||||||||
Total liabilities and equity |
$ |
$ | $ |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
60 |
Scotiabank Second Quarter Report 2024 |
For the three months ended |
For the six months ended |
|||||||||||||||||||||
(Unaudited) ($ millions) |
Note |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
||||||||||||||||
Revenue |
||||||||||||||||||||||
Interest income (2) |
||||||||||||||||||||||
Loans |
$ |
$ | |
$ | |
$ |
$ | |
||||||||||||||
Securities |
||||||||||||||||||||||
Securities purchased under resale agreements and securities borrowed |
||||||||||||||||||||||
Deposits with financial institutions |
||||||||||||||||||||||
17 | ||||||||||||||||||||||
Interest expense |
||||||||||||||||||||||
Deposits |
||||||||||||||||||||||
Subordinated debentures |
||||||||||||||||||||||
Other |
||||||||||||||||||||||
17 | ||||||||||||||||||||||
Net interest income |
||||||||||||||||||||||
Non-interest income |
||||||||||||||||||||||
Card revenues |
||||||||||||||||||||||
Banking services fees |
||||||||||||||||||||||
Credit fees |
||||||||||||||||||||||
Mutual funds |
||||||||||||||||||||||
Brokerage fees |
||||||||||||||||||||||
Investment management and trust |
||||||||||||||||||||||
Underwriting and advisory fees |
||||||||||||||||||||||
Non-trading foreign exchange |
||||||||||||||||||||||
Trading revenues |
||||||||||||||||||||||
Net gain on sale of investment securities |
||||||||||||||||||||||
Net income from investments in associated corporations |
||||||||||||||||||||||
Insurance service results |
||||||||||||||||||||||
Other fees and commissions |
||||||||||||||||||||||
Other |
( |
) | ||||||||||||||||||||
Total revenue |
||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||
Non-interest expenses |
||||||||||||||||||||||
Salaries and employee benefits |
||||||||||||||||||||||
Premises and technology |
||||||||||||||||||||||
Depreciation and amortization |
||||||||||||||||||||||
Communications |
||||||||||||||||||||||
Advertising and business development |
||||||||||||||||||||||
Professional |
||||||||||||||||||||||
Business and capital taxes |
||||||||||||||||||||||
Other |
||||||||||||||||||||||
Income before taxes |
||||||||||||||||||||||
Income tax expense |
20 | |||||||||||||||||||||
Net income |
$ |
$ | $ | $ |
$ | |||||||||||||||||
Net income attributable to non-controlling interests in subsidiaries |
||||||||||||||||||||||
Net income attributable to equity holders of the Bank |
$ |
$ | $ | $ |
$ | |||||||||||||||||
Preferred shareholders and other equity instrument holders |
||||||||||||||||||||||
Common shareholders |
$ |
$ | $ | $ |
$ | |||||||||||||||||
Earnings per common share (in dollars) |
||||||||||||||||||||||
Basic |
18 | $ |
$ | $ | $ |
$ | ||||||||||||||||
Diluted |
18 | |||||||||||||||||||||
Dividends paid per common share (in dollars) |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
(2) | Includes interest income on financial assets measured at amortized cost and FVOCI, calculated using the effective interest method, of $ ) and for the six months ended April 30, 2024 – $) . |
Scotiabank Second Quarter Report 2024 |
61 |
For the three months ended |
For the six months ended |
|||||||||||||||||||
(Unaudited) ($ millions) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Net income |
$ |
$ | |
$ | |
$ |
$ | |
||||||||||||
Other comprehensive income (loss) |
||||||||||||||||||||
Items that will be reclassified subsequently to net income |
||||||||||||||||||||
Net change in unrealized foreign currency translation gains (losses): |
||||||||||||||||||||
Net unrealized foreign currency translation gains (losses) |
( |
) | ( |
) |
||||||||||||||||
Net gains (losses) on hedges of net investments in foreign operations |
( |
) |
( |
) | ( |
) | ||||||||||||||
Income tax expense (benefit): |
||||||||||||||||||||
Net unrealized foreign currency translation gains (losses) |
( |
) | – | ( |
) |
|||||||||||||||
Net gains (losses) on hedges of net investments in foreign operations |
( |
) |
( |
) | ( |
) | ||||||||||||||
( |
) | ( |
) |
|||||||||||||||||
Net change in fair value due to change in debt instruments measured at fair value through other comprehensive income: |
||||||||||||||||||||
Net gains (losses) in fair value |
( |
) |
||||||||||||||||||
Reclassification of net (gains) losses to net income |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||||
Income tax expense (benefit): |
||||||||||||||||||||
Net gains (losses) in fair value |
( |
) |
||||||||||||||||||
Reclassification of net (gains) losses to net income |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||||
( |
) |
|||||||||||||||||||
Net change in gains (losses) on derivative instruments designated as cash flow hedges: |
||||||||||||||||||||
Net gains (losses) on derivative instruments designated as cash flow hedges |
( |
) |
||||||||||||||||||
Reclassification of net (gains) losses to net income |
( |
) |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Income tax expense (benefit): |
||||||||||||||||||||
Net gains (losses) on derivative instruments designated as cash flow hedges |
( |
) |
||||||||||||||||||
Reclassification of net (gains) losses to net income |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||||
( |
) |
( |
) | |||||||||||||||||
Net changes in finance income/(expense) from insurance contracts: |
||||||||||||||||||||
Net finance income/(expense) from insurance contracts |
( |
) |
( |
) | ||||||||||||||||
Income tax expense (benefit) |
( |
) |
– | ( |
) | |||||||||||||||
– |
( |
) | ||||||||||||||||||
Other comprehensive income (loss) from investments in associates |
( |
) | ( |
) |
( |
) | ||||||||||||||
Items that will not be reclassified subsequently to net income |
||||||||||||||||||||
Net change in remeasurement of employee benefit plan asset and liability: |
||||||||||||||||||||
Actuarial gains (losses) on employee benefit plans |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||||
Income tax expense (benefit) |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||||
( |
) | ( |
) | ( |
) |
( |
) | |||||||||||||
Net change in fair value due to change in equity instruments designated at fair value through other comprehensive income: |
||||||||||||||||||||
Net gains (losses) in fair value |
( |
) |
( |
) | ||||||||||||||||
Income tax expense (benefit) |
( |
) |
( |
) | ( |
) | ||||||||||||||
( |
) |
( |
) | |||||||||||||||||
Net change in fair value due to change in own credit risk on financial liabilities designated under the fair value option: |
||||||||||||||||||||
Change in fair value due to change in own credit risk on financial liabilities designated under the fair value option |
( |
) |
( |
) | ( |
) |
||||||||||||||
Income tax expense (benefit) |
( |
) |
( |
) | ( |
) |
||||||||||||||
( |
) |
( |
) | ( |
) |
|||||||||||||||
Other comprehensive income (loss) from investments in associates |
– |
– | ||||||||||||||||||
Other comprehensive income (loss) |
( |
) |
( |
) | ( |
) |
||||||||||||||
Comprehensive income (loss) |
$ |
$ | $ | $ |
$ | |||||||||||||||
Comprehensive income (loss) attributable to non-controlling interests |
( |
) | ||||||||||||||||||
Comprehensive income (loss) attributable to equity holders of the Bank |
||||||||||||||||||||
Preferred shareholders and other equity instrument holders |
||||||||||||||||||||
Common shareholders |
$ |
$ | $ | $ |
$ |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
62 |
Scotiabank Second Quarter Report 2024 |
Accumulated other comprehensive income (loss) |
||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) ($ millions) |
Common shares |
Retained earnings (1) |
Foreign currency translation |
Debt instruments FVOCI |
Equity instruments FVOCI |
Cash flow hedges |
Other (2) |
Other reserves |
Total common equity |
Preferred shares and other equity instruments |
Total attributable to equity holders |
Non- controlling interests in subsidiaries |
Total |
|||||||||||||||||||||||||||||||||||||||
Balance as at October 31, 2023 (3) |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||||||
Net income |
– |
– |
– |
– |
– |
– |
– |
|||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
– |
– |
( |
) |
( |
) |
– |
( |
) |
– |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||
Total comprehensive income |
$ |
– |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
( |
) |
$ |
– |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||||||||
Shares/instruments issued |
– |
– |
– |
– |
– |
– |
( |
) |
– |
|||||||||||||||||||||||||||||||||||||||||||
Shares repurchased/redeemed |
– |
– |
– |
– |
– |
– |
– |
– |
– |
( |
) |
( |
) |
– |
( |
) | ||||||||||||||||||||||||||||||||||||
Dividends and distributions paid to equity holders |
– |
( |
) |
– |
– |
– |
– |
– |
– |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | |||||||||||||||||||||||||||||||||
Share-based payments (4) |
– |
– |
– |
– |
– |
– |
– |
– |
– |
|||||||||||||||||||||||||||||||||||||||||||
Other |
– |
( |
) |
– |
– |
– |
– |
– |
( |
) |
– |
( |
) |
( |
) | |||||||||||||||||||||||||||||||||||||
Balance as at April 30, 2024 |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||||
Balance as at October 31, 2022 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Cumulative impact of adopting IFRS 17, net of tax |
– | ( |
) | – | – | – | – | – | – | ( |
) | – | ( |
) | – | ( |
) | |||||||||||||||||||||||||||||||||||
Restated Balance as at November 1, 2022 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Net income |
– | – | – | – | – | – | – | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
– | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income |
$ | – | $ | $ | $ | $ | $ | $ | $ | – | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Shares/instruments issued |
– | – | – | – | – | – | ( |
) | – | – | ||||||||||||||||||||||||||||||||||||||||||
Shares repurchased/redeemed |
– | – | – | – | – | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||||||||||||||
Dividends and distributions paid to equity holders |
– | ( |
) | – | – | – | – | – | – | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||
Share-based payments (4) |
– | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||||||||||||||||||
Other |
– | – | – | – | – | – | – | – | ( |
) | – | |||||||||||||||||||||||||||||||||||||||||
Balance as at April 30, 2023 (3) |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | $ | $ | $ | $ | $ |
(1) | Includes undistributed retained earnings of $ |
(2) | Includes Share from associates, Employee benefits, Own credit risk, and Insurance contracts. |
(3) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
(4) | Represents amounts on account of share-based payments (refer to Note 14). |
Scotiabank Second Quarter Report 2024 |
63 |
(Unaudited) ($ millions) |
For the three months ended |
For the six months ended |
||||||||||||||
Sources (uses) of cash flows |
April 30 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
||||||||||||
