All amounts are in
Canadian dollars and are based on our unaudited Interim Condensed
Consolidated Financial Statements for the quarter ended April 30,
2023 and related notes prepared in accordance with International
Financial Reporting Standards (IFRS), unless otherwise noted. Our
complete Second Quarter 2023 Report to Shareholders, including our
unaudited interim financial statements for the period ended April
30, 2023, can also be found on the SEDAR website at www.sedar.com
and on the EDGAR section of the SEC's website at www.sec.gov.
Supplementary Financial Information is also available, together
with the Second Quarter 2023 Report to Shareholders on the Investor
Relations page at www.scotiabank.com
|
|
|
Second Quarter 2023
Highlights on a Reported Basis
|
Second Quarter 2023
Highlights on an Adjusted Basis(1)
|
(versus Q2,
2022)
|
(versus Q2,
2022)
|
- Net income of
$2,159 million, compared to $2,747 million
- Earnings per share
(diluted) of $1.69, compared to $2.16
- Return on
equity(2) of 12.3%, compared to 16.2%
|
- Net income of
$2,174 million, compared to $2,765 million
- Earnings per share
(diluted) of $1.70, compared to $2.18
- Return on equity of
12.4%, compared to 16.4%
|
TORONTO, May 24, 2023
/CNW/ - Scotiabank reported second quarter net income of
$2,159 million compared to
$2,747 million in the same period
last year. Diluted earnings per share ("EPS") were $1.69, compared to $2.16 in the same period a year ago.
Adjusted net income(1) for the second quarter was
$2,174 million and EPS was
$1.70, down from $2.18 last year. Adjusted return on equity was
12.4% compared to 16.4% a year ago.
The Bank reported a strengthened Common Equity Tier 1 ("CET1")
capital ratio(3) of 12.3% and announced a quarterly
dividend increase of 3 cents to
$1.06 per share. The Bank also made
progress in building its liquidity position with double digit
year-over-year customer deposit growth, which outpaced loan growth
in the quarter. The Liquidity Coverage Ratio ("LCR")(4)
was a healthy 131% at quarter end, up from 122% in the prior
period.
"I am pleased with the Bank's stable operational performance in
the quarter and encouraged that our strong capital and liquidity
profile positioned us well to manage through the current
environment of heightened macroeconomic uncertainty." said
Scott Thomson, President and CEO of
Scotiabank. "We are committed to delivering long-term profitable
and sustainable growth through a focus on customers, capital
discipline and operational excellence."
Canadian Banking delivered adjusted earnings(1) of
$1,061 million this quarter, impacted
by normalization in provision for credit losses. Pre-tax
pre-provision earnings(5) increased due to strong
revenue growth and net interest margin expansion of eight basis
points.
International Banking generated adjusted earnings(1)
of $673 million, affected by higher
provision for credit losses. Pre-tax pre-provision
earnings(5) increased year-over-year as a result of
strong loan growth and net interest margin expansion of 16 basis
points, partly offset by higher non-interest expenses.
Global Wealth Management adjusted earnings(1) were
$362 million. Challenging market
conditions continue to impact fee income growth in Canada, partly offset by strong growth across
our international businesses and continued prudent expense
management.
Global Banking and Markets generated earnings of $401 million. The results reflect strong loan and
deposit growth, and were impacted by challenging market conditions
and higher performing loan provisions.
_____________________________________________
|
(1) Refer to
Non-GAAP Measures section starting on page 6.
|
(2) Refer to
page 54 of the Management's Discussion & Analysis in the Bank's
Second Quarter 2023 Report to Shareholders, available on
www.sedar.com, for an explanation of the composition of the
measure. Such explanation is incorporated by reference
hereto.
|
(3) This
measure has been disclosed in this document in accordance with OSFI
Guideline – Capital Adequacy Requirements (February
2023).
|
(4) This
measure has been disclosed in this document in accordance with OSFI
Guideline – Public Disclosure Requirements for Domestic
Systemically Important Banks on Liquidity Coverage Ratio (April
2015).
|
(5) Pre-tax,
pre-provision (PTPP) earnings are calculated as revenue net of
non-interest expenses. This is a non-GAAP measure. PTPP
earnings do not have a standardized meaning under GAAP and may not
be comparable to similar measures disclosed by other financial
institutions. The Bank uses PTPP earnings to assess its ability to
generate earnings growth excluding the impact of credit losses and
income taxes. The Bank believes that certain non-GAAP measures
provide readers with a better understanding of how management
assesses performance.
|
|
Financial Highlights
Reported
Results
|
|
For the three months ended
|
|
For the six months ended
|
|
|
April
30
|
|
January 31
|
|
April 30
|
|
April
30
|
|
April 30
|
(Unaudited)($
millions)
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net interest
income
|
$
|
4,466
|
$
|
4,569
|
$
|
4,473
|
$
|
9,035
|
$
|
8,817
|
Non-interest
income
|
|
3,463
|
|
3,411
|
|
3,469
|
|
6,874
|
|
7,174
|
Total
revenue
|
|
7,929
|
|
7,980
|
|
7,942
|
|
15,909
|
|
15,991
|
Provision for credit
losses
|
|
709
|
|
638
|
|
219
|
|
1,347
|
|
441
|
Non-interest
expenses
|
|
4,576
|
|
4,464
|
|
4,159
|
|
9,040
|
|
8,382
|
Income tax
expense
|
|
485
|
|
1,106
|
|
817
|
|
1,591
|
|
1,681
|
Net
income
|
$
|
2,159
|
$
|
1,772
|
$
|
2,747
|
$
|
3,931
|
$
|
5,487
|
Net income attributable
to non-controlling interests in
|
|
|
|
|
|
|
|
|
|
|
subsidiaries
|
|
26
|
|
40
|
|
78
|
|
66
|
|
166
|
Net income attributable
to equity holders of the Bank
|
$
|
2,133
|
$
|
1,732
|
$
|
2,669
|
$
|
3,865
|
$
|
5,321
|
|
Preferred shareholders
and other equity instrument holders
|
|
104
|
|
101
|
|
74
|
|
205
|
|
118
|
|
Common
shareholders
|
$
|
2,029
|
$
|
1,631
|
$
|
2,595
|
$
|
3,660
|
$
|
5,203
|
Earnings per common
share (in dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.70
|
$
|
1.37
|
$
|
2.16
|
$
|
3.07
|
$
|
4.32
|
|
Diluted
|
$
|
1.69
|
$
|
1.36
|
$
|
2.16
|
$
|
3.04
|
$
|
4.30
|
Business Segment Review
Canadian Banking
Q2 2023 vs Q2 2022
Net income attributable to equity holders was $1,060 million, compared to $1,179 million. Adjusted net income attributable
to equity holders was $1,061 million,
down $122 million or 10%. The decline
was due primarily to higher provision for credit losses and
non-interest expenses, partly offset by higher revenue.
