All amounts are in
Canadian dollars and are based on our unaudited Interim Condensed
Consolidated Financial Statements for the quarter ended April 30,
2024 and related notes prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB), unless otherwise noted. Our
complete Second Quarter 2024 Report to Shareholders, including our
unaudited interim financial statements for the period ended April
30, 2024, can also be found on the SEDAR+ website at
www.sedarplus.ca 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 2024 Report to Shareholders on the
Investor Relations page at www.scotiabank.com.
|
Second Quarter 2024
Highlights on a Reported Basis (versus Q2
2023)
|
Second Quarter 2024
Highlights on an Adjusted Basis(1) (versus Q2
2023)
|
• Net
income of $2,092 million, compared to $2,146 million
|
• Net
income of $2,105 million, compared to $2,161 million
|
•
Earnings per share (diluted) of $1.57, compared to $1.68
|
•
Earnings per share (diluted) of $1.58, compared to $1.69
|
• Return on
equity(2) of 11.2%, compared to 12.2%
|
• Return on equity of 11.3%,
compared to 12.3%
|
TORONTO, May 28, 2024
/CNW/ - The Bank of Nova Scotia
("Scotiabank") (TSX: BNS) (NYSE: BNS) reported second quarter net
income of $2,092 million compared to
$2,146 million in the same period
last year. Diluted earnings per share (EPS) were $1.57, compared to $1.68 in the same period a year ago.
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 $428 million, up 7% compared to the prior year.
Results were supported by higher fee-based revenue and lower
provision for credit losses.
The Bank reported a Common Equity Tier 1 (CET1) capital
ratio(3) of 13.2%, up from 12.3% last year.
____________________________________________
|
(1)
|
Refer to Non-GAAP
Measures section starting on page 6.
|
(2)
|
Refer to page 55 of the
Management's Discussion & Analysis in the Bank's Second Quarter
2024 Report to Shareholders, available on www.sedarplus.ca, for an
explanation of the composition of the measure. Such explanation is
incorporated by reference hereto.
|
(3)
|
The Q2 2024 regulatory
capital ratios are based on Revised Basel III requirements as
determined in accordance with OSFI Guideline - Capital Adequacy
Requirements (November 2023). The Q2 2023 regulatory capital ratios
were based on Revised Basel III requirements as determined in
accordance with OSFI Guideline - Capital Adequacy Requirements
(February 2023).
|
Financial Highlights
Reported
Results
|
For the three months ended
|
For the six months
ended
|
|
April
30
|
|
January 31
|
|
April 30
|
|
April
30
|
|
April 30
|
(Unaudited) ($
millions)
|
|
2024(1)
|
|
|
2024(1)
|
|
|
2023(1)
|
|
|
2024(1)
|
|
|
2023(1)
|
Operating
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 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
|
|
26
|
|
|
25
|
|
|
24
|
|
|
51
|
|
|
61
|
Net income attributable
to equity holders of the Bank
|
$
|
2,066
|
|
$
|
2,174
|
|
$
|
2,122
|
|
$
|
4,240
|
|
$
|
3,843
|
Preferred shareholders
and other equity instrument holders
|
|
123
|
|
|
108
|
|
|
104
|
|
|
231
|
|
|
205
|
Common
shareholders
|
$
|
1,943
|
|
$
|
2,066
|
|
$
|
2,018
|
|
$
|
4,009
|
|
$
|
3,638
|
Earnings per common
share (in dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.59
|
|
$
|
1.70
|
|
$
|
1.69
|
|
$
|
3.29
|
|
$
|
3.05
|
Diluted
|
$
|
1.57
|
|
$
|
1.68
|
|
$
|
1.68
|
|
$
|
3.25
|
|
$
|
3.02
|
(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 in the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
Adoption of IFRS 17
On November 1, 2023, the Bank
adopted IFRS 17 Insurance Contracts, which provides a comprehensive
principle-based framework for the recognition, measurement,
presentation, and disclosure of insurance contracts and replaces
IFRS 4, the previous accounting standard for insurance contracts.
The Bank adopted IFRS 17 on a retrospective basis, restating the
results from the transition date of November
1, 2022. Accordingly, results for fiscal 2023 have been
restated to reflect the IFRS 17 basis of accounting for insurance
contracts. Refer to Notes 3 and 4 of the condensed interim
financial statements in the Bank's Q2 2024 Quarterly Report to
Shareholders for details.