Cash flows from operating activities |
||||||||||||||||
Net income |
$ |
$ | $ |
$ | ||||||||||||
Adjustment for: |
||||||||||||||||
Net interest income |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Depreciation and amortization |
||||||||||||||||
Provision for credit losses |
||||||||||||||||
Equity-settled share-based payment expense |
– |
|||||||||||||||
Net gain on sale of investment securities |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Net income from investments in associated corporations |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Income tax expense |
||||||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Trading assets |
( |
) |
( |
) |
( |
) | ||||||||||
Securities purchased under resale agreements and securities borrowed |
( |
) | ( |
) | ||||||||||||
Loans |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Deposits |
( |
) |
( |
) | ( |
) |
||||||||||
Obligations related to securities sold short |
( |
) |
( |
) | ||||||||||||
Obligations related to securities sold under repurchase agreements and securities lent |
( |
) | ( |
) | ||||||||||||
Net derivative financial instruments |
( |
) |
( |
) | ||||||||||||
Other, net |
( |
) |
( |
) | ||||||||||||
Interest and dividends received |
||||||||||||||||
Interest paid |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Income tax paid |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Net cash from/(used in) operating activities |
( |
) |
( |
) | ||||||||||||
Cash flows from investing activities |
||||||||||||||||
Interest-bearing deposits with financial institutions |
||||||||||||||||
Purchase of investment securities |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Proceeds from sale and maturity of investment securities |
||||||||||||||||
Property and equipment, net of disposals |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Other, net |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Net cash from/(used in) investing activities |
( |
) | ||||||||||||||
Cash flows from financing activities |
||||||||||||||||
Proceeds from issue of subordinated debentures |
– |
– | – |
|||||||||||||
Redemption of subordinated debentures |
– |
( |
) | ( |
) |
( |
) | |||||||||
Proceeds from preferred shares and other equity instruments issued |
– |
– | – | |||||||||||||
Redemption of preferred shares |
– |
– | ( |
) |
– | |||||||||||
Proceeds from common shares issued |
||||||||||||||||
Cash dividends and distributions paid |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Distributions to non-controlling interests |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Payment of lease liabilities |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Other, net |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Net cash from/(used in) financing activities |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) |
||||||||||||||
Net change in cash and cash equivalents |
( |
) |
( |
) | ||||||||||||
Cash and cash equivalents at beginning of period (2) |
||||||||||||||||
Cash and cash equivalents at end of period (2) |
$ |
$ | $ |
$ |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
(2) | Represents cash and non-interest-bearing deposits with financial institutions (refer to Note 6). |
64 |
Scotiabank Second Quarter Report 2024 |
1. | Reporting entity |
2. | Basis of preparation |
• | Financial assets and liabilities measured at fair value through profit or loss |
• | Financial assets and liabilities designated at fair value through profit or loss |
• | Derivative financial instruments |
• | Equity instruments designated at fair value through other comprehensive income |
• | Debt instruments measured at fair value through other comprehensive income |
3. | Material accounting policies |
Scotiabank Second Quarter Report 2024 |
65 |
4. | Transition to IFRS 17 |
5. | Future accounting developments |
6. | Cash and deposits with financial institutions |
As at |
||||||||||||
($ millions) |
April 30 2024 |
January 31 2024 |
October 31 2023 |
|||||||||
Cash and non-interest-bearing deposits with financial institutions |
$ |
$ | $ | |||||||||
Interest-bearing deposits with financial institutions |
||||||||||||
Total |
$ |
(1) |
$ | |
(1) |
$ | |
(1) |
(1) | Net of allowances of $ |
7. | Investment securities |
As at |
||||||||||||
($ millions) |
April 30 2024 |
January 31 2024 |
October 31 2023 |
|||||||||
Debt investment securities measured at FVOCI |
$ |
$ | $ | |||||||||
Debt investment securities measured at amortized cost |
||||||||||||
Equity investment securities designated at FVOCI |
||||||||||||
Equity investment securities measured at FVTPL |
||||||||||||
Debt investment securities measured at FVTPL |
||||||||||||
Total investment securities |
$ |
$ | |
$ | |
As at April 30, 2024 ($ millions) |
Cost |
Gross unrealized gains |
Gross unrealized losses |
Fair value |
||||||||||||
Canadian federal government issued or guaranteed debt |
$ |
$ |
$ |
$ |
||||||||||||
Canadian provincial and municipal debt |
||||||||||||||||
U.S. treasury and other U.S. agency debt |
||||||||||||||||
Other foreign government debt |
||||||||||||||||
Other debt |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
As at January 31, 2024 ($ millions) |
Cost | Gross unrealized gains |
Gross unrealized losses |
Fair value | ||||||||||||
Canadian federal government issued or guaranteed debt |
$ | $ | $ | $ | ||||||||||||
Canadian provincial and municipal debt |
||||||||||||||||
U.S. treasury and other U.S. agency debt |
||||||||||||||||
Other foreign government debt |
|
|||||||||||||||
Other debt |
||||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
66 |
Scotiabank Second Quarter Report 2024 |
As at October 31, 2023 ($ millions) |
Cost | Gross unrealized gains |
Gross unrealized losses |
Fair value | ||||||||||||
Canadian federal government issued or guaranteed debt |
$ | $ | $ | $ | ||||||||||||
Canadian provincial and municipal debt |
||||||||||||||||
U.S. treasury and other U.S. agency debt |
||||||||||||||||
Other foreign government debt |
||||||||||||||||
Other debt |
||||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
As at |
||||||||||||||||||||||||
April 30, 2024 |
January 31, 2024 |
October 31, 2023 |
||||||||||||||||||||||
($ millions) |
Fair value |
Carrying value (1) |
Fair value |
Carrying value (1) |
Fair value |
Carrying value (1) |
||||||||||||||||||
Canadian federal and provincial government issued or guaranteed debt |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||
U.S. treasury and other U.S. agency debt |
||||||||||||||||||||||||
Other foreign government debt |
||||||||||||||||||||||||
Corporate debt |
||||||||||||||||||||||||
Total |
$ |
$ |
$ | |
$ | |
$ | |
$ | |
(1) | Balances are net of allowances, which are $ |
As at April 30, 2024 ($ millions) |
Cost |
Gross unrealized gains |
Gross unrealized losses |
Fair value |
||||||||||||
Common shares |
$ |
$ |
$ |
$ |
||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
As at January 31, 2024 ($ millions) |
Cost | Gross unrealized gains |
Gross unrealized losses |
Fair value | ||||||||||||
Common shares |
$ | $ | $ | $ | ||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
As at October 31, 2023 ($ millions) |
Cost | Gross unrealized gains |
Gross unrealized losses |
Fair value | ||||||||||||
Common shares |
$ | $ | $ | $ | ||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
8. | Loans, impaired loans and allowance for credit losses |
As at |
||||||||||||
April 30, 2024 |
||||||||||||
($ millions) |
Gross carrying amount |
Allowance for credit losses |
Net carrying amount |
|||||||||
Residential mortgages |
$ |
$ |
$ |
|||||||||
Personal loans |
||||||||||||
Credit cards |
||||||||||||
Business and government |
||||||||||||
Total |
$ |
$ |
$ |
Scotiabank Second Quarter Report 2024 |
67 |
As at | ||||||||||||||||||||||||
January 31, 2024 | October 31, 2023 | |||||||||||||||||||||||
($ millions) |
Gross carrying amount |
Allowance for credit losses |
Net carrying amount |
Gross carrying amount |
Allowance for credit losses |
Net carrying amount |
||||||||||||||||||
Residential mortgages |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Personal loans |
||||||||||||||||||||||||
Credit cards |
||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
As at |
||||||||||||
April 30, 2024 |
||||||||||||
($ millions) |
Gross impaired loans |
Allowance for credit losses |
Net carrying amount |
|||||||||
Residential mortgages |
$ |
$ |
$ |
|||||||||
Personal loans |
||||||||||||
Credit cards |
– |
– |
– |
|||||||||
Business and government |
||||||||||||
Total |
$ |
$ |
$ |
|||||||||
By geography: |
||||||||||||
Canada |
$ |
$ |
$ |
|||||||||
United States |
||||||||||||
Mexico |
||||||||||||
Peru |
||||||||||||
Chile |
||||||||||||
Colombia |
||||||||||||
Other international |
||||||||||||
Total |
$ |
$ |
$ |
As at | ||||||||||||||||||||||||
January 31, 2024 | October 31, 2023 | |||||||||||||||||||||||
($ millions) |
Gross impaired loans |
Allowance for credit losses |
Net carrying amount |
Gross impaired loans |
Allowance for credit losses |
Net carrying amount |
||||||||||||||||||
Residential mortgages |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Personal loans |
||||||||||||||||||||||||
Credit cards |
– | – | – | – | – | – | ||||||||||||||||||
Business and government |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
By geography: |
||||||||||||||||||||||||
Canada |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
United States |
– | – | – | – | – | – | ||||||||||||||||||
Mexico |
||||||||||||||||||||||||
Peru |
||||||||||||||||||||||||
Chile |
||||||||||||||||||||||||
Colombia |
||||||||||||||||||||||||
Other international |
||||||||||||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
(1) | Interest income recognized on impaired loans during the three months ended April 30, 2024 was $ |
(c) | Allowance for credit losses |
(i) | Key inputs and assumptions |
• | Changes in risk ratings of the borrower or instrument reflecting changes in their credit quality; |
• | Changes in the volumes of transactions; |
• | Changes in the forward-looking macroeconomic environment reflected in the variables used in the models such as GDP growth, unemployment rates, commodity prices, interest rates, and house price indices, which are closely related with credit losses in the relevant portfolio; |
• | Changes in macroeconomic scenarios and the probability weights assigned to each scenario; and |
• | Borrower migration between the three stages. |
68 |
Scotiabank Second Quarter Report 2024 |
(ii) |
Key macroeconomic variables |
Base Case Scenario |
Alternative Scenario Optimistic |
Alternative Scenario Pessimistic |
Alternative Scenario Very Pessimistic |
|||||||||||||||||||||||||||||
As at April 30, 2024 |
Next 12 Months |
Remaining Forecast Period |
Next 12 Months |
Remaining Forecast Period |
Next 12 Months |
Remaining Forecast Period |
Next 12 Months |
Remaining Forecast Period |