Q2 2023 vs Q1 2023
Net income attributable to equity holders and adjusted net
income attributable to equity holders declined $27 million. The decline was due to lower revenue
and higher non-interest expenses.
Year-to-date Q2 2023 vs Year-to-date Q2 2022
Net income attributable to equity holders was $2,147 million, compared to $2,380 million. Adjusted net income attributable
to equity holders was $2,149 million,
down $239 million or 10%. The decline
was due primarily to higher provision for credit losses and
non-interest expenses, partly offset by higher revenue.
International Banking
Q2 2023 vs Q2 2022
Net income attributable to equity holders was $642 million, an increase of 6% from $605 million. Adjusted net income attributable to
equity holders was $650 million, an
increase of $37 million or 6%. The
increase was driven by higher revenues and the positive impact of
foreign currency translation, partly offset by higher non-interest
expenses and provision for credit losses.
Q2 2023 vs Q1 2023
Net income attributable to equity holders decreased by
$12 million or 2%. The decrease was
due primarily to lower non-interest income, higher non-interest
expenses and provision for credit losses, partly offset by higher
net interest income and the positive impact of foreign currency
translation.
Year-to-date Q2 2023 vs Year-to-date Q2 2022
Net income attributable to equity holders was $1,296 million, an increase of 13% from
$1,150 million. Adjusted net income
attributable to equity holders was $1,311
million, an increase of $146
million or 13%. The increase was driven by higher net
interest income and non-interest income, and lower provision for
income taxes, partly offset by higher non-interest expenses and
provision for credit losses.
Financial Performance on a Constant Dollar
Basis
The discussion below on the results of operations is on a
constant dollar basis. Under the constant dollar basis, prior
period amounts are recalculated using current period average
foreign currency rates, which is a non-GAAP financial measure
(refer to Non-GAAP Measures starting on page 6). The Bank believes
that constant dollar is useful for readers in assessing ongoing
business performance without the impact of foreign currency
translation and is used by management to assess the performance of
the business segment.
Q2 2023 vs Q2 2022
Net income attributable to equity holders was $642 million, in line with the prior year.
Adjusted net income attributable to equity holders was $650 million, in line with the prior year, driven
by higher revenues and lower provision for income taxes, offset by
higher provision for credit losses and non-interest expenses.
Q2 2023 vs Q1 2023
Net income attributable to equity holders decreased by
$47 million or 7%. The decrease was
due primarily to lower non-interest income, and higher provision
for credit losses and provision for income taxes, partly offset by
higher net interest income and lower non-interest expenses.
Year-to-date Q2 2023 vs Year-to-date Q2 2022
Net income attributable to equity holders was $1,296 million, an increase of 9% from
$1,189 million. Adjusted net income
attributable to equity holders was $1,311
million, an increase of $107
million or 9%. The increase was driven by higher revenues
and lower provision for income taxes, partly offset by higher
provision for credit losses and non-interest expenses.
Global Wealth Management
Q2 2023 vs Q2 2022
Net income attributable to equity holders was $353 million, compared to $407 million. Adjusted net income
attributable to equity holders was $359
million, down $54 million or
13%. The decline was due primarily to lower mutual fund fees
and brokerage revenues, partly offset by higher net interest
income.
Q2 2023 vs Q1 2023
Net income attributable to equity holders decreased $32 million or 8%. Adjusted net income
attributable to equity holders decreased $33
million or 8%, due primarily to lower fee revenue and net
interest income, and higher non-interest expenses.
Year-to-date Q2 2023 vs Year-to-date Q2 2022
Net income attributable to equity holders was $738 million, compared to $819 million. Adjusted net income attributable to
equity holders was $751 million, down
$81 million or 10%. The decline
was due primarily to lower fee income, partly offset by higher net
interest income and lower non-interest expenses.
Global Banking and Markets
Q2 2023 vs Q2 2022
Net income attributable to equity holders was $401 million, a decrease of $87 million or 18%, due mainly to higher
provision for credit losses and non-interest expenses, partly
offset by higher revenue and the positive impact of foreign
currency translation.
Q2 2023 vs Q1 2023
Net income attributable to equity holders decreased by
$118 million or 23% due to higher
provision for credit losses and lower revenue, partly offset by
lower non-interest expenses.
Year-to-date Q2 2023 vs Year-to-date Q2 2022
Net income attributable to equity holders was $920 million, a decrease of $129 million or 12% due to higher provision for
credit losses and non-interest expenses, partly offset by higher
revenue and the positive impact of foreign currency
translation.
Other
Q2 2023 vs Q2 2022
Net income attributable to equity holders was a net loss of
$323 million, compared to a
$10 million net loss in the prior
year. The decrease of $313 million
was due mainly to lower revenues of $621
million, partly offset by lower expenses and taxes. Lower
revenue due primarily to higher funding costs and lower income from
hedges, was partly offset by higher income from liquid assets and
investment gains.
Q2 2023 vs Q1 2023
Net income attributable to equity holders increased $590 million, due mainly to the recognition of
the CRD of $579 million in the prior
quarter. On an adjusted basis, net income attributable to equity
holders increased $11 million, due
mainly to higher revenues, partly offset by higher non-interest
expenses and provision for income taxes. The higher revenue is due
primarily to treasury activities related to higher income from
liquid assets and income from hedges, which were partly offset by
higher term funding costs. Also contributing were higher investment
gains and income from associated corporations this period.
Year-to-date Q2 2023 vs Year-to-date Q2 2022
Net income attributable to equity holders was a net loss of
$1,236 million compared to net income
of $77 million. Adjusted net income
attributable to equity holders was a net loss of $657 million, a decrease of $580 million, due mainly to lower revenues of
$1,284 million, partly offset by
lower taxes and lower non-interest expenses. The lower revenue is
due primarily to treasury activities related to higher funding
costs and lower income from hedges, which were partly offset by
higher income from liquid assets. Also contributing to the lower
revenue was lower income from associated corporations.
Credit risk
Provision for credit losses
Q2 2023 vs Q2 2022
The provision for credit losses was $709
million, compared to $219
million, an increase of $490
million. The provision for credit losses ratio increased 24
basis points to 37 basis points.
The provision for credit losses on performing loans was
$88 million, compared to a net
reversal of $187 million. The
provision this period was driven primarily by the less favourable
macroeconomic outlook, impacting mainly the corporate and
commercial portfolios, as well as higher retail provisions due to
challenging market conditions in Chile and Colombia driven by higher inflation.
This was partly offset by reversals in Canada, including credit migration to
impaired.