Business Segment Review
Canadian Banking
Q2 2024 vs Q2 2023
Net income attributable to equity holders was $1,008 million, compared to $1,055 million, a decrease of $47 million or 4%. The decrease was due primarily
to higher provision for credit losses and non-interest expenses,
partly offset by higher revenues.
Q2 2024 vs Q1 2024
Net income attributable to equity holders decreased $87 million or 8%. The decrease was due primarily
to lower revenues from two fewer days in the quarter, higher
provision for credit losses and an increase in non-interest
expenses.
Year-to-date Q2 2024 vs Year-to-date Q2 2023
Net income attributable to equity holders was $2,103 million compared to $2,141 million. Adjusted net income was
$2,104 million, a decrease of
$39 million or 2%. The decrease was
due primarily to higher provision for credit losses and
non-interest expenses, partly offset by higher revenues.
International Banking
Q2 2024 vs Q2 2023
Net income attributable to equity holders increased $35 million to $671
million. Adjusted net income attributable to equity holders
increased $33 million to $677 million. The increase was driven by higher
net interest income and the positive impact of foreign currency
translation. This was partly offset by higher provision for credit
losses, non-interest expenses, provision for income taxes, and
lower non-interest income.
Q2 2024 vs Q1 2024
Net income attributable to equity holders decreased by
$75 million or 10%. Adjusted net
income attributable to equity holders decreased by $75 million or 10%. The decrease was due
primarily to lower non-interest income, higher provision for income
taxes and the negative impact of foreign currency translation. This
was partly offset by lower non-interest expenses, higher net
interest income despite the impact from two fewer days in the
quarter, and lower provision for credit losses.
Year-to-date Q2 2024 vs Year-to-date Q2 2023
Net income attributable to equity holders was $1,417 million, an increase of 11% from
$1,280 million. Adjusted net income
attributable to equity holders was $1,429
million, an increase of $134
million or 10%. The increase was driven by higher net
interest income, non-interest income, and the positive impact of
foreign currency translation. This was partly offset by higher
provision for credit losses, non-interest expenses and provision
for income taxes.
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 2024 vs Q2 2023
Net income attributable to equity holders was $671 million and adjusted net income attributable
to equity holders was $677 million,
down $12 million or 2%. The decrease
was driven by higher provision for credit losses, lower
non-interest income, higher non-interest expenses and provision for
income taxes, partly offset by higher net interest income.
Q2 2024 vs Q1 2024
Net income attributable to equity holders decreased by
$62 million or 8%. Adjusted net
income attributable to equity holders decreased by $62 million or 8%. The decrease was due primarily
to lower non-interest income and higher provision for income taxes,
partly offset by higher net interest income and lower non-interest
expenses.
Year-to-date Q2 2024 vs Year-to-date Q2 2023
Net income attributable to equity holders was $1,417 million, an increase of 2% from
$1,384 million. Adjusted net income
attributable to equity holders was $1,429
million, an increase of $31
million or 2%. The increase was driven by higher net
interest income, partly offset by higher provision for credit
losses, lower non-interest income, and higher non-interest expenses
and provision for income taxes.
Global Wealth Management
Q2 2024 vs Q2 2023
Net income attributable to equity holders was $380 million, up $27
million or 8%. Adjusted net income attributable to equity
holders was $387 million, up
$28 million or 8%. The increase was
due primarily to higher brokerage revenues in Canada and higher mutual fund fees in
International Wealth, particularly within Mexico. This was partly offset by higher
non-interest expenses due largely to volume-related expenses.
Q2 2024 vs Q1 2024
Net income attributable to equity holders increased $12 million or 3%. Adjusted net income
attributable to equity holders increased $13
million or 3%, due primarily to higher brokerage revenues
and mutual fund fees across the Canadian and International
businesses, partly offset by higher non-interest expenses.
Year-to-date Q2 2024 vs Year-to-date Q2 2023
Net income attributable to equity holders was $748 million, up $10
million or 1%. Adjusted net income attributable to equity
holders was $761 million, up
$10 million or 1%. The increase was
due primarily to higher brokerage revenues in Canada and higher mutual fund fees in
International Wealth, particularly within Mexico. This was partly offset by higher
non-interest expenses due largely to volume-related expenses.
