Scotiabank's 2023
audited annual consolidated financial statements and accompanying
Management's Discussion & Analysis (MD&A) are available at
www.scotiabank.com along with the supplementary financial
information and regulatory capital disclosure reports, which
include fourth quarter financial information. All amounts are in
Canadian dollars and are based on our audited annual consolidated
financial statements and accompanying MD&A for the year ended
October 31, 2023 and related notes prepared in accordance with
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), unless otherwise
noted.
Additional information
related to the Bank, including the Bank's Annual Information Form,
can be found on the SEDAR+ website at
www.sedarplus.ca and on the
EDGAR section of the SEC's website at www.sec.gov.
|
|
|
Fiscal 2023
Highlights on a Reported Basis
(versus Fiscal 2022)
|
Fourth Quarter 2023
Highlights on a Reported Basis
(versus Q4 2022)
|
- Net income of
$7,528 million, compared to $10,174 million
- Earnings per share
(diluted) of $5.78, compared to $8.02
- Return on
equity(1) of 10.4%, compared to 14.8%
|
- Net income of
$1,385 million, compared to $2,093 million
- Earnings per share
(diluted) of $1.02, compared to $1.63
- Return on equity of
7.2%, compared to 11.9%
|
Fiscal 2023
Highlights on an Adjusted
Basis(2)
(versus Fiscal 2022)
|
Fourth Quarter 2023
Highlights on an Adjusted Basis(2)
(versus Q4 2022)
|
- Net income of
$8,441 million, compared to $10,749 million
- Earnings per share
(diluted) of $6.54, compared to $8.50
- Return on equity of
11.7%, compared to 15.7%
|
- Net income of
$1,674 million, compared to $2,615 million
- Earnings per share
(diluted) of $1.26, compared to $2.06
- Return on equity of
8.9%, compared to 15.0%
|
Fiscal 2023 Performance versus Medium-Term Financial
Objectives
The following table provides a summary of our 2023 performance
against our medium-term financial objectives(3):
Medium-Term
Objectives
|
Fiscal 2023
Results
|
|
Reported
|
Adjusted(2)
|
Diluted earnings per
share growth of 7%+
|
(27.9) %
|
(23.1) %
|
Return on equity of
14%+
|
10.4 %
|
11.7 %
|
Achieve positive
operating leverage
|
Negative
9.0%
|
Negative
8.3%
|
Maintain strong capital
ratios
|
CET1 capital
ratio(4) of 13.0%
|
N/A
|
TORONTO, Nov. 28,
2023 /CNW/ - Scotiabank reported net income of
$7,528 million for the fiscal year
2023, compared with net income of $10,174
million in 2022. Diluted earnings per share (EPS) were
$5.78, compared to $8.02 in the previous year. Return on equity was
10.4%, compared to 14.8% in the previous year.
Reported net income for the fourth quarter ended October 31, 2023 was $1,385 million compared to $2,093 million in the same period last year.
Diluted EPS were $1.02, compared to
$1.63 in the same period a year ago.
Return on equity was 7.2% compared to 11.9% a year ago.
This quarter's net income included adjusting items of
$289 million after-tax. These
consisted of restructuring charges of $258
million related to ongoing efforts to streamline operational
processes, costs of $63 million
related to the exit of certain real estate premises and service
contracts, impairment charges of $273
million related to the write-down of the Bank's investment
in associate with Bank of Xi'an Co Ltd. in China, and certain intangible assets and a
gain of $319 million related to the
sale of the Bank's equity interest in Canadian Tire's Financial
Services business (CTFS).
Adjusted net income(2) was $8,441 million for the fiscal year 2023, down
from $10,749 million in the previous
year, mainly as a result of higher provision for credit losses in
fiscal 2023, and adjusted diluted EPS were $6.54 versus $8.50
in the previous year. Adjusted return on equity was 11.7% compared
to 15.7% in the previous year.
Adjusted net income(2) for the fourth quarter ended
October 31, 2023 was $1,674 million and adjusted diluted EPS were
$1.26, compared to $2.06 last year. Adjusted return on equity was
8.9% compared to 15.0% a year ago.
"I am encouraged by the results of our focused efforts on
strengthening the Bank's balance sheet as we prepare to manage
through heightened macroeconomic uncertainty. Strong capital and
liquidity ratios, improving loan to deposit ratios and increased
allowance for credit losses coverage ratios, position us well as we
enter the next phase of our growth strategy," said Scott Thomson, President and CEO of
Scotiabank.
Canadian Banking generated adjusted earnings of $4,022 million in 2023. Strong net interest
income from volume growth and margin expansion drove a
year-over-year increase in pre-tax pre-provision
earnings(5). The Bank built performing allowances given
the uncertain macroeconomic operating environment resulting in
higher provision for credit losses compared to the prior year.
International Banking delivered $2,516
million of adjusted income after non-controlling interests
in 2023, a year-over-year increase of 3%. The business had
double-digit revenue growth and continued to show strong cost
discipline, delivering positive operating leverage.
Global Wealth Management adjusted earnings were $1,466 million in 2023. Challenging market
conditions drove declines in average assets under management,
impacting fee income across our Canadian businesses, partly offset
by double digit growth in International Wealth Management and
continued prudent expense management.
Global Banking and Markets reported earnings of $1,768 million in 2023. Revenue from both Capital
Markets and Business Banking increased, despite a challenging
capital markets environment, and partly offset the impact of higher
provision for credit losses.
The Bank reported an increased Common Equity Tier 1 (CET1)
capital ratio(4) of 13.0%, up from 11.5% last year. The
Liquidity Coverage Ratio (LCR)(6) was strong at 136%, up
from 119% in the prior year.
"I would like to personally thank Scotiabankers globally who
came together again this year to deliver the advice and service
that our clients have come to expect from us. It is this unwavering
commitment of our team to delivering for our clients that gives me
great confidence in the future growth potential of the Bank," said
Scott Thomson.
_____________________________
|
(1)
|
Refer to page 136 of
the Management's Discussion & Analysis in the Bank's 2023
Annual Report, available on www.sedarplus.ca, for an explanation of
the composition of the measure. Such explanation is incorporated by
reference hereto.
|
(2)
|
Refer to Non-GAAP
Measures section starting on page 21.
|
(3)
|
Refer to the Risk
Management section in the MD&A in the Bank's 2023 Annual Report
for further discussion on the Bank's risk management
framework.
|
(4)
|
This measure has been
disclosed in this document in accordance with OSFI Guideline –
Capital Adequacy Requirements (February 2023).
|
(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.
|
(6)
|
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).
|
Financial Highlights
|
As at and
for the three months ended
|
As at and
for the year ended
|
(Unaudited)
|
October 31
|
July 31
|
October 31
|
October 31
|
October 31
|
2023
|
2023
|
2022
|
2023
|
2022
|
Operating results ($ millions)
|
|
|
|
|
|
Net interest
income
|
4,672
|
4,580
|
4,622
|
18,287
|
18,115
|
Non-interest
income
|
3,636
|
3,510
|
3,004
|
14,020
|
13,301
|
Total
revenue
|
8,308
|
8,090
|
7,626
|
32,307
|
31,416
|
Provision for credit
losses
|
1,256
|
819
|
529
|
3,422
|
1,382
|
Non-interest
expenses
|
5,529
|
4,562
|
4,529
|
19,131
|
17,102
|
Income tax
expense
|
138
|
497
|
475
|
2,226
|
2,758
|
Net income
|
1,385
|
2,212
|
2,093
|
7,528
|
10,174
|
Net income attributable
to common shareholders
|
1,245
|
2,086
|
1,949
|
6,991
|
9,656
|
Operating performance
|
|
|
|
|
|
Basic earnings per
share ($)
|
1.03
|
1.74
|
1.64
|
5.84
|
8.05
|
Diluted earnings per
share ($)
|
1.02
|
1.72
|
1.63
|
5.78
|
8.02
|
Return on equity
(%)(1)
|
7.2
|
12.1
|
11.9
|
10.4
|
14.8
|
Return on tangible
common equity (%)(2)
|
9.0
|
15.1
|
15.0
|
13.0
|
18.6
|
Productivity ratio
(%)(1)
|
66.5
|
56.4
|
59.4
|
59.2
|
54.4
|
Operating leverage
(%)(1)
|
|
|
|
(9.0)
|
(2.4)
|
Net interest margin
(%)(2)
|
2.16
|
2.10
|
2.18
|
2.12
|
2.20
|
Financial position information
($ millions)
|
|
|
|
|
|
Cash and deposits with
financial institutions
|
90,312
|
90,325
|
65,895
|
|
|
Trading
assets
|
117,868
|
119,301
|
113,154
|
|
|
Loans
|
750,911
|
752,205
|
744,987
|
|
|
Total assets
|
1,410,789
|
1,396,098
|
1,349,418
|
|
|
Deposits
|
952,333
|
957,225
|
916,181
|
|
|
Common
equity
|
68,853
|
67,982
|
65,150
|
|
|
Preferred shares and
other equity instruments
|
8,075
|
8,075
|
8,075
|
|
|
Assets under
administration(1)
|
673,550
|
690,846
|
641,636
|
|
|
Assets under
management(1)
|
316,604
|
331,340
|
311,099
|
|
|
Capital and liquidity measures
|
|
|
|
|
|
Common Equity Tier 1
(CET1) capital ratio (%)(3)
|
13.0
|
12.7
|
11.5
|
|
|
Tier 1 capital ratio
(%)(3)
|
14.8
|
14.6
|
13.2
|
|
|
Total capital ratio
(%)(3)
|
17.2
|
16.9
|
15.3
|
|
|
Total loss absorbing
capacity (TLAC) ratio (%)(4)
|
30.6
|
30.5
|
27.4
|
|
|
Leverage ratio
(%)(5)
|
4.2
|
4.1
|
4.2
|
|
|
TLAC Leverage ratio
(%)(4)
|
8.6
|
8.7
|
8.8
|
|
|
Risk-weighted assets
($ millions)(3)
|
440,017
|
439,814
|
462,448
|
|
|
Liquidity coverage
ratio (LCR) (%)(6)
|
136
|
133
|
119
|
|
|
Net stable funding
ratio (NSFR) (%)(7)
|
116
|
114
|
111
|
|
|
Credit quality
|
|
|
|
|
|
Net impaired loans
($ millions)
|
3,845
|
3,667
|
3,151
|
|
|
Allowance for credit
losses ($ millions)(8)
|
6,629
|
6,094
|
5,499
|
|
|
Gross impaired loans as
a % of loans and acceptances(1)
|
0.74
|
0.70
|
0.62
|
|
|
Net impaired loans as a
% of loans and acceptances(1)
|
0.50
|
0.47
|
0.41
|
|
|
Provision for credit
losses as a % of average net loans and
acceptances (annualized)(1)(9)
|
0.65
|
0.42
|
0.28
|
0.44
|
0.19
|
Provision for credit
losses on impaired loans as a % of average net loans
|
|
|
|
|
|
and
acceptances (annualized)(1)(9)
|
0.42
|
0.38
|
0.26
|
0.35
|
0.24
|
Net write-offs as a %
of average net loans and acceptances
(annualized)(1)
|
0.35
|
0.34
|
0.24
|
0.32
|
0.24
|
Adjusted results(2)
|
|
|
|
|
|
Adjusted net income
($ millions)
|
1,674
|
2,227
|
2,615
|
8,441
|
10,749
|
Adjusted diluted
earnings per share ($)
|
1.26
|
1.73
|
2.06
|
6.54
|
8.50
|
Adjusted return on
equity (%)(10)
|
8.9
|
12.2
|
15.0
|
11.7
|
15.7
|
Adjusted return on
tangible common equity (%)(10)
|
11.0
|
15.1
|
18.8
|
14.5
|
19.6
|
Adjusted productivity
ratio (%)
|
59.5
|
56.1
|
53.7
|
57.2
|
52.8
|
Adjusted operating
leverage (%)
|
|
|
|
(8.3)
|
(1.1)
|
Common share information
|
|
|
|
|
|
Closing share price
($)(TSX)
|
56.15
|
66.40
|
65.85
|
|
|
Shares outstanding
(millions)
|
|
|
|
|
|
Average –
Basic
|
1,206
|
1,199
|
1,192
|
1,197
|
1,199
|
Average –
Diluted
|
1,211
|
1,214
|
1,199
|
1,204
|
1,208
|
End of
period
|
1,214
|
1,205
|
1,191
|
|
|
Dividends paid per
share ($)
|
1.06
|
1.06
|
1.03
|
4.18
|
4.06
|
Dividend yield
(%)(1)
|
7.0
|
6.5
|
5.7
|
6.5
|
5.1
|
Market capitalization
($ millions) (TSX)
|
68,169
|
80,034
|
78,452
|
|
|
Book value per common
share ($)(1)
|
56.71
|
56.40
|
54.68
|
|
|
Market value to book
value multiple(1)
|
1.0
|
1.2
|
1.2
|
|
|
Price to earnings
multiple (trailing 4 quarters)(1)
|
9.6
|
10.3
|
8.2
|
|
|
Other information
|
|
|
|
|
|
Employees (full-time
equivalent)
|
89,483
|
91,013
|
90,979
|
|
|
Branches and
offices(11)
|
2,379
|
2,398
|
2,439
|
|
|
(1)
|
Refer to page 136 of
the Management's Discussion & Analysis in the Bank's 2023
Annual Report, available on www.sedarplus.ca, for an
explanation of the composition of the measure. Such explanation is
incorporated by reference hereto.
|
(2)
|
Refer to Non-GAAP
Measures section starting on page 21.
|
(3)
|
2023 regulatory capital
ratios are based on Revised Basel III requirements as
determined in accordance with OSFI Guideline – Capital Adequacy
Requirements (February 2023). Prior period regulatory capital
ratios were prepared in accordance with OSFI Guideline – Capital
Adequacy Requirements (November 2018).
|
(4)
|
This measure has been
disclosed in this document in accordance with OSFI Guideline –
Total Loss Absorbing Capacity (September 2018).
|
(5)
|
2023 leverage ratios
are based on Revised Basel III requirements as determined in
accordance with OSFI Guideline – Leverage Requirements (February
2023). Prior period leverage ratios were prepared in accordance
with OSFI Guideline – Leverage Requirements (November
2018).
|
(6)
|
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).
|
(7)
|
This measure has been
disclosed in this document in accordance with OSFI Guideline -
Net Stable Funding Ratio Disclosure Requirements (January
2021).
|
(8)
|
Includes allowance for
credit losses on all financial assets - loans, acceptances,
off-balance sheet exposures, debt securities, and deposits with
financial institutions.
|
(9)
|
Includes provision for
credit losses on certain financial assets - loans, acceptances, and
off-balance sheet exposures.
|
(10)
|
Prior period amounts
have been restated to align with current period
calculation.
|
(11)
|
Q4 2022 amount has been
restated to include MD Financial and Jarislowsky Fraser
offices.
|
Impact of Foreign Currency
Translation
|
Average exchange
rate
|
% Change
|
|
October 31
|
July 31
|
October 31
|
|
October 31,
2023
|
October 31,
2023
|
For the three months
ended
|
2023
|
2023
|
2022
|
|
vs. July 31,
2023
|
vs. October 31,
2022
|
U.S. dollar/Canadian
dollar
|
0.736
|
0.750
|
0.752
|
(1.8)
|
%
|
(2.0)
|
%
|
Mexican Peso/Canadian
dollar
|
12.850
|
12.959
|
15.072
|
(0.8)
|
%
|
(14.7)
|
%
|
Peruvian Sol/Canadian
dollar
|
2.766
|
2.733
|
2.942
|
1.2
|
%
|
(6.0)
|
%
|
Colombian Peso/Canadian
dollar
|
3,017.319
|
3,190.607
|
3,381.348
|
(5.4)
|
%
|
(10.8)
|
%
|
Chilean Peso/Canadian
dollar
|
655.072
|
602.809
|
696.481
|
8.7
|
%
|
(5.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average exchange
rate
|
% Change
|
|
|
|
October 31
|
October 31
|
|
October 31,
2023
|
For the year
ended
|
|
|
2023
|
2022
|
|
vs. October 31,
2022
|
U.S. dollar/Canadian
dollar
|
0.742
|
0.777
|
(4.5)
|
%
|
Mexican Peso/Canadian
dollar
|
13.424
|
15.799
|
(15.0)
|
%
|
Peruvian Sol/Canadian
dollar
|
2.788
|
3.002
|
(7.1)
|
%
|
Colombian Peso/Canadian
dollar
|
3,309.943
|
3,187.149
|
3.9
|
%
|
Chilean Peso/Canadian
dollar
|
624.816
|
669.905
|
(6.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
For the
year ended
|
|
October 31,
2023
|
October 31,
2023
|
|
October 31,
2023
|
Impact on net
income(1) ($ millions except EPS)
|
vs. October 31,
2022
|
vs. July 31,
2023
|
|
vs. October 31,
2022
|
Net interest
income
|
$
|
165
|
$
|
(21)
|
$
|
665
|
|
Non-interest
income(2)
|
|
63
|
|
19
|
|
60
|
|
Total
revenue
|
|
228
|
|
(2)
|
|
725
|
|
Non-interest
expenses
|
|
(141)
|
|
(2)
|
|
(517)
|
|
Other items (net of
tax)(2)
|
|
(56)
|
|
2
|
|
(158)
|
|
Net income
|
$
|
31
|
$
|
(2)
|
$
|
50
|
|
Earnings per share
(diluted)
|
$
|
0.03
|
$
|
–
|
$
|
0.04
|
|
Impact by business line
($ millions)
|
|
|
|
|
|
|
|
Canadian
Banking
|
$
|
–
|
$
|
1
|
$
|
3
|
|
International
Banking(2)
|
|
52
|
|
18
|
|
71
|
|
Global Wealth
Management
|
|
5
|
|
3
|
|
23
|
|
Global Banking and
Markets
|
|
5
|
|
6
|
|
62
|
|
Other(2)
|
|
(31)
|
|
(30)
|
|
(109)
|
|
Net income
|
$
|
31
|
$
|
(2)
|
$
|
50
|
|
(1) Includes the impact
of all currencies.
|
(2) Includes the impact
of foreign currency hedges.
|
Group Financial
Performance
Net income
Q4 2023 vs Q4 2022
Net income was $1,385 million
compared to $2,093 million, a
decrease of 34%. This quarter included adjusting items impacting
net income of $289 million compared
to $522 million in the prior year
(refer to Non-GAAP Measures starting on page 21). Adjusted net
income was $1,674 million compared to
$2,615 million, a decrease of 36%,
due mainly to higher provision for credit losses and non-interest
expenses and lower non-interest income, partly offset by lower
provision for income taxes.