The provision for credit losses on impaired loans was
$621 million, compared to
$406 million, an increase of
$215 million or 53%, due primarily to
higher formations in the retail portfolios in Canadian and
International Banking. The provision for credit losses ratio on
impaired loans was 33 basis points, an increase of nine basis
points.
Q2 2023 vs Q1 2023
The provision for credit losses was $709
million, compared to $638
million, an increase of $71
million or 11%. The provision for credit losses ratio
increased four basis points to 37 basis points.
The provision for credit losses on performing loans was
$88 million, compared to $76 million, an increase of $12 million from the continued unfavourable
macroeconomic outlook, impacting mainly the corporate and
commercial portfolios, as well as higher retail provisions due to
challenging market conditions in Colombia and Chile driven by higher inflation. This was
partly offset by reversals in Canada, including credit migration to
impaired.
The provision for credit losses on impaired loans was
$621 million, compared to
$562 million, an increase of
$59 million or 10% due primarily to
higher formations in the retail portfolios in Canadian and
International Banking. The provision for credit losses ratio on
impaired loans was 33 basis points, an increase of four basis
points.
Year-to-date Q2 2023 vs Year-to-date Q2 2022
The provision for credit losses was $1,347 million, compared to $441 million, an increase of $906 million. The provision for credit losses
ratio increased 22 basis points to 35 basis points.
Provision for credit losses on performing loans was $164 million, compared to a net reversal of
$370 million. The provision this
period was driven by higher retail provisions due to challenging
market conditions in Colombia and
Chile from higher inflation,
portfolio growth across markets primarily in retail, and a less
favourable macroeconomic outlook primarily impacting commercial and
corporate portfolios.
Provision for credit losses on impaired loans was $1,183 million compared to $811 million, an increase of $372 million or 46% due primarily to higher
formations in the retail portfolios in Canadian and International
Banking. The provision for credit losses ratio on impaired loans
increased seven basis points to 31 basis points.
Allowance for credit losses
The total allowance for credit losses as at April 30, 2023 was $5,931
million compared to $5,668
million last quarter. The allowance for credit losses ratio
was 75 basis points, an increase of three basis points. The
allowance for credit losses on loans was $5,736 million, up $223
million from the prior quarter. The increase was due
primarily to the impact of foreign currency translation in the
International Banking portfolios, as well as the impact of the
continued unfavourable macroeconomic outlook primarily impacting
the corporate and commercial portfolios, and higher provisions in
International retail portfolios.
The allowance against performing loans was higher at
$3,985 million compared to
$3,859 million as at January 31, 2023. The allowance for performing
loans ratio was 52 basis points, an increase of one basis point.
The increase was due primarily to the impact of foreign currency
translation in the International Banking portfolios, continued
unfavourable macroeconomic outlook for the corporate and commercial
portfolio and higher retail provisions in Chile and Colombia.
The allowance on impaired loans increased to $1,751 million from $1,654
million last quarter. The allowance for impaired loans ratio
was 23 basis points, an increase of two basis points from the prior
quarter. The increase was due primarily to higher retail
provisions.
Impaired loans
Gross impaired loans increased to $5,305
million as at April 30, 2023,
from $5,104 million last quarter. The
increase was due primarily to the impact of foreign currency
translation in International Banking, and net formations in retail
portfolios. The gross impaired loan ratio was 67 basis points, an
increase of two basis points from last quarter.
Net impaired loans in Canadian Banking were $724 million, an increase of $57 million from last quarter, due primarily to
higher retail formations. International Banking's net impaired
loans were $2,715 million, an
increase of $65 million from last
quarter, due primarily to the impact of foreign currency
translation and net formations in the retail portfolio. In Global
Banking and Markets, net impaired loans were $100 million, a decrease of $20 million from last quarter, due to recoveries
and lower formations. In Global Wealth Management, net impaired
loans were $15 million, an increase
of $2 million from last quarter. Net
impaired loans as a percentage of loans and acceptances were 0.45%,
an increase of one basis point from 0.44% last quarter.
Capital Ratios
The Bank's Common Equity Tier 1 (CET1) capital
ratio(1) was 12.3% as at April
30, 2023, an increase of approximately 80 basis points from
the prior quarter. The ratio benefited from the adoption of OSFI's
revised Basel III requirements, internal capital generation, net
share issuances from the Bank's Shareholder Dividend and Share
Purchase Plan and gains from the revaluation of FVOCI
securities.
The Bank's Tier 1 capital ratio(1) was 14.1% as at
April 30, 2023, an increase of
approximately 90 basis points from the prior quarter, due primarily
to the above noted impacts to the CET1 ratio.
The Bank's Total capital ratio(1) was 16.2% as at
April 30, 2023, an increase of
approximately 100 basis points from the prior quarter, mainly due
to the above noted impacts to the Tier 1 capital ratio.
The Leverage ratio(2) was 4.2% as at April 30, 2023 approximately in line with the
prior quarter, as OSFI's reversal of its temporary exclusion of
central bank reserves within its leverage exposures measure was
partly offset by lower off balance sheet leverage exposures.
The Total loss absorbing capacity (TLAC) ratio(3) was
28.3% as at April 30, 2023, an
increase of approximately 40 basis points from the prior quarter,
mainly from the above noted impacts to the Total capital ratio.
The TLAC Leverage ratio(3) was 8.4%, a decrease of
approximately 50 basis points, due primarily to OSFI's reversal of
its temporary exclusion of central bank reserves within its
leverage exposure measure.
As at April 30, 2023, the CET1,
Tier 1, Total capital, Leverage, TLAC and TLAC Leverage ratios were
well above OSFI's minimum capital ratios.
____________________________________________
|
(1) This measure has been disclosed
in this document in accordance with OSFI Guideline – Capital
Adequacy Requirements (February 2023).
|
(2) This measure has been disclosed
in this document in accordance with OSFI Guideline – Leverage
Requirements (February 2023).
|
(3) This measure has been disclosed
in this document in accordance with OSFI Guideline – Total Loss
Absorbing Capacity (September 2018).
|
|
Non-GAAP Measures
The Bank uses a number of financial measures to assess its
performance, as well as the performance of its operating segments.
Some of these financial measures are presented on a non-GAAP basis
and are not calculated in accordance with Generally Accepted
Accounting Principles (GAAP), which are based on International
Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB), are not defined by GAAP and do
not have standardized meanings and therefore might not be
comparable to similar financial measures disclosed by other
issuers. The Bank believes that non-GAAP measures are useful as
they provide readers with a better understanding of how management
assesses performance. These non-GAAP measures are used throughout
this press release and defined below.
Adjusted results and diluted earnings per share
The following tables present a reconciliation of GAAP reported
financial results to non-GAAP adjusted financial results.