Global Banking and Markets
Q2 2024 vs Q2 2023
Net income attributable to equity holders was $428 million, an increase of $27 million or 7%. This increase was due mainly
to higher non-interest income and lower provision for credit losses
and provision for income taxes, partly offset by higher
non-interest expenses and lower net interest income.
Q2 2024 vs Q1 2024
Net income attributable to equity holders decreased by
$11 million or 3%, due mainly to
lower non-interest and net interest income, partly offset by lower
non-interest expenses and provision for income taxes.
Year-to-date Q2 2024 vs Year-to-date Q2 2023
Net income attributable to equity holders was $867 million, a decrease of $53 million or 6%, due to lower net interest
income and higher non-interest expenses, partly offset by lower
provision for credit losses and provision for income
taxes.
Other
Q2 2024 vs Q2 2023
Net income attributable to equity holders was a net loss of
$421 million, compared to a net loss
of $323 million last year. The higher
loss of $98 million was due mainly to
lower revenues, partly offset by lower non-interest expenses.
The decrease in revenue was due mainly to higher funding costs,
partly offset by higher income from liquid assets and a lower
taxable equivalent basis (TEB) gross-up as the Bank no longer
claims the dividend received deduction on Canadian shares that are
mark-to-market property. The TEB gross-up is offset in income
taxes.
Q2 2024 vs Q1 2024
Net income attributable to equity holders increased $53 million from the prior quarter due mainly to
higher revenues and lower non-interest expenses, partly offset by
higher income taxes. The increase in revenue was due mainly to
higher investment gains, lower funding costs, and a lower TEB
gross-up as the Bank no longer claims the dividend received
deduction on Canadian shares that are mark-to-market property. The
TEB gross-up is offset in income taxes. There was also lower income
from liquid assets due primarily to two fewer days in the
quarter.
Year-to-date Q2 2024 vs Year-to-date Q2 2023
Net income attributable to equity holders was a net loss of
$895 million compared to a net loss
of $1,236 million. Adjusted net
income attributable to equity holders was a net loss of
$895 million compared to a net loss
of $657 million. This was due mainly
to lower revenues, partly offset by lower non-interest expenses.
The decrease in revenue was due primarily to higher funding costs
and lower investment gains, which were partly offset by higher
income from liquid assets and a lower TEB gross-up, as the
Bank no longer claims the dividend received deduction on Canadian
shares that are mark-to-market property. The TEB gross-up is offset
in income taxes.
Credit risk
Provision for credit losses
Q2 2024 vs Q2 2023
The provision for credit losses was $1,007 million, compared to $709 million, an increase of $298 million. The provision for credit losses
ratio increased 17 basis points to 54 basis points.
The provision for credit losses on performing loans was
$32 million, compared to $88 million. The provision this quarter was
driven by retail portfolio growth, provisions related to migrations
in the retail portfolio mainly in Canada and Chile, and the continued unfavourable
macroeconomic outlook impacting mainly the commercial portfolios.
This was partly offset by migration to impaired in retail
portfolios mainly in Canada,
Mexico and Peru, and the relatively more favourable
macroeconomic outlook impacting most retail portfolios.
The provision for credit losses on impaired loans was
$975 million, compared to
$621 million, an increase of
$354 million due primarily to higher
formations in International Banking retail portfolios, mostly in
Colombia, Chile and Peru, as a result of inflation and interest
rate levels in these markets in the prior year. There were also
higher provisions in the Canadian Banking retail portfolios,
primarily auto loans and unsecured lines. The provision for credit
losses ratio on impaired loans was 52 basis points, an increase of
19 basis points.
Q2 2024 vs Q1 2024
The provision for credit losses was $1,007 million, compared to $962 million, an increase of $45 million. The provision for credit losses
ratio increased four basis points to 54 basis points.
The provision for credit losses on performing loans was
$32 million, compared to $20 million, an increase of $12 million. The provision this quarter was
driven by retail portfolio growth, provisions related to migrations
in the retail portfolio mainly in Canada and Chile, and the continued unfavourable
macroeconomic outlook impacting mainly the commercial portfolios.
This was partly offset by migration to impaired in retail
portfolios mainly Canada,
Mexico and Peru, and the relatively more favourable
macroeconomic outlook impacting most retail portfolios.