Q4 2023 vs Q3 2023
Net income was $1,385 million
compared to $2,212 million, a
decrease of 37%. This quarter included adjusting items impacting
net income of $289 million compared
to $15 million in the prior quarter
(refer to Non-GAAP Measures starting on page 21). Adjusted net
income was $1,674 million compared to
$2,227 million, a decrease of 25%.
The decrease was due mainly to higher provision for credit losses
and non-interest expenses and lower non-interest income, partly
offset by lower provision for income taxes.
Total revenue
Q4 2023 vs Q4 2022
Revenues were $8,308 million
compared to $7,626 million, an
increase of 9%. Adjusted revenues were $7,941 million compared to $7,987 million, a decrease of 1%.
Net interest income was $4,672
million, an increase of $50
million or 1%, due primarily to loan growth across all
business lines, and the positive impact of foreign currency
translation, largely offset by a lower contribution from
asset/liability management activities related to higher funding
costs. Net interest margin was down two basis points to 2.16%,
driven primarily by a lower contribution from asset/liability
management activities related to higher funding costs, and
increased levels of high quality, lower-margin liquid assets. The
decrease was partly offset by higher margins in International
Banking and Canadian Banking.
Non-interest income was $3,636
million, an increase of $632
million or 21%. Adjusted non-interest income was
$3,269 million, down $96 million or 3%. The decrease was due mainly to
lower trading revenues, investment gains, and income from
associated corporations, partly offset by higher fees and
commissions, banking revenues, wealth management revenues, and the
positive impact of foreign currency translation.
Q4 2023 vs Q3 2023
Revenues were $8,308 million
compared to $8,090 million, an
increase of 3%. Adjusted revenues were $7,941 million compared to $8,090 million, a decrease of 2%.
Net interest income increased $92
million or 2% driven by a higher net interest margin, partly
offset by lower loan volumes. Net interest margin increased by six
basis points, driven by higher margins across all business lines,
partly offset by lower contribution from asset/liability management
activities.
Non-interest income increased by $126
million or 4%. Adjusted non-interest income was down
$241 million or 7%. The decrease was
due mainly to lower trading revenues, lower unrealized gains on
non-trading derivatives and income from associated corporations,
partly offset by higher fees and commissions, higher banking
revenues, and the positive impact of foreign currency
translation.
Provision for credit losses
Q4 2023 vs Q4 2022
The provision for credit losses was $1,256 million, compared to $529 million, an increase of $727 million. The provision for credit losses
ratio increased 37 basis points to 65 basis points.
The provision for credit losses on performing loans was
$454 million, compared to
$35 million. Retail provisions were
$224 million and commercial
provisions were $230 million this
quarter, mostly in Canadian Banking. The increased provision this
quarter was driven primarily by the unfavourable macroeconomic
outlook and uncertainty around the impacts of higher interest
rates, resulting from policy tightening to address inflation, on
certain sectors in the North American non-retail portfolios, and
the resulting migration in the Canadian retail portfolios. In
addition, retail portfolio growth across markets increased the
provision for credit losses. Prior year provisions benefitted from
improved credit quality expectations mainly in Canadian retail, and
improved credit quality in Global Banking and Markets. The
provision for credit losses ratio on performing loans increased 21
basis points to 23 basis points.
The provision for credit losses on impaired loans was
$802 million, compared to
$494 million, an increase of
$308 million due primarily to higher
formations in Canadian and International Banking retail portfolios.
The provision for credit losses ratio on impaired loans was 42
basis points, an increase of 16 basis points.
Q4 2023 vs Q3 2023
The provision for credit losses was $1,256 million, compared to $819 million, an increase of $437 million or 53%. The provision for credit
losses ratio increased 23 basis points to 65 basis points.
The provision for credit losses on performing loans was
$454 million, compared to
$81 million, an increase of
$373 million. The higher provision
this quarter was driven primarily by the unfavourable macroeconomic
outlook and uncertainty around the impacts of higher interest
rates, resulting from policy tightening to address inflation, on
certain sectors in the North American non-retail portfolios, and
the resulting migration in the Canadian retail portfolios. Higher
provisions were mainly in Canadian Banking and Global Banking and
Markets. The provision for credit losses ratio on performing loans
increased 19 basis points to 23 basis points.
The provision for credit losses on impaired loans was
$802 million, compared to
$738 million, an increase of
$64 million or 9% due primarily to
higher retail formations, and higher corporate and commercial
provisions. The provision for credit losses ratio on impaired loans
was 42 basis points, an increase of four basis points.
Non-interest expenses
Q4 2023 vs Q4 2022
Non-interest expenses were $5,529
million, an increase of 22%. Adjusted non-interest expenses
were $4,723 million, an increase of
$436 million or 10%, driven by higher
personnel costs, technology-related costs, performance-based
compensation, business and capital taxes, share-based compensation,
advertising and the unfavourable impact of foreign currency
translation. This was partly offset by lower professional fees.
The productivity ratio was 66.6% compared to 59.4%. The adjusted
productivity ratio was 59.5% compared to 53.7%.
Q4 2023 vs Q3 2023
Non-interest expenses increased by $967
million or 21%. Adjusted non-interest expenses increased by
$181 million or 4%. The increase was
due to higher technology-related costs, performance-based
compensation, professional fees and advertising. Partly offsetting
were lower other employee benefits.
The productivity ratio was 66.6% compared to 56.4%. The adjusted
productivity ratio was 59.5% compared to 56.1%.
Provision for income taxes
Q4 2023 vs Q4 2022
The effective tax rate was 9% compared to 18.5% due primarily to
proportionally higher tax savings from higher tax-exempt income and
higher income from lower tax rate jurisdictions, as well as the
benefit of divestitures. This was partly offset by the increase in
the Canadian statutory tax rate and lower inflationary adjustments.
On an adjusted basis, the effective rate was 14.7% compared to
17.6% due primarily to proportionally higher tax savings from
higher tax-exempt income and higher income from lower tax rate
jurisdictions, partly offset by the increase in the Canadian
statutory tax rate and lower inflationary adjustments.
Q4 2023 vs Q3 2023
The effective tax rate was 9% compared to 18.4% due primarily to
proportionally higher tax savings from higher tax-exempt income and
higher income from lower tax rate jurisdictions, as well as the
benefit of divestitures. This was partly offset by the impairment
charge on Bank of Xi'an Co. Ltd. On an adjusted basis, the
effective rate was 14.7% compared to 18.4% due primarily to
proportionally higher tax savings from higher tax-exempt income and
higher income from lower tax rate jurisdictions.
Capital Ratios
The Bank continues to maintain strong, high quality capital
levels which position it well for future business growth and
opportunities. The CET1 ratio as at October
31, 2023 was 13.0%, an increase of approximately 150 basis
points from the prior year. The ratio benefited from the adoption
of OSFI's revised Basel III requirements, internal capital
generation during the year including lower risk-weighted assets,
net share issuances from the Bank's Shareholder Dividend and Share
Purchase Plan, and the sale of CTFS, partly offset by the Canada
Recovery Dividend tax accrual, the restructuring charges, contract
terminations costs and other impairments announced during the
fourth quarter.
The Bank's Tier 1 capital ratio was 14.8% as at October 31, 2023, an increase of approximately
160 basis points from the prior year, due primarily to the above
noted impacts to the CET1 ratio.
The Bank's Total capital ratio was 17.2% as at October 31, 2023, an increase of approximately
190 basis points from 2022, due primarily to the above noted
impacts to the Tier 1 capital ratio, and issuances of $1 billion, JPY 33
billion and JPY 12 billion of
NVCC subordinated debentures, partly offset by $352 million in net amortization of NVCC
subordinated debentures and other regulatory adjustments.
The TLAC ratio was 30.6% as at October
31, 2023, an increase of approximately 320 basis points from
the prior year, primarily from higher available TLAC and lower
risk-weighted assets.
The Leverage ratio was 4.2%, in line with the prior year, due
primarily to growth in Tier 1 capital, offset by OSFI's
discontinuance of the temporary exclusion of central bank reserves
from its leverage exposures measure and growth in the Bank's on and
off-balance sheet assets.
The TLAC Leverage ratio was 8.6%, a decrease of approximately 20
basis points from 2022, due primarily to OSFI's discontinuance of
the temporary exclusion of central bank reserves from its leverage
exposures measure and growth in the Bank's on and off-balance sheet
assets.
The Bank's capital, leverage and TLAC ratios continue to be in
excess of OSFI's minimum capital ratio requirements for 2023. For
2024, the Bank will continue to prudently manage its capital to
address increasing regulatory requirements. The estimated CET1
impact from adoption of the higher capital output floor and the
implementation of the new Fundamental Review of the Trading Book
and Credit Valuation Adjustment Framework requirements in the first
quarter of 2024 is approximately -75 basis points.
Business Segment Review
Canadian Banking
|
|
For the three months ended
|
For the
year ended
|
(Unaudited) ($ millions)
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
(Taxable equivalent
basis)(1)
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reported Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
2,562
|
|
$
|
2,468
|
|
$
|
2,363
|
|
$
|
9,756
|
|
$
|
9,001
|
|
Non-interest
income(2)
|
|
767
|
|
|
748
|
|
|
771
|
|
|
3,087
|
|
|
3,029
|
|
Total
revenue
|
|
3,329
|
|
|
3,216
|
|
|
3,134
|
|
|
12,843
|
|
|
12,030
|
|
Provision for credit
losses
|
|
700
|
|
|
307
|
|
|
163
|
|
|
1,443
|
|
|
209
|
|
Non-interest
expenses
|
|
1,513
|
|
|
1,448
|
|
|
1,397
|
|
|
5,867
|
|
|
5,388
|
|
Income tax
expense
|
|
306
|
|
|
399
|
|
|
404
|
|
|
1,514
|
|
|
1,670
|
|
Net income
|
$
|
810
|
|
$
|
1,062
|
|
$
|
1,170
|
|
$
|
4,019
|
|
$
|
4,763
|
|
Net income attributable
to equity holders of the Bank
|
$
|
810
|
|
$
|
1,062
|
|
$
|
1,170
|
|
$
|
4,019
|
|
$
|
4,763
|
|
Other financial data and
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity(3)
|
|
17.0
|
%
|
|
22.5
|
%
|
|
24.7
|
%
|
|
21.3
|
%
|
|
26.3
|
%
|
Net interest
margin(3)
|
|
2.47
|
%
|
|
2.35
|
%
|
|
2.26
|
%
|
|
2.34
|
%
|
|
2.24
|
%
|
Average assets ($
billions)
|
$
|
447
|
|
$
|
450
|
|
$
|
446
|
|
$
|
450
|
|
$
|
430
|
|
Average liabilities
($ billions)
|
$
|
386
|
|
$
|
376
|
|
$
|
347
|
|
$
|
372
|
|
$
|
332
|
|
(1)
|
Results are presented
on a taxable equivalent basis. Refer to Business Line Overview
section of the Bank's 2023 Annual Report to
Shareholders.
|
(2)
|
Includes net income
from investments in associated corporations for the three months
ended October 31, 2023 - $23 (July 31, 2023 - $8; October 31, 2022
- $23) and for the year ended October 31, 2023 - $71 (October 31,
2022 - $64).
|
(3)
|
Refer to Non-GAAP
Measures starting on page 21.
|
|
|
|
|
For the three months ended
|
For the
year ended
|
(Unaudited) ($ millions)
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
(Taxable equivalent basis)
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Adjusted Results(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
2,562
|
|
$
|
2,468
|
|
$
|
2,363
|
|
$
|
9,756
|
|
$
|
9,001
|
|
Non-interest
income
|
|
767
|
|
|
748
|
|
|
771
|
|
|
3,087
|
|
|
3,029
|
|
Total
revenue
|
|
3,329
|
|
|
3,216
|
|
|
3,134
|
|
|
12,843
|
|
|
12,030
|
|
Provision for credit
losses
|
|
700
|
|
|
307
|
|
|
163
|
|
|
1,443
|
|
|
209
|
|
Non-interest
expenses(2)
|
|
1,513
|
|
|
1,447
|
|
|
1,391
|
|
|
5,863
|
|
|
5,366
|
|
Income tax
expense
|
|
306
|
|
|
399
|
|
|
406
|
|
|
1,515
|
|
|
1,676
|
|
Net income
|
$
|
810
|
|
$
|
1,063
|
|
$
|
1,174
|
|
$
|
4,022
|
|
$
|
4,779
|
|
(1)
|
Refer to Non-GAAP
Measures starting on page 21 for the reconciliation of reported and
adjusted results.
|
(2)
|
Includes adjustment for
Amortization of acquisition-related intangible assets, excluding
software for the three months ended October 31, 2023 – nil (July
31, 2023 – $1; October 31, 2022 – $6) and for the year ended
October 31, 2023 – $4 (October 31, 2022 – $22).
|
Net income
Q4 2023 vs Q4 2022
Net income attributable to equity holders was $810 million, compared to $1,170 million. Adjusted net income attributable
to equity holders was $810 million, a
decrease of $364 million or 31%. The
decline was due primarily to higher provision for credit losses and
non-interest expenses, partly offset by higher revenue.
Q4 2023 vs Q3 2023
Net income attributable to equity holders declined $252 million or 24%. The decline was due
primarily to higher provision for credit losses and non-interest
expenses, partly offset by higher revenue.
Total revenue
Q4 2023 vs Q4 2022
Revenues were $3,329 million, an
increase of $195 million or 6%.
Net interest income of $2,562
million increased $199 million
or 8% due primarily to strong deposit growth and margin
expansion. The net interest margin increased 21 basis points
to 2.47% due primarily to higher loan margins and favourable
changes in business mix, partly offset by lower deposit
margins.
Non-interest income of $767
million declined $4 million
due to lower banking fees, mostly offset by higher insurance
revenue.
Q4 2023 vs Q3 2023
Revenues increased $113 million or
4%.
Net interest income increased $94
million or 4% due primarily to solid deposit growth and
margin expansion. The net interest margin increased 12 basis
points to 2.47% due primarily to higher loan spreads, and
favourable changes in business mix.
Non-interest income increased $19
million or 3%. The increase was due primarily to
higher income from associated corporations, insurance revenues, and
foreign exchange fees, partly offset by elevated private equity
gains in the prior period.
Provision for credit losses
Q4 2023 vs Q4 2022
The provision for credit losses was $700
million, compared to $163
million, an increase of $537
million. The provision for credit losses ratio increased 48
basis points to 63 basis points.
The provision for credit losses on performing loans was
$414 million, compared to
$10 million. The provision this
period was driven primarily by the impact of the unfavourable
macroeconomic outlook and continued uncertainty around the impact
of higher interest rates resulting from policy tightening to
address inflation, including the related impacts on migration in
the retail portfolios and on certain sectors in the non-retail
portfolios. The provision for credit losses ratio on performing
loans increased 36 basis points to 37 basis points.
Provision for credit losses on impaired loans was $286 million, compared to $153 million, an increase of $133 million or 87% due to higher formations in
the retail and commercial portfolios, including auto loans and
unsecured lines. The provision for credit losses ratio on impaired
loans was 26 basis points, an increase of 12 basis points.
Q4 2023 vs Q3 2023
The provision for credit losses was $700
million, compared to $307
million, an increase of $393
million. The provision for credit losses ratio increased 36
basis points to 63 basis points.
The provision for credit losses on performing loans was
$414 million, compared to
$49 million. The provision this
period was driven primarily by the impact of unfavourable
macroeconomic outlook and continued uncertainty around the impact
of higher interest rates resulting from policy tightening to
address inflation, including the related impacts of migration in
the retail portfolios, and on certain sectors in the non-retail
portfolios. The provision for credit losses ratio on performing
loans increased 33 basis points to 37 basis points.
Provision for credit losses on impaired loans was $286 million, compared to $258 million, an increase of $28 million or 11% due primarily to higher retail
formations. The provision for credit losses ratio on impaired loans
was 26 basis points, an increase of three basis points.
Non-interest expenses
Q4 2023 vs Q4 2022
Non-interest expenses were $1,513
million, an increase of $116
million or 8%, due primarily to higher personnel costs,
including inflationary adjustments, advertising, business
development, and technology costs to support business growth.
Q4 2023 vs Q3 2023
Non-interest expenses increased by $65
million or 4%, due primarily to higher personnel,
advertising and business development costs to support business
growth.
Provision for income taxes
The effective tax rate was 27.4% for the quarter, compared to
25.7% in the prior year and 27.3% in the prior quarter.
Average assets
Q4 2023 vs Q4 2022
Average assets increased $1
billion to $447 billion. The
growth included $9 billion or 11% in
business loans and acceptances, $2
billion or 3% in personal loans, and $1 billion or 18% in credit card loans, partly
offset by a decline of $11 billion or
4% in residential mortgages.
Q4 2023 vs Q3 2023
Average assets decreased $3
billion or 1%. The decline included $6 billion or 2% in residential mortgages, partly
offset by growth of $2 billion or 2%
in business loans and acceptances.
Average liabilities
Q4 2023 vs Q4 2022
Average liabilities increased $39
billion or 11% to $386
billion. The growth included $22
billion or 11% in personal deposits and $11 billion or 9% in non-personal deposits,
primarily in term products.
Q4 2023 vs Q3 2023
Average liabilities increased $10
billion or 3%. The growth included $5
billion or 4% in non-personal deposits and $4 billion or 1% in personal deposits, primarily
in term products.