||||||||||||||||||||||||
Canada |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
- |
||||||||||||||||||||||||||||||
Consumer price index, y/y % |
||||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Bank of Canada overnight rate target, average % |
||||||||||||||||||||||||||||||||
HPI - Housing Price Index, y/y % change |
- |
- |
- |
|||||||||||||||||||||||||||||
USD/CAD exchange rate, average |
||||||||||||||||||||||||||||||||
U.S. |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
- |
||||||||||||||||||||||||||||||
Consumer price index, y/y % |
||||||||||||||||||||||||||||||||
Target federal funds rate, upper limit, average % |
||||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Mexico |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
|||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Chile |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
- |
||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Peru |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
|||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Colombia |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
|||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Caribbean |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
||||||||||||||||||||||||||||||||
Global |
||||||||||||||||||||||||||||||||
WTI oil price, average USD/bbl |
||||||||||||||||||||||||||||||||
Copper price, average USD/lb |
||||||||||||||||||||||||||||||||
Global GDP, y/y % change |
- |
- |
Scotiabank Second Quarter Report 2024 |
69 |
Base Case Scenario | Alternative Scenario Optimistic |
Alternative Scenario Pessimistic |
Alternative Scenario Very Pessimistic |
|||||||||||||||||||||||||||||
As at January 31, 2024 |
Next 12 Months |
Remaining Forecast Period |
Next 12 Months |
Remaining Forecast Period |
Next 12 Months |
Remaining Forecast Period |
Next 12 Months |
Remaining Forecast Period |
||||||||||||||||||||||||
Canada |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
- |
||||||||||||||||||||||||||||||
Consumer price index, y/y % |
||||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Bank of Canada overnight rate target, average % |
||||||||||||||||||||||||||||||||
HPI - Housing Price Index, y/y % change |
- |
- |
- |
- |
||||||||||||||||||||||||||||
USD/CAD exchange rate, average |
||||||||||||||||||||||||||||||||
U.S. |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
- |
||||||||||||||||||||||||||||||
Consumer price index, y/y % |
||||||||||||||||||||||||||||||||
Target federal funds rate, upper limit, average % |
||||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Mexico |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
|||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Chile |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
- |
||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Peru |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
|||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Colombia |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
- |
||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Caribbean |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
|||||||||||||||||||||||||||||||
Global |
||||||||||||||||||||||||||||||||
WTI oil price, average USD/bbl |
||||||||||||||||||||||||||||||||
Copper price, average USD/lb |
||||||||||||||||||||||||||||||||
Global GDP, y/y % change |
- |
- |
Base Case Scenario | Alternative Scenario Optimistic |
Alternative Scenario Pessimistic |
Alternative Scenario Very Pessimistic |
|||||||||||||||||||||||||||||
As at October 31, 2023 |
Next 12 Months |
Remaining Forecast Period |
Next 12 Months |
Remaining Forecast Period |
Next 12 Months |
Remaining Forecast Period |
Next 12 Months |
Remaining Forecast Period |
||||||||||||||||||||||||
Canada |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
- |
||||||||||||||||||||||||||||||
Consumer price index, y/y % |
||||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Bank of Canada overnight rate target, average % |
||||||||||||||||||||||||||||||||
HPI - Housing Price Index, y/y % change |
- |
- |
- |
- |
||||||||||||||||||||||||||||
USD/CAD exchange rate, average |
||||||||||||||||||||||||||||||||
U.S. |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
- |
||||||||||||||||||||||||||||||
Consumer price index, y/y % |
||||||||||||||||||||||||||||||||
Target federal funds rate, upper limit, average % |
||||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Mexico |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
- |
||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Chile |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
- |
||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Peru |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
|||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Colombia |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
- |
|||||||||||||||||||||||||||||||
Unemployment rate, average % |
||||||||||||||||||||||||||||||||
Caribbean |
||||||||||||||||||||||||||||||||
Real GDP growth, y/y % change |
||||||||||||||||||||||||||||||||
Global |
||||||||||||||||||||||||||||||||
WTI oil price, average USD/bbl |
||||||||||||||||||||||||||||||||
Copper price, average USD/lb |
||||||||||||||||||||||||||||||||
Global GDP, y/y % change |
- |
(iii) | Sensitivity |
70 |
Scotiabank Second Quarter Report 2024 |
(iv) | Allowance for credit losses |
Allowance for credit losses |
||||||||||||||||||||
($ millions) |
Balance as at November 1, 2023 |
Provision for credit losses (1) |
Net write-offs |
Other, including foreign currency adjustment |
Balance as at April 30, 2024 |
|||||||||||||||
Residential mortgages |
$ | $ | $ | ( |
) | $ | $ |
|||||||||||||
Personal loans |
( |
) | ( |
) | ||||||||||||||||
Credit cards |
( |
) | ( |
) | ||||||||||||||||
Business and government |
( |
) | ( |
) |
||||||||||||||||
$ | |
$ | |
$ | ( |
) | $ | ( |
) | $ |
||||||||||
Presented as: |
||||||||||||||||||||
Allowance for credit losses on loans |
$ | $ |
||||||||||||||||||
Allowance for credit losses on acceptances (2) |
||||||||||||||||||||
Allowance for credit losses on off-balance sheet exposures(3) |
(1) | Excludes amounts associated with other assets and reversal of impairment losses of $ $( ). The provision for credit losses, net of these amounts, is |
(2) | Allowance for credit losses on acceptances is recorded against the financial asset in the Consolidated Statement of Financial Position. |
(3) | Allowance for credit losses on off-balance sheet exposures is recorded in other liabilities in the Consolidated Statement of Financial Position. |
($ millions) |
Balance as at November 1, 2022 |
Provision for credit losses |
Net write-offs |
Other, including foreign currency adjustment |
Balance as at April 30, 2023 |
|||||||||||||||
Residential mortgages |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||
Personal loans |
( |
) | ||||||||||||||||||
Credit cards |
( |
) | ||||||||||||||||||
Business and government |
( |
) | ||||||||||||||||||
$ | |
$ | |
$ | ( |
) | $ | |
$ | |
||||||||||
Presented as: |
||||||||||||||||||||
Allowance for credit losses on loans |
$ | $ | ||||||||||||||||||
Allowance for credit losses on acceptances (1) |
||||||||||||||||||||
Allowance for credit losses on off-balance sheet exposures(2) |
(1) | Allowance for credit losses on acceptances is recorded against the financial asset in the Consolidated Statement of Financial Position. |
(2) | Allowance for credit losses on off-balance sheet exposures is recorded in other liabilities in the Consolidated Statement of Financial Position. |
Allowance for credit losses on loans |
As at April 30, 2024 |
|||||||||||||||
($ millions) |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
||||||||||||
Residential mortgages |
$ |
$ |
$ |
$ |
||||||||||||
Personal loans |
||||||||||||||||
Credit cards |
– |
|||||||||||||||
Business and government |
||||||||||||||||
Total (1) |
$ |
$ |
$ |
$ |
(1) | Excludes allowance for credit losses of $ off-balance sheet credit risks and reverse repos. |
As at October 31, 2023 | ||||||||||||||||
($ millions) |
Stage 1 | Stage 2 | Stage 3 | Total | ||||||||||||
Residential mortgages |
$ | $ | $ | $ | ||||||||||||
Personal loans |
||||||||||||||||
Credit cards |
– | |||||||||||||||
Business and government |
||||||||||||||||
Total (1) |
$ | |
$ | |
$ | |
$ | |
(1) | Excludes allowance for credit losses of $ off-balance sheet credit risks and reverse repos. |
As at April 30, 2023 | ||||||||||||||||
($ millions) |
Stage 1 | Stage 2 | Stage 3 | Total | ||||||||||||
Residential mortgages |
$ | $ | $ | $ | ||||||||||||
Personal loans |
||||||||||||||||
Credit cards |
– | |||||||||||||||
Business and government |
||||||||||||||||
Total (1) |
$ | |
$ | |
$ | |
$ | |
(1) | Excludes allowance for credit losses of $ off-balance sheet credit risks and reverse repos. |
Scotiabank Second Quarter Report 2024 |
71 |
As at and for the three months ended |
||||||||||||||||||||||||||||||||
April 30, 2024 |
April 30, 2023 |
|||||||||||||||||||||||||||||||
($ millions) |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
||||||||||||||||||||||||
Retail loans: |
||||||||||||||||||||||||||||||||
Residential mortgages |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Remeasurement (1) |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Newly originated or purchased financial assets |
– |
– |
– | – | ||||||||||||||||||||||||||||
Derecognition of financial assets and maturities |
( |
) |
( |
) |
– |
( |
) |
( |
) | ( |
) | – | ( |
) | ||||||||||||||||||
Changes in models and methodologies |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Transfer to (from): |
||||||||||||||||||||||||||||||||
Stage 1 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 3 |
– |
( |
) |
– |
– | ( |
) | – | ||||||||||||||||||||||||
Gross write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other movements |
||||||||||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Personal loans |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Remeasurement (1) |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Newly originated or purchased financial assets |
– |
– |
– | – | ||||||||||||||||||||||||||||
Derecognition of financial assets and maturities |
( |
) |
( |
) |
– |
( |
) |
( |
) | ( |
) | – | ( |
) | ||||||||||||||||||
Changes in models and methodologies |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Transfer to (from): |
||||||||||||||||||||||||||||||||
Stage 1 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 3 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Gross write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other movements |
||||||||||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Credit cards |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Remeasurement (1) |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Newly originated or purchased financial assets |
– |
– |