Management considers both reported and adjusted results and
measures useful in assessing underlying ongoing business
performance. Adjusted results and measures remove certain specified
items from revenue, non-interest expenses, income taxes and
non-controlling interest. Presenting results on both a reported
basis and adjusted basis allows readers to assess the impact of
certain items on results for the periods presented, and to better
assess results and trends excluding those items that may not be
reflective of ongoing business performance. Net income and diluted
earnings per share have been adjusted for the following:
Adjustments impacting current and prior periods:
Amortization of acquisition-related
intangible assets: These costs relate to the amortization of
intangibles recognized upon the acquisition of businesses,
excluding software, and are recorded in the Canadian Banking,
International Banking and Global Wealth Management operating
segments.
Canada Recovery Dividend, recorded in Q1,
2023: In Q1 2023, the Bank recognized an additional income tax
expense of $579 million reflecting
the present value of the amount payable for the Canada Recovery
Dividend (CRD). The CRD is a Canadian federal tax measure which
requires the Bank to pay a one-time tax of 15% on taxable income in
excess of $1 billion, based on the
average taxable income for the 2020 and 2021 taxation years. The
CRD is payable in equal amounts over five years; however, the
present value of these payments must be recognized as a liability
in the quarter enacted. The charge was recorded in the Other
operating segment.
Reconciliation of
reported and adjusted results and diluted earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
For the six months
ended
|
|
April
30
|
January 31
|
April 30
|
April
30
|
April 30
|
($
millions)
|
2023
|
2023
|
2022
|
2023
|
2022
|
Reported
Results
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
4,466
|
$
|
4,569
|
$
|
4,473
|
$
|
9,035
|
$
|
8,817
|
Non-interest
income
|
|
3,463
|
|
3,411
|
|
3,469
|
|
6,874
|
|
7,174
|
Total Revenue
|
|
7,929
|
|
7,980
|
|
7,942
|
|
15,909
|
|
15,991
|
Provision for credit
losses
|
|
709
|
|
638
|
|
219
|
|
1,347
|
|
441
|
Non-interest
expenses
|
|
4,576
|
|
4,464
|
|
4,159
|
|
9,040
|
|
8,382
|
Income before
taxes
|
|
2,644
|
|
2,878
|
|
3,564
|
|
5,522
|
|
7,168
|
Income tax
expense
|
|
485
|
|
1,106
|
|
817
|
|
1,591
|
|
1,681
|
Net
income
|
$
|
2,159
|
$
|
1,772
|
$
|
2,747
|
$
|
3,931
|
$
|
5,487
|
Net income attributable
to non-controlling interests in subsidiaries (NCI)
|
|
26
|
|
40
|
|
78
|
|
66
|
|
166
|
Net income attributable
to equity holders
|
|
2,133
|
|
1,732
|
|
2,669
|
|
3,865
|
|
5,321
|
Net income attributable
to preferred shareholders and other equity
|
|
|
|
|
|
|
|
|
|
|
instrument
holders
|
|
104
|
|
101
|
|
74
|
|
205
|
|
118
|
Net income
attributable to common shareholders
|
$
|
2,029
|
$
|
1,631
|
$
|
2,595
|
$
|
3,660
|
$
|
5,203
|
Diluted earnings per
share (in dollars)
|
$
|
1.69
|
$
|
1.36
|
$
|
2.16
|
$
|
3.04
|
$
|
4.30
|
Weighted average
number of diluted common shares
|
|
|
|
|
|
|
|
|
|
|
outstanding
(millions)
|
|
1,197
|
|
1,199
|
|
1,201
|
|
1,199
|
|
1,225
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
Adjusting items
impacting non-interest expenses (Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
$
|
21
|
$
|
21
|
$
|
24
|
$
|
42
|
$
|
49
|
Total non-interest
expense adjusting items (Pre-tax)
|
|
21
|
|
21
|
|
24
|
|
42
|
|
49
|
Total impact of
adjusting items on net income before taxes
|
|
21
|
|
21
|
|
24
|
|
42
|
|
49
|
Impact of adjusting
items on income tax expense
|
|
|
|
|
|
|
|
|
|
|
Canada recovery
dividend
|
|
-
|
|
579
|
|
-
|
|
579
|
|
-
|
Amortization of
acquisition-related intangible assets
|
|
(6)
|
|
(6)
|
|
(6)
|
|
(12)
|
|
(13)
|
Total impact of
adjusting items on income tax expense
|
|
(6)
|
|
573
|
|
(6)
|
|
567
|
|
(13)
|
Total impact of
adjusting items on net income
|
$
|
15
|
$
|
594
|
$
|
18
|
$
|
609
|
$
|
36
|
Impact of adjusting
items on NCI
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total impact of
adjusting items on net income attributable to equity
|
|
|
|
|
|
|
|
|
|
|
holders and common
shareholders
|
$
|
15
|
$
|
594
|
$
|
18
|
$
|
609
|
$
|
36
|
Adjusted
Results
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
4,466
|
$
|
4,569
|
$
|
4,473
|
$
|
9,035
|
$
|
8,817
|
Non-interest
income
|
|
3,463
|
|
3,411
|
|
3,469
|
|
6,874
|
|
7,174
|
Total revenue
|
|
7,929
|
|
7,980
|
|
7,942
|
|
15,909
|
|
15,991
|
Provision for credit
losses
|
|
709
|
|
638
|
|
219
|
|
1,347
|
|
441
|
Non-interest
expenses
|
|
4,555
|
|
4,443
|
|
4,135
|
|
8,998
|
|
8,333
|
Income before
taxes
|
|
2,665
|
|
2,899
|
|
3,588
|
|
5,564
|
|
7,217
|
Income tax
expense
|
|
491
|
|
533
|
|
823
|
|
1,024
|
|
1,694
|
Net
income
|
$
|
2,174
|
$
|
2,366
|
$
|
2,765
|
$
|
4,540
|
$
|
5,523
|
Net income attributable
to NCI
|
|
26
|
|
40
|
|
78
|
|
66
|
|
166
|
Net income attributable
to equity holders
|
|
2,148
|
|
2,326
|
|
2,687
|
|
4,474
|
|
5,357
|
Net income attributable
to preferred shareholders and other equity
|
|
|
|
|
|
|
|
|
|
|
instrument
holders
|
|
104
|
|
101
|
|
74
|
|
205
|
|
118
|
Net income
attributable to common shareholders
|
$
|
2,044
|
$
|
2,225
|
$
|
2,613
|
$
|
4,269
|
$
|
5,239
|
Diluted earnings per
share (in dollars)
|
$
|
1.70
|
$
|
1.85
|
$
|
2.18
|
$
|
3.55
|
$
|
4.33
|
Impact of
adjustments on diluted earnings per share (in
dollars)
|
$
|
0.01
|
$
|
0.49
|
$
|
0.02
|
$
|
0.51
|
$
|
0.03
|
Weighted average
number of diluted common shares
|
|
|
|
|
|
|
|
|
|
|
outstanding
(millions)
|
|
1,197
|
|
1,210
|
|
1,201
|
|
1,199
|
|
1,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of reported and adjusted results by
business line
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended April 30, 2023(1)
|
($
millions)
|
Canadian
Banking
|
International
Banking
|
Global Wealth
Management
|
Global
Banking and
Markets
|
Other
|
Total
|
Reported net income
(loss)
|
$
|
1,060
|
$
|
665
|
$
|
356
|
$
|
401
|
$
|
(323)
|
$
|
2,159
|
Net income attributable
to non-controlling interests in subsidiaries (NCI)
|
|
-
|
|
23
|
|
3
|
|
-
|
|
-
|
|
26
|
Reported net income
attributable to equity holders
|
|
1,060
|
|
642
|
|
353
|
|
401
|
|
(323)
|
|
2,133
|
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
|
$
|
1,059
|
$
|
641
|
$
|
352
|
$
|
400
|
$
|
(423)
|
$
|
2,029
|
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)
|
$
|
1,061
|
$
|
673
|
$
|
362
|
$
|
401
|
$
|
(323)
|
$
|
2,174
|
Adjusted net income
attributable to equity holders
|
$
|
1,061
|
$
|
650
|
$
|
359
|
$
|
401
|
$
|
(323)
|
$
|
2,148
|
Adjusted net income
attributable to common shareholders
|
$
|
1,060
|
$
|
649
|
$
|
358
|
$
|
400
|
$
|
(423)
|
$
|
2,044
|
(1)
|
Refer to Business Segment Review section of the
Bank's Q2, 2023 Quarterly Report to
Shareholders.