International Banking
|
|
For the three months ended
|
For the
year ended
|
(Unaudited) ($ millions)
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
(Taxable equivalent
basis)(1)
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reported Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
2,137
|
|
$
|
2,118
|
|
$
|
1,806
|
|
$
|
8,161
|
|
$
|
6,900
|
|
Non-interest
income(2)
|
|
662
|
|
|
728
|
|
|
698
|
|
|
2,937
|
|
|
2,827
|
|
Total
revenue
|
|
2,799
|
|
|
2,846
|
|
|
2,504
|
|
|
11,098
|
|
|
9,727
|
|
Provision for credit
losses
|
|
512
|
|
|
516
|
|
|
355
|
|
|
1,868
|
|
|
1,230
|
|
Non-interest
expenses
|
|
1,522
|
|
|
1,491
|
|
|
1,364
|
|
|
5,928
|
|
|
5,212
|
|
Income tax
expense
|
|
171
|
|
|
192
|
|
|
106
|
|
|
704
|
|
|
618
|
|
Net income
|
$
|
594
|
|
$
|
647
|
|
$
|
679
|
|
$
|
2,598
|
|
$
|
2,667
|
|
Net income attributable
to non-controlling interest in subsidiaries
|
$
|
32
|
|
$
|
19
|
|
$
|
36
|
|
$
|
112
|
|
$
|
249
|
|
Net income attributable
to equity holders of the Bank
|
$
|
562
|
|
$
|
628
|
|
$
|
643
|
|
$
|
2,486
|
|
$
|
2,418
|
|
Other financial data and
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity(3)
|
|
12.4
|
%
|
|
13.4
|
%
|
|
13.1
|
%
|
|
13.1
|
%
|
|
12.9
|
%
|
Net interest
margin(3)
|
|
4.18
|
%
|
|
4.10
|
%
|
|
4.08
|
%
|
|
4.10
|
%
|
|
3.96
|
%
|
Average assets ($
billions)
|
$
|
238
|
|
$
|
241
|
|
$
|
217
|
|
$
|
237
|
|
$
|
207
|
|
Average liabilities
($ billions)
|
$
|
184
|
|
$
|
184
|
|
$
|
160
|
|
$
|
179
|
|
$
|
152
|
|
(1)
|
Results are presented
on a taxable equivalent basis. Refer to Business Line Overview
section of the Bank's 2023 Annual Report to
Shareholders.
|
(2)
|
Includes net income
from investments in associated corporations for the three months
ended October 31, 2023 - $57 (July 31, 2023 - $62; October 31, 2022
- $51) and for the year ended October 31, 2023 - $251 (October 31,
2022 - $250).
|
(3)
|
Refer to Non-GAAP
Measures starting on page 21.
|
|
|
|
|
|
|
For the three months ended
|
For the
year ended
|
(Unaudited) ($ millions)
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
(Taxable equivalent basis)
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Adjusted Results(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
2,137
|
|
$
|
2,118
|
|
$
|
1,806
|
|
$
|
8,161
|
|
$
|
6,900
|
|
Non-interest
income
|
|
662
|
|
|
728
|
|
|
698
|
|
|
2,937
|
|
|
2,827
|
|
Total
revenue
|
|
2,799
|
|
|
2,846
|
|
|
2,504
|
|
|
11,098
|
|
|
9,727
|
|
Provision for credit
losses
|
|
512
|
|
|
516
|
|
|
355
|
|
|
1,868
|
|
|
1,230
|
|
Non-interest
expenses(2)
|
|
1,512
|
|
|
1,481
|
|
|
1,355
|
|
|
5,887
|
|
|
5,173
|
|
Income tax
expense
|
|
173
|
|
|
195
|
|
|
108
|
|
|
715
|
|
|
629
|
|
Net income
|
$
|
602
|
|
$
|
654
|
|
$
|
686
|
|
$
|
2,628
|
|
$
|
2,695
|
|
Net income attributable
to non-controlling interest in subsidiaries
|
$
|
32
|
|
$
|
19
|
|
$
|
36
|
|
$
|
112
|
|
$
|
249
|
|
Net income attributable
to equity holders of the Bank
|
$
|
570
|
|
$
|
635
|
|
$
|
650
|
|
$
|
2,516
|
|
$
|
2,446
|
|
(1)
|
Refer to Non-GAAP
Measures starting on page 21 for the reconciliation of reported and
adjusted results.
|
(2)
|
Includes adjustment for
Amortization of acquisition-related intangible assets, excluding
software for the three months ended October 31, 2023 – $10 (July
31, 2023 – $10; October 31, 2022 – $9) and for the year ended
October 31, 2023 – $41 (October 31, 2022 – $39).
|
Net income
Q4 2023 vs Q4 2022
Net income attributable to equity holders decreased $81 million to $562
million. Adjusted net income attributable to equity holders
decreased $80 million to $570 million. The decrease was driven by higher
provision for credit losses, lower non-interest income and higher
provision for income taxes, partly offset by higher net interest
income and the positive impact of foreign currency translation.
Q4 2023 vs Q3 2023
Net income attributable to equity holders decreased by
$66 million or 10%. Adjusted net
income attributable to equity holders decreased by $65 million or 10%. The decrease was due
primarily to lower non-interest income, partly offset by lower
provision for income taxes, higher net interest income, the
positive impact of foreign currency translation and lower provision
for credit losses.
Financial Performance on a
Constant Dollar Basis
International Banking business segment results are analyzed on a
constant dollar basis which is a non-GAAP measure (refer to
Non-GAAP Measures starting on page 21). Under the constant dollar
basis, prior period amounts are recalculated using current period
average foreign currency rates. The following table presents the
reconciliation between reported, adjusted and constant dollar
results for International Banking for prior periods. The Bank
believes that constant dollar is useful for readers to understand
business performance without the impact of foreign currency
translation and is used by management to assess the performance of
the business segment. The tables below are computed on a basis that
is different than the "Impact of foreign currency translation"
table on page 4. Ratios are on a reported basis.
The discussion below on the results of operations is on a
constant dollar basis.
Reported results on
a constant dollar basis
|
|
|
|
|
|
For the three months ended
|
For the
year ended
|
(Unaudited) ($ millions)
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
(Taxable equivalent basis)
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Constant dollars – Reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
2,137
|
|
$
|
2,099
|
|
$
|
1,957
|
|
$
|
8,161
|
|
$
|
7,481
|
|
Non-interest
income
|
|
662
|
|
|
752
|
|
|
761
|
|
|
2,937
|
|
|
2,907
|
|
Total
revenue
|
|
2,799
|
|
|
2,851
|
|
|
2,718
|
|
|
11,098
|
|
|
10,388
|
|
Provision for credit
losses
|
|
512
|
|
|
510
|
|
|
386
|
|
|
1,868
|
|
|
1,325
|
|
Non-interest
expenses
|
|
1,522
|
|
|
1,487
|
|
|
1,472
|
|
|
5,928
|
|
|
5,584
|
|
Income tax
expense
|
|
171
|
|
|
197
|
|
|
117
|
|
|
704
|
|
|
641
|
|
Net income
|
$
|
594
|
|
$
|
657
|
|
$
|
743
|
|
$
|
2,598
|
|
$
|
2,838
|
|
Net income attributable
to non-controlling interest in subsidiaries
|
$
|
32
|
|
$
|
19
|
|
$
|
38
|
|
$
|
112
|
|
$
|
261
|
|
Net income attributable
to equity holders of the Bank
|
$
|
562
|
|
$
|
638
|
|
$
|
705
|
|
$
|
2,486
|
|
$
|
2,577
|
|
Other financial data and
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets ($
billions)
|
$
|
238
|
|
$
|
239
|
|
$
|
232
|
|
$
|
237
|
|
$
|
222
|
|
Average liabilities
($ billions)
|
$
|
184
|
|
$
|
182
|
|
$
|
173
|
|
$
|
179
|
|
$
|
164
|
|
Adjusted results on
a constant dollar basis
|
|
|
|
|
|
For the three months ended
|
For the
year ended
|
(Unaudited) ($ millions)
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
(Taxable equivalent basis)
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Constant dollars – Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
2,137
|
|
$
|
2,099
|
|
$
|
1,957
|
|
$
|
8,161
|
|
$
|
7,481
|
|
Non-interest
income
|
|
662
|
|
|
752
|
|
|
761
|
|
|
2,937
|
|
|
2,907
|
|
Total
revenue
|
|
2,799
|
|
|
2,851
|
|
|
2,718
|
|
|
11,098
|
|
|
10,388
|
|
Provision for credit
losses
|
|
512
|
|
|
510
|
|
|
386
|
|
|
1,868
|
|
|
1,325
|
|
Non-interest
expenses
|
|
1,512
|
|
|
1,477
|
|
|
1,462
|
|
|
5,887
|
|
|
5,542
|
|
Income tax
expense
|
|
173
|
|
|
200
|
|
|
119
|
|
|
715
|
|
|
653
|
|
Net income
|
$
|
602
|
|
$
|
664
|
|
$
|
751
|
|
$
|
2,628
|
|
$
|
2,868
|
|
Net income attributable
to non-controlling interest in subsidiaries
|
$
|
32
|
|
$
|
19
|
|
$
|
38
|
|
$
|
112
|
|
$
|
261
|
|
Net income attributable
to equity holders of the Bank
|
$
|
570
|
|
$
|
645
|
|
$
|
713
|
|
$
|
2,516
|
|
$
|
2,607
|
|
Net income
Q4 2023 vs Q4 2022
Net income attributable to equity holders was $562 million and adjusted net income attributable
to equity holders was $570 million,
down $143 million or 20%. The result
was driven by higher provision for credit losses, lower
non-interest income, higher provision for income taxes, and
non-interest expenses, partly offset by higher net interest
income.
Q4 2023 vs Q3 2023
Net income attributable to equity holders decreased by
$76 million or 12%. Adjusted net
income attributable to equity holders decreased by $75 million or 12%. The decrease was due
primarily to lower non-interest income and higher non-interest
expenses, partly offset by higher net interest income and lower
provision for income taxes.
Total revenue
Q4 2023 vs Q4 2022
Revenues were $2,799 million, an
increase of $81 million or 3%.
Net interest income was $2,137
million, an increase of $180
million or 9%, driven by higher interest income from
securities and deposit margins mainly in the Caribbean. Net interest margin increased by 10
basis points to 4.18%, driven by asset repricing outpacing cost of
funds, lower inflation and changes in the business mix.
Non-interest income was $662
million a decrease of $99
million or 13%, driven by lower trading revenues and banking
fees.
Q4 2023 vs Q3 2023
Revenues decreased by $52 million
or 2%.
Net interest income increased by $38
million or 2%, driven by margin expansion. Net interest
margin increased by eight basis points to 4.18%, mainly driven by
asset repricing outpacing cost of funds, changes in the business
mix and higher inflation.
Non-interest income decreased by $90
million or 12% due to lower trading revenues and lower
banking fees.
Provision for credit losses
Q4 2023 vs Q4 2022
The provision for credit losses was $512
million compared to $386
million, an increase of $126
million or 33%. The provision for credit losses ratio
increased 30 basis points to 119 basis points.
Provision for credit losses on performing loans was $7 million, compared to $37 million. The provision this period was driven
by the impact of the continued unfavourable macroeconomic outlook,
primarily impacting the commercial portfolio and retail portfolio
growth. This was partly offset by retail credit migration to
impaired.
Provision for credit losses on impaired loans was $505 million, compared to $349 million, an increase of $156 million or 45%. This increase was due
primarily to higher retail formations across the Pacific Alliance
markets. The provision for credit losses ratio on impaired loans
was 118 basis points, an increase of 37 basis points.
Q4 2023 vs Q3 2023
The provision for credit losses was $512
million, compared to $510
million, an increase of $2
million. The provision for credit losses ratio was 119 basis
points, an increase of one basis point.
Provision for credit losses on performing loans was $7 million compared to $26
million. The provision this period was driven by the impact
of the continued unfavourable macroeconomic outlook primarily
impacting the commercial portfolio and retail portfolio
growth. This was partly offset by retail credit migration to
impaired.
Provision for credit losses on impaired loans was $505 million compared to $484 million, an increase of $21 million or 4% due partly to higher retail
formations, primarily in Mexico
and Peru, and higher commercial
provisions. The provision for credit losses ratio on impaired loans
increased by seven basis points to 118 basis points.
Non-interest expenses
Q4 2023 vs Q4 2022
Non-interest expenses were $1,522
million, an increase of $50
million or 3%. Adjusted non-interest expenses were
$1,512 million, an increase of 3%,
from inflationary pressures, partly offset by prudent expense
management and savings initiatives.
Q4 2023 vs Q3 2023
Non-interest expenses were $1,522
million, an increase of 2%. Adjusted non-interest expenses
increased by $35 million or 2% from
$1,477 million last quarter, driven
mainly by technology expenses to support business growth.
Provision for income taxes
Q4 2023 vs Q4 2022
The effective tax rate was 22.3%, compared to 13.5%. On an
adjusted basis the effective tax rate was 22.4%, as compared to
13.6% in the same quarter last year due primarily to lower
inflationary adjustments in Chile
and Mexico.
Q4 2023 vs Q3 2023
The effective tax rate was 22.3%, compared to 22.9%. On an
adjusted basis the effective tax rate was 22.4%, compared to 22.9%,
due to lower inflationary adjustments in Mexico.
Average assets
Q4 2023 vs Q4 2022
Average assets were $238 billion,
an increase of $6 billion or 3%.
Loans grew 2%, primarily in Mexico, Brazil, and Chile. The growth included 7% in residential
mortgages, partly offset by a decrease of 1% in business loans.
Q4 2023 vs Q3 2023
Average assets were in line with prior quarter. Total loans
decreased by 1%, driven by a 2% decrease in business loans mainly
in Chile and Peru. This was partly offset by an increase of
1% in residential mortgages, mainly in Mexico.
Average liabilities
Q4 2023 vs Q4 2022
Average liabilities were $184
billion, an increase of $11
billion or 6%. Total deposits increased by $11 billion or 9%, primarily in Mexico and Brazil. The growth included 12% in
non-personal deposits and 3% in personal deposits. Term deposits
increased by $12 billion or 21% while
non-term deposits decreased by 3%.
Q4 2023 vs Q3 2023
Average liabilities were $184
billion, an increase of $2
billion. Total deposits increased by $3 billion or 3%, primarily in Mexico and Brazil, mainly driven by non-personal deposits
which increased by 4%.
Global Wealth Management
|
|
For the three months ended
|
For the
year ended
|
(Unaudited) ($ millions)
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
(Taxable equivalent
basis)(1)
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Reported Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
213
|
|
$
|
207
|
|
$
|
206
|
|
$
|
842
|
|
$
|
764
|
|
Non-interest
income
|
|
1,119
|
|
|
1,129
|
|
|
1,083
|
|
|
4,449
|
|
|
4,617
|
|
Total
revenue
|
|
1,332
|
|
|
1,336
|
|
|
1,289
|
|
|
5,291
|
|
|
5,381
|
|
Provision for credit
losses
|
|
5
|
|
|
2
|
|
|
1
|
|
|
10
|
|
|
6
|
|
Non-interest
expenses
|
|
887
|
|
|
843
|
|
|
798
|
|
|
3,350
|
|
|
3,259
|
|
Income tax
expense
|
|
111
|
|
|
123
|
|
|
127
|
|
|
491
|
|
|
551
|
|
Net income
|
$
|
329
|
|
$
|
368
|
|
$
|
363
|
|
$
|
1,440
|
|
$
|
1,565
|
|
Net income attributable
to non-controlling interest in subsidiaries
|
$
|
2
|
|
$
|
2
|
|
$
|
2
|
|
$
|
9
|
|
$
|
9
|
|
Net income attributable
to equity holders of the Bank
|
$
|
327
|
|
$
|
366
|
|
$
|
361
|
|
$
|
1,431
|
|
$
|
1,556
|
|
Other financial data and
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity(2)
|
|
13.2
|
%
|
|
14.9
|
%
|
|
14.8
|
%
|
|
14.6
|
%
|
|
16.2
|
%
|
Assets under
administration ($ billions)
|
$
|
610
|
|
$
|
631
|
|
$
|
580
|
|
$
|
610
|
|
$
|
580
|
|
Assets under management
($ billions)
|
$
|
317
|
|
$
|
331
|
|
$
|
311
|
|
$
|
317
|
|
$
|
311
|
|
(1)
|
Results are presented
on a taxable equivalent basis. Refer to Business Line Overview
section of the Bank's 2023 Annual Report to
Shareholders.
|
(2)
|
Refer to Non-GAAP
Measures starting on page 21.
|
|
|
|
|
For the three months ended
|
For the
year ended
|
(Unaudited) ($ millions)
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
(Taxable equivalent basis)
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Adjusted Results(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
213
|
|
$
|
207
|
|
$
|
206
|
|
$
|
842
|
|
$
|
764
|
|
Non-interest
income
|
|
1,119
|
|
|
1,129
|
|
|
1,083
|
|
|
4,449
|
|
|
4,617
|
|
Total
revenue
|
|
1,332
|
|
|
1,336
|
|
|
1,289
|
|
|
5,291
|
|
|
5,381
|
|
Provision for credit
losses
|
|
5
|
|
|
2
|
|
|
1
|
|
|
10
|
|
|
6
|
|
Non-interest
expenses(2)
|
|
878
|
|
|
834
|
|
|
789
|
|
|
3,314
|
|
|
3,223
|
|
Income tax
expense
|
|
114
|
|
|
125
|
|
|
129
|
|
|
501
|
|
|
560
|
|
Net income
|
$
|
335
|
|
$
|
375
|
|
$
|
370
|
|
$
|
1,466
|
|
$
|
1,592
|
|
Net income attributable
to non-controlling interest in subsidiaries
|
$
|
2
|
|
$
|
2
|
|
$
|
2
|
|
$
|
9
|
|
$
|
9
|
|
Net income attributable
to equity holders of the Bank
|
$
|
333
|
|
$
|
373
|
|
$
|
368
|
|
$
|
1,457
|
|
$
|
1,583
|
|
(1)
|
Refer to Non-GAAP
Measures starting on page 21 for the reconciliation of reported and
adjusted results.
|
(2)
|
Includes adjustment for
Amortization of acquisition-related intangible assets, excluding
software for the three months ended October 31, 2023 – $9 (July 31,
2023 – $9; October 31, 2022 – $9) and for the year ended October
31, 2023 – $36 (October 31, 2022 – $36).
|
Net income
Q4 2023 vs Q4 2022
Net income attributable to equity holders was $327 million, compared to $361 million. Adjusted net income attributable to
equity holders was $333 million, down
$35 million or 10%. The decline was
due primarily to higher non-interest expenses, partly offset by
strong revenue growth in the international businesses and higher
brokerage revenues in Canada.
Q4 2023 vs Q3 2023
Net income attributable to equity holders decreased $39 million or 11%. Adjusted net income
attributable to equity holders decreased $40
million or 11%, due primarily to higher non-interest
expenses and lower mutual fund fees.
Total revenue
Q4 2023 vs Q4 2022
Revenues were $1,332 million, an
increase of $43 million or 3% due
primarily to higher revenues in the international businesses and
higher brokerage revenues in Canada.
Q4 2023 vs Q3 2023
Revenues were down $4 million due
primarily to lower mutual fund fees, partly offset by higher net
interest income.
