Changes for page Scotiabank
Last modified by Asif Farooqui on 2022/09/29 17:18
Change comment:
There is no comment for this version
Summary
-
Page properties (1 modified, 0 added, 0 removed)
Details
- Page properties
-
- Content
-
... ... @@ -2,48 +2,37 @@ 2 2 {{toc/}} 3 3 {{/box}} 4 4 5 -Summary 5 += Summary = 6 6 7 -Scotiabank (NYSE:BNS, TSC:BNS) is Canadian-headquartered bank with focus on high-quality growth markets in the Americas. 7 +* Scotiabank (NYSE:BNS, TSC:BNS) is Canadian-headquartered bank with focus on high-quality growth markets in the Americas. 8 +* Scotiabank is a top-five universal bank in each of its core markets, and a top-15 wholesale bank in the U.S. 9 +* The bank has a team of approximately 90,000 employees and assets of approximately $1.1 trillion (as at April 30, 2021) 8 8 9 -Scotiabank is a top-five universal bank in each of its core markets, and a top-15 wholesale bank in the U.S. 10 10 11 - Thebank has a teamof approximately 90,000 employeesandassets of approximately$1.1 trillion (as at April 30, 2021)12 += Company Overview = 12 12 14 +Scotiabank (NYSE:BNS, TSC:BNS) is Canadian-headquartered bank with focus on high-quality growth markets in the Americas. Scotiabank is a top-five universal bank in each of its core markets, and a top-15 wholesale bank in the U.S., delivering superior advice and services to help its customers get ahead. {{footnote}}https://www.scotiabank.com/ca/en/about.html{{/footnote}} 13 13 14 -Company Overview 15 15 16 -Scotiabank (NYSE:BNS, TSC:BNS) is Canadian-headquartered bank with focus on high-quality growth markets in the Americas. Scotiabank is a top-five universal bank in each of its core markets, and a top-15 wholesale bank in the U.S., delivering superior advice and services to help its customers get ahead 17 - 18 -[[https:~~/~~/www.scotiabank.com/ca/en/about.html>>url:https://www.scotiabank.com/ca/en/about.html]] 19 - 20 - 21 21 Scotiabank is a leading bank in the Americas. Guided by its purpose: "for every future", the company help its customers, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of approximately 90,000 employees and assets of approximately $1.1 trillion (as at April 30, 2021), 22 22 23 23 24 -Business Segments 20 += Business Segments = 25 25 26 26 27 -Canadian Banking 23 +== Canadian Banking == 28 28 29 -Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to over 10 million Retail, Small Business and Commercial Banking customers. It serves these customers through its network of over 900 branches and more than 3,500 automated banking machines (ABMs), as well as internet, mobile and telephone banking and specialized sales teams. Canadian Banking also provides an alternative self-directed banking solution to over two million Tangerine Bank customers. 25 +Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to over 10 million Retail, Small Business and Commercial Banking customers. It serves these customers through its network of over 900 branches and more than 3,500 automated banking machines (ABMs), as well as internet, mobile and telephone banking and specialized sales teams. Canadian Banking also provides an alternative self-directed banking solution to over two million Tangerine Bank customers.{{footnote}}https://www.scotiabank.com/ca/en/about/our-company/corporate-profile.html{{/footnote}} 30 30 31 -[[https:~~/~~/www.scotiabank.com/ca/en/about/our-company/corporate-profile.html>>url:https://www.scotiabank.com/ca/en/about/our-company/corporate-profile.html]] 32 32 28 +**Canadian Banking is comprised of the following areas:** 33 33 30 +* Retail and Small Business Banking provides financial advice and solutions and day-to-day banking products, including debit cards, chequing accounts, credit cards, investments, mortgages, loans and related creditor insurance products, to individuals and small businesses. Tangerine Bank provides day-to-day banking products, including chequing and saving accounts, credit cards, and investments to self-directed customers. 31 +* Commercial Banking delivers advice and a full suite of lending, deposit, cash management and trade finance solutions to medium and large businesses, including automotive dealers and their customers to whom the company provide retail automotive financing solutions. 34 34 35 -Canadian Banking is comprised of the following areas: 36 36 34 +== Global Banking and Markets == 37 37 38 -Retail and Small Business Banking provides financial advice and solutions and day-to-day banking products, including debit cards, chequing accounts, credit cards, investments, mortgages, loans and related creditor insurance products, to individuals and small businesses. Tangerine Bank provides day-to-day banking products, including chequing and saving accounts, credit cards, and investments to self-directed customers. 39 - 40 - 41 -Commercial Banking delivers advice and a full suite of lending, deposit, cash management and trade finance solutions to medium and large businesses, including automotive dealers and their customers to whom the company provide retail automotive financing solutions. 