|
|
|
|
|
For the three months
ended January 31, 2023(1)
|
($
millions)
|
Canadian
Banking
|
International
Banking
|
Global Wealth
Management
|
Global
Banking and
Markets
|
Other
|
Total
|
Reported net income
(loss)
|
$
|
1,087
|
$
|
692
|
$
|
387
|
$
|
519
|
$
|
(913)
|
$
|
1,772
|
Net income attributable
to non-controlling interests in subsidiaries (NCI)
|
|
-
|
|
38
|
|
2
|
|
-
|
|
-
|
|
40
|
Reported net income
attributable to equity holders
|
|
1,087
|
|
654
|
|
385
|
|
519
|
|
(913)
|
|
1,732
|
Reported net income
attributable to preferred shareholders and
|
|
|
|
|
|
|
|
|
|
|
|
|
other equity instrument
holders
|
|
1
|
|
1
|
|
-
|
|
1
|
|
98
|
|
101
|
Reported net income
attributable to common shareholders
|
$
|
1,086
|
$
|
653
|
$
|
385
|
$
|
518
|
$
|
(1,011)
|
$
|
1,631
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items
impacting non-interest expenses (Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
|
2
|
|
10
|
|
9
|
|
-
|
|
-
|
|
21
|
Total non-interest
expenses adjustments (Pre-tax)
|
|
2
|
|
10
|
|
9
|
|
-
|
|
-
|
|
21
|
Total impact of
adjusting items on net income before taxes
|
|
2
|
|
10
|
|
9
|
|
-
|
|
-
|
|
21
|
Impact of adjusting
items on income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada recovery
dividend
|
|
-
|
|
-
|
|
-
|
|
-
|
|
579
|
|
579
|
Impact of other
adjusting items on income tax expense
|
|
(1)
|
|
(3)
|
|
(2)
|
|
-
|
|
-
|
|
(6)
|
Total impact of
adjusting items on income tax expense
|
|
(1)
|
|
(3)
|
|
(2)
|
|
-
|
|
579
|
|
573
|
Total impact of
adjusting items on net income
|
|
1
|
|
7
|
|
7
|
|
-
|
|
579
|
|
594
|
Total impact of
adjusting items on net income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
equity holders and
common shareholders
|
|
1
|
|
7
|
|
7
|
|
-
|
|
579
|
|
594
|
Adjusted net income
(loss)
|
$
|
1,088
|
$
|
699
|
$
|
394
|
$
|
519
|
$
|
(334)
|
$
|
2,366
|
Adjusted net income
attributable to equity holders
|
$
|
1,088
|
$
|
661
|
$
|
392
|
$
|
519
|
$
|
(334)
|
$
|
2,326
|
Adjusted net income
attributable to common shareholders
|
$
|
1,087
|
$
|
660
|
$
|
392
|
$
|
518
|
$
|
(432)
|
$
|
2,225
|
(1)
|
Refer to Business
Segment Review section of the Bank's Q2, 2023 Quarterly Report to
Shareholders.
|
Reconciliation of reported and adjusted results by
business line
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended April 30, 2022(1)
|
($
millions)
|
Canadian
Banking
|
International
Banking
|
Global Wealth
Management
|
Global
Banking and
Markets
|
Other
|
Total
|
Reported net income
(loss)
|
$
|
1,179
|
$
|
681
|
$
|
409
|
$
|
488
|
$
|
(10)
|
$
|
2,747
|
Net income attributable
to non-controlling interests in subsidiaries (NCI)
|
|
-
|
|
76
|
|
2
|
|
-
|
|
-
|
|
78
|
Reported net income
attributable to equity holders
|
|
1,179
|
|
605
|
|
407
|
|
488
|
|
(10)
|
|
2,669
|
Reported net income
attributable to preferred shareholders and
|
|
|
|
|
|
|
|
|
|
|
|
|
other equity instrument
holders
|
|
1
|
|
2
|
|
-
|
|
1
|
|
70
|
|
74
|
Reported net income
attributable to common shareholders
|
$
|
1,178
|
$
|
603
|
$
|
407
|
$
|
487
|
$
|
(80)
|
$
|
2,595
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items
impacting non-interest expenses (Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
|
5
|
|
10
|
|
9
|
|
-
|
|
-
|
|
24
|
Total non-interest
expenses adjustments (Pre-tax)
|
|
5
|
|
10
|
|
9
|
|
-
|
|
-
|
|
24
|
Total impact of
adjusting items on net income before taxes
|
|
5
|
|
10
|
|
9
|
|
-
|
|
-
|
|
24
|
Impact of adjusting
items on income tax expense
|
|
(1)
|
|
(2)
|
|
(3)
|
|
-
|
|
-
|
|
(6)
|
Total impact of
adjusting items on net income
|
|
4
|
|
8
|
|
6
|
|
-
|
|
-
|
|
18
|
Total impact of
adjusting items on net income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
equity holders and
common shareholders
|
|
4
|
|
8
|
|
6
|
|
-
|
|
-
|
|
18
|
Adjusted net income
(loss)
|
$
|
1,183
|
$
|
689
|
$
|
415
|
$
|
488
|
$
|
(10)
|
$
|
2,765
|
Adjusted net income
attributable to equity holders
|
$
|
1,183
|
$
|
613
|
$
|
413
|
$
|
488
|
$
|
(10)
|
$
|
2,687
|
Adjusted net income
attributable to common shareholders
|
$
|
1,182
|
$
|
611
|
$
|
413
|
$
|
487
|
$
|
(80)
|
$
|
2,613
|
(1)
|
Refer to Business
Segment Review section of the Bank's Q2, 2023 Quarterly Report to
Shareholders.