Provision for credit losses
Q4 2023 vs Q4 2022
The provision for credit losses was $5
million, an increase of $4
million. The provision for credit losses ratio increased
seven basis points to nine basis points, mostly on impaired
loans.
Provision for credit losses on performing loans increased by
$1 million, while the provision for
credit losses on impaired loans increased by $3 million.
Q4 2023 vs Q3 2023
The provision for credit losses was $5
million, an increase of $3
million. The provision for credit losses ratio increased six
basis points to nine basis points, mostly on impaired loans.
Provision for credit losses on performing loans increased by
$2 million, while provisions for
credit losses on impaired loans increased by $1 million.
Non-interest expenses
Q4 2023 vs Q4 2022
Non-interest expenses of $887
million increased by $89
million or 11%, driven largely by higher volume-related
expenses and personnel and technology costs to support business
growth.
Q4 2023 vs Q3 2023
Non-interest expenses increased by $44
million or 5%, driven largely by higher technology,
advertising, and business development expenses to support business
growth.
Provision for income taxes
The effective tax rate was 25.4% compared to 25.8% in the prior
year and 25.0% in the prior quarter.
Assets under management (AUM) and assets under administration
(AUA)
Q4 2023 vs Q4 2022
Assets under management of $317
billion increased $6 billion
or 2% driven by market appreciation partly offset by net
redemptions. Assets under administration of $610 billion increased $30
billion or 5% due primarily to higher net sales and market
appreciation.
Q4 2023 vs Q3 2023
Assets under management decreased $14
billion or 4% due primarily to market depreciation. Assets
under administration decreased $21
billion or 3% due primarily to market depreciation, partly
offset by higher net sales.
Global Banking and
Markets
|
|
For the three months ended
|
For the
year ended
|
(Unaudited) ($ millions)
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
(Taxable equivalent
basis)(1)
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reported Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
397
|
|
$
|
337
|
|
$
|
492
|
|
$
|
1,572
|
|
$
|
1,630
|
|
Non-interest
income
|
|
957
|
|
|
1,006
|
|
-
|
862
|
|
|
3,980
|
|
|
3,542
|
|
Total
revenue
|
|
1,354
|
|
|
1,343
|
|
-
|
1,354
|
|
|
5,552
|
|
|
5,172
|
|
Provision for credit
losses
|
|
39
|
|
|
(6)
|
|
-
|
11
|
|
|
101
|
|
|
(66)
|
|
Non-interest
expenses
|
|
779
|
|
|
758
|
|
-
|
696
|
|
|
3,062
|
|
|
2,674
|
|
Income tax
expense
|
|
122
|
|
|
157
|
|
-
|
163
|
|
|
621
|
|
|
653
|
|
Net income
|
$
|
414
|
|
$
|
434
|
|
$
|
484
|
|
$
|
1,768
|
|
$
|
1,911
|
|
Net income attributable
to equity holders of the Bank
|
$
|
414
|
|
$
|
434
|
|
$
|
484
|
|
$
|
1,768
|
|
$
|
1,911
|
|
Other financial data and
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity(2)
|
|
12.4
|
%
|
|
12.9
|
%
|
-
|
13.4
|
%
|
|
12.2
|
%
|
|
14.3
|
%
|
Average assets ($
billions)
|
$
|
500
|
|
$
|
493
|
|
$
|
461
|
|
$
|
490
|
|
$
|
445
|
|
Average liabilities
($ billions)
|
$
|
471
|
|
$
|
450
|
|
$
|
430
|
|
$
|
455
|
|
$
|
414
|
|
(1)
|
Results are presented
on a taxable equivalent basis. Refer to Business Line Overview
section of the Bank's 2023 Annual Report to
Shareholders.
|
(2)
|
Refer to Non-GAAP
Measures starting on page 21.
|
Net income
Q4 2023 vs Q4 2022
Net income attributable to equity holders was $414 million, a decrease of $70 million or 14%. This was due mainly to higher
non-interest expenses, lower net interest income and higher
provision for credit losses, partly offset by higher non-interest
income.
Q4 2023 vs Q3 2023
Net income attributable to equity holders decreased by
$20 million or 5%. This was due
to lower non-interest income, higher provision for credit losses
and non-interest expenses, partly offset by higher net interest
income and the positive impact of foreign currency translation.
Total revenue
Q4 2023 vs Q4 2022
Revenues were $1,354 million, in
line with the prior year as higher non-interest income was offset
by lower net interest income.
Net interest income of $397
million decreased $95 million
or 19%. This was due mainly to higher trading-related funding
costs, and lower corporate lending margins, partly offset by higher
deposit margins.
Non-interest income was $957
million, an increase of $95
million or 11%, due mainly to higher fee and commission
revenue, partially offset by lower trading-related revenue.
Q4 2023 vs Q3 2023
Revenues increased by $11 million
or 1%.
Net interest income of $397
million increased $60 million
or 18%. This was due mainly to higher deposit margins and higher
corporate lending margins.
Non-interest income decreased by $49
million or 5%, due mainly to lower trading-related revenues,
partly offset by higher fee and commission revenue.
Provision for credit losses
Q4 2023 vs Q4 2022
The provision for credit losses was $39
million compared to $11
million. The provision for credit losses ratio was 11 basis
points, an increase of eight basis points.
Provision for credit losses on performing loans was $30 million, compared to a net reversal of
$11 million, due to the continued
unfavourable macroeconomic outlook including higher interest rates,
and on certain sectors in the North American non-retail
portfolios.
Provision for credit losses on impaired loans was $9 million, related primarily to one account in
the engineering and contracting sector, compared to $22 million in the prior period. The provision
for credit losses ratio on impaired loans was three basis points, a
decrease of three basis points.
Q4 2023 vs Q3 2023
The provision for credit losses was $39
million, compared to a net reversal of $6 million. The provision for credit losses ratio
was 11 basis points, an increase of 13 basis points.
Provision for credit losses on performing loans was $30 million compared to $4
million, an increase of $26
million due to the continued unfavourable macroeconomic
outlook including higher interest rates, and on certain sectors in
the North American non-retail portfolios.
Provision for credit losses on impaired loans was $9 million, related primarily to one account in
the engineering and contracting sector, compared to a net reversal
of $10 million in the prior quarter.
The provision for credit losses ratio on impaired loans was three
basis points, an increase of six basis points.
Non-interest expenses
Q4 2023 vs Q4 2022
Non-interest expenses of $779
million increased by $83
million or 12%. This was due mainly to higher personnel and
technology costs to support business growth, and the negative
impact of foreign currency translation.
Q4 2023 vs Q3 2023
Non-interest expenses increased $21
million or 3%, due mainly to higher technology costs to
support business growth and the negative impact of foreign currency
translation.
Provision for income taxes
Q4 2023 vs Q4 2022
The effective tax rate for the quarter decreased to 22.8% from
25.2% in the prior year, due mainly to the change in earnings mix
across jurisdictions, partly offset by the increase in the Canadian
statutory tax rate.
Q4 2023 vs Q3 2023
The effective tax rate for the quarter was 22.8% compared to
26.5%, due mainly to the change in earnings mix across
jurisdictions.
Average assets
Q4 2023 vs Q4 2022
Average assets were $500 billion,
an increase of $39 billion or 8%, due
mainly to higher securities purchased under resale agreements,
trading assets, and the impact of foreign currency translation.
Q4 2023 vs Q3 2023
Average assets increased $7
billion or 1%, due mainly to higher securities purchased
under resale agreements and the impact of foreign currency
translation.
Average liabilities
Q4 2023 vs Q4 2022
Average liabilities were $471
billion, an increase of $41
billion or 10%, due mainly to higher increases in securities
sold under repurchase agreements and the impact of foreign currency
translation.
Q4 2023 vs Q3 2023
Average liabilities increased $21
billion or 5%, due mainly to higher securities sold under
repurchase agreements, higher deposits and the impact of foreign
currency translation.
Other
|
|
For the three months ended
|
For the
year ended
|
(Unaudited) ($ millions)
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
(Taxable equivalent
basis)(1)
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Reported Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
(637)
|
|
$
|
(550)
|
|
$
|
(245)
|
|
$
|
(2,044)
|
|
$
|
(180)
|
|
Non-interest
income
|
|
131
|
|
|
(101)
|
|
|
(410)
|
|
|
(433)
|
|
|
(714)
|
|
Total
revenue
|
|
(506)
|
|
|
(651)
|
|
|
(655)
|
|
|
(2,477)
|
|
|
(894)
|
|
Provision for credit
losses
|
|
–
|
|
|
–
|
|
|
(1)
|
|
|
–
|
|
|
3
|
|
Non-interest
expenses
|
|
828
|
|
|
22
|
|
|
274
|
|
|
924
|
|
|
569
|
|
Income tax
expense/(benefit)
|
|
(572)
|
|
|
(374)
|
|
|
(325)
|
|
|
(1,104)
|
|
|
(734)
|
|
Net income (loss)
|
$
|
(762)
|
|
$
|
(299)
|
|
$
|
(603)
|
|
$
|
(2,297)
|
|
$
|
(732)
|
|
Net income (loss)
attributable to non-controlling interest in subsidiaries
|
$
|
(3)
|
|
$
|
–
|
|
$
|
–
|
|
$
|
(3)
|
|
$
|
–
|
|
Net income (loss)
attributable to equity holders
|
$
|
(759)
|
|
$
|
(299)
|
|
$
|
(603)
|
|
$
|
(2,294)
|
|
$
|
(732)
|
|
Other measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets ($
billions)
|
$
|
191
|
|
$
|
184
|
|
$
|
175
|
|
$
|
185
|
|
$
|
167
|
|
Average liabilities
($ billions)
|
$
|
252
|
|
$
|
273
|
|
$
|
278
|
|
$
|
273
|
|
$
|
263
|
|
(1)
|
Results are presented
on a taxable equivalent basis. Refer to Business Line Overview
section of the Bank's 2023 Annual Report to
Shareholders.
|
|
|
|
|
For the three months ended
|
For the
year ended
|
(Unaudited) ($ millions)
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
(Taxable equivalent basis)
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Adjusted Results(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
(637)
|
|
$
|
(550)
|
|
$
|
(245)
|
|
$
|
(2,044)
|
|
$
|
(180)
|
|
Non-interest
income(2)
|
|
(236)
|
|
|
(101)
|
|
|
(49)
|
|
|
(800)
|
|
|
(353)
|
|
Total
revenue
|
|
(873)
|
|
|
(651)
|
|
|
(294)
|
|
|
(2,844)
|
|
|
(533)
|
|
Provision for credit
losses
|
|
–
|
|
|
–
|
|
|
(1)
|
|
|
–
|
|
|
3
|
|
Non-interest
expenses(3)
|
|
41
|
|
|
22
|
|
|
56
|
|
|
137
|
|
|
351
|
|
Income tax
expense/(benefit)(4)
|
|
(427)
|
|
|
(374)
|
|
|
(250)
|
|
|
(1,538)
|
|
|
(659)
|
|
Net income (loss)
|
$
|
(487)
|
|
$
|
(299)
|
|
$
|
(99)
|
|
$
|
(1,443)
|
|
$
|
(228)
|
|
Net income (loss)
attributable to non-controlling interest in subsidiaries
|
$
|
–
|
|
$
|
–
|
|
$
|
1
|
|
$
|
–
|
|
$
|
1
|
|
Net income (loss)
attributable to equity holders
|
$
|
(487)
|
|
$
|
(299)
|
|
$
|
(100)
|
|
$
|
(1,443)
|
|
$
|
(229)
|
|
(1)
|
Refer to Non-GAAP
Measures starting on page 21 for the description of the
adjustments.
|
(2)
|
Includes adjustment for
net (gain)/loss on divestitures and wind-down of operations of
$(367) in Q4 2023 and for the year ended October 31, 2023 (Q4 2022
and for the year ended October 31, 2022 – $361).
|
(3)
|
Includes adjustments
for restructuring charge and severance provisions of $354,
consolidation of real estate and contract termination costs of $87
and impairment of non-financial assets of $346 in Q4 2023 and for
the year ended October 31, 2023 (Q4 2022 and for the year ended
October 31, 2022 - Restructuring charge and severance provisions of
$85 and Support costs for the Scene+ loyalty program of
$133).
|
(4)
|
Includes adjustment for
the Canada Recovery Dividend of $579 for the year ended October 31,
2023 (October 31, 2022 – nil).
|
The Other segment includes Group Treasury, smaller operating
segments and corporate items which are not allocated to a business
line. Group Treasury is primarily responsible for Balance Sheet,
Liquidity and Interest Rate Risk management, which includes the
Bank's wholesale funding activities.
Net interest income, non-interest income, and the provision for
income taxes in each period include the elimination of tax-exempt
income gross-up. This amount is included in the operating segments,
which are reported on a taxable equivalent basis.
Net income from associated corporations and the provision for
income taxes in each period include the tax normalization
adjustments related to the gross-up of income from associated
companies. This adjustment normalizes the effective tax rate in the
divisions to better present the contribution of the associated
companies to the divisional results.
Q4 2023 vs Q4 2022
Net income attributable to equity holders was a net loss of
$759 million, compared to a net loss
of $603 million last year. Adjusted
net income attributable to equity holders was a net loss of
$487 million compared to a net loss
of $100 million in the prior year.
The higher loss of $387 million was
due mainly to lower revenues primarily related to higher funding
costs and lower income from hedges, partly offset by higher income
from liquid assets, and lower investment gains. The decline in
revenue was partly offset by lower provision for income taxes and
lower non-interest expenses.
Q4 2023 vs Q3 2023
Net income attributable to equity holders decreased $460 million from the prior quarter. On an
adjusted basis, net income attributable to equity holders decreased
$188 million due mainly to higher
funding costs, lower income from hedges and lower income from
associated corporations. This was partly offset by higher income
from liquid assets and lower provision for income taxes.