42 - 43 - 44 - 45 -Global Banking and Markets 46 - 47 47 Global Banking and Markets (GBM) conducts the Bank’s wholesale banking and capital markets business with corporate, government and institutional investor clients. GBM is a full-service wholesale bank and investment dealer in Canada and Mexico, and offers a range of products and services in the U.S., Latin America (excluding Mexico), and in select markets in Europe, Asia and Australia. 48 48 49 49 ... ... @@ -50,7 +50,7 @@ 50 50 More specifically, GBM provides clients with: corporate lending; transaction banking (including trade finance and cash management); investment banking (including corporate finance and mergers & acquisitions); fixed income and equity underwriting, sales, trading and research; prime services (prime brokerage and stock lending); foreign exchange sales and trading; commodity derivatives; precious and base metals sales, trading, financing and physical services; and collateral management. 51 51 52 52 53 -Global Wealth Management 42 +== Global Wealth Management == 54 54 55 55 Global Wealth Management delivers comprehensive wealth management solutions with a view to achieving strong long-term investment results through a personalized approach to enrich the lives of its clients. 56 56 ... ... @@ -58,7 +58,7 @@ 58 58 Global Wealth Management’s solutions and services are available across 13 countries worldwide. A full range of wealth management advice and solutions are available to help address clients’ financial needs – no matter how complex or simple. This advice is paired with industry-leading investment expertise that delivers risk-adjusted, long-term results to investors. 59 59 60 60 61 -International Banking 50 +== International Banking == 62 62 63 63 International Banking has a well-established, diversified franchise that serves more than 15 million Retail, Corporate, and Commercial customers across its footprint. These customers are supported by approximately 45,000 employees, more than 1,300 branches and a network of contact and business support centers. 64 64 ... ... @@ -66,81 +66,89 @@ 66 66 International Banking (IB) provides a full range of financial products, solutions and advice to retail and commercial customers and is focused on Latin America, including the Pacific Alliance countries of Mexico, Peru, Chile and Colombia, and the Caribbean and Central America. 67 67 68 68 69 -Business Overview 58 += Business Overview = 70 70 71 -Canadian Banking 60 +== Canadian Banking == 72 72 73 -Canadian Banking reported net income attributable to equity holders of $2,536 million in 2020, a decrease of $952 million or 27% compared to prior year. Adjusted net income was $2,604 million, a decrease of $900 million or 26%. The decline was due primarily to higher provision for credit losses on performing loans, lower non-interest income, and higher non-interest expenses. Return on equity was 15.1% compared to 23.2% in the prior year. The adjusted return on equity was 15.5% compared to 23.3% in the prior year. 62 +Canadian Banking reported net income attributable to equity holders of $2,536 million in 2020, a decrease of $952 million or 27% compared to prior year. Adjusted net income was $2,604 million, a decrease of $900 million or 26%. The decline was due primarily to higher provision for credit losses on performing loans, lower non-interest income, and higher non-interest expenses. Return on equity was 15.1% compared to 23.2% in the prior year. The adjusted return on equity was 15.5% compared to 23.3% in the prior year.{{footnote}}https://www.scotiabank.com/content/dam/scotiabank/corporate/quarterly-reports/2020/q4/BNS_Annual_Report_2020.pdf{{/footnote}} 74 74 75 -[[https:~~/~~/www.scotiabank.com/content/dam/scotiabank/corporate/quarterly-reports/2020/q4/BNS_Annual_Report_2020.pdf>>url:https://www.scotiabank.com/content/dam/scotiabank/corporate/quarterly-reports/2020/q4/BNS_Annual_Report_2020.pdf]] 76 76 65 +== International Banking == 77 77 78 -International Banking 79 - 80 80 Net income attributable to equity holders was $980 million, a decrease of $1,785 million or 65%. Adjusted net income attributable to equity holders was $1,148 million, down $1,805 million or 61%. The decline was due largely to higher provision for credit losses on performing loans and the impact of divested operations. The remaining decline was due primarily to lower net interest income and non-interest income, partly offset by lower non-interest expenses and income tax expense. Return on equity was 5.0% compared to 13.2% last year. Adjusting return on equity was 5.8% compared to 14.1% last year. 81 81 82 -Global Wealth Management 83 83 70 +== Global Wealth Management == 71 + 84 84 Net income attributable to equity holders was $1,252 million, an increase of $86 million or 7%. Adjusted net income attributable to equity holders increased $82 million, also up 7%. The negative impact of divested operations was 1%. The remaining 8% growth was driven by solid AUM growth across its businesses partly offset by higher non-interest expenses, margin compression, and customer relief programs largely impacting its international pensions business. Return on equity was 13.5% compared to 12.7% in the prior year. The adjusted return on equity was 14.0% compared to 13.2% in the prior year. 85 85 86 -Global Banking and Markets 87 87 75 +== Global Banking and Markets == 76 + 88 88 Global Banking