|
|
|
|
|
For the six months
ended April 30, 2023(1)
|
($
millions)
|
Canadian
Banking
|
International
Banking
|
Global Wealth
Management
|
Global
Banking and
Markets
|
Other
|
Total
|
Reported net income
(loss)
|
$
|
2,147
|
$
|
1,357
|
$
|
743
|
$
|
920
|
$
|
(1,236)
|
$
|
3,931
|
Net income attributable
to non-controlling interests in subsidiaries (NCI)
|
|
-
|
|
61
|
|
5
|
|
-
|
|
-
|
|
66
|
Reported net income
attributable to equity holders
|
|
2,147
|
|
1,296
|
|
738
|
|
920
|
|
(1,236)
|
|
3,865
|
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
|
$
|
2,145
|
$
|
1,294
|
$
|
737
|
$
|
918
|
$
|
(1,434)
|
$
|
3,660
|
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)
|
$
|
2,149
|
$
|
1,372
|
$
|
756
|
$
|
920
|
$
|
(657)
|
$
|
4,540
|
Adjusted net income
attributable to equity holders
|
$
|
2,149
|
$
|
1,311
|
$
|
751
|
$
|
920
|
$
|
(657)
|
$
|
4,474
|
Adjusted net income
attributable to common shareholders
|
$
|
2,147
|
$
|
1,309
|
$
|
750
|
$
|
918
|
$
|
(855)
|
$
|
4,269
|
(1)
|
Refer to Business Segment Review section of the
Bank's Q2, 2023 Quarterly Report to
Shareholders.
|
Reconciliation of
reported and adjusted results by business line
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended April 30, 2022(1)
|
($
millions)
|
Canadian
Banking
|
International
Banking
|
Global Wealth
Management
|
Global
Banking and
Markets
|
Other
|
Total
|
Reported net income
(loss)
|
$
|
2,380
|
$
|
1,311
|
$
|
824
|
$
|
1,049
|
$
|
(77)
|
$
|
5,487
|
Net income attributable
to non-controlling interests in subsidiaries (NCI)
|
|
-
|
|
161
|
|
5
|
|
-
|
|
-
|
|
166
|
Reported net income
attributable to equity holders
|
|
2,380
|
|
1,150
|
|
819
|
|
1,049
|
|
(77)
|
|
5,321
|
Reported net income
attributable to preferred shareholders and
|
|
|
|
|
|
|
|
|
|
|
|
|
other equity instrument
holders
|
|
4
|
|
5
|
|
2
|
|
3
|
|
104
|
|
118
|
Reported net income
attributable to common shareholders
|
$
|
2,376
|
$
|
1,145
|
$
|
817
|
$
|
1,046
|
$
|
(181)
|
$
|
5,203
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items
impacting non-interest expenses (Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
|
11
|
|
20
|
|
18
|
|
-
|
|
-
|
|
49
|
Total non-interest
expenses adjustments (Pre-tax)
|
|
11
|
|
20
|
|
18
|
|
-
|
|
-
|
|
49
|
Total impact of
adjusting items on net income before taxes
|
|
11
|
|
20
|
|
18
|
|
-
|
|
-
|
|
49
|
Impact of adjusting
items on income tax expense
|
|
(3)
|
|
(5)
|
|
(5)
|
|
-
|
|
-
|
|
(13)
|
Total impact of
adjusting items on net income
|
|
8
|
|
15
|
|
13
|
|
-
|
|
-
|
|
36
|
Total impact of
adjusting items on net income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
equity holders and
common shareholders
|
|
8
|
|
15
|
|
13
|
|
-
|
|
-
|
|
36
|
Adjusted net income
(loss)
|
$
|
2,388
|
$
|
1,326
|
$
|
837
|
$
|
1,049
|
$
|
(77)
|
$
|
5,523
|
Adjusted net income
attributable to equity holders
|
$
|
2,388
|
$
|
1,165
|
$
|
832
|
$
|
1,049
|
$
|
(77)
|
$
|
5,357
|
Adjusted net income
attributable to common shareholders
|
$
|
2,384
|
$
|
1,160
|
$
|
830
|
$
|
1,046
|
$
|
(181)
|
$
|
5,239
|
(1)
|
Refer to Business Segment Review section of the
Bank's Q2, 2023 Quarterly Report to
Shareholders.
|
Reconciliation of International Banking's reported, adjusted
and constant dollar results
International Banking business segment results are analyzed on a
constant dollar basis which is a non-GAAP measure. Under the
constant dollar basis, prior period amounts are recalculated using
current period average foreign currency rates. The following table
presents the reconciliation between reported, adjusted and constant
dollar results for International Banking for prior periods. The
Bank believes that constant dollar is useful for readers to
understand business performance without the impact of foreign
currency translation and is used by management to assess the
performance of the business segment.