Consolidated
Statement of Financial Position
|
|
|
|
As at
|
|
|
October 31
|
July 31
|
October 31
|
(Unaudited) ($ millions)
|
|
2023
|
2023
|
2022
|
Assets
|
|
|
|
|
|
|
|
Cash and deposits with
financial institutions
|
|
$
|
90,312
|
$
|
90,325
|
$
|
65,895
|
Precious
metals
|
|
|
937
|
|
1,009
|
|
543
|
Trading assets
|
|
|
|
|
|
|
|
Securities
|
|
|
107,612
|
|
108,310
|
|
103,547
|
Loans
|
|
|
7,544
|
|
8,420
|
|
7,811
|
Other
|
|
|
2,712
|
|
2,571
|
|
1,796
|
|
|
|
117,868
|
|
119,301
|
|
113,154
|
Securities purchased
under resale agreements and securities borrowed
|
|
|
199,325
|
|
198,358
|
|
175,313
|
Derivative financial
instruments
|
|
|
51,340
|
|
44,655
|
|
55,699
|
Investment
securities
|
|
|
118,237
|
|
110,195
|
|
110,008
|
Loans
|
|
|
|
|
|
|
|
Residential
mortgages
|
|
|
344,182
|
|
347,707
|
|
349,279
|
Personal
loans
|
|
|
104,170
|
|
103,733
|
|
99,431
|
Credit cards
|
|
|
17,109
|
|
16,607
|
|
14,518
|
Business and
government
|
|
|
291,822
|
|
290,051
|
|
287,107
|
|
|
|
757,283
|
|
758,098
|
|
750,335
|
Allowance for credit
losses
|
|
|
6,372
|
|
5,893
|
|
5,348
|
|
|
|
750,911
|
|
752,205
|
|
744,987
|
Other
|
|
|
|
|
|
|
|
Customers' liability
under acceptances, net of allowance
|
|
|
18,628
|
|
20,425
|
|
19,494
|
Property and
equipment
|
|
|
5,642
|
|
5,685
|
|
5,700
|
Investments in
associates
|
|
|
1,925
|
|
2,607
|
|
2,633
|
Goodwill and other
intangible assets
|
|
|
17,193
|
|
17,262
|
|
16,833
|
Deferred tax
assets
|
|
|
3,530
|
|
3,159
|
|
1,903
|
Other assets
|
|
|
34,941
|
|
30,912
|
|
37,256
|
|
|
|
81,859
|
|
80,050
|
|
83,819
|
Total assets
|
|
$
|
1,410,789
|
$
|
1,396,098
|
$
|
1,349,418
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
Personal
|
|
$
|
288,617
|
$
|
284,738
|
$
|
265,892
|
Business and
government
|
|
|
612,267
|
|
615,431
|
|
597,617
|
Financial
institutions
|
|
|
51,449
|
|
57,056
|
|
52,672
|
|
|
|
952,333
|
|
957,225
|
|
916,181
|
Financial instruments
designated at fair value through profit or loss
|
|
|
26,779
|
|
28,893
|
|
22,421
|
Other
|
|
|
|
|
|
|
|
Acceptances
|
|
|
18,718
|
|
20,478
|
|
19,525
|
Obligations related to
securities sold short
|
|
|
36,403
|
|
37,522
|
|
40,449
|
Derivative financial
instruments
|
|
|
58,660
|
|
50,848
|
|
65,900
|
Obligations related to securities sold under repurchase agreements and securities
lent
|
|
|
160,007
|
|
147,432
|
|
139,025
|
Subordinated
debentures
|
|
|
9,693
|
|
9,566
|
|
8,469
|
Other
liabilities
|
|
|
69,529
|
|
66,416
|
|
62,699
|
|
|
|
353,010
|
|
332,262
|
|
336,067
|
Total
liabilities
|
|
|
1,332,122
|
|
1,318,380
|
|
1,274,669
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Common
equity
|
|
|
|
|
|
|
|
Common
shares
|
|
|
20,109
|
|
19,627
|
|
18,707
|
Retained
earnings
|
|
|
55,746
|
|
55,783
|
|
53,761
|
Accumulated other
comprehensive income (loss)
|
|
|
(6,918)
|
|
(7,340)
|
|
(7,166)
|
Other
reserves
|
|
|
(84)
|
|
(88)
|
|
(152)
|
Total common
equity
|
|
|
68,853
|
|
67,982
|
|
65,150
|
Preferred shares and
other equity instruments
|
|
|
8,075
|
|
8,075
|
|
8,075
|
Total equity
attributable to equity holders of the Bank
|
|
|
76,928
|
|
76,057
|
|
73,225
|
Non-controlling
interests in subsidiaries
|
|
|
1,739
|
|
1,661
|
|
1,524
|
Total equity
|
|
|
78,667
|
|
77,718
|
|
74,749
|
Total liabilities and
equity
|
|
$
|
1,410,789
|
$
|
1,396,098
|
$
|
1,349,418
|
Consolidated
Statement of Income
|
|
|
|
|
For the three months ended
|
For the
year ended
|
|
|
October 31
|
July 31
|
October 31
|
October 31
|
October 31
|
(Unaudited) ($ millions)
|
|
2023
|
2023
|
2022
|
2023
|
2022
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Interest income(1)
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
11,823
|
$
|
11,525
|
$
|
9,271
|
$
|
45,043
|
$
|
29,390
|
Securities
|
|
|
1,899
|
|
1,831
|
|
1,217
|
|
6,833
|
|
2,877
|
Securities purchased
under resale agreements and securities borrowed
|
|
|
377
|
|
397
|
|
209
|
|
1,478
|
|
459
|
Deposits with financial
institutions
|
|
|
1,010
|
|
936
|
|
421
|
|
3,470
|
|
832
|
|
|
|
15,109
|
|
14,689
|
|
11,118
|
|
56,824
|
|
33,558
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
9,726
|
|
9,438
|
|
5,722
|
|
35,650
|
|
12,794
|
Subordinated
debentures
|
|
|
133
|
|
123
|
|
93
|
|
471
|
|
270
|
Other
|
|
|
578
|
|
548
|
|
681
|
|
2,416
|
|
2,379
|
|
|
|
10,437
|
|
10,109
|
|
6,496
|
|
38,537
|
|
15,443
|
Net interest income
|
|
|
4,672
|
|
4,580
|
|
4,622
|
|
18,287
|
|
18,115
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
Card
revenues
|
|
|
199
|
|
188
|
|
195
|
|
778
|
|
779
|
Banking services
fees
|
|
|
474
|
|
474
|
|
456
|
|
1,879
|
|
1,770
|
Credit fees
|
|
|
479
|
|
469
|
|
451
|
|
1,861
|
|
1,647
|
Mutual funds
|
|
|
527
|
|
541
|
|
528
|
|
2,127
|
|
2,269
|
Brokerage
fees
|
|
|
284
|
|
285
|
|
264
|
|
1,117
|
|
1,125
|
Investment management
and trust
|
|
|
259
|
|
261
|
|
242
|
|
1,029
|
|
999
|
Underwriting and
advisory fees
|
|
|
152
|
|
146
|
|
136
|
|
554
|
|
543
|
Non-trading foreign
exchange
|
|
|
239
|
|
213
|
|
228
|
|
911
|
|
878
|
Trading
revenues
|
|
|
197
|
|
360
|
|
418
|
|
1,580
|
|
1,791
|
Net gain on sale of
investment securities
|
|
|
(1)
|
|
30
|
|
71
|
|
129
|
|
74
|
Net income from
investments in associated corporations
|
|
|
18
|
|
55
|
|
49
|
|
153
|
|
268
|
Insurance underwriting
income, net of claims
|
|
|
134
|
|
113
|
|
114
|
|
482
|
|
433
|
Other fees and
commissions
|
|
|
321
|
|
283
|
|
206
|
|
1,072
|
|
650
|
Other
|
|
|
354
|
|
92
|
|
(354)
|
|
348
|
|
75
|
|
|
|
3,636
|
|
3,510
|
|
3,004
|
|
14,020
|
|
13,301
|
Total revenue
|
|
|
8,308
|
|
8,090
|
|
7,626
|
|
32,307
|
|
31,416
|
Provision for credit
losses
|
|
|
1,256
|
|
819
|
|
529
|
|
3,422
|
|
1,382
|
|
|
|
7,052
|
|
7,271
|
|
7,097
|
|
28,885
|
|
30,034
|
Non-interest expenses
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
2,452
|
|
2,379
|
|
2,187
|
|
9,596
|
|
8,836
|
Premises and
technology
|
|
|
701
|
|
661
|
|
636
|
|
2,659
|
|
2,424
|
Depreciation and
amortization
|
|
|
590
|
|
412
|
|
394
|
|
1,820
|
|
1,531
|
Communications
|
|
|
99
|
|
101
|
|
90
|
|
395
|
|
361
|
Advertising and
business development
|
|
|
159
|
|
142
|
|
140
|
|
576
|
|
480
|
Professional
|
|
|
219
|
|
199
|
|
239
|
|
780
|
|
826
|
Business and capital
taxes
|
|
|
161
|
|
154
|
|
134
|
|
634
|
|
541
|
Other
|
|
|
1,148
|
|
514
|
|
709
|
|
2,671
|
|
2,103
|
|
|
|
5,529
|
|
4,562
|
|
4,529
|
|
19,131
|
|
17,102
|
Income before taxes
|
|
|
1,523
|
|
2,709
|
|
2,568
|
|
9,754
|
|
12,932
|
Income tax
expense
|
|
|
138
|
|
497
|
|
475
|
|
2,226
|
|
2,758
|
Net income
|
|
$
|
1,385
|
$
|
2,212
|
$
|
2,093
|
$
|
7,528
|
$
|
10,174
|
Net income attributable
to non-controlling interests in subsidiaries
|
|
|
31
|
|
21
|
|
38
|
|
118
|
|
258
|
Net income attributable
to equity holders of the Bank
|
|
$
|
1,354
|
$
|
2,191
|
$
|
2,055
|
$
|
7,410
|
$
|
9,916
|
Preferred shareholders
and other equity instrument holders
|
|
|
109
|
|
105
|
|
106
|
|
419
|
|
260
|
Common
shareholders
|
|
$
|
1,245
|
$
|
2,086
|
$
|
1,949
|
$
|
6,991
|
$
|
9,656
|
Earnings per common share (in dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.03
|
$
|
1.74
|
$
|
1.64
|
$
|
5.84
|
$
|
8.05
|
Diluted
|
|
|
1.02
|
|
1.72
|
|
1.63
|
|
5.78
|
|
8.02
|
Dividends paid per
common share (in dollars)
|
|
|
1.06
|
|
1.06
|
|
1.03
|
|
4.18
|
|
4.06
|
(1)
|
Includes interest
income on financial assets measured at amortized cost and FVOCI,
calculated using the effective interest method, of $14,603 for the
three months ended October 31, 2023 (July 31, 2023 – $14,127;
October 31, 2022 – $10,703) and for the year ended October 31, 2023
– $54,824 (October 31, 2022 – $32,573).
|
Consolidated
Statement of Comprehensive Income
|
|
|
For the three months
ended
|
For the year ended
|
|
October 31
|
July 31
|
October 31
|
October 31
|
October 31
|
(Unaudited) ($ millions)
|
2023
|
2023
|
2022
|
2023
|
2022
|
Net income
|
$
|
1,385
|
$
|
2,212
|
$
|
2,093
|
$
|
7,528
|
$
|
10,174
|
Other comprehensive income
(loss)
|
|
|
|
|
|
|
|
|
|
|
Items that will be reclassified subsequently to net
income
|
|
|
|
|
|
|
|
|
|
|
Net change in
unrealized foreign currency translation gains (losses):
|
|
|
|
|
|
|
|
|
|
|
Net unrealized foreign
currency translation gains (losses)
|
|
675
|
|
(946)
|
|
3,106
|
|
1,345
|
|
3,703
|
Net gains (losses) on
hedges of net investments in foreign operations
|
|
(335)
|
|
298
|
|
(1,140)
|
|
(577)
|
|
(1,655)
|
Income tax expense
(benefit):
|
|
|
|
|
|
|
|
|
|
|
Net unrealized foreign
currency translation gains (losses)
|
|
8
|
|
(14)
|
|
27
|
|
2
|
|
28
|
Net gains (losses) on
hedges of net investments in foreign operations
|
|
(95)
|
|
82
|
|
(299)
|
|
(176)
|
|
(434)
|
|
|
427
|
|
(716)
|
|
2,238
|
|
942
|
|
2,454
|
Net change in fair
value due to change in debt instruments measured at fair
|
|
|
|
|
|
|
|
|
|
|
value through other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) in
fair value
|
|
(851)
|
|
(559)
|
|
(2,460)
|
|
176
|
|
(4,333)
|
Reclassification of net
(gains) losses to net income
|
|
496
|
|
711
|
|
1,767
|
|
327
|
|
2,717
|
Income tax expense
(benefit):
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) in
fair value
|
|
(234)
|
|
(149)
|
|
(619)
|
|
19
|
|
(1,108)
|
Reclassification of net
(gains) losses to net income
|
|
137
|
|
199
|
|
458
|
|
106
|
|
704
|
|
|
(258)
|
|
102
|
|
(532)
|
|
378
|
|
(1,212)
|
Net change in gains (losses) on derivative instruments designated as
cash
|
|
|
|
|
|
|
|
|
|
|
flow hedges:
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
derivative instruments designated as cash flow hedges
|
|
463
|
|
(1,601)
|
|
(1,669)
|
|
3,763
|
|
(10,037)
|
Reclassification of net
(gains) losses to net income
|
|
(151)
|
|
1,025
|
|
(937)
|
|
(3,455)
|
|
3,880
|
Income tax expense
(benefit):
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
derivative instruments designated as cash flow hedges
|
|
61
|
|
(424)
|
|
(444)
|
|
1,034
|
|
(2,709)
|
Reclassification of net
(gains) losses to net income
|
|
32
|
|
257
|
|
(233)
|
|
(971)
|
|
1,089
|
|
|
219
|
|
(409)
|
|
(1,929)
|
|
245
|
|
(4,537)
|
Other comprehensive
income (loss) from investments in associates
|
|
(11)
|
|
7
|
|
(382)
|
|
(16)
|
|
(344)
|
Items that will not be reclassified subsequently to
net income
|
|
|
|
|
|
|
|
|
|
|
Net change in
remeasurement of employee benefit plan asset and
liability:
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains
(losses) on employee benefit plans
|
|
307
|
|
245
|
|
(17)
|
|
108
|
|
955
|
Income tax expense
(benefit)
|
|
58
|
|
68
|
|
(1)
|
|
(6)
|
|
277
|
|
|
249
|
|
177
|
|
(16)
|
|
114
|
|
678
|
Net change in fair
value due to change in equity instruments designated at
fair
|
|
|
|
|
|
|
|
|
|
|
value through other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) in
fair value
|
|
(125)
|
|
(181)
|
|
(160)
|
|
(253)
|
|
(106)
|
Income tax expense
(benefit)
|
|
(36)
|
|
(32)
|
|
(46)
|
|
(73)
|
|
(32)
|
|
|
(89)
|
|
(149)
|
|
(114)
|
|
(180)
|
|
(74)
|
Net change in fair
value due to change in own credit risk on financial
liabilities
|
|
|
|
|
|
|
|
|
|
|
designated under the
fair value option:
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
due to change in own credit risk on financial
liabilities
|
|
|
|
|
|
|
|
|
|
|
designated under the
fair value option
|
|
(61)
|
|
(1,848)
|
|
373
|
|
(1,338)
|
|
1,958
|
Income tax expense
(benefit)
|
|
(17)
|
|
(513)
|
|
98
|
|
(353)
|
|
514
|
|
|
(44)
|
|
(1,335)
|
|
275
|
|
(985)
|
|
1,444
|
Other comprehensive
income (loss) from investments in associates
|
|
–
|
|
–
|
|
–
|
|
2
|
|
2
|
Other comprehensive
income (loss)
|
|
493
|
|
(2,323)
|
|
(460)
|
|
500
|
|
(1,589)
|
Comprehensive income (loss)
|
$
|
1,878
|
$
|
(111)
|
$
|
1,633
|
$
|
8,028
|
$
|
8,585
|
Comprehensive income
(loss) attributable to non-controlling interests
|
|
102
|
|
89
|
|
60
|
|
327
|
|
233
|
Comprehensive income
(loss) attributable to equity holders of the Bank
|
|
1,776
|
|
(200)
|
|
1,573
|
|
7,701
|
|
8,352
|
Preferred shareholders
and other equity instrument holders
|
|
109
|
|
105
|
|
106
|
|
419
|
|
260
|
Common
shareholders
|
$
|
1,667
|
$
|
(305)
|
$
|
1,467
|
$
|
7,282
|
$
|
8,092
|
Consolidated
Statement of Changes in Equity
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
|
Total
|
Non-
|
|
|
|
|
Foreign
|
Debt
|
Equity
|
Cash
|
|
|
Total
|
shares and
|
attributable
|
controlling
|
|
|
Common
|
Retained
|
currency
|
instruments
|
instruments
|
flow
|
|
Other
|
common
|
other
equity
|
to equity
|
interests
in
|
|
(Unaudited) ($ millions)
|
shares
|
earnings(1)
|
translation
|
FVOCI
|
FVOCI
|
hedges
|
Other(2)
|
reserves
|
equity
|
instruments
|
holders
|
subsidiaries
|
Total
|
Balance as at October 31,
2022
|
$
|
18,707
|
$
|
53,761
|
$
|
(2,478)
|
$
|
(1,482)
|
$
|
216
|
$
|
(4,786)
|
$
|
1,364
|
$
|
(152)
|
$
|
65,150
|
$
|
8,075
|
$
|
73,225
|
$
|
1,524
|
$
|
74,749
|
Net income
|
|
–
|
|
6,991
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
6,991
|
|
419
|
|
7,410
|
|
118
|
|
7,528
|
Other comprehensive
income (loss)
|
|
–
|
|
–
|
|
766
|
|
378
|
|
(201)
|
|
240
|
|
(892)
|
|
–
|
|
291
|
|
–
|
|
291
|
|
209
|
|
500
|
Total comprehensive income
|
$
|
–
|
$
|
6,991
|
$
|
766
|
$
|
378
|
$
|
(201)
|
$
|
240
|
$
|
(892)
|
$
|
–
|
$
|
7,282
|
$
|
419
|
$
|
7,701
|
$
|
327
|
$
|
8,028
|
Shares/instruments
issued
|
|
1,402
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(3)
|
|
1,399
|
|
–
|
|
1,399
|
|
–
|
|
1,399
|
Shares
repurchased/redeemed
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Dividends and
distributions paid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to equity
holders
|
|
–
|
|
(5,003)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(5,003)
|
|
(419)
|
|
(5,422)
|
|
(101)
|
|
(5,523)
|
Share-based payments(3)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
14
|
|
14
|
|
–
|
|
14
|
|
–
|
|
14
|
Other
|
|
–
|
|
(3)
|
|
(43)
|
|
–
|
|
(1)
|
|
1
|
|
–
|
|
57
|
|
11
|
|
–
|
|
11
|
|
(11)
|
|
–
|
Balance as at October 31, 2023
|
$
|
20,109
|
$
|
55,746
|
$
|
(1,755)
|
$
|
(1,104)
|
$
|
14
|
$
|
(4,545)
|
$
|
472
|
$
|
(84)
|
$
|
68,853
|
$
|
8,075
|
$
|
76,928
|
$
|
1,739
|
$
|
78,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at October 31, 2021
|
$
|
18,507
|
$
|
51,354
|
$
|
(4,709)
|
$
|
(270)
|
$
|
291
|
$
|
(214)
|
$
|
(431)
|
$
|
222
|
$
|
64,750
|
$
|
6,052
|
$
|
70,802
|
$
|
2,090
|
$
|
72,892
|
Net income
|
|
–
|
|
9,656
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
9,656
|
|
260
|
|
9,916
|
|
258
|
|
10,174
|
Other comprehensive
income (loss)
|
|
–
|
|
–
|
|
2,411
|
|
(1,212)
|
|
(35)
|
|
(4,523)
|
|
1,795
|
|
–
|
|
(1,564)
|
|
–
|
|
(1,564)
|
|
(25)
|
|
(1,589)
|
Total comprehensive income
|
$
|
–
|
$
|
9,656
|
$
|
2,411
|
$
|
(1,212)
|
$
|
(35)
|
$
|
(4,523)
|
$
|
1,795
|
$
|
–
|
$
|
8,092
|
$
|
260
|
$
|
8,352
|
$
|
233
|
$
|
8,585
|
Shares/instruments
issued
|
|
706
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(18)
|
|
688
|
|
2,523
|
|
3,211
|
|
–
|
|
3,211
|
Shares
repurchased/redeemed
|
|
(506)
|
|
(2,367)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(2,873)
|
|
(500)
|
|
(3,373)
|
|
–
|
|
(3,373)
|
Dividends and
distributions paid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to equity
holders
|
|
–
|
|
(4,858)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(4,858)
|
|
(260)
|
|
(5,118)
|
|
(115)
|
|
(5,233)
|
Share-based payments(3)
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
10
|
|
10
|
|
–
|
|
10
|
|
–
|
|
10
|
Other
|
|
–
|
|
(24)
|
|
(180)
|
|
–
|
|
(40)
|
|
(49)
|
|
–
|
|
(366)
|
(4)
|
(659)
|
|
–
|
|
(659)
|
|
(684)
|
(4)
|
(1,343)
|
Balance as at October 31, 2022
|
$
|
18,707
|
$
|
53,761
|
$
|
(2,478)
|
$
|
(1,482)
|
$
|
216
|
$
|
(4,786)
|
$
|
1,364
|
$
|
(152)
|
$
|
65,150
|
$
|
8,075
|
$
|
73,225
|
$
|
1,524
|
$
|
74,749
|
(1)
|
Includes undistributed
retained earnings of $71 (October 31, 2022 - $67) related to a
foreign associated corporation, which is subject to local
regulatory restriction.
|
(2)
|
Includes Share from
associates, Employee benefits and Own credit risk.
|
(3)
|
Represents amounts on
account of share-based payments (refer to Note 26 of the
Consolidated Financial Statements in the 2023 Annual Report to
Shareholders).
|
(4)
|
Includes changes to
non-controlling interests arising from business combinations and
related transactions (refer to Note 36 of the Consolidated
Financial Statements in the 2023 Annual Report to
Shareholders).