– | – | ||||||||||||||||||||||||||||
Derecognition of financial assets and maturities |
( |
) |
( |
) |
– |
( |
) |
( |
) | ( |
) | – | ( |
) | ||||||||||||||||||
Changes in models and methodologies |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Transfer to (from): |
||||||||||||||||||||||||||||||||
Stage 1 |
( |
) |
– |
– |
( |
) | – | – | ||||||||||||||||||||||||
Stage 2 |
( |
) |
– |
– |
( |
) | – | – | ||||||||||||||||||||||||
Stage 3 |
– |
( |
) |
– |
– | ( |
) | – | ||||||||||||||||||||||||
Gross write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other movements |
– | |||||||||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Total retail loans |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | |
|||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Remeasurement (1) |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Newly originated or purchased financial assets |
– |
– |
– | – | ||||||||||||||||||||||||||||
Derecognition of financial assets and maturities |
( |
) |
( |
) |
– |
( |
) |
( |
) | ( |
) | – | ( |
) | ||||||||||||||||||
Changes in models and methodologies |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Transfer to (from): |
||||||||||||||||||||||||||||||||
Stage 1 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 3 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Gross write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other movements |
||||||||||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | |
$ | |
$ | |
$ | |||||||||||||||||||||
Non-retail loans: |
||||||||||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Remeasurement (1) |
( |
) |
||||||||||||||||||||||||||||||
Newly originated or purchased financial assets |
– |
– |
– | – | ||||||||||||||||||||||||||||
Derecognition of financial assets and maturities |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Changes in models and methodologies |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Transfer to (from): |
||||||||||||||||||||||||||||||||
Stage 1 |
( |
) |
– |
– |
( |
) | – | – | ||||||||||||||||||||||||
Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 3 |
– |
( |
) |
– |
– | ( |
) | – | ||||||||||||||||||||||||
Gross write-offs | – |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other movements |
( |
) |
( |
) |
||||||||||||||||||||||||||||
Balance at end of period including off-balance sheet exposures |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Less: Allowance for credit losses on off-balance sheet exposures (2) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Balance at end of period (2) |
$ |
$ |
$ |
$ |
$ | $ | $ | $ |
72 |
Scotiabank Second Quarter Report 2024 |
As at and for the six months ended |
||||||||||||||||||||||||||||||||
April 30, 2024 |
April 30, 2023 |
|||||||||||||||||||||||||||||||
($ millions) |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
||||||||||||||||||||||||
Retail loans: |
||||||||||||||||||||||||||||||||
Residential mortgages |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Remeasurement (1) |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Newly originated or purchased financial assets |
– |
– |
– | – | ||||||||||||||||||||||||||||
Derecognition of financial assets and maturities |
( |
) |
( |
) |
– |
( |
) |
( |
) | ( |
) | – | ( |
) | ||||||||||||||||||
Changes in models and methodologies |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Transfer to (from): |
||||||||||||||||||||||||||||||||
Stage 1 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 3 |
– |
( |
) |
– |
– | ( |
) | – | ||||||||||||||||||||||||
Gross write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other movements |
( |
) |
||||||||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Personal loans |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Remeasurement (1) |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Newly originated or purchased financial assets |
– |
– |
– | – | ||||||||||||||||||||||||||||
Derecognition of financial assets and maturities |
( |
) |
( |
) |
– |
( |
) |
( |
) | ( |
) | – | ( |
) | ||||||||||||||||||
Changes in models and methodologies |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Transfer to (from): |
||||||||||||||||||||||||||||||||
Stage 1 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 3 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Gross write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other movements |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Credit cards |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Remeasurement (1) |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Newly originated or purchased financial assets |
– |
– |
– | – | ||||||||||||||||||||||||||||
Derecognition of financial assets and maturities |
( |
) |
( |
) |
– |
( |
) |
( |
) | ( |
) | – | ( |
) | ||||||||||||||||||
Changes in models and methodologies |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Transfer to (from): |
||||||||||||||||||||||||||||||||
Stage 1 |
( |
) |
– |
– |
( |
) | – | – | ||||||||||||||||||||||||
Stage 2 |
( |
) |
– |
– |
( |
) | – | – | ||||||||||||||||||||||||
Stage 3 |
– |
( |
) |
– |
– | ( |
) | – | ||||||||||||||||||||||||
Gross write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other movements |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Total retail loans |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
$ |
$ | |
$ | |
$ | |
$ | |
||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Remeasurement (1) |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Newly originated or purchased financial assets |
– |
– |
– | – | ||||||||||||||||||||||||||||
Derecognition of financial assets and maturities |
( |
) |
( |
) |
– |
( |
) |
( |
) | ( |
) | – | ( |
) | ||||||||||||||||||
Changes in models and methodologies |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Transfer to (from): |
||||||||||||||||||||||||||||||||
Stage 1 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 3 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Gross write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other movements |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Non-retail loans: |
||||||||||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Remeasurement (1) |
( |
) |
||||||||||||||||||||||||||||||
Newly originated or purchased financial assets |
– |
– |
– | – | ||||||||||||||||||||||||||||
Derecognition of financial assets and maturities |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Changes in models and methodologies |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Transfer to (from): |
||||||||||||||||||||||||||||||||
Stage 1 |
( |
) |
– |
– |
( |
) | – | – | ||||||||||||||||||||||||
Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Stage 3 |
– |
( |
) |
– |
– | ( |
) | – | ||||||||||||||||||||||||
Gross write-offs | – |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other movements |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
Balance at end of period including off-balance sheet exposures |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Less: Allowance for credit losses on off-balance sheet exposures (2) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Balance at end of period (2) |
$ |
$ |
$ |
$ |
$ | $ | $ | $ |
(1) | Includes credit risk changes as a result of significant increases in credit risk, changes in credit risk that did not result in a transfer between stages, changes in model inputs and assumptions and changes due to drawdowns of undrawn commitments. |
(2) | Allowance for credit losses on off-balance sheet exposures is recorded in other liabilities in the Consolidated Statement of Financial Position. |
Scotiabank Second Quarter Report 2024 |
73 |
(d) | Carrying value of exposures by risk rating |
Residential mortgages |
As at April 30, 2024 |
As at October 31, 2023 |
||||||||||||||||||||||||||||||
Category of PD grades ($ millions) |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
||||||||||||||||||||||||
Very low |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Low |
– |
– | ||||||||||||||||||||||||||||||
Medium |
– |
– | ||||||||||||||||||||||||||||||
High |
– |
– | ||||||||||||||||||||||||||||||
Very high |
– |
– | ||||||||||||||||||||||||||||||
Loans not graded (2) |
– |
– | ||||||||||||||||||||||||||||||
Default |
– |
– |
– | – | ||||||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ | |
$ | |
$ | $ | |
|||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Carrying value |
$ |
$ |
$ |
$ |
$ | $ | $ | $ |
(1) | Stage 3 includes purchased or originated credit-impaired loans. |
(2) | Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category. |
Personal loans |
As at April 30, 2024 |
As at October 31, 2023 |
||||||||||||||||||||||||||||||
Category of PD grades ($ millions) |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
||||||||||||||||||||||||
Very low |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Low |
– |
– | ||||||||||||||||||||||||||||||
Medium |
– |
– | ||||||||||||||||||||||||||||||
High |
– |
– | ||||||||||||||||||||||||||||||
Very high |
– |
– | ||||||||||||||||||||||||||||||
Loans not graded (2) |
– |
– | ||||||||||||||||||||||||||||||
Default |
– |
– |
– | – | ||||||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ | |
$ | |
$ | $ | |
|||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Carrying value |
$ |
$ |
$ |
$ |
$ | $ | $ | $ |
(1) | Stage 3 includes purchased or originated credit-impaired loans. |
(2) | Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category. |
Credit cards |
As at April 30, 2024 |
As at October 31, 2023 |
||||||||||||||||||||||||||||||
Category of PD grades ($ millions) |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
||||||||||||||||||||||||
Very low |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Low |
– |
– | ||||||||||||||||||||||||||||||
Medium |
– |
– | ||||||||||||||||||||||||||||||
High |
– |
– | ||||||||||||||||||||||||||||||
Very high |
– |
– | ||||||||||||||||||||||||||||||
Loans not graded (1) |
– |
– | ||||||||||||||||||||||||||||||
Default |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Total |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Allowance for credit losses |
– |
– | ||||||||||||||||||||||||||||||
Carrying value |
$ |
$ |
$ |
– |
$ |
$ | |
$ | |
$ | – | $ | |
(1) | Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category. |
Undrawn loan commitments – Retail |
As at April 30, 2024 |
As at October 31, 2023 |
||||||||||||||||||||||||||||||
Category of PD grades ($ millions) |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
||||||||||||||||||||||||
Very low |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Low |
– |
– | ||||||||||||||||||||||||||||||
Medium |
– |
– | ||||||||||||||||||||||||||||||
High |
– |
– | ||||||||||||||||||||||||||||||
Very high |
– |
– | ||||||||||||||||||||||||||||||
Loans not graded (1) |
– |