Reported
Results
|
For the three months
ended
|
For the six months
ended
|
($
millions)
|
January 31,
2023
|
|
April 30,
2022
|
April 30,
2022
|
(Taxable equivalent
basis)
|
Reported
|
Foreign
exchange
|
Constant
dollar
|
|
Reported
|
Foreign
exchange
|
Constant
dollar
|
|
Reported
|
Foreign
exchange
|
Constant
dollar
|
Net interest
income
|
$
|
1,899
|
$
|
(73)
|
$
|
1,972
|
|
$
|
1,687
|
$
|
(140)
|
$
|
1,827
|
|
$
|
3,335
|
$
|
(245)
|
$
|
3,580
|
Non-interest
income
|
|
802
|
|
(35)
|
|
837
|
|
|
720
|
|
(5)
|
|
725
|
|
|
1,469
|
|
16
|
|
1,453
|
Total
revenue
|
|
2,701
|
|
(108)
|
|
2,809
|
|
|
2,407
|
|
(145)
|
|
2,552
|
|
|
4,804
|
|
(229)
|
|
5,033
|
Provision for credit
losses
|
|
404
|
|
(18)
|
|
422
|
|
|
276
|
|
(16)
|
|
292
|
|
|
550
|
|
(33)
|
|
583
|
Non-interest
expenses
|
|
1,436
|
|
(51)
|
|
1,487
|
|
|
1,268
|
|
(84)
|
|
1,352
|
|
|
2,553
|
|
(149)
|
|
2,702
|
Income tax
expense
|
|
169
|
|
(2)
|
|
171
|
|
|
182
|
|
(3)
|
|
185
|
|
|
390
|
|
(2)
|
|
392
|
Net
income
|
$
|
692
|
$
|
(37)
|
$
|
729
|
|
$
|
681
|
$
|
(42)
|
$
|
723
|
|
$
|
1,311
|
$
|
(45)
|
$
|
1,356
|
Net income attributable
to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest in
subsidiaries (NCI)
|
$
|
38
|
$
|
(2)
|
$
|
40
|
|
$
|
76
|
$
|
(5)
|
$
|
81
|
|
$
|
161
|
$
|
(6)
|
$
|
167
|
Net income attributable
to equity holders of the Bank
|
$
|
654
|
$
|
(35)
|
$
|
689
|
|
$
|
605
|
$
|
(37)
|
$
|
642
|
|
$
|
1,150
|
$
|
(39)
|
$
|
1,189
|
Other
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets ($
billions)
|
$
|
228
|
$
|
(9)
|
$
|
237
|
|
$
|
204
|
$
|
(16)
|
$
|
220
|
|
$
|
200
|
$
|
(5)
|
$
|
205
|
Average liabilities
($ billions)
|
$
|
169
|
$
|
(7)
|
$
|
176
|
|
$
|
149
|
$
|
(12)
|
$
|
161
|
|
$
|
146
|
$
|
(10)
|
$
|
156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Results
|
For the three months
ended
|
For the six months
ended
|
($
millions)
|
January 31,
2023
|
|
April 30,
2022
|
April 30,
2022
|
(Taxable equivalent
basis)
|
Adjusted
|
Foreign
exchange
|
Constant
dollar adjusted
|
|
Adjusted
|
Foreign
exchange
|
Constant
dollar
adjusted
|
|
Adjusted
|
Foreign
exchange
|
Constant
dollar
adjusted
|
Net interest
income
|
$
|
1,899
|
$
|
(73)
|
$
|
1,972
|
|
$
|
1,687
|
$
|
(140)
|
$
|
1,827
|
|
$
|
3,335
|
$
|
(245)
|
$
|
3,580
|
Non-interest
income
|
|
802
|
|
(35)
|
|
837
|
|
|
720
|
|
(5)
|
|
725
|
|
|
1,469
|
|
16
|
|
1,453
|
Total
revenue
|
|
2,701
|
|
(108)
|
|
2,809
|
|
|
2,407
|
|
(145)
|
|
2,552
|
|
|
4,804
|
|
(229)
|
|
5,033
|
Provision for credit
losses
|
|
404
|
|
(18)
|
|
422
|
|
|
276
|
|
(16)
|
|
292
|
|
|
550
|
|
(33)
|
|
583
|
Non-interest
expenses
|
|
1,426
|
|
(51)
|
|
1,477
|
|
|
1,258
|
|
(83)
|
|
1,341
|
|
|
2,533
|
|
(148)
|
|
2,681
|
Income tax
expense
|
|
172
|
|
(1)
|
|
173
|
|
|
184
|
|
(4)
|
|
188
|
|
|
395
|
|
(2)
|
|
397
|
Net
income
|
$
|
699
|
$
|
(38)
|
$
|
737
|
|
$
|
689
|
$
|
(42)
|
$
|
731
|
|
$
|
1,326
|
$
|
(46)
|
$
|
1,372
|
Net income attributable
to NCI
|
$
|
38
|
$
|
(2)
|
$
|
40
|
|
$
|
76
|
$
|
(5)
|
$
|
81
|
|
$
|
161
|
$
|
(7)
|
$
|
168
|
Net income attributable
to equity holders of the Bank
|
$
|
661
|
$
|
(36)
|
$
|
697
|
|
$
|
613
|
$
|
(37)
|
$
|
650
|
|
$
|
1,165
|
$
|
(39)
|
$
|
1,204
|
Return on equity
Return on equity is a profitability measure that presents the
net income attributable to common shareholders (annualized) as a
percentage of average common shareholders' equity.
The Bank attributes capital to its business lines on a basis
that approximates 10.5% of Basel III common equity capital
requirements which includes credit, market and operational risks
and leverage inherent within each business segment.
Return on equity for the business segments is calculated as a
ratio of net income attributable to common shareholders
(annualized) of the business segment and the capital
attributed.
Adjusted return on equity is a non-GAAP ratio which represents
adjusted net income attributable to common shareholders
(annualized) as a percentage of average common shareholders'
equity.
Forward-looking
statements
From time to time, our public communications include oral or
written forward-looking statements. Statements of this type are
included in this document, and may be included in other filings
with Canadian securities regulators or the U.S. Securities and
Exchange Commission ("SEC"), or in other communications. In
addition, representatives of the Bank may include forward-looking
statements orally to analysts, investors, the media and others. All
such statements are made pursuant to the "safe harbor" provisions
of the U.S. Private Securities Litigation Reform Act of 1995 and
any applicable Canadian securities legislation. Forward-looking
statements may include, but are not limited to, statements made in
this document, the Management's Discussion and Analysis in the
Bank's 2022 Annual Report under the headings "Outlook" and in other
statements regarding the Bank's objectives, strategies to achieve
those objectives, the regulatory environment in which the Bank
operates, anticipated financial results, and the outlook for the
Bank's businesses and for the Canadian, U.S. and global economies.
Such statements are typically identified by words or phrases such
as "believe," "expect," "foresee," "forecast," "anticipate,"
"intend," "estimate," "plan," "goal," "target," "project,"
"commit," "objective," and similar expressions of future or
conditional verbs, such as "will," "may," "should," "would,"
"might," "can" and "could" and positive and negative variations
thereof.
By their very nature, forward-looking statements require us to
make assumptions and are subject to inherent risks and
uncertainties, which give rise to the possibility that our
predictions, forecasts, projections, expectations or conclusions
will not prove to be accurate, that our assumptions may not be
correct and that our financial performance objectives, vision and
strategic goals will not be achieved.
We caution readers not to place undue reliance on these
statements as a number of risk factors, many of which are beyond
our control and effects of which can be difficult to predict, could
cause our actual results to differ materially from the
expectations, targets, estimates or intentions expressed in such
forward-looking statements.