|
Consolidated
Statement of Cash Flows
|
|
(Unaudited) ($ millions)
|
For the three months ended
|
For the year ended
|
|
October 31
|
October 31
|
October 31
|
October 31
|
Sources (uses) of cash flows
|
2023
|
2022
|
2023
|
2022
|
Cash flows from operating
activities
|
|
|
|
|
|
|
|
|
Net income
|
$
|
1,385
|
$
|
2,093
|
$
|
7,528
|
$
|
10,174
|
Adjustment
for:
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
(4,672)
|
|
(4,622)
|
|
(18,287)
|
|
(18,115)
|
Depreciation and
amortization
|
|
590
|
|
394
|
|
1,820
|
|
1,531
|
Provision for credit
losses
|
|
1,256
|
|
529
|
|
3,422
|
|
1,382
|
Impairment on
investments in associates
|
|
185
|
|
–
|
|
185
|
|
–
|
Equity-settled
share-based payment expense
|
|
2
|
|
1
|
|
14
|
|
10
|
Net gain on sale of
investment securities
|
|
1
|
|
(71)
|
|
(129)
|
|
(74)
|
Net (gain)/loss on
divestitures
|
|
(367)
|
|
233
|
|
(367)
|
|
233
|
Net income from
investments in associated corporations
|
|
(18)
|
|
(49)
|
|
(153)
|
|
(268)
|
Income tax
expense
|
|
138
|
|
475
|
|
2,226
|
|
2,758
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Trading
assets
|
|
3,158
|
|
8,494
|
|
(2,689)
|
|
37,501
|
Securities purchased
under resale agreements and securities borrowed
|
|
4,834
|
|
(13,864)
|
|
(18,966)
|
|
(41,438)
|
Loans
|
|
6,648
|
|
(19,803)
|
|
4,414
|
|
(97,161)
|
Deposits
|
|
(24,119)
|
|
13,825
|
|
19,478
|
|
95,905
|
Obligations related to
securities sold short
|
|
(1,667)
|
|
(4,700)
|
|
(4,616)
|
|
(1,292)
|
Obligations related to
securities sold under repurchase agreements and securities
lent
|
|
7,862
|
|
5,780
|
|
15,937
|
|
10,838
|
Net derivative
financial instruments
|
|
2,545
|
|
(1,567)
|
|
2,080
|
|
115
|
Other, net
|
|
2,139
|
|
5,876
|
|
(219)
|
|
(1,404)
|
Dividends
received
|
|
308
|
|
299
|
|
1,299
|
|
1,156
|
Interest
received
|
|
14,853
|
|
10,437
|
|
55,617
|
|
31,931
|
Interest
paid
|
|
(9,801)
|
|
(5,385)
|
|
(34,731)
|
|
(13,336)
|
Income tax
paid
|
|
(514)
|
|
(742)
|
|
(2,139)
|
|
(3,503)
|
Net cash from/(used in)
operating activities
|
|
4,746
|
|
(2,367)
|
|
31,724
|
|
16,943
|
Cash flows from investing
activities
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with financial institutions
|
|
(641)
|
|
5,962
|
|
(23,538)
|
|
25,783
|
Purchase of investment
securities
|
|
(32,536)
|
|
(16,593)
|
|
(100,919)
|
|
(97,736)
|
Proceeds from sale and
maturity of investment securities
|
|
26,489
|
|
16,488
|
|
94,875
|
|
63,130
|
Acquisition/divestiture
of subsidiaries, associated corporations or business
units,
|
|
|
|
|
|
|
|
|
net of
cash acquired
|
|
895
|
|
165
|
|
895
|
|
(549)
|
Property and equipment,
net of disposals
|
|
(153)
|
|
(177)
|
|
(442)
|
|
(571)
|
Other, net
|
|
(373)
|
|
(801)
|
|
(911)
|
|
(1,350)
|
Net cash from/(used in)
investing activities
|
|
(6,319)
|
|
5,044
|
|
(30,040)
|
|
(11,293)
|
Cash flows from financing
activities
|
|
|
|
|
|
|
|
|
Proceeds from issue of
subordinated debentures
|
|
110
|
|
–
|
|
1,447
|
|
3,356
|
Redemption of
subordinated debentures
|
|
(76)
|
|
(24)
|
|
(78)
|
|
(1,276)
|
Proceeds from preferred
shares and other equity instruments issued
|
|
–
|
|
1,023
|
|
–
|
|
2,523
|
Redemption of preferred
shares
|
|
–
|
|
–
|
|
–
|
|
(500)
|
Proceeds from common
shares issued
|
|
482
|
|
5
|
|
1,402
|
|
137
|
Common shares purchased
for cancellation
|
|
–
|
|
(128)
|
|
–
|
|
(2,873)
|
Cash dividends and
distributions paid
|
|
(1,387)
|
|
(1,333)
|
|
(5,422)
|
|
(5,118)
|
Distributions to
non-controlling interests
|
|
(26)
|
|
(26)
|
|
(101)
|
|
(115)
|
Payment of lease
liabilities
|
|
(77)
|
|
(69)
|
|
(325)
|
|
(322)
|
Other, net
|
|
(15)
|
|
(778)
|
|
311
|
|
(391)
|
Net cash from/(used in)
financing activities
|
|
(989)
|
|
(1,330)
|
|
(2,766)
|
|
(4,579)
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
100
|
|
305
|
|
190
|
|
301
|
Net change in cash and
cash equivalents
|
|
(2,462)
|
|
1,652
|
|
(892)
|
|
1,372
|
Cash and cash
equivalents at beginning of period(1)
|
|
12,635
|
|
9,413
|
|
11,065
|
|
9,693
|
Cash and cash
equivalents at end of period(1)
|
$
|
10,173
|
$
|
11,065
|
$
|
10,173
|
$
|
11,065
|
(1)
|
Represents cash and
non-interest-bearing deposits with financial institutions (refer to
Note 6 of the Consolidated Financial Statements in the 2023 Annual
Report to Shareholders).
|
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 report and are defined below.
Adjusted results and adjusted diluted earnings per
share
The following table presents 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.
Reconciliation of reported and adjusted results and diluted
earnings per share
|
For the three months ended
|
For the
year ended
|
|
October 31
|
July 31
|
October 31
|
October 31
|
October 31
|
($ millions)
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reported Results
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
4,672
|
$
|
4,580
|
$
|
4,622
|
$
|
18,287
|
$
|
18,115
|
Non-interest
income
|
|
3,636
|
|
3,510
|
|
3,004
|
|
14,020
|
|
13,301
|
Total
revenue
|
|
8,308
|
|
8,090
|
|
7,626
|
|
32,307
|
|
31,416
|
Provision for credit
losses
|
|
1,256
|
|
819
|
|
529
|
|
3,422
|
|
1,382
|
Non-interest
expenses
|
|
5,529
|
|
4,562
|
|
4,529
|
|
19,131
|
|
17,102
|
Income before
taxes
|
|
1,523
|
|
2,709
|
|
2,568
|
|
9,754
|
|
12,932
|
Income tax
expense
|
|
138
|
|
497
|
|
475
|
|
2,226
|
|
2,758
|
Net income
|
$
|
1,385
|
$
|
2,212
|
$
|
2,093
|
$
|
7,528
|
$
|
10,174
|
Net income attributable
to non-controlling interests in subsidiaries (NCI)
|
|
31
|
|
21
|
|
38
|
|
118
|
|
258
|
Net income attributable
to equity holders
|
|
1,354
|
|
2,191
|
|
2,055
|
|
7,410
|
|
9,916
|
Net income attributable
to preferred shareholders and other equity
|
|
|
|
|
|
|
|
|
|
|
instrument
holders
|
|
109
|
|
105
|
|
106
|
|
419
|
|
260
|
Net income attributable
to common shareholders
|
$
|
1,245
|
$
|
2,086
|
$
|
1,949
|
$
|
6,991
|
$
|
9,656
|
Diluted earnings per share (in
dollars)
|
$
|
1.02
|
$
|
1.72
|
$
|
1.63
|
$
|
5.78
|
$
|
8.02
|
Weighted average number of diluted common
shares
|
|
|
|
|
|
|
|
|
|
|
outstanding (millions)
|
|
1,211
|
|
1,214
|
|
1,199
|
|
1,204
|
|
1,208
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
Adjusting items
impacting non-interest income and total revenue
(Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
Divestitures and
wind-down of operations
|
$
|
(367)
|
$
|
–
|
$
|
361
|
$
|
(367)
|
$
|
361
|
Adjusting items
impacting non-interest expenses (Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
Restructuring charge
and severance provisions
|
|
354
|
|
–
|
|
85
|
|
354
|
|
85
|
Consolidation of real
estate and contract termination costs
|
|
87
|
|
–
|
|
–
|
|
87
|
|
–
|
Impairment of
non-financial assets
|
|
346
|
|
–
|
|
–
|
|
346
|
|
–
|
Amortization of
acquisition-related intangible assets
|
|
19
|
|
20
|
|
24
|
|
81
|
|
97
|
Support costs for the
Scene+ loyalty program
|
|
–
|
|
–
|
|
133
|
|
–
|
|
133
|
Total non-interest
expense adjusting items (Pre-tax)
|
|
806
|
|
20
|
|
242
|
|
868
|
|
315
|
Total impact of adjusting items on net income before
taxes
|
|
439
|
|
20
|
|
603
|
|
501
|
|
676
|
Impact of adjusting
items on income tax expense
|
|
|
|
|
|
|
|
|
|
|
Divestitures and
wind-down of operations
|
|
48
|
|
–
|
|
(21)
|
|
48
|
|
(21)
|
Restructuring charge
and severance provisions
|
|
(96)
|
|
–
|
|
(19)
|
|
(96)
|
|
(19)
|
Consolidation of real
estate and contract termination costs
|
|
(24)
|
|
–
|
|
–
|
|
(24)
|
|
–
|
Impairment of
non-financial assets
|
|
(73)
|
|
–
|
|
–
|
|
(73)
|
|
–
|
Canada recovery
dividend
|
|
–
|
|
–
|
|
–
|
|
579
|
|
–
|
Amortization of
acquisition-related intangible assets
|
|
(5)
|
|
(5)
|
|
(6)
|
|
(22)
|
|
(26)
|
Support costs for the
Scene+ loyalty program
|
|
–
|
|
–
|
|
(35)
|
|
–
|
|
(35)
|
Total impact of adjusting items on income tax
expense
|
|
(150)
|
|
(5)
|
|
(81)
|
|
412
|
|
(101)
|
Total impact of adjusting items on net
income
|
$
|
289
|
$
|
15
|
$
|
522
|
$
|
913
|
$
|
575
|
Impact of adjusting
items on NCI
|
|
(3)
|
|
–
|
|
(1)
|
|
(3)
|
|
(1)
|
Total impact of adjusting items on net income
attributable to equity
|
|
|
|
|
|
|
|
|
|
|
holders and common shareholders
|
$
|
286
|
$
|
15
|
$
|
521
|
$
|
910
|
$
|
574
|
Adjusted Results
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
4,672
|
$
|
4,580
|
$
|
4,622
|
$
|
18,287
|
$
|
18,115
|
Non-interest
income
|
|
3,269
|
|
3,510
|
|
3,365
|
|
13,653
|
|
13,662
|
Total
revenue
|
|
7,941
|
|
8,090
|
|
7,987
|
|
31,940
|
|
31,777
|
Provision for credit
losses
|
|
1,256
|
|
819
|
|
529
|
|
3,422
|
|
1,382
|
Non-interest
expenses
|
|
4,723
|
|
4,542
|
|
4,287
|
|
18,263
|
|
16,787
|
Income before
taxes
|
|
1,962
|
|
2,729
|
|
3,171
|
|
10,255
|
|
13,608
|
Income tax
expense
|
|
288
|
|
502
|
|
556
|
|
1,814
|
|
2,859
|
Net income
|
$
|
1,674
|
$
|
2,227
|
$
|
2,615
|
$
|
8,441
|
$
|
10,749
|
Net income attributable
to NCI
|
|
34
|
|
21
|
|
39
|
|
121
|
|
259
|
Net income attributable
to equity holders
|
|
1,640
|
|
2,206
|
|
2,576
|
|
8,320
|
|
10,490
|
Net income attributable
to preferred shareholders and other equity
|
|
|
|
|
|
|
|
|
|
|
instrument
holders
|
|
109
|
|
105
|
|
106
|
|
419
|
|
260
|
Net income attributable
to common shareholders
|
$
|
1,531
|
$
|
2,101
|
$
|
2,470
|
$
|
7,901
|
$
|
10,230
|
Diluted earnings per share (in
dollars)
|
$
|
1.26
|
$
|
1.73
|
$
|
2.06
|
$
|
6.54
|
$
|
8.50
|
Impact of adjustments on diluted earnings per share
(in dollars)
|
$
|
0.24
|
$
|
0.01
|
$
|
0.43
|
$
|
0.76
|
$
|
0.48
|
Weighted average number of diluted common
shares
|
|
|
|
|
|
|
|
|
|
|
outstanding (millions)
|
|
1,211
|
|
1,214
|
|
1,199
|
|
1,204
|
|
1,208
|
1. The Bank's Q4 2023 and fiscal 2023 reported results
were adjusted for the following items. These amounts were recorded
in the Other operating segment.
a) Divestitures and wind-down of operations
The Bank sold its 20% equity interest in Canadian Tire Financial
Services (CTFS) to Canadian Tire Corporation. The sale resulted in
a net gain of $367 million
($319 million after-tax). For further
details, please refer to Note 36 of the Consolidated Financial
Statements in the 2023 Annual Report to Shareholders.
b) Restructuring charge and severance provisions
The Bank recorded a restructuring charge and severance
provisions of $354 million
($258 million after-tax) related to
workforce reductions and changes as a result of the Bank's
end-to-end digitization, automation, changes in customers'
day-to-day banking preferences, as well as the ongoing efforts to
streamline operational processes and optimize distribution
channels.
c) Consolidation of real estate and contract termination
costs
The Bank recorded costs of $87
million ($63 million
after-tax), related to the consolidation and exit of certain real
estate premises, as well as service contract termination costs, as
part of the Bank's optimization strategy.
d) Impairment of non-financial assets
The Bank recorded impairment charges of $185 million ($159
million after-tax) related to its investment in associate,
Bank of Xi'an Co. Ltd. in China
whose market value has remained below the Bank's carrying value for
a prolonged period. For further details, refer to Note 17 of the
Consolidated Financial Statements in the 2023 Annual Report to
Shareholders. Impairment of intangible assets, including software,
of $161 million ($114 million after-tax) was also recognized.
2. The Q1 2023 and fiscal 2023 reported results were
adjusted for the following items. These amounts were recorded in
the Other operating segment.
a) Canada Recovery Dividend
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)
in Q1 2023. 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.
3. All reported periods were adjusted for:
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.
4. Fiscal 2022 reported results were adjusted for the
following items. These amounts were recorded in the Other operating
segment.
a) Restructuring charge – The Bank recorded a restructuring
charge of $85 million ($66 million after-tax) in the prior year related
to the realignment of the Global Banking and Markets businesses in
Asia Pacific and reductions in
technology employees, driven by ongoing technology modernization
and digital transformation.
b) Divestitures and wind-down of operations – The Bank
sold investments in associates in Venezuela and Thailand. Additionally, the Bank wound down
its operations in India and
Malaysia in relation to its
realignment of the business in the Asia
Pacific region. Collectively, the sale and wind-down of
these entities resulted in a net loss of $361 million ($340
million after-tax), of which $315
million ($294 million
after-tax) related to the reclassification of cumulative foreign
currency translation losses net of hedges, from accumulated other
comprehensive income to non-interest income in the Consolidated
Statement of Income. For further details on these transactions,
please refer to Note 36 of the Consolidated Financial Statements in
the 2023 Annual Report to Shareholders.
c) Support costs for the Scene+ loyalty program – In the
prior year, the Bank recorded costs of $133
million ($98 million
after-tax) to support the expansion of the Scene+ loyalty program
to include Empire Company Limited as a partner.
Impact of
Adjustments
|
|
|
For the three months
ended
|
For the year
ended
|
|
|
October 31, 2023
|
October 31, 2023
|
October 31,
2022
|
($ millions)
|
Pre-tax
|
After-tax
|
Pre-tax
|
After-tax
|
Pre-tax
|
After-tax
|
Divestitures and
wind-down of operations
|
$
|
(367)
|
$
|
(319)
|
$
|
(367)
|
$
|
(319)
|
$
|
361
|
$
|
340
|
Restructuring charge
and severance provisions
|
|
354
|
|
258
|
|
354
|
|
258
|
|
85
|
|
66
|
Consolidation of real
estate and contract termination costs
|
|
87
|
|
63
|
|
87
|
|
63
|
|
–
|
|
–
|
Impairment of
non-financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in
associates
|
|
185
|
|
159
|
|
185
|
|
159
|
|
–
|
|
–
|
Intangible assets
including software
|
|
161
|
|
114
|
|
161
|
|
114
|
|
–
|
|
–
|
Canada recovery
dividend
|
|
–
|
|
–
|
|
–
|
|
579
|
|
–
|
|
–
|
Amortization of
acquisition-related intangible assets
|
|
19
|
|
14
|
|
81
|
|
59
|
|
97
|
|
71
|
Support costs for the
Scene+ loyalty program
|
|
–
|
|
–
|
|
–
|
|
–
|
|
133
|
|
98
|
Total
|
$
|
439
|
$
|
289
|
$
|
501
|
$
|
913
|
$
|
676
|
$
|
575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
Impact
|
|
|
$
|
0.24
|
|
|
$
|
0.76
|
|
|
$
|
0.48
|
CET1
Impact(1)
|
|
|
|
6 bps
|
|
|
|
(6 bps)
|
|
|
|
(2 bps)
|
(1) Including related
impacts on regulatory capital and risk-weighted assets.