– | ||||||||||||||||||||||||||||||
Default |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Carrying value |
$ |
$ |
$ |
– |
$ |
$ | |
$ | |
$ | – | $ | |
(1) | Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category. |
74 |
Scotiabank Second Quarter Report 2024 |
Total retail loans |
As at April 30, 2024 |
As at October 31, 2023 |
||||||||||||||||||||||||||||||
Category of PD grades ($ millions) |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
||||||||||||||||||||||||
Very low |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Low |
– |
– | ||||||||||||||||||||||||||||||
Medium |
– |
– | ||||||||||||||||||||||||||||||
High |
– |
– | ||||||||||||||||||||||||||||||
Very high |
– |
– | ||||||||||||||||||||||||||||||
Loans not graded (2) |
– |
– | ||||||||||||||||||||||||||||||
Default |
– |
– |
– | – | ||||||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Carrying value |
$ |
$ |
$ |
$ |
$ | |
$ | |
$ | |
$ | |
(1) | Stage 3 includes purchased or originated credit-impaired loans. |
(2) | Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category. |
Business and government loans |
As at April 30, 2024 |
As at October 31, 2023 |
||||||||||||||||||||||||||||||
Grade ($ millions) |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
||||||||||||||||||||||||
Investment grade |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Non-investment grade |
– |
– | ||||||||||||||||||||||||||||||
Watch list |
– |
– | ||||||||||||||||||||||||||||||
Loans not graded (2) |
– |
– | ||||||||||||||||||||||||||||||
Default |
– |
– |
– | – | ||||||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Carrying value |
$ |
$ |
$ |
$ |
$ | |
$ | |
$ | |
$ | |
(1) | Stage 3 includes purchased or originated credit-impaired loans. |
(2) | Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category. |
Undrawn loan commitments – Business and government |
As at April 30, 2024 |
As at October 31, 2023 |
||||||||||||||||||||||||||||||
Grade ($ millions) |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
||||||||||||||||||||||||
Investment grade |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Non-investment grade |
– |
– | ||||||||||||||||||||||||||||||
Watch list |
– |
– | ||||||||||||||||||||||||||||||
Loans not graded (2) |
– |
– |
– | – | ||||||||||||||||||||||||||||
Default |
– |
– |
– | – | ||||||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ | |
$ | |
$ | |
$ | |
||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Carrying value |
$ |
$ |
$ |
$ |
$ | $ | $ | $ |
(1) | Stage 3 includes purchased or originated credit-impaired loans. |
(2) | Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category. |
Total non-retail loans |
As at April 30, 2024 |
As at October 31, 2023 |
||||||||||||||||||||||||||||||
Grade ($ millions) |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
||||||||||||||||||||||||
Investment grade |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Non-investment grade |
– |
– | ||||||||||||||||||||||||||||||
Watch list |
– |
– | ||||||||||||||||||||||||||||||
Loans not graded (2) |
– |
– | ||||||||||||||||||||||||||||||
Default |
– |
– |
– | – | ||||||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ | |
$ | |
$ | |
$ | |
||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Carrying value |
$ |
$ |
$ |
$ |
$ | $ | $ | $ |
(1) | Stage 3 includes purchased or originated credit-impaired loans. |
(2) | Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category. |
Scotiabank Second Quarter Report 2024 |
75 |
(e) | Loans past due but not impaired (1) |
As at April 30, 2024 (2) |
||||||||||||||||
($ millions) |
31-60 days |
61-90 days |
91 days and greater (3) |
Total |
||||||||||||
Residential mortgages |
$ |
$ |
$ |
– |
$ |
|||||||||||
Personal loans |
– |
|||||||||||||||
Credit cards |
||||||||||||||||
Business and government |
– |
|||||||||||||||
Total |
$ |
$ |
$ |
$ |
As at January 31, 2024 (2) |
||||||||||||||||
($ millions) |
31-60 days |
61-90 days |
91 days and greater (3) |
Total | ||||||||||||
Residential mortgages |
$ | $ | $ | – | $ | |||||||||||
Personal loans |
– | |||||||||||||||
Credit cards |
||||||||||||||||
Business and government |
– | |||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
As at October 31, 2023 (2) |
||||||||||||||||
($ millions) |
31-60 days |
61-90 days |
91 days and greater (3) |
Total | ||||||||||||
Residential mortgages |
$ | $ | $ | – | $ | |||||||||||
Personal loans |
– | |||||||||||||||
Credit cards |
||||||||||||||||
Business and government |
– | |||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
(1) | Loans past due 30 days or less are not presented in this analysis as they are not administratively considered past due. |
(2) | For loans where payment deferrals were granted, deferred payments are not considered past due and such loans are not aged further during the deferral period. Regular ageing of the loans resumes, after the end of the deferral period. |
(3) | All loans that are over 90 days past due are considered impaired with the exception of credit card receivables which are considered impaired when 180 days past due. |
(f) | Purchased credit-impaired loans |
As at |
||||||||||||
($ millions) |
April 30 2024 |
January 31 2024 |
October 31 2023 |
|||||||||
Unpaid principal balance (1) |
$ |
$ | |
$ | |
|||||||
Credit related fair value adjustments |
( |
) |
( |
) | ( |
) | ||||||
Carrying value |
||||||||||||
Stage 3 allowance |
( |
) |
( |
) | ( |
) | ||||||
Carrying value net of related allowance |
$ |
$ | $ |
(1) | Represents principal amount owed net of write-offs. |
9. | Derecognition of financial assets |
76 |
Scotiabank Second Quarter Report 2024 |
As at |
||||||||||||
($ millions) |
April 30 2024 (1) |
January 31 2024 (1) |
October 31 2023 (1) |
|||||||||
Assets |
||||||||||||
Carrying value of residential mortgage loans |
$ |
$ | $ | |||||||||
Other related assets (2) |
||||||||||||
Liabilities |
||||||||||||
Carrying value of associated liabilities |
$ |
$ | |
$ | |
(1) | The fair value of the transferred assets is $ |
(2) | These include cash held in trust and trust-permitted investment assets, including repurchase-type transactions of mortgage-backed securities, included in the principal reinvestment account that the Bank is required to maintain in order to participate in the programs. |
As at |
||||||||||||
($ millions) |
April 30 2024 (1) |
January 31 2024 (1) |
October 31 2023 (1) |
|||||||||
Carrying value of securities associated with: |
||||||||||||
Repurchase agreements (2) |
$ |
$ | $ | |||||||||
Securities lending agreements |
||||||||||||
Total |
||||||||||||
Carrying value of associated liabilities (3) |
$ |
$ | |
$ | |
(1) | The fair value of transferred assets is $ |
(2) | Does not include over-collateralization of assets pledged. |
(3) | Liabilities for securities lending arrangements only include amounts related to cash collateral received. In most cases, securities are received as collateral. |
10. | Investments in associates |
As at |
||||||||||||||||||||||||||||
April 30 2024 |
January 31 2024 |
October 31 2023 |
||||||||||||||||||||||||||
($ millions) |
Country of incorporation |
Nature of business |
Ownership percentage |
Date of financial statements (1) |
Carrying value |
Carrying value |
Carrying value |
|||||||||||||||||||||
Bank of Xi’an Co. Ltd. (2) |
% | $ |
$ | |
$ | |
||||||||||||||||||||||
Maduro & Curiel’s Bank N.V. (3) |
% |
(1) | Represents the date of the most recent financial statements made available to the Bank by the associates’ management. |
(2) | Based on the quoted price on the Shanghai Stock Exchange, the Bank’s Investment in Bank of Xi’an Co. Ltd. was $ impairment for the period ended April 30, 2024 (January 31, 2024 – |
(3) | The local regulator requires financial institutions to set aside reserves for general banking risks. These reserves are not required under IFRS, and represent undistributed retained earnings related to a foreign associated corporation, which are subject to local regulatory restrictions. As of April 30, 2024, these reserves amounted to $ |
Scotiabank Second Quarter Report 2024 |
77 |
11. | Deposits |
As at |
||||||||||||||||||||||||||||
April 30, 2024 |
January 31 2024 |
October 31 2023 |
||||||||||||||||||||||||||
Payable on demand (1) |
Payable after notice (2) |
|||||||||||||||||||||||||||
($ millions) |
Interest- bearing |
Non-interest- bearing |
Payable on a fixed date (3) |
Total |
Total |
Total |
||||||||||||||||||||||
Personal |
$ |
$ |
$ |
$ |
$ |
$ | $ | |||||||||||||||||||||
Business and government |
||||||||||||||||||||||||||||
Financial institutions |
||||||||||||||||||||||||||||
$ |
$ |
$ |
(4) |
$ |
$ |
$ | $ | |||||||||||||||||||||
Recorded in: |
||||||||||||||||||||||||||||
Canada |
$ |
$ |
$ |
$ |
$ |
$ | |
$ | |
|||||||||||||||||||
United States |
||||||||||||||||||||||||||||
United Kingdom |
– |
– |
||||||||||||||||||||||||||
Mexico |
||||||||||||||||||||||||||||
Peru |
||||||||||||||||||||||||||||
Chile |
||||||||||||||||||||||||||||
Colombia |
||||||||||||||||||||||||||||
Other International |
||||||||||||||||||||||||||||
Total (5) |
$ |
$ |
$ |
$ |
$ |
$ | $ |
(1) | Deposits payable on demand include all deposits for which the Bank does not have the right to notice of withdrawal, generally chequing accounts. |
(2) | Deposits payable after notice include all deposits for which the Bank requires notice of withdrawal, generally savings accounts. |
(3) | All deposits that mature on a specified date, generally term deposits, guaranteed investments certificates and similar instruments. |
(4) | Includes $ |
(5) | Deposits denominated in U.S. dollars amount to $ |
($ millions) |
Within three months |
Three to six months |
Six to twelve months |
One to five years |
Over five years |
Total | ||||||||||||||||||
As at April 30, 2024 |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
As at January 31, 2024 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
As at October 31, 2023 |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
(1) | The majority of foreign term deposits are in excess of $ |
12. | Capital and financing transactions |
For the three months ended | ||||||||||||||||
April 30, 2024 |
April 30, 2023 | |||||||||||||||
($ millions) |
Number of shares |
Amount |
Number of shares | Amount | ||||||||||||
Outstanding at beginning of period |
$ |
$ | ||||||||||||||
Issued in relation to share-based payments, net |
||||||||||||||||
Issued in relation to the Shareholder Dividend and Share Purchase Plan (1) |
||||||||||||||||
Outstanding at end of period |
$ |
$ | |
For the six months ended | ||||||||||||||||
April 30, 2024 |
April 30, 2023 | |||||||||||||||
($ millions) |
Number of shares |
Amount |
Number of shares | Amount | ||||||||||||
Outstanding at beginning of period |
$ |
$ | ||||||||||||||
Issued in relation to share-based payments, net |
||||||||||||||||
Issued in relation to the Shareholder Dividend and Share Purchase Plan (1) |