The provision for credit losses on impaired loans was
$975 million, compared to
$942 million, an increase of
$33 million, due primarily to higher
provisions relating to Canadian retail portfolios mostly from
migration in auto loans and mortgage portfolios. The provision for
credit losses ratio on impaired loans was 52 basis points, an
increase of three basis points.
Year-to-date Q2 2024 vs Year-to-date Q2 2023
The provision for credit losses was $1,969 million, compared to $1,347 million, an increase of $622 million. The provision for credit losses
ratio increased 17 basis points to 52 basis points.
Provision for credit losses on performing loans was $52 million, compared to $164 million. The provision this period was
driven primarily by retail portfolio growth and migration across
markets, and the impact of the continued unfavourable macroeconomic
outlook, mainly relating to the commercial portfolio and the retail
portfolio in Colombia. This was
partly offset by credit migration to impaired in the retail
portfolios.
Provision for credit losses on impaired loans was $1,917 million compared to $1,183 million, an increase of $734 million, due primarily to higher formations
in the International Banking retail portfolios, mostly in
Colombia, Chile and Peru, as a result of inflation and interest
rate levels in these markets in the prior year, as well as higher
provisions in Canadian Banking. The provision for credit losses
ratio on impaired loans increased 20 basis points to 51 basis
points.
Allowance for credit losses
The total allowance for credit losses as at April 30, 2024, was $6,768
million compared to $6,597
million last quarter. The allowance for credit losses ratio
was 88 basis points, an increase of two basis points. The allowance
for credit losses on loans was $6,507
million, an increase of $179
million from the prior quarter. Allowances were higher due
to provisions in Canadian Banking retail portfolios, mainly in
mortgages and unsecured lines, and the impact of the macroeconomic
outlook impacting commercial portfolios. The impact of foreign
currency translation increased the allowance by $85 million.
The allowance against performing loans was higher at
$4,507 million compared to
$4,424 million last quarter. The
allowance for performing loans ratio was 61 basis points.
Allowances were driven by provisions in Canadian Banking retail
portfolios mainly in residential mortgages and unsecured lines, the
continued unfavourable macroeconomic outlook impacting the
commercial portfolios, and portfolio growth. This was partly offset
by credit migration to impaired in the retail portfolios, mainly in
Mexico and Peru. The impact of foreign currency
translation increased the allowance by $51
million.
The allowance on impaired loans increased to $2,000 million from $1,904
million last quarter. The allowance for impaired loans ratio
was 27 basis points, an increase of two basis points. The increase
was due primarily to higher provisions relating to retail
portfolios credit migration, and the negative impact of foreign
currency translation. The impact of foreign currency translation
increased the allowance by $34
million.
Impaired loans
Gross impaired loans increased to $6,399
million as at April 30, 2024,
from $6,119 million last quarter. The
increase was due primarily to new formations in the International
retail portfolios, mainly Chile
and Mexico, and International
commercial, mostly in the real estate sector in Chile, as well as the impact of foreign
currency translation. The gross impaired loan ratio was 83 basis
points, an increase of three basis points from last quarter.
Net impaired loans in Canadian Banking were $1,158 million, a decrease of $59 million from last quarter, as new formations
were offset by higher retail provisions. International Banking's
net impaired loans were $3,141
million, an increase of $218
million from last quarter, due primarily to new formations
in the commercial portfolio, mostly in the real estate sector in
Chile, and retail portfolios, as
well as the negative impact of foreign currency translation. In
Global Wealth Management, net impaired loans were $54 million, an increase of $19 million from last quarter, due to new
formations. In Global Banking and Markets, net impaired loans were
$46 million, an increase of
$6 million from last quarter.Net
impaired loans as a percentage of loans and acceptances were 0.57%,
an increase of two basis points from 0.55% last quarter.
Capital Ratios
The Bank's Common Equity Tier 1 (CET1) capital
ratio(1) was 13.2% as at April
30, 2024, an increase of approximately 30 basis points from
the prior quarter, due primarily to internal capital generation,
lower RWA and share issuances from the Bank's Shareholder Dividend
and Share Purchase Plan, partly offset by revaluation losses on
FVOCI securities and other.
The Bank's Tier 1 capital(1) and Total
capital(1) ratios were 15.2% and 17.1%, respectively, as
at April 30, 2024, representing
increases of approximately 40 basis points from the prior quarter,
due mainly to the above noted impacts to the CET1 capital
ratio.