and Markets reported net income attributable to equity holders of $1,955 million, an increase of $421 million or 27% from last year. Adjusted net income was $2,034 million, an increase of $500 million or 33%. Strong performance in capital markets businesses, higher revenue in business banking, and relatively flat expenses, were partly offset by higher provision for credit losses. Return on equity was 14.8% compared to 13.3% last year. The adjusted return on equity was 15.4% compared to 13.3% last year. 89 89 90 90 91 -Financial Highlights 80 += Financial Highlights = 92 92 93 93 94 -Net income 83 +**Net income** 95 95 96 96 Canadian Banking reported net income to equity holders of $2,536 million in 2020, a decrease of $952 million or 27% compared to prior year. Adjusted net income was $2,604, a decrease of $900 million or 26%. The decline was due primarily to higher provision for credit losses on performing loans, lower non-interest income, and higher non-interest expenses. 97 97 98 -Average assets and liabilities 99 99 88 +**Average assets and liabilities** 89 + 100 100 Average assets grew $19 billion or 5% to $359 billion. The growth included $13 billion or 6% in residential mortgages and $5 billion or 10% in business loans and acceptances, partially offset by declines in credit cards. 101 101 102 102 Average liabilities increased $22 billion or 8%, including solid growth of $11 billion or 7% in personal deposits and $8 billion or 10% in non-personal deposits. 103 103 104 -Revenues 105 105 95 +**Revenues** 96 + 106 106 Revenues were $10,299 million, a decrease of $165 million or 2%. The decline was due primarily to lower non-interest income. 107 107 108 -Net interest income 109 109 100 +**Net interest income** 101 + 110 110 Net interest income of $7,838 million was in line with the prior year as strong volume growth was offset by a margin decline of 11 basis points to 2.30%. The margin decline was primarily driven by the rate environment, including interest rate decreases by the Bank of Canada and changes to business mix. 111 111 112 -Non-interest income 113 113 105 +**Non-interest income** 106 + 114 114 Non-interest income of $2,461 million decreased $155 million or 6%. The decline was due primarily to lower insurance, banking and foreign exchange fees. 115 115 116 -Retail Banking 117 117 110 +**Retail Banking** 111 + 118 118 Total retail banking revenues were $6,971 million, a decrease of $221 million or 3%. Net interest income decreased $64 million or 1%, primarily driven by the rate environment, including interest rate decreases by the Bank of Canada, partially offset by solid volume growth. Non-interest income decreased $157 million or 9%, due primarily to lower insurance and banking fees mainly as a result of a decline in economic activity and transaction volumes and a decrease in foreign exchange fees. 119 119 120 -Business Banking 121 121 115 +**Business Banking** 116 + 122 122 Total business banking revenues increased $56 million or 2% to $3,328 million. Net interest income increased $54 million or 2% due primarily to growth in loans and business operating accounts. This was partially offset by a margin decline mainly driven by the rate environment, including interest rate decreases by the Bank of Canada. Non-interest income of $772 million was in line with the prior year. 123 123 124 -Non-interest expenses 125 125 120 +**Non-interest expenses** 121 + 126 126 Non-interest expenses were $4,811 million, an increase of $39 million or 1%, largely driven by higher personnel and technology costs to support business development, partially offset by lower marketing-related costs. 127 127 128 -Provision for credit losses 129 129 125 +**Provision for credit losses** 126 + 130 130 Provision for credit losses was $2,073 million, compared to $972 million last year, an increase of $1,101 million. Adjusted provision for credit losses increased by $1,030 million to $2,002 million. The provision for credit losses ratio was 59 basis points, an increase of 30 basis points. Adjusted provision for credit losses ratio increased by 28 basis points to 57 basis points. Provision on impaired loans was $1,130 million, an increase of $156 million. Adjusted provision on impaired loans was up $152 million due primarily to higher commercial provisions. The provision for credit losses ratio on impaired loans was 32 basis points, an increase of three basis points. 131 131 132 132 Provision on performing loans was $943 million, an increase of $945 million. Adjusted provision on performing loans was up $878 million, mostly related to the unsecured retail and auto portfolio. This is due primarily to the unfavourable macroeconomic outlook in Canada driven by the COVID-19 pandemic and its estimated future impact on credit migration. 133 133 134 -Provision for income taxes 135 135 132 +**Provision for income taxes** 133 + 136 136 The effective tax rate of 25.7% decreased from 26.1% in the prior year. 137 137 138 138 139 -Scotiabank Third Quarter 2021 Result 137 +== Scotiabank Third Quarter 2021 Result == 140 140 141 -August 24, 2021; – Scotiabank reported third quarter net income of $2,542 million compared to $1,304 million in the same period last year. Diluted earnings per share (EPS) were $1.99, up 91% from $1.04 in the previous year. Return on equity was 15.0%, up from 8.3% in the previous year. 139 +August 24, 2021; – Scotiabank reported third quarter net income of $2,542 million compared to $1,304 million in the same period last year. Diluted earnings per share (EPS) were $1.99, up 91% from $1.04 in the previous year. Return on equity was 15.0%, up from 8.3% in the previous year.