The future outcomes that relate to forward-looking statements
may be influenced by many factors, including but not limited to:
general economic and market conditions in the countries in which we
operate; changes in currency and interest rates; increased funding
costs and market volatility due to market illiquidity and
competition for funding; the failure of third parties to comply
with their obligations to the Bank and its affiliates; changes in
monetary, fiscal, or economic policy and tax legislation and
interpretation; changes in laws and regulations or in supervisory
expectations or requirements, including capital, interest rate and
liquidity requirements and guidance, and the effect of such changes
on funding costs; changes to our credit ratings; the possible
effects on our business of war or terrorist actions and unforeseen
consequences arising from such actions; operational and
infrastructure risks; reputational risks; the accuracy and
completeness of information the Bank receives on customers and
counterparties; the timely development and introduction of new
products and services, and the extent to which products or services
previously sold by the Bank require the Bank to incur liabilities
or absorb losses not contemplated at their origination; our ability
to execute our strategic plans, including the successful completion
of acquisitions and dispositions, including obtaining regulatory
approvals; critical accounting estimates and the effect of changes
to accounting standards, rules and interpretations on these
estimates; global capital markets activity; the Bank's ability to
attract, develop and retain key executives; the evolution of
various types of fraud or other criminal behaviour to which the
Bank is exposed; disruptions in or attacks (including
cyber-attacks) on the Bank's information technology, internet,
network access, or other voice or data communications systems or
services; increased competition in the geographic and business
areas in which we operate, including through internet and mobile
banking and non-traditional competitors; exposure related to
significant litigation and regulatory matters; climate change and
other environmental and social risks, including sustainability that
may arise, including from the Bank's business activities; the
occurrence of natural and unnatural catastrophic events and claims
resulting from such events; inflationary pressures; Canadian
housing and household indebtedness; the emergence of widespread
health emergencies or pandemics, including the magnitude and
duration of the COVID-19 pandemic and its impact on the global
economy, financial market conditions and the Bank's business,
results of operations, financial condition and prospects; and the
Bank's anticipation of and success in managing the risks implied by
the foregoing. A substantial amount of the Bank's business involves
making loans or otherwise committing resources to specific
companies, industries or countries. Unforeseen events affecting
such borrowers, industries or countries could have a material
adverse effect on the Bank's financial results, businesses,
financial condition or liquidity. These and other factors may cause
the Bank's actual performance to differ materially from that
contemplated by forward-looking statements. The Bank cautions that
the preceding list is not exhaustive of all possible risk factors
and other factors could also adversely affect the Bank's results,
for more information, please see the "Risk Management" section of
the Bank's 2022 Annual Report, as may be updated by quarterly
reports.
Material economic assumptions underlying the forward-looking
statements contained in this document are set out in the 2022
Annual Report under the headings "Outlook", as updated by quarterly
reports. The "Outlook" and "2023 Priorities" sections are based on
the Bank's views and the actual outcome is uncertain. Readers
should consider the above-noted factors when reviewing these
sections. When relying on forward-looking statements to make
decisions with respect to the Bank and its securities, investors
and others should carefully consider the preceding factors, other
uncertainties and potential events.
Any forward-looking statements contained in this document
represent the views of management only as of the date hereof and
are presented for the purpose of assisting the Bank's shareholders
and analysts in understanding the Bank's financial position,
objectives and priorities, and anticipated financial performance as
at and for the periods ended on the dates presented, and may not be
appropriate for other purposes. Except as required by law, the Bank
does not undertake to update any forward-looking statements,
whether written or oral, that may be made from time to time by or
on its behalf.
Additional information relating to the Bank can be located on
the SEDAR website at www.sedar.com and on the EDGAR section of the
SEC's website at www.sec.gov.
Shareholders Information
Dividend and Share Purchase Plan
Scotiabank's Shareholder Dividend and Share Purchase Plan allows
common and preferred shareholders to purchase additional common
shares by reinvesting their cash dividend without incurring
brokerage or administrative fees. As well, eligible shareholders
may invest up to $20,000 each fiscal
year to purchase additional common shares of the Bank. All
administrative costs of the plan are paid by the Bank. For more
information on participation in the plan, please contact the
transfer agent.
Website
For information relating to Scotiabank and its services, visit
us at our website: www.scotiabank.com.
Conference Call and Web Broadcast
The quarterly results conference call will take place on
May 24, 2023, at 7:15 am ET and is expected to last approximately
one hour. Interested parties are invited to access the call live,
in listen-only mode, by telephone at 416-641-6104 or toll-free, at
1-800-952-5114 using ID 8016393# (please call shortly before
7:15 am ET). In addition, an audio
webcast, with accompanying slide presentation, may be accessed via
the Investor Relations page at
www.scotiabank.com/ca/en/about/investors-shareholders.html.
Following discussion of the results by Scotiabank executives,
there will be a question and answer session. A telephone replay of
the conference call will be available from May 24, 2023, to June 30,
2023, by calling 905-694-9451 or 1-800-408-3053
(North America toll-free) and
entering the access code 1127377#.
Additional Information
Investors:
Financial Analysts, Portfolio Managers and
other Institutional Investors requiring financial information,
please contact Investor Relations, Finance Department:
Scotiabank
40 Temperance Street
Toronto, Ontario, Canada M5H
0B4
Telephone: (416) 775-0798
E-mail: investor.relations@scotiabank.com
Global Communications:
Scotiabank
40 Temperance Street, Toronto,
Ontario
Canada M5H 0B4
E-mail: corporate.communications@scotiabank.com
Shareholders:
For enquiries related to changes in
share registration or address, dividend information, lost share
certificates, estate transfers, or to advise of duplicate mailings,
please contact the Bank's transfer agent:
Computershare Trust Company of Canada
100 University Avenue, 8th Floor
Toronto, Ontario, Canada M5J
2Y1
Telephone: 1-877-982-8767
E-mail: service@computershare.com
Co-Transfer Agent (U.S.A.)
Computershare Trust Company, N.A.
Overnight Mail Delivery:
Computershare
C/O: Shareholder Services
462 South 4th Street, Suite 1600
Louisville, KY 40202
First Class, Registered or Certified Mail Delivery:
Computershare
C/O: Shareholder Services
P.O. Box 505000
Louisville, KY 40233-5000
Tel: 1-800-962-4284
E-mail: service@computershare.com
For other shareholder enquiries, please contact the Corporate
Secretary's Department:
Scotiabank
40 Temperance Street
Toronto, Ontario, Canada M5H
0B4
Telephone: (416) 866-3672
E-mail: corporate.secretary@scotiabank.com
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dans la version de leur choix. Si vous préférez que la
documentation vous concernant vous soit adressée en français,
veuillez en informer Relations avec les investisseurs, La Banque de
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changement.
SOURCE Scotiabank