|
Reconciliation of reported and adjusted results by business
line
|
For the three months ended October 31,
2023⁽¹⁾
|
|
|
|
|
Global
|
|
|
|
|
Canadian
|
International
|
Global Wealth
|
Banking and
|
|
|
|
($ millions)
|
Banking
|
Banking
|
Management
|
Markets
|
Other
|
Total
|
|
Reported net income (loss)
|
$
|
810
|
$
|
594
|
$
|
329
|
$
|
414
|
$
|
(762)
|
$
|
1,385
|
Net income attributable
to non-controlling interests in
|
|
|
|
|
|
|
|
|
|
|
|
|
subsidiaries
(NCI)
|
|
–
|
|
32
|
|
2
|
|
–
|
|
(3)
|
|
31
|
Reported net income attributable to equity
holders
|
|
810
|
|
562
|
|
327
|
|
414
|
|
(759)
|
|
1,354
|
Reported net income
attributable to preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders and other
equity instrument holders
|
|
–
|
|
1
|
|
1
|
|
–
|
|
107
|
|
109
|
Reported net income attributable to common
shareholders
|
$
|
810
|
$
|
561
|
$
|
326
|
$
|
414
|
$
|
(866)
|
$
|
1,245
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items
impacting non-interest income and
|
|
|
|
|
|
|
|
|
|
|
|
|
total revenue
(Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Divestitures and
wind-down of operations
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(367)
|
|
(367)
|
Adjusting items
impacting non-interest expenses (Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charge
and severance provisions
|
|
–
|
|
–
|
|
–
|
|
–
|
|
354
|
|
354
|
Consolidation of real
estate and contract termination costs
|
|
–
|
|
–
|
|
–
|
|
–
|
|
87
|
|
87
|
Impairment of
non-financial assets
|
|
–
|
|
–
|
|
–
|
|
–
|
|
346
|
|
346
|
Amortization of
acquisition-related intangible assets
|
|
–
|
|
10
|
|
9
|
|
–
|
|
–
|
|
19
|
Total non-interest
expenses adjustments (Pre-tax)
|
|
–
|
|
10
|
|
9
|
|
–
|
|
787
|
|
806
|
Total impact of adjusting items on net income before
taxes
|
|
–
|
|
10
|
|
9
|
|
–
|
|
420
|
|
439
|
Total impact of
adjusting items on income tax expense
|
|
–
|
|
(2)
|
|
(3)
|
|
–
|
|
(145)
|
|
(150)
|
Total impact of adjusting items on net income
|
|
–
|
|
8
|
|
6
|
|
–
|
|
275
|
|
289
|
Impact of adjusting
items on NCI
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(3)
|
|
(3)
|
Total impact of adjusting items on net income
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
to equity holders and common
shareholders
|
|
–
|
|
8
|
|
6
|
|
–
|
|
272
|
|
286
|
Adjusted net income (loss)
|
$
|
810
|
$
|
602
|
$
|
335
|
$
|
414
|
$
|
(487)
|
$
|
1,674
|
Adjusted net income attributable to equity
holders
|
$
|
810
|
$
|
570
|
$
|
333
|
$
|
414
|
$
|
(487)
|
$
|
1,640
|
Adjusted net income attributable to common
shareholders
|
$
|
810
|
$
|
569
|
$
|
332
|
$
|
414
|
$
|
(594)
|
$
|
1,531
|
(1) Refer to Business
Segment Review section of the Bank's 2023 Annual Report to
Shareholders.
|
|
|
|
For the three months
ended July 31, 2023⁽¹⁾
|
|
|
|
Global
|
Global
|
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking
and
|
|
|
|
($ millions)
|
Banking
|
Banking
|
Management
|
Markets
|
Other
|
Total
|
|
Reported net income (loss)
|
$
|
1,062
|
$
|
647
|
$
|
368
|
$
|
434
|
$
|
(299)
|
$
|
2,212
|
Net income attributable
to non-controlling interests in
|
|
|
|
|
|
|
|
|
|
|
|
|
subsidiaries
(NCI)
|
|
–
|
|
19
|
|
2
|
|
–
|
|
–
|
|
21
|
Reported net income attributable to equity
holders
|
|
1,062
|
|
628
|
|
366
|
|
434
|
|
(299)
|
|
2,191
|
Reported net income
attributable to preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders and other
equity instrument holders
|
|
2
|
|
1
|
|
–
|
|
1
|
|
101
|
|
105
|
Reported net income attributable to common
shareholders
|
$
|
1,060
|
$
|
627
|
$
|
366
|
$
|
433
|
$
|
(400)
|
$
|
2,086
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items
impacting non-interest expenses (Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
|
1
|
|
10
|
|
9
|
|
–
|
|
–
|
|
20
|
Total non-interest
expenses adjustments (Pre-tax)
|
|
1
|
|
10
|
|
9
|
|
–
|
|
–
|
|
20
|
Total impact of adjusting items on net income before
taxes
|
|
1
|
|
10
|
|
9
|
|
–
|
|
–
|
|
20
|
Total impact of
adjusting items on income tax expense
|
|
–
|
|
(3)
|
|
(2)
|
|
–
|
|
–
|
|
(5)
|
Total impact of adjusting items on net
income
|
|
1
|
|
7
|
|
7
|
|
–
|
|
–
|
|
15
|
Total impact of adjusting items on net income
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
to equity holders and common
shareholders
|
|
1
|
|
7
|
|
7
|
|
–
|
|
–
|
|
15
|
Adjusted net income (loss)
|
$
|
1,063
|
$
|
654
|
$
|
375
|
$
|
434
|
$
|
(299)
|
$
|
2,227
|
Adjusted net income attributable to equity
holders
|
$
|
1,063
|
$
|
635
|
$
|
373
|
$
|
434
|
$
|
(299)
|
$
|
2,206
|
Adjusted net income attributable to common
shareholders
|
$
|
1,061
|
$
|
634
|
$
|
373
|
$
|
433
|
$
|
(400)
|
$
|
2,101
|
(1) Refer to Business
Segment Review section of the Bank's 2023 Annual Report to
Shareholders.
|
|
|
For the three months
ended October 31, 2022⁽¹⁾
|
|
|
|
Global
|
Global
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking
and
|
|
|
($ millions)
|
Banking
|
Banking
|
Management
|
Markets
|
Other
|
Total
|
Reported net income (loss)
|
$
|
1,170
|
$
|
679
|
$
|
363
|
$
|
484
|
$
|
(603)
|
$
|
2,093
|
Net income attributable
to non-controlling interests in
|
|
|
|
|
|
|
|
|
|
|
|
|
subsidiaries
(NCI)
|
|
–
|
|
36
|
|
2
|
|
–
|
|
–
|
|
38
|
Reported net income attributable to equity
holders
|
|
1,170
|
|
643
|
|
361
|
|
484
|
|
(603)
|
|
2,055
|
Reported net income
attributable to preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders and other
equity instrument holders
|
|
1
|
|
1
|
|
–
|
|
–
|
|
104
|
|
106
|
Reported net income attributable to common
shareholders
|
$
|
1,169
|
$
|
642
|
$
|
361
|
$
|
484
|
$
|
(707)
|
$
|
1,949
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items
impacting non-interest income and
|
|
|
|
|
|
|
|
|
|
|
|
|
total revenue
(Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Divestitures and
wind-down of operations
|
|
–
|
|
–
|
|
–
|
|
–
|
|
361
|
|
361
|
Adjusting items
impacting non-interest expenses (Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charge
and severance provisions
|
|
–
|
|
–
|
|
–
|
|
–
|
|
85
|
|
85
|
Support costs for the
Scene+ loyalty program
|
|
–
|
|
–
|
|
–
|
|
–
|
|
133
|
|
133
|
Amortization of
acquisition-related intangible assets
|
|
6
|
|
9
|
|
9
|
|
–
|
|
–
|
|
24
|
Total non-interest
expenses adjustments (Pre-tax)
|
|
6
|
|
9
|
|
9
|
|
–
|
|
218
|
|
242
|
Total impact of adjusting items on net income before
taxes
|
|
6
|
|
9
|
|
9
|
|
–
|
|
579
|
|
603
|
Total impact of
adjusting items on income tax expense
|
|
(2)
|
|
(2)
|
|
(2)
|
|
–
|
|
(75)
|
|
(81)
|
Total impact of adjusting items on net
income
|
|
4
|
|
7
|
|
7
|
|
–
|
|
504
|
|
522
|
Impact of adjusting
items on NCI
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(1)
|
|
(1)
|
Total impact of adjusting items on net income
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
to equity holders and common
shareholders
|
|
4
|
|
7
|
|
7
|
|
–
|
|
503
|
|
521
|
Adjusted net income (loss)
|
$
|
1,174
|
$
|
686
|
$
|
370
|
$
|
484
|
$
|
(99)
|
$
|
2,615
|
Adjusted net income attributable to equity
holders
|
$
|
1,174
|
$
|
650
|
$
|
368
|
$
|
484
|
$
|
(100)
|
$
|
2,576
|
Adjusted net income attributable to common
shareholders
|
$
|
1,173
|
$
|
649
|
$
|
368
|
$
|
484
|
$
|
(204)
|
$
|
2,470
|
(1) Refer to Business
Segment Review section of the Bank's 2023 Annual Report to
Shareholders.
|
|
|
For the year ended October 31,
2023⁽¹⁾
|
|
|
|
Global
|
Global
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking and
|
|
|
($ millions)
|
Banking
|
Banking
|
Management
|
Markets
|
Other
|
Total
|
Reported net income (loss)
|
$
|
4,019
|
$
|
2,598
|
$
|
1,440
|
$
|
1,768
|
$
|
(2,297)
|
$
|
7,528
|
Net income attributable
to non-controlling interests in
|
|
|
|
|
|
|
|
|
|
|
|
|
subsidiaries
(NCI)
|
|
–
|
|
112
|
|
9
|
|
–
|
|
(3)
|
|
118
|
Reported net income attributable to equity
holders
|
|
4,019
|
|
2,486
|
|
1,431
|
|
1,768
|
|
(2,294)
|
|
7,410
|
Reported net income
attributable to preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders and other
equity instrument holders
|
|
3
|
|
5
|
|
3
|
|
3
|
|
405
|
|
419
|
Reported net income attributable to common
shareholders
|
$
|
4,016
|
$
|
2,481
|
$
|
1,428
|
$
|
1,765
|
$
|
(2,699)
|
$
|
6,991
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items
impacting non-interest income and
|
|
|
|
|
|
|
|
|
|
|
|
|
total revenue
(Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Divestitures and
wind-down of operations
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(367)
|
|
(367)
|
Adjusting items
impacting non-interest expenses (Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charge
and severance provisions
|
|
–
|
|
–
|
|
–
|
|
–
|
|
354
|
|
354
|
Consolidation of real
estate and contract termination costs
|
|
–
|
|
–
|
|
–
|
|
–
|
|
87
|
|
87
|
Impairment of
non-financial assets
|
|
–
|
|
–
|
|
–
|
|
–
|
|
346
|
|
346
|
Amortization of
acquisition-related intangible assets
|
|
4
|
|
41
|
|
36
|
|
–
|
|
–
|
|
81
|
Total non-interest
expenses adjustments (Pre-tax)
|
|
4
|
|
41
|
|
36
|
|
–
|
|
787
|
|
868
|
Total impact of adjusting items on net income before
taxes
|
|
4
|
|
41
|
|
36
|
|
–
|
|
420
|
|
501
|
Impact of adjusting
items on income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada recovery
dividend
|
|
–
|
|
–
|
|
–
|
|
–
|
|
579
|
|
579
|
Impact of other
adjusting items on income tax expense
|
|
(1)
|
|
(11)
|
|
(10)
|
|
–
|
|
(145)
|
|
(167)
|
Total impact of
adjusting items on income tax expense
|
|
(1)
|
|
(11)
|
|
(10)
|
|
–
|
|
434
|
|
412
|
Total impact of adjusting items on net
income
|
|
3
|
|
30
|
|
26
|
|
–
|
|
854
|
|
913
|
Impact of adjusting
items on NCI
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(3)
|
|
(3)
|
Total impact of adjusting items on net income
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
to equity holders and common
shareholders
|
|
3
|
|
30
|
|
26
|
|
–
|
|
851
|
|
910
|
Adjusted net income (loss)
|
$
|
4,022
|
$
|
2,628
|
$
|
1,466
|
$
|
1,768
|
$
|
(1,443)
|
$
|
8,441
|
Adjusted net income attributable to equity
holders
|
$
|
4,022
|
$
|
2,516
|
$
|
1,457
|
$
|
1,768
|
$
|
(1,443)
|
$
|
8,320
|
Adjusted net income attributable to common
shareholders
|
$
|
4,019
|
$
|
2,511
|
$
|
1,454
|
$
|
1,765
|
$
|
(1,848)
|
$
|
7,901
|
(1) Refer to Business
Segment Review section of the Bank's 2023 Annual Report to
Shareholders.
|
|
|
|
For the
year ended October 31, 2022⁽¹⁾
|
|
|
|
Global
|
Global
|
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking
and
|
|
|
|
($ millions)
|
Banking
|
Banking
|
Management
|
Markets
|
Other
|
Total
|
Reported net income (loss)
|
$
|
4,763
|
$
|
2,667
|
$
|
1,565
|
$
|
1,911
|
$
|
(732)
|
$
|
10,174
|
Net income attributable
to non-controlling interests in
|
|
|
|
|
|
|
|
|
|
|
|
|
subsidiaries
(NCI)
|
|
–
|
|
249
|
|
9
|
|
–
|
|
–
|
|
258
|
Reported net income attributable to equity
holders
|
|
4,763
|
|
2,418
|
|
1,556
|
|
1,911
|
|
(732)
|
|
9,916
|
Reported net income
attributable to preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders and other
equity instrument holders
|
|
6
|
|
6
|
|
3
|
|
4
|
|
241
|
|
260
|
Reported net income attributable to common
shareholders
|
$
|
4,757
|
$
|
2,412
|
$
|
1,553
|
$
|
1,907
|
$
|
(973)
|
$
|
9,656
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting items
impacting non-interest income and
|
|
|
|
|
|
|
|
|
|
|
|
|
total revenue
(Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Divestitures and
wind-down of operations
|
|
–
|
|
–
|
|
–
|
|
–
|
|
361
|
|
361
|
Adjusting items
impacting non-interest expenses (Pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charge
and severance provisions
|
|
–
|
|
–
|
|
–
|
|
–
|
|
85
|
|
85
|
Support costs for the
Scene+ loyalty program
|
|
–
|
|
–
|
|
–
|
|
–
|
|
133
|
|
133
|
Amortization of
acquisition-related intangible assets
|
|
22
|
|
39
|
|
36
|
|
–
|
|
–
|
|
97
|
Total non-interest
expenses adjustments (Pre-tax)
|
|
22
|
|
39
|
|
36
|
|
–
|
|
218
|
|
315
|
Total impact of adjusting items on net income before
taxes
|
|
22
|
|
39
|
|
36
|
|
–
|
|
579
|
|
676
|
Total impact of
adjusting items on income tax expense
|
|
(6)
|
|
(11)
|
|
(9)
|
|
–
|
|
(75)
|
|
(101)
|
Total impact of adjusting items on net
income
|
|
16
|
|
28
|
|
27
|
|
–
|
|
504
|
|
575
|
Impact of adjusting
items on NCI
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(1)
|
|
(1)
|
Total impact of adjusting items on net income
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
to equity holders and common
shareholders
|
|
16
|
|
28
|
|
27
|
|
–
|
|
503
|
|
574
|
Adjusted net income (loss)
|
$
|
4,779
|
$
|
2,695
|
$
|
1,592
|
$
|
1,911
|
$
|
(228)
|
$
|
10,749
|
Adjusted net income attributable to equity
holders
|
$
|
4,779
|
$
|
2,446
|
$
|
1,583
|
$
|
1,911
|
$
|
(229)
|
$
|
10,490
|
Adjusted net income attributable to common
shareholders
|
$
|
4,773
|
$
|
2,440
|
$
|
1,580
|
$
|
1,907
|
$
|
(470)
|
$
|
10,230
|
(1) Refer to
Business Segment Review section of the Bank's 2023 Annual 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
year ended
|
($ millions)
|
July 31,
2023
|
October 31,
2022
|
October 31,
2022
|
|
|
Foreign
|
Constant
|
|
Foreign
|
Constant
|
|
Foreign
|
Constant
|
(Taxable equivalent basis)
|
Reported
|
exchange
|
dollar
|
Reported
|
exchange
|
dollar
|
Reported
|
exchange
|
dollar
|
Net interest
income
|
$
|
2,118
|
$
|
19
|
$
|
2,099
|
$
|
1,806
|
$
|
(151)
|
$
|
1,957
|
$
|
6,900
|
$
|
(581)
|
$
|
7,481
|
Non-interest
income
|
|
728
|
|
(24)
|
|
752
|
|
698
|
|
(63)
|
|
761
|
|
2,827
|
|
(80)
|
|
2,907
|
Total
revenue
|
|
2,846
|
|
(5)
|
|
2,851
|
|
2,504
|
|
(214)
|
|
2,718
|
|
9,727
|
|
(661)
|
|
10,388
|
Provision for credit
losses
|
|
516
|
|
6
|
|
510
|
|
355
|
|
(31)
|
|
386
|
|
1,230
|
|
(95)
|
|
1,325
|
Non-interest
expenses
|
|
1,491
|
|
4
|
|
1,487
|
|
1,364
|
|
(108)
|
|
1,472
|
|
5,212
|
|
(372)
|
|
5,584
|
Income tax
expense
|
|
192
|
|
(5)
|
|
197
|
|
106
|
|
(11)
|
|
117
|
|
618
|
|
(23)
|
|
641
|
Net income
|
$
|
647
|
$
|
(10)
|
$
|
657
|
$
|
679
|
$
|
(64)
|
$
|
743
|
$
|
2,667
|
$
|
(171)
|
$
|
2,838
|
Net income attributable
to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest in
subsidiaries (NCI)
|
$
|
19
|
$
|
–
|
$
|
19
|
$
|
36
|
$
|
(2)
|
$
|
38
|
$
|
249
|
$
|
(12)
|
$
|
261
|
Net income attributable
to equity holders of the Bank
|
$
|
628
|
$
|
(10)
|
$
|
638
|
$
|
643
|
$
|
(62)
|
$
|
705
|
$
|
2,418
|
$
|
(159)
|
$
|
2,577
|
Other measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets ($
billions)
|
$
|
241
|
$
|
2
|
$
|
239
|
$
|
217
|
$
|
(15)
|
$
|
232
|
$
|
207
|
$
|
(15)
|
$
|
222
|
Average liabilities
($ billions)
|
$
|
184
|
$
|
2
|
$
|
182
|
$
|
160
|
$
|
(13)
|
$
|
173
|
$
|
152
|
$
|
(12)
|
$
|
164
|
|
|
Adjusted Results
|
For the three months ended
|
For the
year ended
|
($ millions)
|
July 31,
2023
|
October 31,
2022
|
October 31,
2022
|
|
|
|
|
Constant
|
|
|
Constant
|
|
|
Constant
|
|
|
Foreign
|
dollar
|
|
Foreign
|
dollar
|
|
Foreign
|
dollar
|
(Taxable equivalent basis)
|
Adjusted
|
exchange
|
adjusted
|
Adjusted
|
exchange
|
adjusted
|
Adjusted
|
exchange
|
adjusted
|
Net interest
income
|
$
|
2,118
|
$
|
19
|
$
|
2,099
|
$
|
1,806
|
$
|
(151)
|
$
|
1,957
|
$
|
6,900
|
$
|
(581)
|
$
|
7,481
|
Non-interest
income
|
|
728
|
|
(24)
|
|
752
|
|
698
|
|
(63)
|
|
761
|
|
2,827
|
|
(80)
|
|
2,907
|
Total
revenue
|
|
2,846
|
|
(5)
|
|
2,851
|
|
2,504
|
|
(214)
|
|
2,718
|
|
9,727
|
|
(661)
|
|
10,388
|
Provision for credit
losses
|
|
516
|
|
6
|
|
510
|
|
355
|
|
(31)
|
|
386
|
|
1,230
|
|
(95)
|
|
1,325
|
Non-interest
expenses
|
|
1,481
|
|
4
|
|
1,477
|
|
1,355
|
|
(107)
|
|
1,462
|
|
5,173
|
|
(369)
|
|
5,542
|
Income tax
expense
|
|
195
|
|
(5)
|
|
200
|
|
108
|
|
(11)
|
|
119
|
|
629
|
|
(24)
|
|
653
|
Net income
|
$
|
654
|
$
|
(10)
|
$
|
664
|
$
|
686
|
$
|
(65)
|
$
|
751
|
$
|
2,695
|
$
|
(173)
|
$
|
2,868
|
Net income attributable
to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest in
subsidiaries (NCI)
|
$
|
19
|
$
|
–
|
$
|
19
|
$
|
36
|
$
|
(2)
|
$
|
38
|
$
|
249
|
$
|
(12)
|
$
|
261
|
Net income attributable
to equity holders of the Bank
|
$
|
635
|
$
|
(10)
|
$
|
645
|
$
|
650
|
$
|
(63)
|
$
|
713
|
$
|
2,446
|
$
|
(161)
|
$
|
2,607
|
Reconciliation of average total assets, core earning assets
and core net interest income
Earning assets
Earning assets are defined as income generating assets which
include deposits with financial institutions, trading assets,
investment securities, investments in associates, securities
borrowed or purchased under resale agreements, loans net of
allowances, and customers' liability under acceptances. This is a
non-GAAP measure.