||||||||||||||||
Outstanding at end of period |
$ |
$ | |
(1) | Commencing with the dividend declared on February 28, 2023 and paid on April 26, 2023, the Bank issued to participants of the Shareholder Dividend and Share Purchase Plan (the Plan), common shares from treasury with a discount of |
78 |
Scotiabank Second Quarter Report 2024 |
13. | Capital management |
As at |
||||||||||||
($ millions) |
April 30 2024 |
January 31 2024 |
October 31 2023 |
|||||||||
Revised Basel III |
Revised Basel III |
Revised Basel III |
||||||||||
Capital (1)(2) |
||||||||||||
Common Equity Tier 1 capital |
$ |
$ | $ | |||||||||
Net Tier 1 capital |
||||||||||||
Total regulatory capital |
||||||||||||
Total loss absorbing capacity (TLAC) (3) |
||||||||||||
Risk-weighted assets/exposures used in calculation of capital ratios |
||||||||||||
Risk-weighted assets (1)(2)(4) |
$ |
$ | $ | |||||||||
Leverage exposures (5) |
|
|
||||||||||
Regulatory ratios (1)(2) |
||||||||||||
Common Equity Tier 1 capital ratio |
% |
% | % | |||||||||
Tier 1 capital ratio |
% |
% | % | |||||||||
Total capital ratio |
% |
% | % | |||||||||
Total loss absorbing capacity ratio (3) |
% |
% | % | |||||||||
Leverage ratio (5) |
% |
% | % | |||||||||
Total loss absorbing capacity leverage ratio (3) |
% |
% | % |
(1) | Regulatory ratios and amounts reported are under Revised Basel III requirements. |
(2) | Commencing Q1 2024, regulatory capital ratios are based on Revised Basel III requirements as determined in accordance with OSFI Guideline – Capital Adequacy Requirements (November 2023). The prior year regulatory capital ratios were based on Revised Basel III requirements as determined in accordance with OSFI Guideline – Capital Adequacy Requirements (February 2023). |
(3) | This measure has been disclosed in this document in accordance with OSFI Guideline – Total Loss Absorbing Capacity (September 2018). |
(4) | As at April 30, 2024, the Bank did billion as at January 31, 2024; as at October 31, 2023, the Bank did add-on to risk-weighted assets for CET1, Tier 1, Total Capital and TLAC RWA). |
(5) | The leverage ratios are based on Revised Basel III requirements as determined in accordance with OSFI Guideline – Leverage Requirements (February 2023). |
14. | Share-based payments |
15. | Employee benefits |
For the three months ended |
||||||||||||||||||||||||
Pension plans |
Other benefit plans |
|||||||||||||||||||||||
($ millions) |
April 30 2024 |
January 31 2024 |
April 30 2023 |
April 30 2024 |
January 31 2024 |
April 30 2023 |
||||||||||||||||||
Defined benefit service cost |
$ |
$ | $ | $ |
$ | $ | ||||||||||||||||||
Interest on net defined benefit (asset) liability |
( |
) |
( |
) | ( |
) | ||||||||||||||||||
Other |
( |
) |
– | |||||||||||||||||||||
Defined benefit expense |
$ |
$ | $ | $ |
$ | $ | ||||||||||||||||||
Defined contribution expense |
$ |
$ | $ | $ |
– |
$ | – | $ | – | |||||||||||||||
Increase (decrease) in other comprehensive income related to employee benefits (2) |
$ |
( |
) |
$ | |
$ | ( |
) | $ |
( |
) |
$ | |
$ | ( |
) |
Scotiabank Second Quarter Report 2024 |
79 |
For the six months ended |
||||||||||||||||
Pension plans |
Other benefit plans |
|||||||||||||||
($ millions) |
April 30 2024 |
April 30 2023 |
April 30 2024 |
April 30 2023 |
||||||||||||
Defined benefit service cost |
$ |
$ | $ |
$ | ||||||||||||
Interest on net defined benefit (asset) liability |
( |
) |
( |
) | ||||||||||||
Other |
||||||||||||||||
Defined benefit expense |
$ |
$ | $ |
$ | ||||||||||||
Defined contribution expense |
$ |
$ | $ |
– |
$ | – | ||||||||||
Increase (decrease) in other comprehensive income related to employee benefits (2) |
$ |
$ | ( |
) | $ |
$ | ( |
) |
(1) | Other plans operated by certain subsidiaries of the Bank are not considered material and are not included in this note. |
(2) | Changes in discount rates and return on plan assets are reviewed and updated on a quarterly basis. In the absence of legislated changes, all other assumptions are updated annually. |
16. | Operating segments |
• | tax normalization adjustments related to the gross-up of income from associated corporations. This adjustment normalizes the effective tax rate in the divisions to better present the contribution of the associated companies to the divisional results. |
• | the grossing up of tax-exempt net interest income and non-interest income to an equivalent before-tax basis for those affected segments. This change in measurement enables comparison of net interest income and non-interest income arising from taxable and tax-exempt sources. |
For the three months ended April 30, 2024 |
||||||||||||||||||||||||
($ millions) |
Canadian Banking (1)(2) |
International Banking (1)(2) |
Global Wealth Management (1) |
Global Banking and Markets (1) |
Other (1)(3) |
Total (2) |
||||||||||||||||||
Net interest income (4) |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
Non-interest income(5)(6) |
||||||||||||||||||||||||
Total revenues |
( |
) |
||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||
Depreciation and amortization |
||||||||||||||||||||||||
Other non-interest expenses |
( |
) |
||||||||||||||||||||||
Provision for income taxes |
( |
) |
||||||||||||||||||||||
Net income |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ |
– |
$ |
$ |
$ |
– |
$ |
– |
$ |
|||||||||||||||
Net income attributable to equity holders of the Bank |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
Average assets ($ billions) |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Average liabilities ($ billions) |
$ |
$ |
$ |
$ |
$ |
$ |
(1) | Business line revenues and provision for income taxes are reported on a taxable equivalent basis, with the offset in the Other segment. Effective January 1, 2024, the Bank no longer claims the dividend received deduction on Canadian shares that are mark-to-market property, which resulted in a lower TEB gross-up. |
(2) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
(3) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income and non-interest income a nd provision for income taxes of $to arrive at the amounts reported in the Consolidated Statement of Income, differences in the actual amount of costs incurred and charged to the operating segments. |
(4) | Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure. |
(5) | Card revenues and Banking services fees are mainly earned in Canadian Banking and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets. |
(6) | Includes income (on a taxable equivalent basis) from associated corporations for Canadian Banking – $( |
80 |
Scotiabank Second Quarter Report 2024 |
For the three months ended January 31, 2024 | ||||||||||||||||||||||||
($ millions) |
Canadian Banking (1)(2) |
International Banking (1)(2) |
Global Wealth Management (1) |
Global Banking and Markets (1) |
Other (1)(3) |
Total (2) |
||||||||||||||||||
Net interest income (4) |
$ | |
$ | |
$ | $ | $ | ( |
) | $ | |
|||||||||||||
Non-interest income(5)(6) |
|
|
( |
) | ||||||||||||||||||||
Total revenues |
( |
) | ||||||||||||||||||||||
Provision for credit losses |
– | |||||||||||||||||||||||
Depreciation and amortization |
||||||||||||||||||||||||
Other non-interest expenses |
( |
) | ||||||||||||||||||||||
Provision for income taxes |
( |
) | ||||||||||||||||||||||
Net income |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ | – | $ | $ | $ | – | $ | – | $ | |||||||||||||||
Net income attributable to equity holders of the Bank |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
Average assets ($ billions) |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Average liabilities ($ billions) |
$ | $ | $ | $ | $ | $ |
(1) | Business line revenues and provision for income taxes are reported on a taxable equivalent basis, with the offset in the Other segment. Effective January 1, 2024, the Bank no longer claims the dividend received deduction on Canadian shares that are mark-to-market property, which resulted in a lower TEB gross-up. |
(2) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
(3) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income and non-interest income and provision for income taxes of $ |
(4) | Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure. |
(5) | Card revenues and Banking services fees are mainly earned in Canadian Banking and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets. |
(6) | Includes income (on a taxable equivalent basis) from associated corporations for International Banking – $ |
For the three months ended April 30, 2023 |
||||||||||||||||||||||||
($ millions) |
Canadian Banking (1)(2) |
International Banking (1)(2) |
Global Wealth Management (1) |
Global Banking and Markets (1) |
Other (1)(3) |
Total (2) |
||||||||||||||||||
Net interest income (4) |
$ | |
$ | |
$ | $ | |
$ | ( |
) | $ | |
||||||||||||
Non-interest income(5)(6) |
|
( |
) | |||||||||||||||||||||
Total revenues |
|
( |
) | |||||||||||||||||||||
Provision for credit losses |
– | |||||||||||||||||||||||
Depreciation and amortization |
||||||||||||||||||||||||
Other non-interest expenses |
||||||||||||||||||||||||
Provision for income taxes |
( |
) | ||||||||||||||||||||||
Net income |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ | – | $ | $ | $ | – | $ | – | $ | |||||||||||||||
Net income attributable to equity holders of the Bank |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
Average assets ($ billions) |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Average liabilities ($ billions) |
$ | $ | $ | $ | $ | $ |
(1) | Business line revenues and provision for income taxes are reported on a taxable equivalent basis, with the offset in the Other segment. |
(2) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
(3) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income and non-interest income and provision for income taxes of $ |
(4) | Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure. |
(5) | Card revenues and Banking services fees are mainly earned in Canadian Banking and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets. |
(6) | Includes income (on a taxable equivalent basis) from associated corporations for Canadian Banking – $ |
Scotiabank Second Quarter Report 2024 |
81 |
For the six months ended April 30, 2024 |
||||||||||||||||||||||||
($ millions) |
Canadian Banking (1)(2) |
International Banking (1)(2) |
Global Wealth Management (1) |
Global Banking and Markets (1) |
Other (1)(3) |
Total (2) |
||||||||||||||||||
Net interest income (4) |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
Non-interest income(5)(6) |
( |
) |
||||||||||||||||||||||
Total revenues |
( |
) |
||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||
Depreciation and amortization |
||||||||||||||||||||||||
Other non-interest expenses |
( |
) |
||||||||||||||||||||||
Provision for income taxes |
( |
) |
||||||||||||||||||||||
Net income |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ |
– |
$ |