The Leverage ratio(2) was 4.4% as at April 30, 2024, an increase of approximately 10
basis points from the prior quarter, due primarily to higher Tier 1
capital.
The Total loss absorbing capacity(3) (TLAC) and
TLAC Leverage(3) ratios were 28.9% and 8.4%,
respectively, as at April 30, 2024,
largely unchanged from the prior quarter.
As at April 30, 2024, 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 (November 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 and ratios to
assess its performance, as well as the performance of its operating
segments. Some of these financial measures and ratios are presented
on a non-GAAP basis and are not calculated in accordance with
Generally Accepted 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 and ratios disclosed by
other issuers. The Bank believes that non-GAAP measures and ratios
are useful as they provide readers with a better understanding of
how management assesses performance. These non-GAAP measures and
ratios are used throughout this press release and defined
below.
Adjusted results and diluted earnings per share
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 interests. 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.
Adjusting items impacting results are as follows:
a) Amortization of
acquisition-related intangible assets
These costs relate to the amortization of
intangible assets recognized upon the acquisition of businesses,
excluding software, and are recorded in the Canadian Banking,
International Banking and Global Wealth Management operating
segments.
b) Canada Recovery
Dividend
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 $1 billion, based
on the average taxable income for the 2020 and 2021 taxation years.
The CRD is payable in equal amounts over five years; however, the
present value of these payments was recognized as a liability in
the period enacted. This amount was recorded in the Other operating
segment.
Reconciliation of reported and adjusted results and diluted
earnings per share
|
For the three months ended
|
For the
six months ended
|
|
April 30
|
January 31
|
April 30
|
April 30
|
April 30
|
($ millions)
|
2024(1)
|
2024(1)
|
2023(1)
|
2024(1)
|
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 in the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
Reconciliation of reported and adjusted results by business
line
|
For the three months ended April 30,
2024(1)
|
|
|
|
Global
|
Global
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking and
|
|
|
($ millions)
|
Banking(2)
|
Banking(2)
|
Management
|
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 section of the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
(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 in the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
|
For the three months
ended January 31, 2024(1)
|
|
|
|
Global
|
Global
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking
and
|
|
|
($ millions)
|
Banking(2)
|
Banking(2)
|
Management
|
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 section of the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
(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 in the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
|
For the three months
ended April 30, 2023(1)
|
|
|
|
Global
|
Global
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking
and
|
|
|
($ millions)
|
Banking(2)
|
Banking(2)
|
Management
|
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 section of the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
(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 in the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
|
For the six months ended April 30,
2024(1)
|
|
|
|
Global
|
Global
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking and
|
|
|
($ millions)
|
Banking(2)
|
Banking(2)
|
Management
|
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 section of the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
(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 in the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
|
For the six months
ended April 30, 2023(1)
|
|
|
|
Global
|
Global
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking
and
|
|
|
($ millions)
|
Banking(2)
|
Banking(2)
|
Management
|
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 section of the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
(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 in the Bank's Q2 2024 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,
2024(1)
|
April 30,
2023(1)
|
April 30,
2023(1)
|
|
|
Foreign
|
Constant
|
|
Foreign
|
Constant
|
|
Foreign
|
Constant
|
(Taxable equivalent basis)
|
Reported
|
exchange
|
dollar
|
Reported
|
exchange
|
dollar
|
Reported
|
exchange
|
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 in the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
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)
|
|
|
|
Constant
|
|
|
Constant
|
|
|
Constant
|
|
|
Foreign
|
dollar
|
|
Foreign
|
dollar
|
|
Foreign
|
dollar
|
(Taxable equivalent basis)
|
Adjusted
|
exchange
|
adjusted
|
Adjusted
|
exchange
|
adjusted
|
Adjusted
|
exchange
|
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 in the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
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.
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.
Attributed capital and business segment return on
equity
The amount of common equity allocated to each business segment
is referred to as attributed capital. The attribution of capital
within each business segment is intended to approximate a
percentage of the Basel III common equity capital requirements
based on credit, market and operational risks and leverage inherent
within each business segment. Attributed capital is a non-GAAP
measure.
Effective November 1, 2023, in
line with OSFI's increased Domestic Stability Buffer announced
requirements, the Bank increased the capital attributed to its
business lines to approximate 11.5% of the Basel III common equity
capital requirements. Previously, capital was attributed based on a
methodology that approximated 10.5% of Basel III common equity
capital requirements.