Non-earning assets
Non-earning assets are defined as cash, precious metals,
derivative financial instruments, property and equipment, goodwill
and other intangible assets, deferred tax assets and other assets.
This is a non-GAAP measure.
Core earning assets
Core earning assets are defined as interest-bearing deposits
with financial institutions, investment securities and loans net of
allowances. This is a non-GAAP measure. The Bank believes that this
measure is useful for readers as it represents the main
interest-generating assets and eliminates the impact of trading
businesses.
Core net interest income
Core net interest income is defined as net interest income
earned from core earning assets. This is a non-GAAP measure.
Net interest margin
Net interest margin is calculated as core net interest income
(annualized) for the business line divided by average core earning
assets. Net interest margin is a non-GAAP ratio.
Average earning assets, average core earning assets and net
interest margin by business line
Consolidated Bank
|
For the three months ended
|
For the
year ended
|
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
($ millions)
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Average total assets –
Reported(1)
|
$
|
1,409,861
|
|
$
|
1,401,515
|
|
$
|
1,332,897
|
|
$
|
1,395,843
|
|
$
|
1,281,708
|
|
Less: Non-earning
assets
|
|
116,190
|
|
|
109,143
|
|
|
126,213
|
|
|
114,126
|
|
|
107,536
|
|
Average total earning
assets(1)
|
$
|
1,293,671
|
|
$
|
1,292,372
|
|
$
|
1,206,684
|
|
$
|
1,281,717
|
|
$
|
1,174,172
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading
assets
|
|
126,217
|
|
|
124,939
|
|
|
117,807
|
|
|
121,735
|
|
|
138,390
|
|
Securities purchased
under resale agreements and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
securities
borrowed
|
|
196,039
|
|
|
191,030
|
|
|
157,438
|
|
|
187,927
|
|
|
140,557
|
|
Other
deductions
|
|
75,526
|
|
|
75,717
|
|
|
69,343
|
|
|
73,780
|
|
|
62,531
|
|
Average core earning
assets(1)
|
$
|
895,889
|
|
$
|
900,686
|
|
$
|
862,096
|
|
$
|
898,275
|
|
$
|
832,694
|
|
Net interest income – Reported
|
$
|
4,672
|
|
$
|
4,580
|
|
$
|
4,622
|
|
$
|
18,287
|
|
$
|
18,115
|
|
Less: Non-core net
interest income
|
|
(197)
|
|
|
(192)
|
|
|
(122)
|
|
|
(798)
|
|
|
(185)
|
|
Core net interest income
|
$
|
4,869
|
|
$
|
4,772
|
|
$
|
4,744
|
|
$
|
19,085
|
|
$
|
18,300
|
|
Net interest margin
|
|
2.16
|
%
|
|
2.10
|
%
|
|
2.18
|
%
|
|
2.12
|
%
|
|
2.20
|
%
|
(1) Average
balances represent the average of daily balances for the
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Banking
|
For the three months ended
|
For the
year ended
|
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
($ millions)
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Average total assets –
Reported(1)
|
$
|
447,390
|
|
$
|
450,192
|
|
$
|
445,670
|
|
$
|
449,555
|
|
$
|
429,528
|
|
Less: Non-earning
assets
|
|
4,080
|
|
|
4,066
|
|
|
4,112
|
|
|
4,035
|
|
|
4,092
|
|
Average total earning
assets(1)
|
$
|
443,310
|
|
$
|
446,126
|
|
$
|
441,558
|
|
$
|
445,520
|
|
$
|
425,436
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
deductions
|
|
31,010
|
|
|
30,123
|
|
|
26,191
|
|
|
29,273
|
|
|
23,482
|
|
Average core earning
assets(1)
|
$
|
412,300
|
|
$
|
416,003
|
|
$
|
415,367
|
|
$
|
416,247
|
|
$
|
401,954
|
|
Net interest income – Reported
|
$
|
2,562
|
|
$
|
2,468
|
|
$
|
2,363
|
|
$
|
9,756
|
|
$
|
9,001
|
|
Less: Non-core net
interest income
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
Core net interest income
|
$
|
2,562
|
|
$
|
2,468
|
|
$
|
2,363
|
|
$
|
9,756
|
|
$
|
9,001
|
|
Net interest margin
|
|
2.47
|
%
|
|
2.35
|
%
|
|
2.26
|
%
|
|
2.34
|
%
|
|
2.24
|
%
|
(1) Average
balances represent the average of daily balances for the
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Banking
|
For the three months ended
|
For the
year ended
|
|
October 31
|
|
July 31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
($ millions)
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Average total assets –
Reported(1)
|
$
|
238,343
|
|
$
|
241,396
|
|
$
|
217,061
|
|
$
|
236,688
|
|
$
|
206,550
|
|
Less: Non-earning
assets
|
|
18,915
|
|
|
19,611
|
|
|
19,358
|
|
|
19,414
|
|
|
17,808
|
|
Average total earning
assets(1)
|
$
|
219,428
|
|
$
|
221,785
|
|
$
|
197,703
|
|
$
|
217,274
|
|
$
|
188,742
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading
assets
|
|
6,611
|
|
|
6,271
|
|
|
5,369
|
|
|
6,018
|
|
|
4,978
|
|
Securities purchased
under resale agreements and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
securities
borrowed
|
|
3,467
|
|
|
3,493
|
|
|
2,433
|
|
|
3,218
|
|
|
1,265
|
|
Other
deductions
|
|
8,023
|
|
|
7,890
|
|
|
7,087
|
|
|
7,684
|
|
|
6,781
|
|
Average core earning
assets(1)
|
$
|
201,327
|
|
$
|
204,131
|
|
$
|
182,814
|
|
$
|
200,354
|
|
$
|
175,718
|
|
Net interest income – Reported
|
$
|
2,137
|
|
$
|
2,118
|
|
$
|
1,806
|
|
$
|
8,161
|
|
$
|
6,900
|
|
Less: Non-core net
interest income
|
|
14
|
|
|
8
|
|
|
(73)
|
|
|
(60)
|
|
|
(66)
|
|
Core net interest income
|
$
|
2,123
|
|
$
|
2,110
|
|
$
|
1,879
|
|
$
|
8,221
|
|
$
|
6,966
|
|
Net interest margin
|
|
4.18
|
%
|
|
4.10
|
%
|
|
4.08
|
%
|
|
4.10
|
%
|
|
3.96
|
%
|
(1) Average
balances represent the average of daily balances for the
period.
|
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.
Return on
equity by operating segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended October 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
|
Global
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Banking
|
Banking
|
Management
|
Markets
|
Other
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to common shareholders
|
$
|
810
|
$
|
561
|
$
|
326
|
$
|
414
|
$
|
(866)
|
$
|
1,245
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average common
equity(1)
|
18,881
|
17,961
|
9,797
|
13,287
|
8,492
|
68,418
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
17.0 %
|
12.4 %
|
13.2 %
|
12.4 %
|
nm(2)
|
7.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to common shareholders
|
$
|
810
|
$
|
569
|
$
|
332
|
$
|
414
|
$
|
(594)
|
$
|
1,531
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
17.0 %
|
12.5 %
|
13.5 %
|
12.4 %
|
nm(2)
|
8.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended July 31, 2023
|
For the three months
ended October 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
|
Global
|
|
|
|
|
Global
|
Global
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking
and
|
|
|
|
|
Canadian
|
International
|
Wealth
|
Banking
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Banking
|
Banking
|
Management
|
Markets
|
Other
|
Total
|
Banking
|
Banking
|
Management
|
Markets
|
Other
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
$
|
1,060
|
$
|
627
|
$
|
366
|
$
|
433
|
$
|
(400)
|
$
|
2,086
|
$
|
1,169
|
$
|
642
|
$
|
361
|
$
|
484
|
$
|
(707)
|
$
|
1,949
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity(1)
|
18,678
|
18,493
|
|
9,743
|
|
13,310
|
8,305
|
68,529
|
18,757
|
19,501
|
9,701
|
14,260
|
2,877
|
65,096
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
|
22.5 %
|
13.4 %
|
14.9 %
|
12.9 %
|
nm(2)
|
12.1 %
|
24.7 %
|
13.1 %
|
14.8 %
|
13.4 %
|
nm(2)
|
11.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
$
|
1,061
|
$
|
634
|
$
|
373
|
$
|
433
|
$
|
(400)
|
$
|
2,101
|
$
|
1,173
|
$
|
649
|
$
|
368
|
$
|
484
|
$
|
(204)
|
$
|
2,470
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
|
22.5 %
|
13.6 %
|
15.2 %
|
12.9 %
|
nm(2)
|
12.2 %
|
24.8 %
|
13.2 %
|
15.0 %
|
13.4 %
|
nm(2)
|
15.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended October 31,
2023
|
For the year ended
October 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian
|
International
|
Global
Wealth
|
Global
Banking and
|
|
|
Canadian
|
International
|
Global
Wealth
|
Global
Banking and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Banking
|
Banking
|
Management
|
Markets
|
Other
|
Total
|
Banking
|
Banking
|
Management
|
Markets
|
Other
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
$
|
4,016
|
$
|
2,481
|
$
|
1,428
|
$
|
1,765
|
$
|
(2,699)
|
$
|
6,991
|
$
|
4,757
|
$
|
2,412
|
$
|
1,553
|
$
|
1,907
|
$
|
(973)
|
$
|
9,656
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity(1)
|
18,846
|
18,898
|
9,777
|
14,420
|
5,494
|
67,435
|
18,105
|
18,739
|
9,576
|
13,328
|
5,442
|
65,190
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
|
21.3 %
|
13.1 %
|
14.6 %
|
12.2 %
|
|
nm(2)
|
10.4 %
|
|
26.3 %
|
|
12.9 %
|
|
16.2 %
|
|
14.3 %
|
|
nm(2)
|
14.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
$
|
4,019
|
$
|
2,511
|
$
|
1,454
|
$
|
1,765
|
$
|
(1,848)
|
$
|
7,901
|
$
|
4,773
|
$
|
2,440
|
$
|
1,580
|
$
|
1,907
|
$
|
(470)
|
$
|
10,230
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
|
21.3 %
|
13.3 %
|
14.9 %
|
12.2 %
|
nm(2)
|
11.7 %
|
|
26.4 %
|
|
13.0 %
|
|
16.5 %
|
|
14.3 %
|
|
nm⁽²⁾
|
15.7%⁽⁴⁾
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average
amounts calculated using methods intended to approximate the daily
average balances for the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Not
meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Refer to
tables on pages 22 and 25-27.
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Prior period
has been restated to align with current period
calculation.
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on tangible common equity
Return on tangible common equity is a profitability measure that
is calculated by dividing the net income attributable to common
shareholders, adjusted for the amortization of intangibles
(excluding software), by average tangible common equity. Tangible
common equity is defined as common shareholders' equity adjusted
for goodwill and intangible assets (excluding software), net of
deferred taxes. This is a non-GAAP ratio.
Adjusted return on tangible common equity represents adjusted
net income attributable to common shareholders as a percentage of
average tangible common equity. This is a non-GAAP ratio.
|
|
For the three months ended
|
For the year ended
|
|
October 31
|
July 31
|
October 31
|
October 31
|
October 31
|
($ millions)
|
2023
|
2023
|
2022
|
2023
|
2022
|
Reported
|
|
|
|
|
|
|
|
|
|
|
Average common equity -
Reported(1)
|
$
|
68,418
|
$
|
68,529
|
$
|
65,096
|
$
|
67,435
|
$
|
65,190
|
Average
goodwill(1)(2)
|
|
(9,327)
|
|
(9,515)
|
|
(9,140)
|
|
(9,376)
|
|
(9,197)
|
Average
acquisition-related intangibles (net of deferred
tax)(1)
|
|
(3,697)
|
|
(3,737)
|
|
(3,773)
|
|
(3,731)
|
|
(3,803)
|
Average tangible common
equity(1)
|
$
|
55,394
|
$
|
55,277
|
$
|
52,183
|
$
|
54,328
|
$
|
52,190
|
Net income attributable to common shareholders –
reported
|
$
|
1,245
|
$
|
2,086
|
$
|
1,949
|
$
|
6,991
|
$
|
9,656
|
Amortization of
acquisition-related intangible assets (after-tax)(3)
|
|
14
|
|
15
|
|
18
|
|
59
|
|
71
|
Net income attributable
to common shareholders adjusted for
|
|
|
|
|
|
|
|
|
|
|
amortization of
acquisition-related intangible assets (after-tax)
|
$
|
1,259
|
$
|
2,101
|
$
|
1,967
|
$
|
7,050
|
$
|
9,727
|
Return on tangible common
equity(4)
|
|
9.0 %
|
|
15.1 %
|
|
15.0 %
|
|
13.0 %
|
|
18.6 %
|
Adjusted(3)
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to common shareholders
|
$
|
1,531
|
$
|
2,101
|
$
|
2,470
|
$
|
7,901
|
$
|
10,230
|
Return on tangible common equity –
adjusted(4)(5)
|
|
11.0 %
|
|
15.1 %
|
|
18.8 %
|
|
14.5 %
|
|
19.6 %
|
(1) Average
amounts calculated using methods intended to approximate the daily
average balances for the period.
|
(2) Includes
imputed goodwill from investments in associates.
|
(3) Refer to
tables on pages 22 and 25-27.
|
(4) Calculated on
full dollar amounts.
|
(5) Prior period
has been restated to align with current period
calculation.
|
Adjusted productivity ratio
Adjusted productivity ratio represents adjusted non-interest
expenses as a percentage of adjusted total revenue. This is a
non-GAAP ratio. Management uses the productivity ratio as a measure
of the Bank's efficiency. A lower ratio indicates improved
productivity.
Adjusted operating leverage
This financial metric measures the rate of growth in adjusted
total revenue less the rate of growth in adjusted non-interest
expenses. This is a non-GAAP ratio.
Management uses operating leverage as a way to assess the degree
to which the Bank can increase operating income by increasing
revenue.
Adjusted effective tax rate
The adjusted effective tax rate is calculated by dividing
adjusted income tax expense by adjusted income before taxes. This
is a non-GAAP ratio.
Basis of preparation
These unaudited consolidated financial statements were prepared
in accordance with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board
(IASB) and accounting requirements of OSFI in accordance with
Section 308 of the Bank Act, except for certain required
disclosures. Therefore, these unaudited consolidated financial
statements should be read in conjunction with the Bank's audited
consolidated financial statements for the year ended October 31, 2023 which will be available today at
www.scotiabank.com.
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.
November 28, 2023
Shareholders Information
Direct Deposit Service
Shareholders may have dividends deposited directly into accounts
held at financial institutions which are members of the Canadian
Payments Association. To arrange direct deposit service, please
write to the transfer agent.
Shareholder 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.
Dividend Dates for 2024
Record and payment dates for common and preferred shares,
subject to approval by the Board of Directors.
Record
Date
|
Payment
Date
|
January 3, 2024
|
January 29,
2024
|
April 2,
2024
|
April 26,
2024
|
July 3, 2024
|
July 29,
2024
|
October 2,
2024
|
October 29,
2024
|
Annual Meeting Date for Fiscal 2023
Shareholders are invited to attend the 192nd Annual
Meeting of Holders of Common Shares, to be held on April 9, 2024, at Scotiabank Centre, Scotia
Plaza, 40 King Street West, 2nd Floor, Toronto, Ontario beginning at 9:00 a.m. Eastern. The record date for
determining shareholders entitled to receive notice of and to vote
at the meeting will be the close of business on February 13, 2024. Please visit our website at
https://www.scotiabank.com/annualmeeting for updates
concerning the meeting.
Duplicated Communication
Some registered holders of The Bank of Nova Scotia shares might receive more than one
copy of shareholder mailings. Every effort is made to avoid
duplication; however, if you are registered with different names
and/or addresses, multiple mailings may result. If you receive, but
do not require, more than one mailing for the same ownership,
please contact the transfer agent to combine the accounts.
Annual Financial Statements
Shareholders may obtain a hard copy of Scotiabank's 2023 audited
annual consolidated financial statements and accompanying
Management's Discussion & Analysis on request and without
charge by contacting the Investor Relations Department at (416)
775-0798 or investor.relations@scotiabank.com.
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
November 28, 2023, 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 9758737# (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 November 28, 2023, to January 4, 2024, by calling 905-694-9451 or
1-800-408-3053 (North America
toll-free) and entering the access code 1127377#. The archived
audio webcast will be available on the Bank's website for three
months.
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.
Telephone: 1-781-575-2000
Fax: 1-781-575-2044
E-mail: service@computershare.com
Street/Courier address:
C/O Shareholder Services
150 Royall Street, Canton, MA 02021
Mailing address:
PO Box 43078
Providence, RI 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.
The quarterly results conference call will take place on
November 28, 2023, 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 9758737# (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
SOURCE Scotiabank