$ |
$ |
– |
$ |
– |
$ |
|||||||||||||||
Net income attributable to equity holders of the Bank |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
Average assets ($ billions) |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Average liabilities ($ billions) |
$ |
$ |
$ |
$ |
$ |
$ |
(1) | Business line revenues and provision for income taxes are reported on a taxable equivalent basis, with the offset in the Other segment. Effective January 1, 2024, the Bank no longer claims the dividend received deduction on Canadian shares that are mark-to-market property, which resulted in a lower TEB gross-up. |
(2) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
(3) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income and non income and provision for income taxes of $-in terest |
(4) | Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure. |
(5) | Card revenues and Banking services fees are mainly earned in Canadian Banking and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets. |
(6) | Includes income (on a taxable equivalent basis) from associated corporations for Canadian Banking – $( |
For the six months ended April 30, 2023 |
||||||||||||||||||||||||
($ millions) |
Canadian Banking (1)(2) |
International Banking (1)(2) |
Global Wealth Management (1) |
Global Banking and Markets (1) |
Other (1)(3) |
Total (2) |
||||||||||||||||||
Net interest income (4) |
$ | |
$ | |
$ | $ | $ | ( |
) | $ | |
|||||||||||||
Non-interest income(5)(6) |
|
|
( |
) | ||||||||||||||||||||
Total revenues |
( |
) | ||||||||||||||||||||||
Provision for credit losses |
– | |||||||||||||||||||||||
Depreciation and amortization |
||||||||||||||||||||||||
Other non-interest expenses |
||||||||||||||||||||||||
Provision for income taxes |
( |
) | ||||||||||||||||||||||
Net income |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
Net income attributable to non-controlling interests in subsidiaries |
$ | – | $ | $ | $ | – | $ | – | $ | |||||||||||||||
Net income attributable to equity holders of the Bank |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
Average assets ($ billions) |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Average liabilities ($ billions) |
$ | $ | $ | $ | $ | $ |
(1) | Business line revenues and provision for income taxes are reported on a taxable equivalent basis, with the offset in the Other segment. |
(2) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
(3) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income and non-interest income and provision for income taxes of $ |
(4) | Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure. |
(5) | Card revenues and Banking services fees are mainly earned in Canadian Banking and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets. |
(6) | Includes income (on a taxable equivalent basis) from associated corporations for Canadian Banking – $ |
82 |
Scotiabank Second Quarter Report 2024 |
17. | Interest income and expense |
For the three months ended |
For the six months ended |
|||||||||||||||||||||||||||||||||||||||
April 30, 2024 (1) |
January 31, 2024 (1) |
April 30, 2023 (1) |
April 30, 2024 (1) |
April 30, 2023 (1) |
||||||||||||||||||||||||||||||||||||
($ millions) |
Interest income |
Interest expense |
Interest income |
Interest expense |
Interest income |
Interest expense |
Interest income |
Interest expense |
Interest income |
Interest expense |
||||||||||||||||||||||||||||||
Measured at amortized cost (2) |
$ |
$ |
$ | |
$ | |
$ | |
$ | $ |
$ |
$ | |
$ | |
|||||||||||||||||||||||||
Measured at FVOCI (2) |
– |
– | – | – |
– | |||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Other |
(3) |
(4) |
(3) |
(4) |
(3) |
(4) |
(3) |
(4) |
(3) |
(4) | ||||||||||||||||||||||||||||||
Total |
$ |
$ |
$ | $ | $ | $ | $ |
$ |
$ | $ |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
(2) | The interest income/expense on financial assets/liabilities are calculated using the effective interest method. |
(3) | Includes dividend income on equity securities. |
(4) | Includes interest on lease liabilities for the three months ended April 30, 2024 – $ |
18. | Earnings per share |
For the three months ended |
For the six months ended |
|||||||||||||||||||
($ millions) |
April 30 2024 (1) |
January 31 2024 (1) |
April 30 2023 (1) |
April 30 2024 (1) |
April 30 2023 (1) |
|||||||||||||||
Basic earnings per common share |
||||||||||||||||||||
Net income attributable to common shareholders |
$ |
$ | |
$ | |
$ |
$ | |
||||||||||||
Weighted average number of common shares outstanding (millions) |
||||||||||||||||||||
Basic earnings per common share (2) (in dollars) |
$ |
$ | $ | $ |
$ | |||||||||||||||
Diluted earnings per common share |
||||||||||||||||||||
Net income attributable to common shareholders |
$ |
$ | $ | $ |
$ | |||||||||||||||
Dilutive impact of share-based payment options and others (3) |
( |
) |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Net income attributable to common shareholders (diluted) |
$ |
$ | $ | $ |
$ | |||||||||||||||
Weighted average number of common shares outstanding (millions) |
||||||||||||||||||||
Dilutive impact of share-based payment options and others (3) (millions) |
||||||||||||||||||||
Weighted average number of diluted common shares outstanding (millions) |
||||||||||||||||||||
Diluted earnings per common share (2) (in dollars) |
$ |
$ | $ | $ |
$ |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
(2) | Earnings per share calculations are based on full dollar and share amounts. |
(3) | Certain options as well as acquisition-related put/call options that the Bank may settle at its own discretion by issuing common shares were not included in the calculation of diluted earnings per share as they were anti-dilutive. |
19. | Financial instruments |
Scotiabank Second Quarter Report 2024 |
83 |
Exposure at default (1) |
As at |
|||||||||||||||||||
April 30, 2024 |
January 31 2024 |
October 31 2023 |
||||||||||||||||||
Revised Basel III |
Revised Basel III |
Revised Basel III |
||||||||||||||||||
($ millions) |
IRB |
Standardized |
Total |
Total |
Total |
|||||||||||||||
By exposure sub-type |
||||||||||||||||||||
Non-retail |
||||||||||||||||||||
Drawn (2)(3) |
$ |
$ |
$ |
$ | $ | |||||||||||||||
Undrawn commitments |
||||||||||||||||||||
Other exposures (4) |
||||||||||||||||||||
Total non-retail |
$ |
$ |
$ |
$ | $ | |||||||||||||||
Retail (5) |
||||||||||||||||||||
Drawn |
$ |
$ |
$ |
$ | $ | |||||||||||||||
Undrawn commitments |
||||||||||||||||||||
Other exposures |
– |
|||||||||||||||||||
Total retail |
$ |
$ |
$ |
$ | $ | |||||||||||||||
Total |
$ |
$ |
$ |
$ | |
$ | |
(1) | After credit risk mitigation and excludes equity securities and other assets. |
(2) | Non-retail drawn exposures include government guaranteed and privately insured mortgages and retail loans. |
(3) | Non-retail drawn includes loans, bankers’ acceptances, deposits with financial institutions and FVOCI debt securities. |
(4) | Includes off-balance sheet lending instruments such as letters of credit, letters of guarantee, securitizations, over-the-counter |
(5) | Retail includes residential mortgages, credit cards, lines of credit, other personal loans and small business treated as other regulatory retail. |
• | liquidity risk measurement and management limits, including limits on maximum net cash outflow by currency over specified short-term horizons; |
• | prudent diversification of its wholesale funding activities by using a number of different funding programs to access the global financial markets and manage its maturity profile, as appropriate; |
• | large holdings of liquid assets to support its operations, which can generally be sold or pledged to meet the Bank’s obligations; |
• | liquidity stress testing, including Bank-specific, global-systemic, and combination systemic/specific scenarios; and |
• | liquidity contingency planning. |
84 |
Scotiabank Second Quarter Report 2024 |
For the three months ended |
As at |
|||||||||||||||||||||||||||
April 30, 2024 |
April 30 |
January 31 |
April 30 |
|||||||||||||||||||||||||
($ millions) |
Average |
High |
Low |
2024 |
2024 | 2023 |
||||||||||||||||||||||
Credit spread plus interest rate |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||
Credit spread |
||||||||||||||||||||||||||||
Interest rate |
||||||||||||||||||||||||||||
Equities |
||||||||||||||||||||||||||||
Foreign exchange |
||||||||||||||||||||||||||||
Commodities |
||||||||||||||||||||||||||||
Debt specific |
||||||||||||||||||||||||||||
Diversification effect |
( |
) |
n/a |
n/a |
( |
) |
( |
) |
( |
) | ||||||||||||||||||
Total VaR |
$ |
$ |
$ |
$ |
$ |
$ |
Fair value |
Change in fair value (1) Gains/(Losses) |
Cumulative change in fair value (2) Gains/(Losses) |
||||||||||||||||||||||||||||||||||
As at |
For the three months ended |
As at |
||||||||||||||||||||||||||||||||||
($ millions) |
April 30 2024 |
January 31 2024 |
April 30 2023 |
April 30 2024 |
January 31 2024 |
April 30 2023 |
April 30 2024 |
January 31 2024 |
April 30 2023 |
|||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||
Senior note liabilities (3) |
$ |
$ | $ | $ |
$ | ( |
) | $ | $ |
$ | $ |
(1) | Change in the difference between the contractual maturity amount and the carrying value. |
(2) | The cumulative change in fair value is measured from the instruments’ date of initial recognition. |
(3) | Changes in fair value attributable to changes in the Bank’s own credit risk are recorded in other comprehensive income. Other changes in fair value are recorded in non-interest income – trading revenues. The offsetting fair value changes from associated derivatives is also recorded in non-interest income – trading revenues. |
Scotiabank Second Quarter Report 2024 |
85 |
Senior note liabilities | ||||||||||||||||||||
($ millions) |
|
Contractual maturity amount |
|
Carrying value | |
Difference between contractual maturity amount and carrying value |
|
|
Changes in fair value for the three months period attributable to changes in own credit risk recorded in other comprehensive income Gains/(Losses) |
|
|
Cumulative changes in fair value attributable to changes in own credit risk (1) Gains/(Losses) |
| |||||||
As at April 30, 2024 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||
As at January 31, 2024 |
$ | |
$ | |
$ | |
$ | ( |
) | $ | ( |
) | ||||||||
As at April 30, 2023 |
$ | $ | $ | $ | |
$ |
(1) | The cumulative change in fair value is measured from the instruments’ date of initial recognition. |
As at |
||||||||||||||||||||||||
April 30, 2024 (1) |
January 31, 2024 (1) |
October 31, 2023 (1) |
||||||||||||||||||||||
($ millions) |
Total fair value |
Total carrying value |
Total fair value |
Total carrying value |
Total fair value |
Total carrying value |
||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Cash and deposits with financial institutions |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||
Trading assets |
|
|
|
|