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.
This is a non-GAAP measure.
Adjusted return on equity for the business segments is
calculated as a ratio of adjusted net income attributable to common
shareholders (annualized) of the business segment and the capital
attributed. This is a non-GAAP measure.
Return on equity by operating segment
|
|
For the three months
ended April 30, 2024
|
For the three months
ended April 30, 2023
|
|
|
|
Global
|
Global
|
|
|
|
|
Global
|
Global
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking
and
|
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking and
|
|
|
|
|
($
millions)
|
Banking(1)
|
Banking(1)
|
Management
|
Markets
|
Other
|
Total(1)
|
Banking(1)
|
Banking(1)
|
Management
|
Markets
|
Other
|
Total(1)
|
Reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
$
|
1,008
|
$
|
671
|
$
|
380
|
$
|
428
|
$
|
(544)
|
$
|
1,943
|
$
|
1,054
|
$
|
635
|
$
|
352
|
$
|
400
|
$
|
(423)
|
$
|
2,018
|
Total
average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity(2)(3)
|
20,507
|
18,927
|
|
10,222
|
|
14,865
|
5,756
|
70,277
|
19,077
|
19,866
|
9,732
|
15,587
|
3,312
|
67,574
|
Return on
equity
|
20.0 %
|
14.4 %
|
15.1 %
|
11.7 %
|
nm(4)
|
11.2 %
|
22.7 %
|
13.1 %
|
14.8 %
|
10.5 %
|
nm(4)
|
12.2 %
|
Adjusted(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
$
|
1,008
|
$
|
677
|
$
|
387
|
$
|
428
|
$
|
(544)
|
$
|
1,956
|
$
|
1,055
|
$
|
643
|
$
|
358
|
$
|
400
|
$
|
(423)
|
$
|
2,033
|
Return on
equity
|
20.0 %
|
14.5 %
|
15.4 %
|
11.7 %
|
nm(4)
|
11.3 %
|
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 in the Bank's Q2 2024 Quarterly Report to
Shareholders.
|
(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 7.
|
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 2023 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," "aim," "achieve," "foresee," "forecast,"
"anticipate," "intend," "estimate," "plan," "goal," "strive,"
"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 and globally; 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; geopolitical risk; changes
to our credit ratings; the possible effects on our business of war
or terrorist actions and unforeseen consequences arising from such
actions; technological changes and technology resiliency;
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; anti-money
laundering; disruptions or attacks (including cyberattacks) on the
Bank's information technology, internet connectivity, network
accessibility, or other voice or data communications systems or
services; which may result in data breaches, unauthorized access to
sensitive information, and potential incidents of identity theft;
increased competition in the geographic and in 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 or continuation
of widespread health emergencies or pandemics, including their
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 2023 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 2023
Annual Report under the headings "Outlook", as updated by quarterly
reports. The "Outlook" and "2024 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, including the
Bank's Annual Information Form, can be located on the SEDAR+
website at www.sedarplus.ca 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 28, 2024, at 8:00 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 4395771# (please call shortly before
8:00 am ET). In addition, an audio
webcast, with accompanying slide presentation, may be accessed via
the Investor Relations page at
www.scotiabank.com/investorrelations.
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 28, 2024, to
June 28, 2024, by calling
905-694-9451 or 1-800-408-3053 (North
America toll-free) and entering the access code
4197550#.
Additional Information
Investors:
Financial Analysts, Portfolio Managers and
other Institutional Investors requiring financial information,
please contact Investor Relations:
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 (USA)
Computershare Trust Company, N.A.
Telephone: 1-781-575-2000
E-mail: service@computershare.com
Street Courier/Address:
C/O: Shareholder Services
150 Royall Street
Canton, MA, USA 02021
Mailing Address:
PO Box 43078, Providence, RI, USA
02940-3078
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
Rapport trimestriel disponible en français
Le rapport trimestriel et les états financiers de la Banque sont
publiés en français et en anglais et distribués aux actionnaires
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
Nouvelle-Écosse, 40, rue Temperance, Toronto (Ontario), Canada M5H 0B4, en joignant, si possible,
l'étiquette d'adresse, afin que nous puissions prendre note du
changement.
SOURCE Scotiabank