{{footnote}}https://www.scotiabank.com/content/dam/scotiabank/corporate/quarterly-reports/2021/q3/Q321-Shareholders-Report_EN.pdf{{/footnote}} 142 142 143 -[[https:~~/~~/www.scotiabank.com/content/dam/scotiabank/corporate/quarterly-reports/2021/q3/Q321-Shareholders-Report_EN.pdf>>url:https://www.scotiabank.com/content/dam/scotiabank/corporate/quarterly-reports/2021/q3/Q321-Shareholders-Report_EN.pdf]] 144 144 145 145 Adjusted net income increased 96% to $2,560 million and diluted EPS of $2.01, increased 93% compared to the prior year. Return on equity was 15.1% compared to 8.3% a year ago. 146 146 ... ... @@ -149,6 +149,7 @@ 149 149 150 150 “During the quarter, the Bank was recognized as the Most Innovative in Data by The Banker’s Global Innovation in Digital Banking Awards 2021. This award recognizes its commitment to data and analytics and highlights its ability to identify and support its most vulnerable customers. Scotiabank is also proud to highlight the Bank’s recent closing of its inaugural USD $1 billion 3-year sustainability bond offering, the largest sustainability bond issued by a Canadian corporate to date. This offering is yet another example of its social responsibility initiatives in support of its commitment to making a positive impact and creating better communities for every future.” 151 151 149 + 152 152 Canadian Banking generated strong earnings of $1,083 million, driven by higher non-interest income, lower provision for credit losses, as well as strong asset and deposit growth. 153 153 154 154 Global Wealth Management’s earnings of $397 million were supported by strong revenue growth, positive operating leverage for the seventh consecutive quarter, and a 17% growth in AUM and AUA on higher net sales ... ... @@ -159,8 +159,9 @@ 159 159 160 160 With a Common Equity Tier 1 capital ratio of 12.2% the Bank remains well capitalized to support its strategic growth plans. 161 161 162 -Outlook 163 163 161 +== Outlook == 162 + 164 164 Economic activity in the major markets in which the company operate continues to be robust despite rising risks related to the COVID-19 Delta variant. Incoming data generally continues to meet or beat expectations as the removal of restrictions leads to surges in economic activity that are compounded by high commodity prices. In some Pacific Alliance countries, this is occurring despite an increase in political uncertainty which has led to sharp moves in some foreign exchange rates. It is clear, however, that market participants are concerned about the evolution of the Delta variant and its impact on economies and policy settings as demonstrated in part by the decline in long-term government bond yields. 165 165 166 166 Looking through to 2023, the outlook in Canada and the United States has improved even as a potential fourth wave seems likely. Fundamentals remain solid, with high household wealth, pent-up demand for a range of goods and services, low interest rates, and a still highly stimulative fiscal stance in the United States and to a lesser extent Canada. It also seems clear that the fourth wave will not trigger the type of mobility restrictions associated with earlier phases given the world-leading vaccination rates in Canada, and the rejection of such restrictions in some U.S. states. The company continue to anticipate that policy rates will begin to rise in mid-2022 in Canada and early 2023 in the U.S. There remains a risk that supply chain challenges put more persistent upward pressure on inflation. If this were to happen, policy rates would likely rise more rapidly. The company also expect that the decline in government bond yields seen thus far will reverse as concerns about the U.S. debt ceiling fade, the U.S. Treasury returns more aggressively to debt markets, and worries about the economic impacts of the Delta variant fade. ... ... @@ -168,4 +168,6 @@ 168 168 The global backdrop remains very favourable to the Pacific Alliance countries in spite of the uncertainty created by political developments. That uncertainty is generally abating although questions remain about the direction of the new government in Peru as well as the ongoing Constitutional reform process in Chile. As is the case elsewhere in the world, the Delta variant poses risks to Pacific Alliance countries. Scotiabank has nevertheless raised its forecasts for the region given the resilience of incoming data, the continued strength of commodity prices, and the generally robust recovery underway in advanced economies. Owing in part to this strength, but also to the impact of weaker currencies, central banks in Chile and Mexico have already moved to contain inflationary pressures by raising interest rates well ahead of the timelines expected in Canada and the U.S. 169 169 170 170 171 -References 170 += References = 171 + 172 +{{putFootnotes/}}