||||||||||||||||||||
Securities purchased under resale agreements and securities borrowed |
||||||||||||||||||||||||
Derivative financial instruments |
||||||||||||||||||||||||
Investment securities – FVOCI and FVTPL |
||||||||||||||||||||||||
Investment securities – amortized cost |
||||||||||||||||||||||||
Loans |
||||||||||||||||||||||||
Customers’ liability under acceptances |
||||||||||||||||||||||||
Other financial assets |
||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Deposits |
||||||||||||||||||||||||
Financial instruments designated at fair value through profit or loss |
||||||||||||||||||||||||
Acceptances |
||||||||||||||||||||||||
Obligations related to securities sold short |
||||||||||||||||||||||||
Derivative financial instruments |
||||||||||||||||||||||||
Obligations related to securities sold under repurchase agreements and securities lent |
||||||||||||||||||||||||
Subordinated debentures |
||||||||||||||||||||||||
Other financial liabilities |
(1) | The Bank adopted IFRS 17 effective November 1, 2023. As required under the new accounting standard, prior period amounts have been restated. Refer to Note 4. |
86 |
Scotiabank Second Quarter Report 2024 |
As at |
||||||||||||||||||||||||||||||||
April 30, 2024 |
January 31, 2024 |
|||||||||||||||||||||||||||||||
($ millions) |
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||||||||||||
Instruments carried at fair value on a recurring basis: |
||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||
Precious metals (1) |
$ |
– |
$ |
$ |
– |
$ |
$ | – | $ | $ | – | $ | ||||||||||||||||||||
Trading assets |
||||||||||||||||||||||||||||||||
Loans |
– |
– | – | |||||||||||||||||||||||||||||
Canadian federal government and government guaranteed debt |
– |
– | ||||||||||||||||||||||||||||||
Canadian provincial and municipal debt |
– |
– | ||||||||||||||||||||||||||||||
U.S. treasury and other U.S. agencies’ debt |
– |
– | – | |||||||||||||||||||||||||||||
Other foreign governments’ debt |
– |
– | ||||||||||||||||||||||||||||||
Corporate and other debt |
– |
– | ||||||||||||||||||||||||||||||
Equity securities |
||||||||||||||||||||||||||||||||
Other |
– |
– |
– | – | ||||||||||||||||||||||||||||
$ |
$ |
$ |
$ |
$ | $ | $ | $ | |
||||||||||||||||||||||||
Investment securities (2) |
||||||||||||||||||||||||||||||||
Canadian federal government and government guaranteed debt |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Canadian provincial and municipal debt |
– |
– | ||||||||||||||||||||||||||||||
U.S. treasury and other U.S. agencies’ debt |
– |
– | ||||||||||||||||||||||||||||||
Other foreign governments’ debt |
– |
– | ||||||||||||||||||||||||||||||
Corporate and other debt |
||||||||||||||||||||||||||||||||
Equity securities |
||||||||||||||||||||||||||||||||
$ |
$ |
$ |
$ |
$ | |
$ | |
$ | |
$ | ||||||||||||||||||||||
Derivative financial instruments |
||||||||||||||||||||||||||||||||
Interest rate contracts |
$ |
– |
$ |
$ |
– |
$ |
$ | – | $ | $ | $ | |||||||||||||||||||||
Foreign exchange and gold contracts |
– |
– |
– | – | ||||||||||||||||||||||||||||
Equity contracts |
||||||||||||||||||||||||||||||||
Credit contracts |
– |
– | ||||||||||||||||||||||||||||||
Commodity contracts |
– |
– | ||||||||||||||||||||||||||||||
$ |
$ |
$ |
$ |
$ | $ | $ | $ | |||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||
Deposits (3) |
$ |
– |
$ |
$ |
– |
$ |
$ | – | $ | $ | – | $ | ||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
– |
– |
– | – | ||||||||||||||||||||||||||||
Obligations related to securities sold short |
– |
– | ||||||||||||||||||||||||||||||
Derivative financial instruments |
||||||||||||||||||||||||||||||||
Interest rate contracts |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and gold contracts |
– |
– |
– | – | ||||||||||||||||||||||||||||
Equity contracts |
||||||||||||||||||||||||||||||||
Credit contracts |
– |
– | ||||||||||||||||||||||||||||||
Commodity contracts |
– |
– | ||||||||||||||||||||||||||||||
$ |
$ |
$ |
$ |
$ | $ | $ | $ |
(1) | The fair value of precious metals is determined based on quoted market prices and forward spot prices, where applicable, less the cost to sell. |
(2) | Excludes debt investment securities measured at amortized cost of $ |
(3) | These amounts represent embedded derivatives bifurcated from structured note liabilities measured at amortized cost. |
Scotiabank Second Quarter Report 2024 |
87 |
As at October 31, 2023 | ||||||||||||||||
($ millions) |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Instruments carried at fair value on a recurring basis: |
||||||||||||||||
Assets: |
||||||||||||||||
Precious metals (1) |
$ | – | $ | $ | – | $ | ||||||||||
Trading assets |
||||||||||||||||
Loans |
– | |||||||||||||||
Canadian federal government and government guaranteed debt |
– | |||||||||||||||
Canadian provincial and municipal debt |
– | |||||||||||||||
U.S. treasury and other U.S. agencies’ debt |
– | – | ||||||||||||||
Other foreign governments’ debt |
– | |||||||||||||||
Corporate and other debt |
– | |||||||||||||||
Equity securities |
||||||||||||||||
Other |
– | – | ||||||||||||||
$ | $ | $ | $ | |
||||||||||||
Investment securities (2) |
||||||||||||||||
Canadian federal government and government guaranteed debt |
$ | $ | $ | – | $ | |||||||||||
Canadian provincial and municipal debt |
– | |||||||||||||||
U.S. treasury and other U.S. agencies’ debt |
– | |||||||||||||||
Other foreign governments’ debt |
– | |||||||||||||||
Corporate and other debt |
– | |||||||||||||||
Equity securities |
||||||||||||||||
$ | |
$ | |
$ | |
$ | ||||||||||
Derivative financial instruments |
||||||||||||||||
Interest rate contracts |
$ | – | $ | $ | – | $ | ||||||||||
Foreign exchange and gold contracts |
– | |||||||||||||||
Equity contracts |
||||||||||||||||
Credit contracts |
– | |||||||||||||||
Commodity contracts |
– | |||||||||||||||
$ | $ | $ | $ | |||||||||||||
Liabilities: |
||||||||||||||||
Deposits (3) |
$ | – | $ | ( |
$ | – | $ | ( |
) | |||||||
Financial liabilities designated at fair value through profit or loss |
– | – | ||||||||||||||
Obligations related to securities sold short |
– | |||||||||||||||
Derivative financial instruments |
||||||||||||||||
Interest rate contracts |
– | |||||||||||||||
Foreign exchange and gold contracts |
– | – | ||||||||||||||
Equity contracts |
||||||||||||||||
Credit contracts |
– | |||||||||||||||
Commodity contracts |
– | |||||||||||||||
$ | $ | $ | $ |
(1) | The fair value of precious metals is determined based on quoted market prices and forward spot prices, where applicable, less the cost to sell. |
(2) | Excludes debt investment securities measured at amortized cost of $ |
(3) | These amounts represent embedded derivatives bifurcated from structured note liabilities measured at amoritized cost. |
88 |
Scotiabank Second Quarter Report 2024 |
As at April 30, 2024 |
||||||||||||||||||||||||||||||||
($ millions) |
Fair value, beginning of the quarter |
Gains/ (losses) recorded in income |
Gains/ (losses) recorded in OCI |
Purchases/ Issuances |
Sales/ Settlements |
Transfers into/out of Level 3 |
Fair value, end of the quarter |
Changes in unrealized gains/(losses) recorded in income for instruments still held (1) |
||||||||||||||||||||||||
Trading assets |
||||||||||||||||||||||||||||||||
Loans |
$ | – | $ | – | $ | – | $ | – | $ | – | $ | $ |
$ | – | ||||||||||||||||||
Equity securities |
( |
) |
– | ( |
) | – | ( |
) | ||||||||||||||||||||||||
( |
) |
– | ( |
) |
( |
) | ||||||||||||||||||||||||||
Investment securities |
||||||||||||||||||||||||||||||||
Corporate and other debt |
( |
) | ( |
) | – | – | ( |
) | ||||||||||||||||||||||||
Equity securities |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
( |
) | ( |
) |
( |
) |
|||||||||||||||||||||||||||
Derivative financial instruments – assets |
||||||||||||||||||||||||||||||||
Interest rate contracts |
– | – | – | – | ( |
) | – |
– | ||||||||||||||||||||||||
Equity contracts |
( |
) | – | – | ( |
) | ( |
) (2) | ||||||||||||||||||||||||
Credit contracts |
– | – | – | – | – | – | ||||||||||||||||||||||||||
Commodity contracts |
( |
) | – | – | – | – | ( |
) | ||||||||||||||||||||||||
Derivative financial instruments – liabilities |
||||||||||||||||||||||||||||||||
Equity contracts |
( |
) | ( |
) | – | – | – | ( |
) |
( |
) (2) | |||||||||||||||||||||
Credit contracts |
( |
) | – | – | – | – | – | ( |
) |
– | ||||||||||||||||||||||
Commodity contracts |
( |
) | ( |
) |
– | – | – | – | ( |
) |
( |
) | ||||||||||||||||||||
( |
) |
– | ( |
) |
– |
( |
) | |||||||||||||||||||||||||
Total |
$ | |
$ | $ | ( |
$ | $ | ( |
$ | ( |
$ |
$ |
(1) | These amounts represent the gains and losses from fair value changes of Level 3 instruments still held at the end of the period that are recorded in the Consolidated Statement of Income. |
(2) | Certain unrealized gains and losses on derivative assets and liabilities are largely offset by mark-to-market |
As at January 31, 2024 | ||||||||||||||||||||||||||||
($ millions) |
Fair value, beginning of the quarter |
Gains/ (losses) recorded in income (1) |
Gains/ (losses) recorded in OCI |
Purchases/ Issuances |
Sales/ Settlements |
Transfers into/ out of Level 3 |
Fair value, end of the quarter |
|||||||||||||||||||||
Trading assets |
$ | $ | – | $ | – | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Investment securities |
|
|
|
( |
) | |
||||||||||||||||||||||
Derivative financial instruments |
( |
) | – | ( |
) |
(1) | Gains or losses for items in Level 3 may be offset with losses or gains on related hedges in Level 1 or Level 2. |
As at October 31, 2023 | ||||||||||||||||||||||||||||
($ millions) |
Fair value, beginning of the quarter |
Gains/ (losses) recorded in income (1) |
Gains/ (losses) recorded in OCI |
Purchases/ Issuances |
Sales/ Settlements |
Transfers into/ out of Level 3 |
Fair value, end of the quarter |
|||||||||||||||||||||
Trading assets |
$ | $ | – | $ | – | $ | $ | – | $ | $ | ||||||||||||||||||
Investment securities |
|
( |
) | |
|
( |
) | ( |
) | |
||||||||||||||||||
Derivative financial instruments |
( |
) | – | – | ||||||||||||||||||||||||
Obligations related to securities sold short |
( |
) | – | – | – | – | – |
(1) | Gains or losses for items in Level 3 may be offset with losses or gains on related hedges in Level 1 or Level 2. |
Scotiabank Second Quarter Report 2024 |
89 |
• | Trading assets of $ |
• | Trading assets of $ |
• | Trading assets of $ |
• | Trading assets of $ |
• | Trading assets of $ |
• | Trading assets of $ |
20. | Corporate income taxes |
90 |
Scotiabank Second Quarter Report 2024 |
Record Date | Payment Date | |
January 3, 2024 | January 29, 2024 | |
April 2, 2024 | April 26, 2024 | |
July 3, 2024 | July 29, 2024 | |
October 2, 2024 | October 29, 2024 |
Scotiabank Second Quarter Report 2024 | 91 |
The Bank of Nova Scotia is a chartered bank under the Bank Act (Canada) and is a public company incorporated in Canada. |